(Ecns.cn)— More than two years ago a regulation banning excessive packaging was introduced by China's top quality supervisor, yet overwrapped products continue to haunt the market.
The most recent case involved an exorbitantly-priced mustard tuber, a common kind of Chinese pickle, which normally costs less than five yuan ($ 0.77) per bag.
According to a report released by Citic Securities (CITICS) on June 24, the Chongqing Fuling Hot Pickled Mustard Tuber Group (Fuling Hot Pickle) had produced a new product named the "Chenxiang Mustard Tuber," which retailed at an eye-popping 2,200 yuan (US$340) per 600 grams, 440 times higher than the average.
The pickles came encased in two golden cylinders presented in an ornate yellow box.
The report suggested that the high-end product would boost the company's corporate image. It also suggested that investors should continue buying shares of Fuling Hot Pickle, a company listed on the Small and Medium-sized Enterprises Board (SME Board) of the Shenzhen Stock Exchange.
A survey conducted by Sina.com showed that over 90% of consumers would not fall for this "hot pickle," and many web users believed the report was a sales gimmick orchestrated by CITICS.
"A bag of mustard tuber selling at the price of a Louis Vuitton bag!" one person commented online.
"Only a lunatic would believe the report and buy the shares," another wrote on Weibo.com, a popular microblogging site in China.
Seriously?
Huang Wei, a chief analyst at CITICS, shrugged off the criticism, saying that the over-packaged and over-priced pickles were just a marketing strategy that had been used many times before.
"What is the big deal in all these media reports?" Huang asked in surprise. "It's a sales gimmick that should not have impacted the mustard tuber market."
The Chenxiang Mustard Tuber is only a bluff which would not produce profits, added Huang, who declined to answer the question about whether CITICS had done any research on the product.
Huang's statements were verified by a Fuling Hot Pickle staff member, who revealed on June 27 that the product had been on sale for many years, which was confirmed by another officer in its Shanghai office, according to a report in the Shanghai-based Dongfang Daily.
Nevertheless, the stock price of Fuling Hot Pickle increased by 1.43 percent to 19.17 yuan per share on June 27, the report said.
The price of the pickles may have been strange to many consumers, but it was not a fraud, Secretary Zhang Ming of the CPC Committee of Chongqing (Fuling District), said Tuesday.
"I agree with them that the product is obviously over-packaged," he said, "but it was legal."
Fuling Mustard Tuber did not promote the product to increase its share value, Zhang said.
