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1、TROUSERSUIT TheEuropeanCourtsideswithLeviStraussinitsbattlewithTesco ITWASarulingthathadconsumersseethingwithangerandmanyafreetradercryingfoul.OnNovember20ththeEuropeanCourtofJusticedecidedthatTesco,aBritishsupermarketchain,shouldnotbeallowedtoimportjeansmadebyAm
2、erica''sLeviStraussfromoutsidetheEuropeanUnionandsellthematcut-ratepriceswithoutgettingpermissionfirstfromthejeansmaker.Ironically,therulingisbasedonanEUtrademarkdirectivethatwasdesignedtoprotectlocal,notAmerican,manufacturersfrompricedumping.Theideaisthatanybrand-
3、owningfirmshouldbeallowedtopositionitsgoodsandsegmentitsmarketsasitseesfit:Levi''sjeans,justlikeGuccihandbags,mustbeallowedtobeexpensive. LeviStrausspersuadedthecourtthat,bysellingitsjeanscheaplyalongsidesoappowderandbananas,Tescowasdestroyingtheimageandsothevalue
4、ofitsbrands――whichcouldonlyleadtolessinnovationand,inthelongrun,wouldreduceconsumerchoice.ConsumergroupsandTescosaythatLevi''scaseisspecious.ThesupermarketarguesthatitwasjustarbitragingthepricedifferentialbetweenLevi''sjeanssoldinAmericaandEurope――aserviceperformed
5、amilliontimesadayinfinancialmarkets,andonethathasledtorealbenefitsforconsumers.Tescohasbeensellingsome15,000pairsofLevi''sjeansaweek,forabouthalfthepricetheycommandinspecialiststoresapprovedbyLeviStrauss.ChristineCross,Tesco''sheadofglobalnon-foodsourcing,saystheru
6、lingriskscreatingaFortressEuropewithavengeance. Thedebatewillrageon,andhasimplicationswellbeyondcasualclothes(LeviStrausswasjoinedinitslawsuitbyZinoDavidoff,aperfumemaker).Thequestionatitsheartisnotwhetherbrandsneedtocontrolhowtheyaresoldtoprotecttheirimage,butwhe
7、theritisthejobofthecourtstohelpthemdothis.Gucci,anItalianclotheslabelwhoseimagewasbeingdestroyedbylooselicensingandover-exposureindiscountstores,saveditselfnotbyresortingtothecourtsbutbyendingcontractswiththird-partysuppliers,controllingitsdistributionbetterandopen
8、ingitsownstores.Itisnowhardtofindcut-priceGuccianywhere. BrandexpertsarguethatLeviStrauss,whichhasbeenlosingmarketsharetohipperrivalssuchasDiese
