What is real
is not external form.



CONSTANTIN BRANCUSI

Why are Geographical indications Important?

14.10.2020


A geographical indication refers to the inclusion of a place-of-origin sign on a product. A geographical indication also means that a product will have certain characteristics – or a particular reputation – linked to its place of origin. In addition, the inclusion of a geographical indication suggests that the product has a certain quality.

 

The Main Benefits of Geographical Indications

There are significant economic and financial impacts associated with the use of geographical indications on products. The featured geographical location benefits from short and long-term promotion. Local producers also benefit from the location being associated with a quality product, and the place therefore being less anonymous.

Local producers typically invest time and money into research and development to ensure that these products – which are often associated with long traditions – are of a high quality. By producing high-quality items, manufacturers thus ensure that their products have a long-lasting reputation. Geographical indications can therefore help consumers distinguish between high-end and low-end products. People tend to pay a higher amount of money for a high-end item, as they know that they will benefit from a much better product.

Opening up to International Markets

As products with geographical indications have better reputations, it is easier and more efficient for them to enter the market. Products with geographical indications are also able to enter the international market more quickly as they benefit from having a more developed brand. In this way, a geographical indication – by associating an item with a certain place – can help a product obtain a certain commercial value. Such products, which are regarded as having a premium feature, also benefit from entering the international market.

In addition, it should be noted that geographical indications can help consumers differentiate between products. Geographical indications give manufacturers the right to use distinguishing signs, thus differentiating their products from others on the market. When used properly, these exclusive signs can become an effective marketing tool – and can help manufacturers convey relevant information to consumers.

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