Mais conteúdo relacionado Semelhante a LUXURY SUPPLY CHAIN & COMPETITION LAW (20) Mais de CONSULTANTITRUST Arnaud FOURNIER (20) LUXURY SUPPLY CHAIN & COMPETITION LAW2. Extract
of
a
more
global
presenta2on
«
Towards
the
Pursuit
of
Op2mal
Legal
protec2on
of
the
Integrity
of
Selec2ve
Distribu2on
Networks
in
the
Luxury
Brands
Sector
(Trademark
&
compe22on
law)»
Compe&&on
law
is
very
involved
in
each
stage
of
the
supply
chain
–
and
par&cularly
in
luxury
industry.
o Merger
(100%)
o Acquisi2on
of
minority
stake
o Joint-‐venture,
etc.
o Exclusive
supplying
contracts
o Selec2ve
distribu2on
o Exclusive
distribu2on,
etc.
o Technical
use
of
compe22on
law
to
slow
down
parallel
imports,
etc.
Developments
on
demand.
w w w . c o n s u l t a n 2 t r u s t . e u
©
4. Extract of the intervention
(...)
For
lawyers,
the
role
of
supply
chain
in
the
luxury
industry
is
to
create
op2mal
condi2ons
that
will
allow
the
company
to
build
a
strong
brand
AND
to
transform
gradually
the
brand
as
a
"legend"
and
thus
bring
the
company
well
above
of
its
compe2tors.
In
the
field
of
Luxury,
…Supply
Chain
has
then
a
fundamental
role
!
For
lawyers,
there
are
two
main
types
of
supply
chain
strategy
:
Lean
and
Agile
-‐
Lean
means
…“Eliminate
waste
and
reduce
costs”
-‐
Agile
means
…“Quality,
speed,
responsiveness
and
flexibility”
It
is
well
understood
that
this
latest
strategy
had
been
adopted
long
2me
ago
by
the
luxury
industry
!
(…)
5. Appropriate
ac2on
in
the
SC
Upstream
&
Downstream
Make
efforts
to
be
supplied
with
the
best
products
available
for
manufacturers
to
create
luxury
products
First-‐Best
SOLUTIONS
-‐ Full
acquisi2on
of
suppliers
(Ex.
100%
of
FRANCE
CROCO
by
KERING
for
crocodile
skin)
©
7. Appropriate
ac2on
in
the
SC
Upstream
&
Downstream
Make
efforts
to
be
supplied
with
the
best
products
available
for
manufacturers
to
create
luxury
products
First-‐Best
SOLUTIONS
-‐ Full
acquisi2on
of
suppliers
(Ex.
100%
of
FRANCE
CROCO
by
KERING
for
crocodile
skin)
-‐ Minority
stake
of
suppliers
(Ex.
HERMÈS
acquisi2on
of
39%
of
PERRIN
for
silk
supplying)
-‐ Joint
Venture
with
suppliers
(Ex.
LVMH
&
DE
BEERS
for
diamonds
Supplying)
©
8. Extract of the intervention
(…)
For
example
cashmere
supplying
is
very
concentrated
in
China
and
Mongolia
–
(for
example
ERDOS
hold
40
%
of
market
share).
If
you
need
to
protect
you
as
a
manufacturer
against
poten2al
abuses
(for
example
discrimina2on
in
prices,
supply
delays
bigger
than
for
other,
refusal
to
supply,
bundling
or
tying
the
supply
of
cashmere
with
other
luxury
raw
materials
like
silk,
etc.)
you
can
use
the
compe22on
law
to
put
an
end
to
these
behaviours.
An
other
and
very
recent
example
is
the
problem
luxury
watch
manufacturers
had
faced
for
the
supplying
of
mechanical
movements
and
hair
springs
(very
necessary
parts
of
luxury
watches).
The
Swatch
group
hold
between
70
and
90
%
of
the
market
for
these
parts.
But
the
Swatch
group
also
hold
luxury
watch
brands
like
BREGUET
and
BLANCPAIN.
You
can
then,
easily,
imagine
the
problems
that
arose
the
day
Swatch
group
decided
to
lower
its
produc2on
(in
June
two
thousand
eleven).
Compe22on
law
had
been
the
best
tool
for
other
manufacturers
to
avoid
upstream
problems
of
this
kind
for
the
supply
chain.
This
is
probably
the
reason
why
LVMH
decided
to
acquire
LA
FABRIQUE
DU
TEMPS
(two
thousand
eleven)
to
be
fully
autonomous
on
mechanical
movements
for
CHAUMET
or
BULGARI.
This
is
one
of
the
first-‐best
solu2on
we
have
men2onned
hereabove.
One
month
ago
they
succeed
to
put
back
the
deadline
considered
by
Swatch
group
to
lower
its
produc2on
and
avoid
any
discrimina2on
between
luxury
watch
manufacturers
in
the
future.
©
9. Appropriate
ac2on
in
the
SC
Upstream
&
Downstream
Make
efforts
to
be
supplied
with
the
best
products
available
for
manufacturers
to
create
luxury
products
First-‐Best
SOLUTIONS
Second-‐Best
SOLUTIONS
-‐ Full
acquisi2on
of
suppliers
(Ex.
100%
of
FRANCE
CROCO
by
KERING
for
crocodile
skin)
-‐ Use
of
tradi2onnal
contract
law
-‐ Minority
stake
of
suppliers
(Ex.
HERMÈS
acquisi2on
of
39%
of
PERRIN
for
silk
supplying)
-‐ Joint
Venture
with
suppliers
(Ex.
LVMH
&
DE
BEERS
for
diamonds
Supplying)
in
conjunc&on
with
-‐ Compe22on
law
(Ex.
