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Initial fell into the "wreath incident", and the company was fined more than 70,000 yuan for unqualified products

author:Insights In finance and economics research office

Reporter Xie Yiguo Intern reporter Bai Lulu reported

Initial fell into the "wreath incident", and the company was fined more than 70,000 yuan for unqualified products

What is the operation of sending a wreath for the New Year?

Recently, some netizens broke the news in the Little Red Book that they were ordered by the customer service of international fashion during the New Year to vent their anger. Afterwards, officials issued an apology letter apologizing and fired the employee. At present, the brand's official flagship store of Taobao has been closed, and the recovery time has not yet been announced.

It is worth noting that Shanghai Edison Fashion Co., Ltd. (hereinafter referred to as "Shanghai Edison Fashion"), a company to which Initial Fashion belongs, has been fined nearly 100,000 yuan for product quality problems. This year, the company was fined 5,000 yuan for occupying evacuation channels in violation of the Fire Protection Law of the People's Republic of China. In terms of performance, the company is also under pressure. According to its 2019 annual report, the company increased revenue without increasing profits, achieving operating income of 307 million yuan, an increase of nearly 1 times year-on-year; net loss of 20.6225 million yuan.

The reporter called Shanghai Edison Fashion about the "wreath incident", user complaints and business conditions. Its phone numbers on the enterprise check are empty numbers.

The employees involved were fired, the official apologized and the store closed

On February 6, some netizens posted in Xiaohongshu for help, they were ordered by customer service during the New Year, they were trembling in the middle of the night, and asked on the platform whether they had encountered a scam?

It is understood that the wreath incident began due to poor communication between customer service and buyers.

The netizen introduced that he received a call on the afternoon of February 5 claiming to be a customer service at the Tmall store. The customer service said that it sent one more piece of clothing due to a work mistake, hoping to send it back again, and said the name of the netizen's receipt and another SF express item. Because no excess clothes were received, and the customer service did not explain the name of the store, netizens thought it was telecommunications fraud and ignored it. "Visiting Taobao at night undoubtedly found a new order, and it was after receiving that call that someone placed an order for me." The netizen said.

Initial fell into the "wreath incident", and the company was fined more than 70,000 yuan for unqualified products

In the subsequent communication, the customer service said that it came from the official flagship store of initial, and admitted that the wreath was ordered by himself, but felt that the behavior was inappropriate and cancelled the order and apologized to netizens. Netizens expressed their apology for this, complained to 88 members, and also contacted the official store.

Initial fell into the "wreath incident", and the company was fined more than 70,000 yuan for unqualified products

In this regard, initial officially issued an apology letter and fired the customer service. The brand said in the letter that it has convened relevant departments to actively formulate management improvement plans, strengthen internal control, enhance staff quality training, and improve customer service capabilities. The Tmall platform will deduct 12 points from the store, recover its 7-day operation right, and permanently suspend the wreath-placed account of the clerk involved.

Initial fell into the "wreath incident", and the company was fined more than 70,000 yuan for unqualified products

The customer service involved in the initial "wreath incident" may have been suspected of violating the law. According to article 42 of the Law of the People's Republic of China on Public Security Administration Punishments, whoever writes a threatening letter or threatens the personal safety of another person by other means, openly insults another person or fabricates facts to slander another person, shall be detained for not more than five days or fined not more than 500 yuan, and if the circumstances are more serious, he shall be detained for not less than five days but not more than ten days.

Before buying, the non-refundable complaint was notified, and the company's products were not qualified and fined

Some netizens said on the black cat complaint platform that the clothes they bought initial could not be returned, and were told by the seller: except for defective products, the rest of the goods do not support returns.

Initial fell into the "wreath incident", and the company was fined more than 70,000 yuan for unqualified products

After checking the receipt, the netizen found that the new products of the season purchased by him were not within the scope of non-return and exchange without being dismantled, worn or washed. Subsequently, the netizen communicated with the relevant staff. The relevant staff said that the goods could not be returned, so netizens called the consumer association to solve.

Initial fell into the "wreath incident", and the company was fined more than 70,000 yuan for unqualified products

And when netizens asked, "Why don't you tell me that the goods do not support returns before I place an order?" At the time, the relevant staff avoided talking about it.

The reporter inquired about the initial clothing in the public comments and found that many netizens expressed dissatisfaction with the brand's pre-sales and after-sales service and gave bad reviews. These bad reviews mainly related to the brand's employee problems, including improper behavior such as stolen customers' credit cards, anti-bite customer slander, work mistakes such as taking wrong clothes and bad service attitudes.

Initial fell into the "wreath incident", and the company was fined more than 70,000 yuan for unqualified products
Initial fell into the "wreath incident", and the company was fined more than 70,000 yuan for unqualified products

It is worth noting that in May 2019, Shanghai Edison Fashion, a company to which the brand belongs, received two fines for the product's fiber content, water-resistant color fastness, acid and sweat-resistant color fastness, etc., and was fined more than 70,000 yuan. In January 2021, the company was fined 5,000 yuan for occupying the evacuation channel in violation of the Fire Protection Law of the People's Republic of China.

Founded in 2000, initial is a designer trend brand that crosses the boundaries of ideas and cultures in an unlimited creative dimension to create interesting and vivid projects. Between the edge and the pop, keenly aware of the pulse of the times, maintaining flexible sensitivity, and creating a unique platform for inspiring a new generation of young people, creating an "extraordinary experience". It mainly sells clothing for men and women, and also owns the International Atelier studio in Tokyo. The studio accepts space styling and design projects, mainly selling industrial antique props.

The company to which the brand belongs, Shanghai Edison Fashion, was established in 2018 with a registered capital of 10 million yuan and a total of 51 enterprises with foreign investment. According to the financial report, in 2019, Shanghai Edison Fashion increased revenue without increasing profits, achieving revenue of 307 million yuan, an increase of 98.06% year-on-year; net loss of 20.6225 million yuan. In 2018, the company achieved a net profit of 21.2881 million yuan.

It is reported that Shanghai Edison Fashion is jointly held by Fanshang Apparel (Shanghai) Co., Ltd. (hereinafter referred to as "Fanshang Apparel") and Yiying International Co., Ltd. Among them, the shareholding ratio of Fanshang Clothing is 70%, which is its major shareholder.

Fanshang Garment was registered in Shanghai Administration for Industry and Commerce in 2016 with a registered capital of 200 million yuan and is 100% controlled by Wanji (Hong Kong) Co., Ltd.

In 2021, Fanshang Clothing was punished twice for passing off unqualified products as qualified products, with a total of 935.37 yuan of illegal gains confiscated, and a cumulative fine of more than 30,000 yuan. As early as 2017, the company was fined 6336 yuan and ordered to stop selling products that did not meet the national standards and industry standards for protecting human health, personal and property safety. In terms of foreign investment, Fanshang Apparel withdrew from Faxun Apparel (Shanghai) Co., Ltd. on November 19, 2021 and no longer serves as a major shareholder. Prior to its exit, it held 60% of the company's shares.

The "wreath incident" of initial fashion provoked netizens to anger at the brand's customer service and dissatisfaction with the training and management of the staff of the company shanghai Edison fashion, to which the brand belongs. Some netizens even went to the public to comment on the incident. Initial may face a brand trust crisis.

Initial fell into the "wreath incident", and the company was fined more than 70,000 yuan for unqualified products

This article is originally produced by the new media insight finance under Ganshang Magazine, please do not reprint it without permission. Lead Call Hotline: 13257094128.

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