Are Oakley Sunglasses Becoming a Victim of Their Success Oakley's M Frame, Razor Blade, Zeros and Frogskin sunglasses are to the optical industry what Windows 95 is to computer software (sorry, I couldn't resist).
But unlike computer software, hot selling, high priced oakley cheap sunglasses like Oakley's can easily be knocked off by counterfeiters and copycats, and eventually wind up in discount stores at a fraction of their retail price (which in the case of Oakley is anywhere from $40 to well over $200). It's hard to say, but fake Oakleys have become a favorite of sidewalk vendors in New York. And in recent months, authentic (but repackaged) Oakleys have been showing up in quantity and at less than half their regular retail price at Price/Costco and (a ). That's the last place Oakley wants its products sold. According to its proxy, Oakley specifically says it won't sell its glasses to discounters, drug stores and mail order companies, preferring to stick with upscale sunglass retailers. Then how did they wind up there? According to Oakley attorney, they had been earmarked for a distributor in India, but apparently never left the United States. Instead, the company's Indian distributor allegedly sold them directly, or through an intermediary, to Sam's and Price/Costco. This so called "diversion" is a growing problem in the retail world, especially for companies with oakly sale exclusive brand names. In this case, it also violated the Indian distributor's contract with Oakley. Oakley retaliated by suing everybody involved, including the distributor and the warehouse chains. "It appears he diverted all of it to make a quick buck," Weeks says. But that suggests that like many young, fast growing companies, Oakley either doesn't have strong distribution controls, or (heaven forbid!) it agreed to sell more products than it should have to a market and distributor that were unproven. Weeks won't say how many glasses it sold to the oakley white glasses Indian distributor, Arun Malhorta, but there are estimates the order totaled several million dollars. Weeks insists Oakley thoroughly investigated the distributor, and was impressed with its outlets. But as it turns out, Malhorta allegedly has a history of contracting to sell products that he diverts to discounters. Oakley claims it hasn't been affected by the warehouse club sales. Price/Costco officials declined comment, and Sam's officials couldn't be reached. But the issue is troubling enough that Oakley says it has spent upwards of $2 million to buy "the newest models" of its glasses from Sam's and Price/ Costco. And while Oakley may indeed be the victim of diverting, its glasses landed in the warehouse chains. Those are the places companies often dump inventory they can't sell. This comes just as Oakley was telling potential investors that its products were in short supply. Which leads one skeptic to ask: "If things were in such short supply, why would they sell to someone they didn't know?" the saga continues: Chan Desaigoudar, the deposed CEO of California Micro Devices, has filed a countersuit against his former employer claiming, among other things, wrongful termination, invasion of privacy and intentional infliction of emotional distress. Emotional distress? According to the suit, following Desaigoudar's firing last December Cal Micro "embarked on a course of conduct designed to harass, annoy and vex Chan, discredit him in the business community and inflict personal, financial and emotional hardship on Chan." The suit also charges that the company "improperly" placed blame on Desaigoudar for alleged accounting irregularities that led to an investigation by the FBI,. It also accused the company of "withholding documents belonging to Chan, opening Chan's mail, spying on Chan, improperly and arbitrarily attempting to oakley sunglasses locations cancel Chan's stock options and taking the position that such options no longer exist, cashing an annuity purchased for and belonging to Chan.
.." The list goes on.
Prev: womens oakley sunglasses sale
Next: oakley apparel sale