03 July 2007 3 min

SA retail giants in perfume pricing stink

Written by: Dis-Chem Pharmacies Save to Instapaper
{pp}Retail price management, or price-fixing as it more commonly known, is rife in South Africa. Large department stores are effectively controlling not only the price of fine perfumes, but where you can actually purchase them.
Dis-Chem Pharmacies in South Africa has long been seen as a true consumer champion and its MD, Ivan Saltzman, has decided to open the can of worms that is Retail Price Maintenance, as he did for the discounting of prescription medicine before Government intervention.“Horton Distributors, distributors of Estee Lauder (Pleasures, Beautiful, Youth Dew), Clinique, DKNY (Be Delicious) and Aramis, as well as the distributors of Elizabeth Arden (Red Door) in South Africa have basically been pressurised by large SA department stores not to sell perfume or cosmetics to Dis-Chem. We have been prevented from buying stock from them", Says Saltzman.In order to fight this discriminatory behaviour, Dis-Chem have started parallel importing fine perfumes and cosmetics from authorised agents overseas, completely bypassing the SA distributors, whilst making new friends and many enemies along the way. Mr Saltzman is unrepentant."The very same perfumes you buy at large department stores are sold at Dis-Chem for up to 50% less. We believe that a true consumer champion ensures that customers receive the goods that they want at the best possible price".Parallel importing is entirely legal, the Consumer Affairs Act allowing for such imports on condition that the proper notice is provided to the public, which Dis-Chem fully complies with. In addition, the Consumer Affairs Committee of the DTI has recognised that parallel imported goods have a legitimate role to play.Whilst obviously unable to do very much about Dis-Chem's position, and in an attempt to prevent Dis-Chem from doing their own imports, Estee Lauder South Africa’s attorneys have threatened Dis-Chem with legal proceedings, insisting that Dis-Chem are infringing their copyright on the Clinique cosmetic range. Mr Saltzman has indicated that: “should such action be brought, Dis-Chem will contest this, and will not be bullied into accepting an outcome which is bad for consumers and undermines free trade”Contact DetailsIvan SaltzmanDis-Chem Pharmacies011 708 9500ivan@dischem.co.za
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