Price Tag Triggering Delicate Litigation, Luxury Brands Rely On Outlets

In fact, many luxuries have products specially sold by outlets. RalphLauren and Gap have also faced similar prosecutions.

People are easily tempted by discounts. Maybe we don't need a dress or a bag, but because the discount is very strong, we still can't help buying it. It always feels like this is a big profit. But is that really true?

The latest report by the Bank of Paris wrote that luxury companies' dependence on outlets is like that of a drunk who can not resist the temptation of whisky. Many luxury brands offer exclusive sales of goods to outlets, which is like "building a sub card without saying a word". The expansion of sales also puts the brand under the pressure of devaluation.

The latest report of Paris bank on the dependence of luxury brands on outlets

Although the old luxury luxury company Coach is gradually closing its flag. Shopping center shop To remove the brand Logo of outlets, trying to rebuild its brand image; its competitor, MichaelKors, is still expanding its outlets and retail stores.

　　 Michael Kors Last year, a consumer price fraud lawsuit came into effect, and finally reached a settlement of $4 million 880 thousand.

Consumer TressaGattinella sued MichaelKors at Camarillo outlets in California, KorsOutlet, claiming that its sale of "SideAnklez" used the "manufacturer's suggested retail price" (manufacturer ssuggestedretailprice), and "our price" (ourprice) to entice consumers to buy. The price tag for MSRP is $120, and ourprice is $99.99 (down to $79.99). In fact, MichaelKors Exclusive shop The store has never sold the "SideAnklez" at the so-called "manufacturer's suggested retail price" of 120 dollars, that is to say, this "SideAnklez" is available only in KorsOutlet. TressaGattinella thinks the $120 "manufacturer's suggested retail price" deceives consumers.

As part of the reconciliation, MichaelKors said it would replace the "MSRP" label with the "Value" tag.

Last year, four members of the United States Congress jointly wrote to the Federal Trade Commission (USFederalTradeCommission), claiming that most of the commodities sold in outlets were not "inventory backlog" or "slightly damaged products", but those produced exclusively by outlets, whose quality standards were lower than full price products. Luxury goods companies try to tag consumers on these goods, but they never reach the standards of brand stores. In a letter, members of Congress said it was a "deceptive and unfair" act.