No C 262/2 Official Journal of the European Communities 8
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No C 262/2 Official Journal of the European Communities 8. 10. 91 Notice pursuant to Article 19 (3) of Council Regulation (EEC) No 17 (') concerning Case No IV/33.542 — Parfums Givenchy (91/C 262/02) 1. Parfums Givenchy SA, Levallois-Perret, France, (a) Selection criteria notified the Commission on 19 March 1990 of a standard-form selective distribution contract for the marketing of its perfumery, skin care and beauty products in the Member States of the European The only retailers admitted into the selective distri Economic Community. Givenchy applied for exemption. bution network are those approved by Givenchy or by its exclusive agents on the basis of the selection criteria set out below: 2. Givenchy forms part of Groupe Louis Vuitton Moet-Hennessy, whose activities comprise luxury perfumery products, leather goods, luggage and acces sories, champagnes and wines, cognacy spirits, haute (i) authorized retailers, or their sales staff, must couture and fashion accessories. Groupe Louis Vuitton have a professional qualification in perfumery, Moet-Hennessy controls other companies which are in the form either of a beauty specialist's direct or indirect competitors of Givenchy, namely diploma, or a certificate recognized by the Parfums Christian Dior, Parfums Christian Lacroix and relevant Ministry or professional perfumery Roc. training certificate issued by a chamber of commerce and industry of one of the Member States, or at least three years' sales experience 3. Cosmectic products cover a wide variety of articles in perfumery. In addition, authorized retailers intended for many different uses and include in undertake to attend the training or further particular perfumery, skin care and beauty products and training sessions organized by Givenchy, hair care and toiletry products. Within the overall notably as regards the distribution of its skin category of cosmetic products, luxury products care and beauty products, and to provide constitute a specific market segment. Luxury cosmetic sufficient advisory and demonstration services products are high-quality articles, sold at a relatively with regard to the size of the sales area and the high price and marketed under a prestige brand name. number of brands carried; The products covered by the standard-form contract notified fall within the luxury cosmetic products market. (ii) the location of the retail outlet must reflect the 4. Givenchy distributes its products within the prestige of the Givenchy brand, having regard common market through a network of some 10 000 in particular to the geographical environment authorized retail outlets, which, in France, are supplied of the outlet and the nature and external direct by Givenchy and, in the other Member States, are appearance of neighbouring shops. The fittings supplied through the intermediary of its subsidiaries or of the retail outlet and the surroundings of the independent companies acting as exclusive agents. goods sold in the area set aside for the sale of the contract products must not detract from Givenchy's brand image. In particular, the fittings are assessed by reference to the quality 5. Essential features of the contracts notified of the facade and the internal fixtures such as the floor covering, the quality of the walls, The distribution network notified is based on a ceilings and furniture, and the sales area and standard-form authorized retailer contract binding the fixtures and fittings of the beauty care Givenchy or, where appropriate, the exclusive agents of cubicles. In addition, the shop-front must Givenchy to its specialized retailers established in the contain one or more shop windows whose Community, and on the general conditions of sale quality and decoration must be in line with the attached thereto. usages governing the sale of luxury products. Lastly, the shop name must not, in the public's mind, be associated with any restriction in The standard-form contract has undergone certain decoration or service; amendments in response to comments made by the Commission and will enter into force as from 1 January 1992. Essentially, its content is as follows: (iii) the products must be stored under satisfactory conditions for their preservation, notably in areas or premises making it possible to avoid (') OJ No 13, 21. 2. 1962, p. 204/62. extremes of humidity, temperature or light; 8. 