HOW DID ZURI BELIEVE THE EXAGGERATED CAMPAIGN and SCAM OF CINDERELLA?
CINDERELLA CONSIGNMENT consisted of some people like: ARTHUR CORONEL (PRESIDENT), MYLENE BELTRAN (Concession Assistant), GIGI ROSALES (Consignment Manager).
CINDERELLA focuses on attracting small and starting businessmen / aspiring capitalist to get a consignment opportunity with their STORES. Currently, they are operating on 189 directly managed stores all over the Philippines. Imagine the arm of the SCAM if they will continue operating their consignment business in the country.
The NEGOTIATION:
Their Concession Assistants will try to look for potential consignors in whatever way possible… In our case MYLENE BELTRAN sent us a private message in our Facebook page. Despite our initial hesitation we receive a Non-stop Phone Calls, Follow-ups and Persuasions. Thinking afterwards that this opportunity might give an added value to what we currently have, we agreed to discuss with them the “Marketing Plans “ they offer. We were then endorsed to one of their Consignment Managers – GIGI ROSALES
(Excerpts from email of MYLENE BELTRAN):
Dear Sir/Madam,
Greetings from Cinderella! Cinderella Marketing Corporation is a leading figure in Garment Industry and in Retail. The company has always been continuing to set the pace for fashion conscious Filipinos for more than 60 years.
The letter “C“ that is the Company logo is recognized everywhere and is associated with high quality goods and outstanding services.
Joining our growing clientele, you can enjoy the following advantages:
1. Additional exposure to the trendy AB and upper C socio- economic bracket
2. Additional sales revenue
3. Be associated with our company therefore having a new set of clientele loyal to Cinderella.
4.Opportunity to have extra mileage on promotional activities and advertising campaigns.
We believe that your brand can be a great partner in our endeavor and our company’s expansion plan for our different branches. Should you have questions and / or clarifications, please feel free to address the undersigned or visit our office at # 825 E. De Los Santos Avenue, Quezon City with telephone number 926-9091 to 94 local 313/314 cell # 09178394793. We look forward in having a wonderful business relationship with you.
Truly yours, Mylene Beltran Concession Assistant Cinderella Marketing Corporation cinderellaconsignment@yahoo.com 9269091-loc 313/ 314 09178394793
CINDERELLA’s proposal promised a very “OPTIMISTIC” campaign. Campaign that would give an impression that consigning items in their store would “DEFINITELY” BOOST UP SALES and NETWORK. Their promotional materials led aspiring businessmen to believe they actually have a good and successful “BUSINESS” to offer. An “EXAGGERATION of CLAIMS” for market and financial outcomes for consignors.
Once you get “OVERLY-PERSUADED” by their “PRESS RELEASE”, they will let you sign a “VERY MISLEADING” one-page consignment contract.
(Copy of the Contract)
Quota (Explanation upon Contract Signing): GIGI ROSALES assured us that we don’t have to worry about QUOTA. Then our first two months in CINDERELLA is QUOTA free. Quota Free means, as their consignor -they will not charge us of the 30% commission based on the MINIMUM REQUIRED NET SALES for two months but the 30% would instead be based on the ACTUAL SALES. There were never mentioned about PENALTIES, SURCHARGE should in case we would not be able to hit the MINIMUM REQUIRED NET SALES which they would based their SALES COMMISSION.
MINIMUM SALES COMMISSION (Explanation upon Contract Signing):
Based on their explanation: CINDERELLA’s GUARANTEED COMMISSION would be 30% based on the MINIMUM REQUIRED NET SALES or ACTUAL SALES which ever is higher.
Further as they explained: the MINIMUM COMMISSION we need to pay is 30% of the MINIMUM REQUIRED NET SALES should in case our Actual SALES are lesser.
The focus of explanation was on the MINIMUM REQUIRED NET SALES x 30% as CINDERELLA’s guaranteed commission. It was never mentioned that the 30% would be based on the Fixed SALES Quota of P70,000.00 (SQM occupied inside CINDERELLA Store x P7,000.00 Rate per SQM. or 10sqm x P7,000 = 70,000.00.
