National Focus

Con Cung gives explanation for its mislabeling scandal

By Viet Hung July 29, 2018 | 10:11 AM GMT+7

The well-known retail store chain of mother and baby products namely Con Cung in response to mislabeling allegations has affirmed that its products sold in its system is genuine, have clear origin as well as invoices in accordance with prevailing laws.

In recent days, the retail store chain Con Cung in Ho Chi Minh City has been examined due to the requirements of the Ministry of Industry and Trade’s Market Surveillance Agency.

After inspection process, the working team found that Con Cung's products had violated regulations on goods labeling and origin tracking. In addition to the clothing, its cosmetic products were found to have signs of tampering.

According to its announcement, the Ho Chi Minh City's Market Surveillance Agency and Con Cung joint stock company agreed on that "Until now, the market surveillance agency does not come to conclusion and it only recorded the information of inspection and clarification process".

Con Cung explained that its numerous shops were checked at the same time while there is only one original document of each shipment so it wants to be allowed to submit document and explain further.

On the issue of sticking other label on TiTiOne products, Con Cung said that this kind of products were provided by G&C Co., Ltd which has changed its name to TiTiOne Cosmetics Co., Ltd since January 24, 2018. Therefore, the label of products made by the supplier will include both the old name and the new one.

In the problem of replacing label of a baby girl clothing set, Con Cung said that this product is in the batch of products under Contract No. PO2017OEM49 signed on November 10, 2017 between this enterprise and WWW International Incorporated (Thailand) Co., Ltd in Thailand.

The product was ordered with “CF" label, which stands for “Con Cung Fashion" but in the production process, there were some labels that did not meet the requirements of Con Cung so Thailand's manufacturer had to adjust. In addition, it also sent a letter of approval dated July 23 to Con Cung.

Con Cung affirmed that its products sold in its system is genuine, have clear origin as well as invoices in accordance with the law.

Founded in 2011, Con Cung has specialized in distributing children's products such as clothing, food, milk, diapers or toys which are sold through Con Cung and Toy City retail chain.

The company operates 346 retail stores in Vietnam, including 313 Con Cung shops and 33 Toy City stores and focuses on the Ho Chi Minh city and the South market. In 2017, the sales of Con Cung reached over $43 million.

It is remarkable that at the beginning of 2017, Con Cung was invested by the DAIWA-SSIAM Vietnam Growth Fund II L.P (Daiwa-SSIAM II), an investment joint venture fund managed by the Saigon Securities Inc. Asset Management Ltd. Co. (SSIAM) and the Daiwa Corporate Investment Co. Ltd.

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