The Wholesale Forums

[londonking]

A row between high-street chemist Boots and premium haircare brand Paul Mitchell has cast the spotlight back on the murky world of so-called 'grey market' goods.
Boots has begun to sell Paul Mitchell products in its flagship stores, to the annoyance of the brand's distributor, Salon Success, which wants them stocked in select hairdressers only. Boots obtained the goods from an unnamed supplier, without permission from Salon Success, and the spat now appears to have reached deadlock.

Some recent cases:-


2007 - Tesco obtained unofficial stocks of Procter & Gamble's Eukanuba specialist pet food. The decision angered P&G, which supplied Eukanuba exclusively to pet shops and vets' surgeries.

2007 - Football clubs have had many spats over the years with supermarkets that have sourced replica kits from the grey market and sold them below the recommended retail price. Most recently Umbro refused to supply Asda, leaving the supermarket threatening to seek its products elsewhere.

2002 - Levi's and Tesco spent three years in court debating the retailer's right to sell the brand, before arriving at a final decision in July 2002. In the end the European Court of Justice ruled in favour of the jeans brand.

2001 - French Connection fell out with Asda, which had started to sell grey market FCUK goods. Months later, however, FCUK made a dramatic reversal and agreed to supply the supermarket after all.

[Robert_Brewster]

Good article

[RWA]

There is a problem here, why don't these distributors work with the supermarkets instead of against them?

Salon Success would come out of this smelling or roses if they did a deal with Boots.

It's great trying to produce an exclusive product, but into today's financial climate, why not open the products up to more people? It's a win-win situation for both parties.

[mickster505]

Interesting read - I remember getting some levis for £20 from Asda - although they were slightly different to normal ones and lacked the red tag so were probably not authentic!

[nocturnal]

Originally Posted by RWA

There is a problem here, why don't these distributors work with the supermarkets instead of against them?

Salon Success would come out of this smelling or roses if they did a deal with Boots.

It's great trying to produce an exclusive product, but into today's financial climate, why not open the products up to more people? It's a win-win situation for both parties.

I guess they don't think so, seen as degrading the brand long term probably.

[RWA]

Wouldn't it be wiser for Salon Success to be contacting this nameless supplier to see why they supplied Boots?

[cpc]

Originally Posted by londonking

A row between high-street chemist Boots and premium haircare brand Paul Mitchell has cast the spotlight back on the murky world of so-called 'grey market' goods.
Boots has begun to sell Paul Mitchell products in its flagship stores, to the annoyance of the brand's distributor, Salon Success, which wants them stocked in select hairdressers only. Boots obtained the goods from an unnamed supplier, without permission from Salon Success, and the spat now appears to have reached deadlock.

Same thing happen here about three months ago. The Ed hardy lawyers were able to remove there clothing line from all Rxxl stores through out Germany. Sorry for the xx but I do not know if I could mention there name.

[Ultravox]

Originally Posted by RWA

There is a problem here, why don't these distributors work with the supermarkets instead of against them?

Salon Success would come out of this smelling or roses if they did a deal with Boots.

It's great trying to produce an exclusive product, but into today's financial climate, why not open the products up to more people? It's a win-win situation for both parties.

I disagree. If you've built up a brand which exudes exclusivity and relies on this, you won't want your products being found in super markets.
For example, those who shop regularly at places like Selfridges/House of Fraser/Harrods want to buy exclusive or designer brands that are limited to a 'higher class' of shop.
I love Diesel and get it from House of Fraser but if it began selling in Tesco, I'd certainly be turned off.

[Beneddie1112]

Originally Posted by Ultravox

For example, those who shop regularly at places like Selfridges/House of Fraser/Harrods want to buy exclusive or designer brands that are limited to a 'higher class' of shop.
I love Diesel and get it from House of Fraser but if it began selling in Tesco, I'd certainly be turned off.

Too true, it's the same reason a lot of brands don't like their stuff being sold on eBay.