Chapter 1800 - Wen Corporation's Quality Control Crisis

Ever since Gu Yihan’s drug abuse issue was exposed, the Wen Corporation’s clothing business collapsed and the Li Corporation took over Country Z’s luxury market. The media reported heavily on the business conflicts between the Wen and Li families ever since.

Ever since the Wen Corporation became shrouded in the issue, the shadow that Gu Yihan’s drug abuse issue caused slowly withdrew, and the Wen Corporation’s situation slowly stabilized. Although their share prices were still dropping, the rate at which it dropped slowed down. But the situation was still terrible for them.

As for their jewelry, skincare products, shoes, and bags, they had already resumed as per usual.

Particularly for jewelry, Wen Xinya was an internationally renowned designer, and the blow that they received was hence the smallest in that department. Wen Corporation struck while the iron was hot and released Wen Xinya’s designer series that attracted the attention of the market, helping the Wen Corporation regain much of their market share.

As for the Li Corporation, who made use of Shen Siwen and Jacqueline Madan in an attempt to gain the Wen Corporation’s market share, they met with many obstacles. Wen Xinya’s fans even managed to dig out the scandal of Jacqueline bribing the judges in the Milan International Jewelry Design Competition, making the Li Corporation lose face.

However, it was obvious that the Li Corporation did not intend to give the Wen Corporation any space to maneuver.

After Gu Yihan was caught for her drug abuse issue, a few firms stopped working with the Wen Corporation, and the corporation was even exposed for using low-quality materials to scam their customers.

“After Gu Yihan’s drug abuse issue was exposed, all of the clothing shops under the Wen Corporation made huge discounts. I bought this shirt from a store under the Wen Corporation, but who knew that after I wore it once, its color faded after I sent it for dry cleaning. It can’t be worn anymore. If I had known earlier, I would not be greedy for such cheap products.”

“This fur coat originally cost ten thousand yuan. I bought it at more than half off as I thought that it was a good deal. Yesterday, I attended a banquet, and one of my close friends found out that the fur was actually shedding. This caused me a lot of embarrassment.”

“I have always been Wen Corporation’s loyal customer for their clothes, and I would buy it every time they released new designs. However, I am thoroughly disappointed this time around. This coat that I bought was only worn twice before it started shedding. The quality is really terrible…”

…

The media and the internet were filled with news of the Wen Corporation using fake materials, which was overwhelming.

Old Mr. Wen was currently on the phone, where yet another distributor decided to stop working with one of the Wen Corporation’s clothing stores. This made him feel desolate and sad.

Old Mr. Wen was clear that these people managed to reject Li Corporation’s attractive incentives for a while in view of their long term cooperation. But they were now at their limits. Ultimately, it was an act of loyalty already.

“Dong dong dong—” Someone knocked on the door.

“Come in!”

Old Mr. Wen took out the medicine from his drawer and washed it down with warm water. Wen Corporation was in such a dire state today, he could not afford to fall and pass this mess to his granddaughter.

Sun Yichen slowly walked into the office. After not seeing him for half a month, he had already become an old man with a head full of white hair. He became speechless for a moment.

“Say what you need to! I’m an old man and have already seen so many things in my life.” Old Mr. Wen leaned his weak and fragile body into the back of his chair.

He had long expected that the Li Corporation would keep them on their toes till they had completely forced the Wen Corporation to its limits to take over the entire corporation. He had already made his own mental preparations. There was nothing much he could not take.

Sun Yichen then said, “I have already investigated. The materials that the Wen Corporation imported earlier on had a quality problem indeed. The complaints from the market are not false, and the consumers’ claims are true.

After so many years, Wen Corporation never had any issues with their materials. This investigation thus came as a huge shock.

After Old Mr. Wen heard it, he flew into a rage immediately. “What did the Wen Corporation build its reputation on? Quality! Trust! I have always emphasized the importance of quality and our inspection checks had always been strict. We never had such a problem.”

Old Mr. Wen never thought that after working so hard for half his life, he would face problems with product quality, which was something he was most proud of. He could not believe his own ears.

Sun Yichen did not dare to say anything.

“Without quality, Wen Corporation’s credibility for our many years of operations will be ruined. Wen Corporation will then be done in for real. This must be investigated very carefully. All those involved must be dealt with accordingly. Those lightly involved will be removed from their post, and the offenders must be sent to prison.

Old Mr. Wen started to develop a crazy, secret, but plausible idea.

After Lu Bingxin left Wen Corporation, she went straight to Rosy Lane. And shortly after, Gu Yihan was accused. This was definitely not a coincidence.

After so many years of operations, Wen Corporation never had any problems with quality. Yet it happened now. Someone must have played tricks behind the scene.

Sun Yichen went quiet for a while and then said, “I have already investigated it. These materials were imported when Wen Haowen was the chairman. He signed the approval form for them, and the relevant departments once surfaced that these stocks could have quality issues but was suppressed by him. The people working under him may not know that there were problems with the quality, so…”

Old Mr. Wen’s face darkened. “So it’s that pest who caused this trouble.”

He was angry with Wen Haowen and regretted ever handing over the corporation to him. He made Wen Corporation run into a multitude of problems, which made them weak enough for the Li Corporation to take down.

At the same time, a question surfaced in his mind as well. If these stocks were purchased two years ago, why did the Wen Corporation not have any quality control problems until now?

At this time, he felt that his theory was truly correct.

Sun Yichen said, “Now, the consumers who bought the items that had quality issues are now making a commotion at our stores, asking for a refund. We…”

Old Mr. Wen cut him off. “Instruct everyone that for those consumers who bought any products with quality control problems, the Wen Corporation will refund them unconditionally. We will also give them a discount card that entitles them to a fifteen percent discount for all of our jewelry.”

This time around, Old Mr. Wen put in his all. Even if the fashion industry market collapsed, at least they must maintain their jewelry business.

Jewelry was a luxury good. For them to give a five percent discount would be a good deal already. For there to be a fifteen percent discount, it truly represented the Wen Corporation’s apology to the consumers.

Following that, Old Mr. Wen instructed. “Also, we will call back all of the clothing items that have quality issues and stop its sale immediately.”

Sun Yichen’s expression darkened. “Based on my calculations, the number of pieces exceeds five hundred thousand. If we recall them all, the Wen Corporation will suffer heavy losses.”

To refund and recall all problematic clothing items would cause a huge problem in the Wen Corporation’s finances.

This was the greatest crisis that the Wen Corporation ever faced.

Old Mr. Wen decisively said, “Just do as I said.”