Trendy products of questionable quality—how can influencer brands last?
[4] Compiled from: Red Star News
Case review
Lululemon Trading (Shanghai) Co., Ltd., an affiliate of Lululemon, was fined RMB 81,420 by the Beijing Xicheng District Market Supervision Administration for violating Article 50 of the Product Quality Law.
According to the administrative penalty decision, starting from October 1, 2021, Lululemon Trade used some of the aforementioned products (59 items in total) for sale at its 9 stores in Beijing, priced at 1,380 yuan per item. As of November 3, 2021, a total of 51 items had been sold, generating sales revenue of 67,205.34 yuan. The sold products could not be recovered. Lululemon Trade profited 23,431.05 yuan. The total value of the goods amounted to 81,420 yuan. Ultimately, it was fined 81,420 yuan, had its illegal gains of 23,431.05 yuan confiscated, and its illegal property confiscated.
In response, the official Weibo account of Lululemon Trading (Shanghai) Co., Ltd. issued a statement: We are deeply sorry that the down fill weight of the Navigation men’s down vest does not conform to national standards. Upon discovering the issue, lululemon acted swiftly and actively cooperated with the investigation and handling. The company immediately removed the relevant batch of products from shelves. In addition, it conducted a detailed internal review and actively carried out rectification.
Article 50 of the Product Quality Law
Adulterating or mixing impurities into products, passing off fake products as genuine, inferior products as high-quality, or substandard products as qualified shall result in an order to cease production and sales, confiscation of the illegally produced and sold products, and a fine of not less than 50% but not more than three times the value of the illegally produced and sold products; if there is illegal income, it shall be confiscated; if the circumstances are serious, the business license shall be revoked; if a crime is constituted, criminal liability shall be pursued according to law.
[1] The author's perspective
In today's rapidly evolving internet era, product quality cannot be pursued for speed alone; it must also be pursued for excellence. After all, meeting quality standards is what truly gives a brand its confidence. This incident arose because lululemon's down vests failed to meet the national standard for down fill weight. Whether passing off inferior goods as high-quality products or failing to meet national standards, both constitute illegal acts. At a minimum, they result in administrative penalties; at worst, they lead to criminal liability. Either way, the consequences far outweigh any gains.
Some netizens joked, “Poverty helped me dodge a bullet,” while others remarked, “Charging such a high price and still passing off inferior goods?” Clearly, lululemon’s pricing is by no means cheap, yet the quality issues are plain to see, to the point that the brand’s reputation has taken a direct hit. Although the sales volume in this case was not particularly large, nor was the penalty amount significant, the impact on a flash-in-the-pan influencer brand is still considerable. After all, such brands rely mainly on online marketing to drive sales. Once their image collapses, it becomes difficult for them to make a comeback, and over time they will be replaced by new brands and forgotten by consumers.
