New luxury goods platform could fall foul of brands
21/11/2018
It has said this members-only marketplace, which requires a $120 annual subscription fee, will sell unbranded luxury goods, including bags, wallets and leather jackets, made at the same factories used by a number of leading brands.
At the time of the launch of its platform, Italic said that by cutting the brand out of the supply chain it enables manufacturers to earn “significantly higher profits” while also passing on “significant savings” to consumers without compromising on quality.
Italic has said it carefully vets each manufacturer according to tight standards for production, working conditions, quality control practices, craftsmanship and sustainability.
Jeremy Cai, founder and CEO of Italic, said: “When you buy brand-name products, the majority of what you actually pay for is the marketing - not the design, materials or craftsmanship. We created Italic to introduce a new model of commerce that removes brands and instead aligns with the best interest of its consumers and manufacturers.”
While Italic claims to be “removing brands and labels from the equation”, it could fall foul of trademark law simply by mentioning the names of certain high-end brands in connection with the products available through its platform.
What’s more, although the company questions the amount of money that the leading luxury brands spend on marketing, it is these activities that serve to highlight the craftsmanship and exquisite materials that go into their products, two elements that are especially attractive to the discerning luxury consumer.
It seems unlikely the luxury brands that Italic mentions in its releases will not in some way respond to the launch of this platform and to its use of their names. Leatherbiz will report on this as and when it happens.
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