FRENCH CONNECTION FIRST TO END GREY MARKET STAND-OFF

FRENCH CONNECTION FIRST TO END GREY MARKET STAND-OFF ASDA Partnership Marks Beginning Of End For Brand-Supermarket Battles In a landmark move, Inspecs, licence holder for top fashion brand French Connection and fcuk, has agreed to provide ASDA Vision Centres with official supplies of its branded spectacle frames which go on sale tomorrow (17 April) from only £58.00. Until now ASDA has been forced to resort to the so-called 'grey market' for branded goods, with top brand names refusing to supply supermarkets claiming the 'ambience' of its stores doesn't meet pre-defined guidelines. However, the ASDA Vision Centre format has enabled Inspecs to turn on official supplies, based on the quality of the outlets and high professional service. Inspec's move marks a significant change in the attitude of forward thinking brand owners, heralding better prices for top name goods. And with similar deals expected, it also marks the beginning of new partnerships in which brands recognise supermarkets as the new department stores of the 21st century. Under the deal, ASDA will price the products to meet customers' expectations - at around a third below typical high street prices. The frames - over 50 of the very latest styles - reflect the lower prices already available on other grey market spectacle brands at its vision centres. But sourcing officially now ensures ASDA can keep specific styles and models in stock, without the unreliability of the grey market. It also ensures the brand is fully and properly represented. For its part, ASDA has invested almost £20m in rapidly establishing a 39- strong network of high quality vision centres, fitted out with the very latest equipment and run by fully qualified ophthalmic opticians, on a par with the best on the high street. ASDA expects to have 81 vision centres open by the end of 2002, making it the sixth largest chain of opticians in the UK. "It's time to put past battles behind us and find win-win partnerships for brands and customers alike," said ASDA's Optical Development Director Nigel Murray. "The fcuk and French Connection eyewear lines are brand leaders within the optical industry and we're delighted to be able to offer them to customers. We believe our new partnership with Inspecs will be the first of many over the coming months - giving brand owners full access to the most dynamic sector of British retailing and providing shoppers with the best quality products at the lowest prices." more... Page 2 of 2 - French Connection First To End Grey Market Stand Off The superstore is already in advanced negotiations to bring official supplies of other branded products to ASDA vision centres. In the meantime, it will continue to stock products to supplement its ranges from the network of distributors and wholesalers that make up the grey market. -ends- Further Information: Nick Agarwal, 0113 241 7112 Out of hours, 0113 243 5435 Editors' Notes French Connection Frames · ASDA will sell over 50 French Connection and fcuk frames. fcuk unisex frames will be prices at £58.00 (typical high street price from £70); French Connection unisex frames at £78.00 (typical high street price from £100) and the titanium version at £98.00 (typical high street prices from £140). · As well as a growing range of frames, ASDA Vision Centres also offer a full ophthalmic optical service including contact lens fitting, and eye testing at ASDA prices. ASDA Vision centres are run by fully qualified ophthalmic and dispensing opticians. · Price differentials between ASDA Vision Centres and typical high street outlets are significant with some services, such as contact lens assessments, provided at no charge. ASDA Vision Centre Locations England Barnsley Birchwood Brighton Bristol Chadderton (Hollingbury) Patchway Corby Crewe Derby Eastbourne Eastleigh Farnborough Greenhithe Havant Horwich Hull Hessle Hyde Ipswich Isle Of Dogs Killingbeck Leamington Spa (Leeds) Leicester Leyton Park Mansfield Minworth Nuneaton (W Midlands) Peterlee Pilsworth Preston Pudsey Rotherham (Bury) (Fulwood) (Leeds) Scunthorpe Sefton Park Southport Swindon Haydon Wales Cwmbran Scotland Dundee Kirkcaldy Portlethen Maryhill Milton (Glasgow) Grey Market · Grocery chains in Europe have sought the right to import designer goods from around the world and sell them at discount prices to UK customers. The brands argue that buying its products from suppliers abroad and then reselling them at cut-down prices without its permission is breaking the law. · Under the EU's trademark rules, any company can import branded goods from another EU country for sale in the UK, even without the manufacturer's agreement. But the rules do not usually allow goods to be imported from a non-EU country without permission. · In November 2001, the Advocate General of the European Court of Justice, ruled against Tesco in its battle with jeans manufacturer Levi, arguing that the right of brand owners to protect their trademarks was greater than the right of retailers to sell at lower prices. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/04/16/20020416BIT00980/wkr0001.doc http://www.waymaker.net/bitonline/2002/04/16/20020416BIT00980/wkr0002.pdf