Beijing, Sep 2(ANI): China's largest furniture retail chain, Red Star Macalline has come under scanner for selling fake products.
According to the CBN, a franchised store in Red Star Macalline Furniture Mall at Shenzhen sold fake "Hilton" furniture and another franchise store located in Qingdao in Shandong province was found selling fake diatom mud, a decorative wall material.
Though the Red Star spoke about the fake "Hilton" scandal, it failed to explain as to how the fake furniture landed in the stores without the head office's knowledge, the China Daily reports.
Red Star's brand manager said the store found selling fake furniture had been shut down and compensation agreement had been reached with customers.
The source said the scandal demonstrates the flawed management of Red Star, and mounting pressure of high rent on desperate retailers.
According to the CBN, an industry insider said many furniture stores were sell fake brand products to increase profits in the wake of recent increases in the cost of raw materials, rent and human resources. (ANI)
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