Transfer Pricing Associates

Chinese Businessman Re-labels Zara Products

post Sunday October 14, 2012

made in china

While the media analyzed the “red-soled shoe” case between Louboutin and Zara, a Chinese man decided to re-label Zara clothes and send them to shopping malls.

The Chinese businessman used clothes left behind in one of Zara’s warehouses in China, which he bought earlier for 46 yuan per garment. The original labels of the clothes were removed. However, the businessman ordered Zara labels made in Shanghai and reattached them to the clothes. After reattaching the newly arrived labels he shipped the cloths for sale, selling them for between 99 yuan and 399 yuan, making a profit of 280 000 yuan.

The Nanjing police arrested the local businessman, who operates a trading firm, and charged him with trademark infringement of the Spanish brand. His remaining inventory was seized.

The businessman issued a statement according to which he did not believe that he is committing fraud since the clothes he used were original of the brand.

Source:Intellectual Property Protection in China

Image Source:: Free Digital Photos


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