Brand News

Brands have another weapon to control their image, thanks to the U.S. Supreme Court.

The U.S. Supreme Court struck down a ban on minimum pricing agreements between manufacturers and retailers.

The decision shifts the balance of power to brands. Manufacturers now have the right to set minimum prices for their goods at retail.

The decision gives lower courts the leeway to determine, on a case-by-case basis, whether minimum pricing agreements are anticompetitive. Previously, such agreements were illegal on their face.
It will take time for the industry to feel out the boundaries of the new rule.

The ruling will give manufacturers a little more ammunition to pull their brands out of stores if the retailer starts discounting the line and hurting the image of the brand.

The ruling could make it easier for manufacturers to protect their most important assets, their brands. Manufacturers who want to maintain a certain brand image associated either with a certain price point or perhaps more importantly a certain retail experience, may now have latitude to set minimum retail price where they did not before.

Brands have another weapon to control their image, thanks to the U.S. Supreme Court.

The U.S. Supreme Court struck down a ban on minimum pricing agreements between manufacturers and retailers.

The decision shifts the balance of power to brands. Manufacturers now have the right to set minimum prices for their goods at retail.

The decision gives lower courts the leeway to determine, on a case-by-case basis, whether minimum pricing agreements are anticompetitive. Previously, such agreements were illegal on their face.
It will take time for the industry to feel out the boundaries of the new rule.

The ruling will give manufacturers a little more ammunition to pull their brands out of stores if the retailer starts discounting the line and hurting the image of the brand.

The ruling could make it easier for manufacturers to protect their most important assets, their brands. Manufacturers who want to maintain a certain brand image associated either with a certain price point or perhaps more importantly a certain retail experience, may now have latitude to set minimum retail price where they did not before.

WWD reports here, that Salvatore Ferragamo has signed a 13-year license to launch a luxury collection of timepieces.

The line will be launched in April at Baselworld, but an initial flash of two or three models will be available in about 80 stores in November.

The company will target 500 stores in 60 countries – including 200 Ferragamo boutiques – and expects retail sales of $195 million in five years.

50 percent of the company’s customers are Asian. And they will be even more numerous in the future, considering Asia as the countries from Istanbul to Siberia.

This is the first watch license for Ferragamo, although there was a previous production agreement with a very limited distribution.

The only other license the company has is for eyewear.

Ferragamo said the license was part of the new course of the family-owned firm, which has “evolved and entered into its third phase, with an IPO in the cards, probably next year, when we are ready. There is no rush, we want to reinforce the company and give freedom to the 60 family members to stay or leave.”

The watches will retail for between $1,300 and $6,500, with limited edition models with diamonds priced up to $39,000. One of the models shown at the presentation was a round travel clock in a stainless steel case retailing at $780.

The licensee has been expanding its luxury segment over the past three years, with the addition of timepieces for Versace in 2004, Vincent Bérard in 2006 and Valentino in January.

Ferragamo is on track with its retail strategy, with 30 boutiques planned to open this year, including seven in the U.S., six in China and three in Russia.

Im September bringt Levi’s in Lizenz ein Mobiltelefon auf den Markt. In der Pressenotiz hier spricht Levi’s von der “einzigartigen Idee” einer Kette zur Befestigung des Telefons an der Hose.
Uns erscheint weder die Idee noch die Kette einzigartig, aber vielleicht haben wir Details übersehen.

Offensichtlich aber ist, dass derzeit viele gute Qualitätsmarken auf diverse Züge aufspringen wollen: “Design ist die neue Kunst” oder “Innovation über alles”.

Einher geht dies oft mit der Aufgabe einer erfolgreichen Position: Qualität zahlt sich aus.

So waren Levi’s früher eine intelligente Anschaffung, weil sie bei doppeltem Preis fünfmal so lange hielten. Heute kauft man besser keine Levi’s mehr. Neben schlechter Passform und hohen Preisen zeichnen sie sich vor allem durch eine kurze Lebensdauer aus.

Wer sich vom Markenanbieter für Qualitätsbekleidung zum Modeunternehmen entwickelt, der riskiert, irgendwann auch mal aus der Mode zu sein.

Vor einigen Wochen führte Roberto Cavalli in den USA einen Luxus Wodka für $70 die Flasche ein. Auch wenn Wodka seit einiger Zeit groß in Mode ist, erscheint die Markendehnung etwas weit hergeholt. Auch fragt man sich, wo genau die Verbindung von Italien und Wodka liegt.

Nun kooperiert derselbe Roberto Cavalli mit H&M und entwickelt eine Kollektion für den vertikalen Massenanbieter wie vor ihm Karl Lagerfeld und Stella McCartney.

Es ist zwar bekannt, dass H&M nur Mini-Auflagen dieser Kollektionen in die Läden bringt und es sich mehr um PR als echte Mode handelt. Karl Lagerfeld war mehr als enttäuscht über die wenigen Royalties.
Aber der Lizenznehmer des Wodkas wird über den PR Stunt wenig erfreut sein, erschwert es ihm doch die Argumentation von ultra-premium sehr.