Exclusive
supplying
contracts)
(Ex.
avoid
abuse
of
dominance
by
monopolists
suppliers
or
oligopole)
(cf.
for
exemple
cashmere
for
apparel
or
mechanical
movements
and
hair
springs
in
luxury
watches)
©
10. Appropriate
ac2on
in
the
SC
Upstream
&
Downstream
Make
efforts
to
best
distribute
luxury
products
from
manufacturers
to
final
customers
First-‐Best
SOLUTIONS
-‐ Direct
ownership
of
distributors
(Ex.
460
mono-‐brand
LVMH
points
of
sale)
-‐ Direct
ownership
of
distributors
(Ex.
mul2-‐brand
department
stores
–
Le
Bon
Marché)
-‐ Franchise
(Ex.
Luxury
grocery
markets
or
HERMÈS
in
the
north
of
Italy
since
few
months
ago.)
©
11. Appropriate
ac2on
in
the
SC
Upstream
&
Downstream
Make
efforts
to
best
distribute
luxury
products
from
manufacturers
to
final
customers
First-‐Best
SOLUTIONS
Second-‐Best
SOLUTIONS
-‐ Direct
ownership
of
distributors
(Ex.
460
mono-‐brand
LVMH
points
of
sale)
-‐ Exclusive
distribu2on
(Ex.
BENTLEY
or
ROLLS-‐ROYCE)
-‐
Selec2ve
distribu2on
(Ex.
Perfumes
and
cosme2cs)
-‐
Internet
(Ex.
CARTIER)
-‐ Direct
ownership
of
distributors
(Ex.
mul2-‐brand
department
stores
–
Le
Bon
Marché)
-‐ Franchise
(Ex.
Luxury
grocery
markets
or
HERMÈS
in
the
north
of
Italy
since
few
months
ago.)
©
12. Appropriate
ac2on
in
the
SC
Upstream
&
Downstream
Make
efforts
to
best
distribute
luxury
products
from
manufacturers
to
final
customers
First-‐Best
SOLUTIONS
Second-‐Best
SOLUTIONS
-‐ Direct
ownership
of
distributors
(Ex.
460
mono-‐brand
LVMH
points
of
sale)
-‐ Exclusive
distribu2on
(Ex.
BENTLEY
or
ROLLS-‐ROYCE)
-‐
Selec2ve
distribu2on
(Ex.
Perfumes
and
cosme2cs)
-‐
Internet
(Ex.
CARTIER)
-‐ Direct
ownership
of
distributors
(Ex.
mul2-‐brand
department
stores
–
Le
Bon
Marché)
-‐ Franchise
(Ex.
Luxury
grocery
markets
or
HERMÈS
in
the
north
of
Italy
since
few
months
ago.)
BUT…
RISKS
OF
©
OF
PARALLEL
IMPORTS
13.
©
Appropriate
ac2on
in
the
SC
Upstream
&
Downstream
PARALLEL
IMPORTS
14. Extract of the intervention
(…)
As
you
probably
know,
these
parallel
imports
can
have
direct
or
indirect
financial
and
image
consequences
for
your
luxury
houses
(…)
.
For
example
and
from
a
financial
point
of
view,
it
is
well
known
that
luxury
products
are
a
kind
of
Giffen/Veblen
products.
This
is
products
for
which
a
rise
in
price
of
this
product
makes
people
buy
even
more
of
the
product.
BUT
at
the
opposite
a
lowering
of
the
price
could
lessening
the
demand
for
the
product.
This
is
the
risks
parallel
imports
causes.
The
prices
dropping,
the
status
will
drop,
the
demand
will
follows
this
drop.
The
second
reason
is
that,
from
an
image
point
of
view,
uncontrolled
parallel
imports
can
have
straight
consequences
as
seing
the
luxury
products
being
sell
on
the
same
shelves
that
“ordinary”
products.
Can
you
imagine
gondola
shelves
with
your
caviar
in
Pam
supermarkets
near
the
private
label
Tesori
pasta
?
Or
can
you
imagine
an
adver2sing
for
discounted
drills
and
luxury
perfumes
on
the
same
page
?
Usually
distributors
use
luxury
products
as
“alrac2on
products”
and
do
not
care
of
the
environment
and
image
respect
of
the
luxury
products.
This
is
the
risks
parallel
imports
causes
because
you
cannot
control
the
distributor
by
contract.
If
you
want
to
fight
against
these
risks
from
parallel
imports
(…)
©
15.
Appropriate
ac2on
in
the
SC
Upstream
&
Downstream
A. Create
discrimina2on
by
price
to
nullify
the
price
gaps
between
2
countries,
B. Set
up
temporary
price
fixings,
C. Offer
different
kinds
of
products
for
each
zone
delivered
to
avoid
at
maximum
parallel
imports,
D. Generate
financial
loan
schemes
to
distributors
or
wholesalers
under
condi2ons
of
insights
about
sales,
©
With
due
respect
of
Compe22on
law
16.
Appropriate
ac2on
in
the
SC
Upstream
&
Downstream
A. Create
discrimina2on
by
price
to
nullify
the
price
gaps
between
2
countries,
B. Set
up
temporary
price
fixings,
C. Offer
different
kinds
of
products
for
each
zone
delivered
to
avoid
at
maximum
parallel
imports,
D. Generate
financial
loan
schemes
to
distributors
or
wholesalers
under
condi2ons
of
insights
about
sales,
E. Consider
a
limita2on
of
supplying
(in
quan2ty)
to
the
distributor
or
the
wholesaler
suspected
of
diver2ng
products,
F. Plan
a
Refusal
to
deliver
a
distributor
or
a
wholesaler
you
suspect
to
be
part
of
a
parallel
importa2on
scheme,
or
G. Formulate
referral
policies
and
pass-‐over
payments
©
With
due
respect
of
Compe22on
law