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A small business in China faces a devastating financial blow after an employee mistakenly labeled its washing machines with drastically reduced prices, leading to a surge of 40,000 online orders within 20 minutes. The business, Little Swan Dongshan Franchise Shop, based in Jixi county, Anhui province, is now grappling with a potential loss of 30 million yuan (US$4.2 million).
Little Swan, a prominent domestic washing machine brand, issued an apology and urged customers to cancel their orders. The error occurred on August 28 when an employee misunderstood the promotional rules of the Tmall shopping website, operated by Alibaba Group. This mistake resulted in customers paying only 40 million yuan for products originally worth 70 million yuan.
The shop, which operates both online and as a physical store, expressed its deep regret over the incident. "We made a significant mistake due to a misunderstanding, which has caused public confusion and market disruption," the company stated. With just six employees and minimal profits in recent years, the shop is struggling to cope with the overwhelming situation.
Many customers, like Ms. Wang, took advantage of the pricing error, purchasing multiple washing machines at drastically reduced prices. Wang, who bought three machines, later canceled her orders after reading the store’s apology and realizing the impact of the mistake. The shop hinted that many of the purchases were likely made by businesses hoping to profit, rather than individual buyers looking for a bargain.
In response to the situation, the company released a video featuring the employee responsible for the error, who expressed deep remorse. "I am deeply sorry for my blunder," she said. "By the time I realized it, 20 minutes had passed. I cannot cover the losses, even if I sold everything I own."
The local market supervision authority is now investigating the cause of the pricing mishap. Meanwhile, Little Swan is pleading with affected customers to understand their difficulties and withdraw their orders, promising swift refunds.
Source: SCMP
