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1、TROUSERSUIT TheEuropeanCourtsideswithLeviStraussinitsbattlewithTesco ITWASarulingthathadconsumersseethingwithangerandmanyafreetradercryingfoul.OnNovember20ththeEuropeanCourtofJusticedecidedthatTesco,aBritishsupermarketchain,shouldnotbeallowedtoimportjeansmadebyAmerica''sLevi
2、StraussfromoutsidetheEuropeanUnionandsellthematcut-ratepriceswithoutgettingpermissionfirstfromthejeansmaker.Ironically,therulingisbasedonanEUtrademarkdirectivethatwasdesignedtoprotectlocal,notAmerican,manufacturersfrompricedumping.Theideaisthatanybrand-owningfirmshouldbeallowe
3、dtopositionitsgoodsandsegmentitsmarketsasitseesfit:Levi''sjeans,justlikeGuccihandbags,mustbeallowedtobeexpensive. LeviStrausspersuadedthecourtthat,bysellingitsjeanscheaplyalongsidesoappowderandbananas,Tescowasdestroyingtheimageandsothevalueofitsbrands――whichcouldonlyleadtoles
4、sinnovationand,inthelongrun,wouldreduceconsumerchoice.ConsumergroupsandTescosaythatLevi''scaseisspecious.ThesupermarketarguesthatitwasjustarbitragingthepricedifferentialbetweenLevi''sjeanssoldinAmericaandEurope――aserviceperformedamilliontimesadayinfinancialmarkets,andonethatha
5、sledtorealbenefitsforconsumers.Tescohasbeensellingsome15,000pairsofLevi''sjeansaweek,forabouthalfthepricetheycommandinspecialiststoresapprovedbyLeviStrauss.ChristineCross,Tesco''sheadofglobalnon-foodsourcing,saystherulingriskscreatingaFortressEuropewithavengeance. Thedebatewi
6、llrageon,andhasimplicationswellbeyondcasualclothes(LeviStrausswasjoinedinitslawsuitbyZinoDavidoff,aperfumemaker).Thequestionatitsheartisnotwhetherbrandsneedtocontrolhowtheyaresoldtoprotecttheirimage,butwhetheritisthejobofthecourtstohelpthemdothis.Gucci,anItalianclotheslabelwho
7、seimagewasbeingdestroyedbylooselicensingandover-exposureindiscountstores,saveditselfnotbyresortingtothecourtsbutbyendingcontractswiththird-partysuppliers,controllingitsdistributionbetterandopeningitsownstores.Itisnowhardtofindcut-priceGuccianywhere. BrandexpertsarguethatLeviS
8、trauss,whichhasbeenlosingmarketsharetohipperrivalssuchasDiese