Wal-Mart gutsy or just plain dumb?
July 8th, 2006
vs. 
Today I saw an article on LVMH from BusinessWeek by Pallavi Gogoi. It is titled Wal-Mart’s Luxury Problem. I’ve been paying more attention to LVMH since my friend Katy started working there for Moet Hennesey. For those who don’t know LVMH is the luxury brand company that owns Louis Vuitton, Fendi, Givenchy, Marc Jacobs etc… For you women out there who love purses, you know who LVMH is.
The short of it is Wal-Mart is being sued by LVMH for carrying counterfit Fendi’s at its Sam’s Club store. Most people trust a large store such as Sam’s Club or Wal-Mart to carry discounted versions of the same products found for full price elsewhere. Hence we as consumers do not question products found at these stores.
It turns out that we should be questioning why Sam’s Club or Wal-Mart is so much cheaper for these luxury brands. LVMH claims that they are fakes, hence the cheap price. IF I was a fan of the Waltons and IF this is the first time this has ever happened to the poor unsuspecting Wal-Mart buyers, I would say Wal-Mart is plain dumb.
However, history shows that this has happened to them in the past, and the executives have even allowed it to continue happening until the court decided its case despite an injunction. What does it mean? Wal-Mart has “chutz-pah” or guts.
You decide, dumb or gutsy.
Entry Filed under: Business, Editorial, Uncategorized
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