Zero tolerance.

That's the war cry as luxury American accessories-maker Coach tries to stamp out counterfeits in China before it launches its own stores.

"We aim to get rid of every single fake Coach product in the market," says Carole P. Sadler, Coach's senior vice-president.

Perhaps no other company has been as steadfast in fighting the scourge. To implement its policy, Coach announced that it had initiated an anti-counterfeiting landlord liability programme in eight of Beijing's most prominent markets.

The markets are Yaxiu, Jiayi, Guanyuan, Hongqiao, Tianyi, Underground Silk Market, New Silk Market and Lao Fan Jie.

Sadler says the programme has led to a significant reduction in counterfeit Coach products in the retail market.

"In nearly all those markets, we have seen a 95-100 per cent drop in counterfeit goods over the last few months," Sadler says.

She adds that the campaign represents a landmark in the fight against counterfeiting of branded goods in Beijing.

"We will carry out similar moves in Shanghai and Guangzhou," says Sadler in an exclusive interview with China Business Weekly, but declines to name the markets in those two cities so that counterfeiters are not alerted.

The first stage of the programme mainly includes:

posting of "ban" notices in markets;

educating sellers and landlords;

regular monitoring and announce-ments;

demanding the surrender of counterfeits from vendors;

seeking fines on, or expulsion of, sellers continuing to sell counterfeits.

Sadler says the company aims to keep up the battle to ensure long-term results.

The second stage of the programme involves raids, demanding the eviction of infringers, seeking damages, and possible civil lawsuits against vendors and landlords.

Sadler says Coach's enforcement programme has been in place in the United States for more than a decade.

It started its campaign on the Chinese mainland three years ago, focusing on manufacturers, distributors and retailers.

Sadler stresses that the company aims to clear up the market before formally launching in the country.

Coach currently has two stores on the mainland in collaboration with local partners: one in Beijing and one in Shanghai, selling products such as handbags at a price range of US$300 to US$350.

New York-based Coach has a successful operation in Asia with 103 stores in Japan and 10 in Hong Kong.

(China Daily 08/01/2005 page9)