Business News

CCTV Script 29/11/17

— This is the script of CNBC's news report for China's CCTV on November 29, Wednesday.

Eight children have died from injuries from recalled dressers since 1989, according to IKEA. And It is not the first time for IKEA to recall its MALM dressers.

The first recall of various dressers occurred in June last year, after six deaths were reported. The recall was for 29 million dressers, including the MALM models.

To avoid injury or death, IKEA recommends bolting the Malm dressers and others like it to the wall so that it is secure.

The company also reached a 50-million-dollar settlement with the families of three toddlers who filed wrongful death lawsuits.

Now this time, in total, 17.3 million chests or drawers are involved in the most recent recall. However, criticism mounted in China as the recall only targets the IKEA's U.S. and Canada markets.

Why IKEA recalls problematic dressers in its North America market , while refused to recall in its China market? -- That's the question many Chinese consumers ask.

According to consumer safety groups, MALM dressers do not meet the voluntary industry standards in the U.S. and Canada that require each drawer of a dresser to withstand 50 pounds of weight and they should stop being sold.

And the company said the dresser meets the standards in China as well as many other regions, including the UK and the EU rules.

IKEA launched a campaign called "Secure It!" in March 2015 to more publicly promote the need for wall restraints. It sent emails to millions of customers, ran paid advertisements in parenting magazines, and posted notices on the Ikea website and on Facebook and Twitter. But critics still request the company totally remove the product, arguing that it's a designing defect instead of quality problem.

Meanwhile, on the sales front, as you can see in the chart, we are seeing that the furniture chain's sales revenue growth in China has been on great downward trend since its 2014 fiscal year.

Similar growth pressure has also been felt by Muji, which announced price-cuts for some of its products in China. Therefore, with competition getting tougher in the world's second largest economy and more local furniture brands rising, IKEA might have to do more to win the hearts of Chinese consumers. Perhaps, one thing they could do eventually, is to end up with extending its recall to the China market, just like last year.

CNBC's Qian Chen, reporting from Singapore.