10.91 Official Journal of the European Communities No C 262/3 (iv) the area set aside for the sale of Givenchy (b) Procedure for admission to the distribution network products must not be disproportionate to the number of brands sold. In addition, it must allow the authorized retailer to provide, having Under the contract provisions notified, the receipt of regard to the other brands represented, a an application for the opening of an account is location reflecting the standing of the followed by an inspection visit to the retail outlet so Givenchy mark. The authorized retail outlet as to determine whether it meets the qualitative must, within 12 months of the date on which selection criteria described above. Givenchy (or, the distribution contract is concluded, carry a where appropriate, its exclusive agent) undertakes to sufficient number of competing brands to carry out such an inspection within a maximum reflect the image and reputation of Givenchy period of three months as from the date on which products. At the Commission's request, the application for the opening of an account is Givenchy deleted the clause under which the made. Thereafter, if the application does not come inclusion and/or maintenance of the retailer in anywhere near meeting the qualitative criteria, the distribution network was subject to his Givenchy (or, where appropriate, its exclusive agent) being authorized to sell a minimum number of informs the applicant in writing that its application brands included on a restricted list drawn up has been rejected, specifying the grounds on which by Givenchy; its decision is based. Conversely, if the application is capable of meeting the qualitative selection criteria subject to certain work being carried out in the retail outlet, the applicant is informed accordingly in writing and, if the work is carried out within a (v) authorized retailers must display and sell maximum period of six months, its account will be Givenchy products solely on the premises opened within a maximum period of one year from covered by the contract and must undertake to the date of the inspection. Lastly, if the application sell the products only in their original entirely meets the qualitative selection criteria, the packaging. They must also undertake to actively seek customers and to devote their best applicant is informed accordingly in writing and its efforts to the marketing of the contract account will be opened within a period of one year products amongst such customers; as from the date of inspection. This procedure is to enter into force as from 1 January 1992 and to replace the current system for (vi) authorized retailers are required to provide admission into the Givenchy distribution network. their most effective assistance to the advertising Under the current system, any application from a campaigns organized by Givenchy or by its candidate whose retail outlet is situated in France is exclusive agent, by presenting under optimum entered on a regional (departmental) waiting list, conditions the display material provided by with applications being dealt with in the order in Givenchy and by ensuring periodically that the which they were entered on the list. However, contract products are placed to best advantage decisions to accept appropriate applications are made in their shop windows; only when the opening of a new account is considered by Givenchy to be justified, notably in terms of the economic potential of the geographical area in question. Although the admission system (vii) authorized retailers must agree to hold a stock applied by Givenchy in Member States other than in hand comprising two-thirds of the references France does not include the establishment of waiting of each of the ranges marketed by Givenchy lists, the opening of a new account is also subject to and at least one product of each of such similar considerations of economic opportuneness. In references, including new products; response to comments made by the Commission, Givenchy has agreed to clear the existing waiting lists during a transitional period ending on 31 December 1992. (viii) authorized retailers must agree to achieve in the retail outlets covered by the contracts a minimum amount of annual purchases from (c) Freedom of cross supplies between members of the Givenchy or its exclusive agent. Following distribution network comments from the Commission, Givenchy agreed that the relevant figure should be set in such a way that its amount does not exceed The standard-form contract notified provides that 45 % of the average purchase figure achieved each authorized retailer may resell Givenchy the previous year by the authorized retail products to any other authorized retailer established outlets established in the territory of each in any Member State, including the country in which Member State. he is himself established. The provisions also stipulate No C 262/4 Official Journal of the European Communities 8. 10.91 that each authorized retailer is free to obtain supplies who have concluded an authorized retailer contract. from other authorized retailers or exclusive agents of So as to ensure consistency in the marketing of its Givenchy products established in any Member State. products, Givenchy undertakes to withdraw such products from retail outlets that do not meet the Exercise of this right is subject to the following conditions laid down in the selective distribution conditions: contract. (i) before selling Givenchy products to other (e) No imposed prices network members, authorized retailers must take the necessary precautions in order to Givenchy (or, where appropriate, its exclusive agent) ensure that the products thus supplied do not may not interfere in any way in the pricing policy of leave the network of Givenchy authorized the authorized retailer, who is free to set the resale retailers in the Community.