SRM´s Independent Study Suggests American Brands Are at a Premium in Europe

The dollar is at an all-time low. Good news for the European
consumer: This Christmas they can buy American products at very
attractive prices... Amazingly enough this is not the case. Max
Kohnstamm, Marketing Professor at the International Business Studies
Department of the HES School of Business in Amsterdam conducted a
research study on prices between American and European websitestores.
The average price difference was between 75% and 90% and cannot be
explained by differences in webshop policies, as is shown in an
example from Amazon.com.

-0-
*T
Average price Average price Average price
difference between difference between difference
Amazon France and Amazon UK and between Amazon
Amazon USA Amazon USA Germany and
Amazon USA

A selection 80% more expensive 93% more expensive 85% more
of 25 to 30 in France in the UK expensive in
American Germany
products
suitable as
Christmas
gifts
*T

The research compares prices of American brands (like Calvin
Klein, DKNY, Fisher Price) consumers would like to give or receive for
Christmas.

Despite these differences European consumers are not massively
ordering Christmas presents in American webstores, simply because it
is impossible in most cases for Europeans to order an American brand
on an American website. Only books and DVD´s will be delivered outside
the USA. European trade mark legislation gives the owner of a brand
the power to prohibit parallel imports from the USA to Europe.

Max Kohnstamm: "Strangely enough it is European law that enables
American brands to maximize their profits in Europe. By not changing
the trade mark legislation the European Commission is missing a unique
opportunity to win over support from European consumers."

Full report at http://www.srm.nl/study_19_december.doc