Picture of RYOHIN KEIKAKU logo

7453 — RYOHIN KEIKAKU News Story

0.000.00%
jp flag iconLast trade - 00:00
Consumer CyclicalsAdventurousLarge CapHigh Flyer

China consumer day show skewers Nike shoes, Muji foods (updated)

* Nike hit for misleading ads of basketball shoes 
    * Japan's Muji, others stung over radiation concerns 
    * Consumer say impact likely short-lived 
 
 (Adds Nike comment, online reaction) 
    By Jackie Cai and Adam Jourdan 
    SHANGHAI, March 15 (Reuters) - China's annual consumer 
rights day TV show turned its spotlight on U.S. sports brand 
Nike Inc  NKE.N  for misleading advertising and Japanese brand 
Muji for selling food products allegedly sourced from part of 
Japan affected by radiation. 
    The state-run China Central Television (CCTV) show - which 
can have brands and their corporate PR teams scurrying to take 
evasive action - said Nike had misled consumers over high-tech 
air cushions in some of its "Hyperdunk" basketball shoes. 
    Similar to CBS network's "60 Minutes" in the United States, 
the CCTV show - known as "315" in reference to global consumer 
rights day on March 15 - has previously named and shamed firms 
from Apple Inc  AAPL.O  to Volkswagen AG  VOWG_p.DE . 
    The two-hour show - a mix of undercover reports and 
song-and-dance - also highlighted Japanese brands including 
Muji, owned by Ryohin Keikaku Co  7453.T , which it said sold 
food products in China from an area of Tokyo where high levels 
of radiation were detected in 2015. 
    Nike said in a statement it had sold 300 pairs of Hyperdunk 
shoes in China last year with "an inaccurate product description 
stating that the shoe contained airbags". The firm added it had 
apologised to consumers and offered compensation. 
    "We will fully cooperate with the government regulators 
regarding their inquiries," the company said. The Greater China 
region accounts for over 10 percent of Nike's global sales. 
    Muji declined to give immediate comment. 
    The show also took aim at fake eye doctors for scamming 
patients, animal breeders for over-using medicines to make 
animals grow faster, and China's Wikipedia-like Baike.com. 
    The 315 show can hit a firm's reputation if singled out for 
bad corporate behaviour. Apple was forced into a rare apology in 
2013 after criticism on the show of its China after-sales 
service. 
    "Pretty much all the big corporations have their PR machines 
ready to jump into action because they've seen what happens when 
companies are not prepared," said James Feldkamp, Shanghai-based 
CEO of independent China consumer watchdog Mingjian. 
    While the annual programme has lost some of its bite in 
recent years, Wednesday's version was harder hitting than last 
year's, which criticised local food delivery apps, fake online 
sales and dodgy false teeth, but didn't take aim at any major 
international firms.  urn:newsml:reuters.com:*:nL3N16N2IV 
    However, many in China steered clear of the show altogether, 
while online chatter was more muted than in previous years. 
Viewers who tuned in said they were underwhelmed by the show's 
corporate exposés and any impact would likely be short-lived. 
    "This year's show was a laughing stock, there weren't any 
really big cases in there," posted one user on Sina Weibo using 
the name Master Tan Xi. "Why do they bother still holding it?" 
     
 
 (Reporting by Adam Jourdan and Jackie Cail; Additional 
reporting by Makiko Yamazaki in TOYKO and Gayathree Ganesan in 
BANGALORE; Editing by Ian Geoghegan and Richard Pullin) 
 ((adam.jourdan@thomsonreuters.com; +86 21 6104 1778; Reuters 
Messaging: adam.jourdan.thomsonreuters.com@reuters.net)) 
 
Keywords: CHINA CONSUMERDAY/

Recent news on RYOHIN KEIKAKU

See all news