According to Reuters (Fendi sues Wal-Mart over fake handbags) luxury brand Fendi (owned by LVMH) has gone legal on Wal-Mart for selling fake goods in its stores.The allegations if proven true open a can of worms for the Edelman team who work at spinning to keep Chairman Sam’s republic from further reputation damage:
- Wal-Mart is known for beating the cost down on goods, is there no end that the Bentonville Bandits will go to?
- How much counterfeit goods have they been selling?
- What about the breech of faith with customers who purchased the bags as the genuine article?
This will add grist ot the mill of brand owners fighting grey market imports and maintaining market differentiated pricings. This could disadvantage the case of etailers and non-licenced retailers everywhere.The case also allows Wal-Mart detractors to discuss the companies market power abuses including:
- Poor staff treatment
- Negative economic impact on local economies
- Negative impact on supplier businesses and the US economy