Further supplementary memorandum submitted
by TESCO
Which companies produce guidance on recommended
retail price?
Most companies show "RRP" or "Suggested
Price" in their trade catalogues and this serves to highlight
the real difference in the price of goods between US and Europe,
and within the EU.
Some companies vary styles slightly between
country to offset this and make price comparisons more difficult.
Below are given some comparative prices with
catalogue pages from the Adidas and Nike brochures copied.
| 1. | Adidas
| 3 stripe fleece pant | |
UK RRP | £28.00 |
| | |
| Denmark Cons. Price | £26.86
|
| | 3 stripe polo top
| | UK RRP | £22.00
|
| | |
| Denmark Cons. Price | £20.89
|
| 2. | Nike | Air Terra Sebec
| | US Rec. Retail | $60.00
|
| | |
| UK Rec. Retail | £50.00
|
| 3. | CK Fall '98 | Cotton Classics U/W
| | | |
| | Style 24B001 Bikini
| A | US Rec. Retail | $8.00 (£4.93)
|
| | 24B002 String
| C | UK Rec. Retail | £8.50
|
| | 24B003 HiLeg
| A | | |
| | Style 24B005 Soft Cup Bra
| | US Rec. Retail | $12.00 (£7.40)
|
| | |
| UK Rec. Retail | £12.00
|
The volume of brands available in Europe on the parallel market
does not provide a sufficient pool to satisfy consumer demand.
How frequently does Tesco source from other European countries?
Are the price differences between American branded goods supplied
to other EU countries and the UK sufficient to warrant parallel
importing?
All product is currently being sourced from Europe for sale
in the UK.
However, volumes are small, meaning that supplies have to
be consolidated and this gives rise to a further level of diligence
in order to ensure traceability.
American goods supplied to other EU countries would rarely
be worth paralling. For example, Ralph Lauren (American branded
products) are almost impossible to source in Europe at reasonable
prices. In contrast "European" brands, eg, Calvin Klein
are relatively easy to source in Europe. This said prices are
still higher than in the US.
| In general designer brands are | c. 30-35 per cent cheaper in the US than UK
|
| c. 20-25 per cent cheaper in Europe than UK
|
| In general sports brands are | c. 20-25 per cent cheaper in the US than UK
|
| c. 10-15 per cent cheaper in Europe than UK
|
20 May 1999
| 
