Beijing News Shell Finance News (Reporter Yu Menger) On May 24, the website of the Beijing Municipal Market Supervision Bureau disclosed an administrative penalty decision, showing that Beijing Watsons Personal Products Chain Store Co., Ltd. Yanqing Guishui North Street Branch was suspected of using false prices. Means to trick consumers into trading with them, were warned and fined 50,000 yuan.

Photo/Screenshot of the website of Beijing Municipal Bureau of Market Supervision

　　According to the administrative penalty decision, the Yanqing Guishui North Street Branch of Beijing Watsons Personal Products Chain Store Co., Ltd. plans to carry out promotional activities from March 24, 2022 to April 20, 2022.

The price tag of the promotion includes "Watsons Yanxi White Moisturizing Mask and Watsons Bird's Nest Moistening Cordyceps Tightening Face Mask 6 pieces, the original price is 49 yuan, the current price is 44 yuan, and the price reduction period is 24/03/2022-20/04/2022" and other contents , the purpose is to make customers feel that the promotion price is strong, so as to attract customers' attention and increase sales.

　　After investigation by the regulatory authorities, it was found that the transaction price of the two 6-piece masks promoted by the store was 44.10 yuan per piece before the promotion, which was about 5 yuan difference from the 49 yuan per piece marked on the promotional price tag.

In this regard, the Beijing Yanqing District Market Supervision and Administration Bureau stated that the above-mentioned behavior of Beijing Watsons Personal Products Chain Store Co., Ltd. Yanqing Guishui North Street Branch violated Article 14, paragraph 1, item 4 of the "Price Law of the People's Republic of China". The first paragraph of Article 40 of the "Price Law of the People's Republic of China", Article 11 of the "Prohibition of Price Fraudulent Acts", and Article 7 of the "Regulations on Administrative Penalties for Price Violations" are hereby ordered to correct the above-mentioned illegal acts, A warning and a fine of 50,000 yuan were imposed.

　　In fact, it is no accident that Watsons was fined by the market supervision and administration department for similar incidents.

Earlier this month, the Yanqing Second Branch of Beijing Watsons Personal Products Chain Store Co., Ltd. was fined 50,000 yuan for allegedly using false prices to trick consumers into trading with it.

　　In January of this year, Shanghai Watsons, knowing that the "Yuni Niacinamide Liquid" it sold was ordinary cosmetics, still promoted the "sunscreen tanning ability" that it did not have, and placed the advertising board on the right side of the cosmetics, thus Misleading consumers was finally judged by Shanghai Huangpu District Market Supervision and Administration Bureau as false propaganda and fined 6,540 yuan.

　　In addition, the administrative punishment information released by the Guangzhou Yunfu Municipal Bureau of Supervision shows that in November 2021, the medical sodium hyaluronate repair sticks sold by Guangzhou Watsons Personal Products Store Co., Ltd. through Meituan were suspected of violating the fourth and fourth articles of the Advertising Law Article 46, and was fined 20,000 yuan for failing to provide supporting documents for the clinical trial results of the above-mentioned products.

　　According to incomplete statistics from the Beijing News Shell Finance reporter, in the past two years, Watsons stores have been punished at least 7 times by regulatory authorities in many places for various violations, many of which are related to cosmetics.

　　In March 2022, the parent company of Watsons, Changjiang Hutchison Industrial Co., Ltd., released its 2021 financial report.

During the period, the retail sales of Watsons in China reached 22.77 billion Hong Kong dollars (about 18.9 billion yuan), a year-on-year increase of 14%, the largest increase in seven years.

However, profits are declining. In 2021, Watsons China’s profit before interest and tax will be 1.808 billion Hong Kong dollars (about 1.5 billion yuan), which is lower than the company’s 2020 low of 1.952 billion Hong Kong dollars (about 1.736 billion yuan).

The EBIT margin has also decreased year by year to 8% from 20% in 2015.

　　According to public information, Watsons Group originated in 1841 and is an international retail and food manufacturing organization under Changjiang Hutchison Co., Ltd. It currently has more than 4,100 stores in 438 cities in China.

　　Beijing News Shell Finance reporter Yu Menger