Opinion ID: 2330622
Heading Depth: 1
Heading Rank: 8

Heading: The Accessories Market

Text: Products of a quality and price similar to Brighton's are sold in department stores, specialty chains, and over the Internet. According to figures arrived at by using Accessories magazine, an industry trade publication relied on by the experts on both sides, the value of retail sales of Brighton's products in 2005 was approximately $357 million. Accessories magazine reports that the total amount of retail sales in the accessories industry in 2005 was $30.2 billion. Based on these figures, Brighton's sales accounted for less than 2 percent of total sales in the accessories market in 2005. Accessories magazine also reported that 2005 retail sales of accessories in specialty boutiques totaled $4.1 billion. If all of Brighton's sales had occurred in specialty boutiques, which was not the case, Brighton's retail sales would constitute 6.2 percent of the sales in specialty boutiques in 2005. From 2001 to 2004, Brighton's estimated sales as a percentage of retail sales were in the 1 percent to 2 percent range; and Brighton's estimated sales as a percentage of specialty boutique sales were in the 5 percent to 7 percent range. Gundlach drew conclusions about the relevant market and Brighton's market dominance. He defined the relevant market for this case as women's accessories distributed through specialty boutique dealers. He further defined boutique retailers as those who generally are independent and provide an intimate experience for shoppers. Gundlach recognized that Brighton seeks to focus its retail distribution on small, independent specialty retailers or boutique retailers. He also determined that the specific characteristics of consumers who shop often in boutique retail outlets are important to understanding whether products generally distributed through boutique retailers compete with products not distributed through boutique retailers. Gundlach concluded that these characteristics are important in defining the market in this case. In addition to his analysis of the relevant market, Gundlach also concluded that Brighton was the dominant vendor in women's accessories distributed through specialty boutique retailers. He stated that Brighton's dominant power was derived from its extensive retail distribution network, its broad product lines, and its differentiated product.