09-21-2007, 06:36 AM
quote:
the article focused on levi jeans, showing that in order to make the walmart model work levi (instead of providing walmart with their standard jean) went to china, set up a new factory, and made their own cheap knock-offs in order to provide walmart with a jean that has the levi branding but is cheap enough to meet the strict walmart pricing model.
But, this has always been their model, consumers choose to ignore it. They believe that what they buy from Wal-Mart is the exact same thing they have to spend more for at another store. Look at the Fendi fiasco. What consumer in their right mind (if they let just one brain cell fire) would think that they were getting an original Fendi bag for what they were buying it at a Wal-Mart? Just the material alone at deep discount wholesale prices would cost as much as the finished product Wal-Mart was selling.
American consumers are for the most part cheap, they buy on price and these stores are just catering to that lowest denominator. But Wal-Mart acts like they were the victim of some scam and should not be held accountable.