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Furniture retailer under fire found to "import" goods from domestic manufacturers Da Vinci, a Shanghai-based retailer known as a prominent sales agent for international luxurious furniture brands in China, has been found to have "imported" furniture from Chinese manufactures, according to local authorities. Ten of the 11 batches of furniture were manufactured by two domestic companies in the city of Haining and Ningbo in the eastern Zhejiang Province, said the spokesman. The two companies "exported" furniture to the Shanghai Waigaoqiao Bonded Zone, and later Da Vinci "imported" and stored the products in its warehouses in Shanghai, he said, adding that the practice was unethical.
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The Chinese retailer of luxury furniture is alleged to have deceived some customers by selling them low-quality Chinese-made furniture in place of expensive imported Italian products. The peculiarities of this case provide a good basis for a more profound discussion on the current situation of the Chinese furniture market and, in particular, of the challenges and opportunities faced by Italian companies doing business in China. The company is in the process of being listed in the Shanghai Stock Exchange, with an initial price of about 40 times the net revenues of 2010, leading to an IPO value of at least 400 million Euro. Operating since 1994, the company is the leader in the high-end luxury furniture sector in China.
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