Airing on Wednesday, March 18, 2015: Lots of Americans are thinking about European vacations this year because the Euro has become so cheap. But luxury brands like Chanel aren’t happy about some of the tourists who are buying up their products in Paris. The price difference for Chanel between Paris and China has grown so wide that Chinese tourists are flying around the world to buy handbags and other luxury items, which is undermining these brands’ strategies of opening stores in China itself. Plus, Kraft Food Group’s shares are already down after its recall of around 6-and-a-half million boxes of Macaroni and cheese. The voluntary recall came after some consumers complained of finding metal pieces in the food. We explain how recalls work, whether consumers pay attention and the economic cost to the companies involved.
Airing on Wednesday, March 18, 2015: Lots of Americans are thinking about European vacations this year because the Euro has become so cheap. But luxury brands like Chanel aren’t happy about some of the tourists who are buying up their products in Paris. The price difference for Chanel between Paris and China has grown so wide that Chinese tourists are flying around the world to buy handbags and other luxury items, which is undermining these brands’ strategies of opening stores in China itself. Plus, Kraft Food Group’s shares are already down after its recall of around 6-and-a-half million boxes of Macaroni and cheese. The voluntary recall came after some consumers complained of finding metal pieces in the food. We explain how recalls work, whether consumers pay attention and the economic cost to the companies involved.
