Zara Was Given Administrative Punishment For Shoddy Goods: Confiscation Of Illegal Gains And A Fine Of 7000

Fast fashion There's something wrong with Zara!

According to the news on May 12, Zara's affiliated company Sala Commerce (Shanghai) Co., Ltd. recently added an administrative penalty message: on April 28, Jing'an District market supervision and Administration Bureau issued an administrative punishment letter to punish Sala Commerce (Shanghai) Co., Ltd. the reason for the punishment is to produce and sell unqualified products as qualified products, and the punishment result is to confiscate the illegal income of 1231.03 yuan, A fine of 7076.81 yuan was imposed and the illegal act was ordered to stop. The punishment unit was Jing'an District market supervision and Administration Bureau.

According to the administrative penalty decision, five "Zara" brand products, including men's shoes, children's sandals and skirts, of Sala commercial (Shanghai) Co., Ltd. were determined to be unqualified, and the nominal production unit of these five products was Sala commercial (Shanghai) Co., Ltd.
Prior to this, the company has been repeatedly subject to administrative penalties, including violation of the provisions on clearly marked prices, failure to sell goods with their own real names and marks, adulteration and adulteration of products. Before this, "Xinjiang cotton" incident, Zara's performance also let Chinese consumers deeply disappointed. However, on March 25, INDITEX, Zara's parent company, quietly removed the statement from its official website.

In the history of China's clothing industry, Zara, H & M and other international fast fashion brands are forces that can not be ignored. Their successful operation in the Chinese market, once let MetS Bonwe, only and other brands to imitate, fast fashion has also been one of the operation modes believed by many middle and low-end clothing enterprises.  

Although Zara has been used for reference and imitation, it is now in a dangerous situation and has to find a new way out. INDITEX group recently planned to close all Chinese stores of several brands, including Bershka.

In addition, under the influence of the epidemic, Zara's parent company's net profit plummeted by 70% in fiscal year 2020.

On March 11, INDITEX group, Zara's parent company, announced its annual report that it would realize a sales volume of 20.4 billion euro in 2020, a year-on-year decrease of 25.5%; The net value was EUR 1.1 billion, down 70% year on year.

In 2020, INDITEX group's online sales increased by 77% to 6.6 billion euros, accounting for more than 30% of the group's total annual sales. INDITEX group launched an e-commerce platform in 25 markets around the world, with the number of active users of Zara app reaching 132 million, and the number of online store visits also soared by 50% to 5.3 billion times.

By the end of the reporting period, one third of INDITEX's stores were still closed, while 52% of its stores were still subject to epidemic prevention restrictions.

At present, INDITEX's brands include Zara (including Zara home), pull & bear, Massimo dutti, Bershka, Stradivarius, oysho, etc., and they have their own stores in China.