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Chinese store under fire over 'fake' imports
by Staff Writers
Shanghai (AFP) July 15, 2011

A Chinese retailer is being investigated over claims it passed off locally-made furniture as high-end Italian imports by shipping it back into the country to get import documents.

Da Vinci is alleged to have charged thousands of dollars for furniture labelled as imported -- even though it was actually manufactured in eastern China.

It denies the charge, but hundreds of furious customers have demanded refunds after state broadcaster CCTV first made the allegations in an expose of practices at the company, which is now facing an official probe.

State news agency Xinhua said that in the first half of this year, Da Vinci brought 11 batches of furniture that was made in China back into the country through Shanghai, citing local customs officials.

The manufacturers shipped the products to a special trade zone in the city where they were purchased by Da Vinci, along with import documents, the report said.

The Shanghai Administration for Industry and Commerce told AFP it was probing claims Da Vinci misled consumers about where its products were made, and would fine the company if it was found guilty.

"We will order Da Vinci to stop selling the relevant products and fine the company if detailed testing reports, which will be released very soon, confirm the initial findings," spokesman Xu Shang said.

The official investigation had already discovered products on sale for many times their true value, Xu said, including a 92,800 yuan ($14,300) bedstand sold as solid wood but actually made of fibre board.

Da Vinci officials declined to comment to AFP, but in a statement earlier this week, it insisted all its Italian brands were made in Italy.

The company has stores in major cities, including Beijing and Shanghai, that cater to the growing ranks of China's rich.




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Hugo Boss raises full-year outlook on strong Chinese sales
Frankfurt (AFP) July 15, 2011 - The German fashion retailer Hugo Boss has raised its full-year outlook owing to better-than-expected second quarter results from China and the United States, it said.

From April through June, Boss made a net profit of 31 million euros ($43.7 million), a five-fold increase from the same period one year earlier, according to preliminary figures released late Thursday.

Sales were almost 25 percent higher at 405 million euros, the group added.

"In view of the stronger than expected results in the past quarter, the group is raising its forecasts for the year as a whole," a statement said.

Sales are now expected to increase by 15-17 percent, instead of the "at least 12 percent" estimate given previously.

Core earnings before special items should be 25-30 percent higher, compared with the previous forecast of at least 15 percent.

In 2010, Boss pulled out of the global economic crisis to post its best result ever, with a net profit of almost 190 million euros, sales of 1.73 billion and core earnings of almost 350 million.

In the first half of 2011, the company generated a net profit that gained 80 percent to 113 million euros, sales of 945 million euros, up from 769 a year earlier, and core earnings that were 58 percent higher at 195 million.

More details on its first half results are to be released on July 28.





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TRADE WARS
China accounts for 85% of fake goods seized in EU
Brussels (AFP) July 14, 2011
European customs intercepted one billion euros worth of counterfeit goods last year, with 85 percent of the fakes originating from China, the European Commission said Thursday. The figures highlighted the rise of Chinese counterfeit goods, which had accounted for 64 percent of the fake articles seized in the 27-nation European Union in 2009. China is by far the biggest exporter of such g ... read more


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