Nike and Muji Accused of ‘Serious Breach’ in China’s Annual Consumer Show
China's annual consumer rights day TV show turned into a major fiasco on Wednesday after the state broadcaster alleged the U.S. sports brand Nike and Japanese retail giant Muji of blatantly cheating their Chinese consumers.
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A annual two hour long show broadcasted on the state owned CCTV channel accused Nike of misleading its customers by falsely claiming that its "Hyperdunk" basketball shoes are fitted with high-tech air cushions.
In the same show, China's retail behemoth Muji was reprimanded for selling food products in China that were allegedly imported from a region in Tokyo where high levels of radiation were detected in 2015.
Both companies were quick to respond to these serious allegations that could potentially jeopardize their sales in the world's biggest consumer market. Muji said on Thursday that it is not "selling any food products in China" that were imported from radioactive contaminated regions, while Nike clarified that it will fully cooperate with Chinese regulators in the case.
Nike and Muji are not the first big companies to be publicly reprimanded in this high profile consumer rights show, also known as '315.' Other big brands like Apple and Volkswagen have also faced flaks at this annual show, with Apple having to make a rare public apology after the tech giant was questioned for its poor after-sales service.
Most companies, especially foreign companies, are extremely mindful that it does not face any criticisms in this annual show. Although the show has lost much of its popularity over the years, it still continues to hold huge influence over the Chinese consumers.
Any damage to reputation means huge loss in revenues & profit and engaging in a mammoth struggle to rebuild the confidence among the Chinese consumers.