PRE-TERMINATION CLAUSE (Explanation upon Contract Signing):
In case Consignors don’t want to maximize the full 1year contract – Consignors will have to give a written notice of at least 60 days.
PRE TERMINATION FEE: MINIMUM REQUIRED REVENUE x 2 MONTHS. MINIMUM REQUIRED REVENUE as explained to us is P21, 000 x 30% = 6,300.00 x 2Months = P12, 600.00
Consignors should have a pull out Clearance SLIP after payment of the charges to CINDERELLA so they can pull out all their inventories in CINDERELLA warehouse.
SALES REMITTANCE (Explanation upon Contract Signing): CINDERELLA should remit the SALES PROCEEDS net of CINDERELLA’S MARGIN GUARANTEED COMMISSION, TAXES and EXPENSES within 21 working days from completion of monthly sales.
CINDERELLA’S pre-contract signing explanation as explained above looks FAIR and REALISTIC. Nowhere in their presentation would the CONSIGNMENT AGREEMENT would sound unfair and not beneficial to consignors.
ZURI Baby Couture signed the contract.
BUT in less than 1 month, ZURI soon realized that the MARKETING PROPOSAL, CONTRACT PRESENTATION and ADVERTISEMENT of CINDERELLA played a very different role than presented.
The way CINDERELLA MARKETING CORPORATION run their CONSIGNMENT BUSINESS is indeed in ‘RUDE HEALTH” and are in “BOGUS “ /“SCAM’”WAYS.
How the Scam Worked:
CINDERELLAS CONSIGNMENT - CONTRACT EXECUTION:
In our first two weeks inside the CINDERELLA store, we have ZERO sales. ZURI conducted a sales analysis to know why and if ever there is a chance for ZURI’s consignment to recover fast and thereafter. Unfortunately after the analysis - ZURI was convinced that there is no way that it will be able to generate sales. The Following factors were considered:
Number of People coming in to CINDERELLA store is so minimal that it will not enable ZURI to have SALES Revenue. When we say minimal based on actual count done by ZURI - maximum of 10 people goes inside the CINDERELLA STORE during the Normal Store Operating 12 Hours including week-ends - and these 10 people were not even buying!
ZURI supposedly was to have a 10SQM space inside the store that is why we hired contractors to personalized our Store Racks, but upon ingress the store was so crowded and we were just given 1 rack to rent and we share items display with other brands. The kind of Branding they gave ZURI with that over crowded area was far more deviating from what they claimed as for AB and upper C socio- economic bracket. We cancelled the rack construction - no way it will enhance the cheap image we had become with that crowded and mixed market. People were passing by the Store and not even interested to look because of the non classy and crowded image consignors appeared.
We asked for the agreed Marketing Plans and Mileage during negotiations - thinking that somehow it might give SALES. Much more to our dismay CINDERELLA told us that we have to do our campaign and do our own promotion so more people would go inside CINDERELLA store and buy our products. They even requested us to give discounts at our own cost and they don’t even want to share. The implication? – We have to exert our own effort and ask our own clients to go to their Store to buy – huh! So what’s the sense and added value of consigning with CINDERELLA afterall?
None of the Marketing Plans they Offered were implemented thus, the ZERO / NEGATIVE Operation continues until 1 Month. With this despite of the Non Quota clause we have for the first 2 months – ZURI decided to pull –out and not continue with the initial 1 Year Contract with CINDERELLA anymore because based on the SALES Analysis and the Actual Counting of People coming inside the store – There is really NO WAY and it is HOPELESS for ZURI and all consignors to generate sales.
The very reason we signed the contract is because of these ENTICEMENT:
Additional exposure to the trendy AB and upper C socio- economic bracket: WHERE ARE THE EXPOSURE THEY ARE BRAGGING ABOUT? NO TRAFFIC OF PEOPLE INSIDE THE CINDERELLA STORE AT ANYTIME.
Additional sales revenue: ZERO SALES FOR 1 MONTH. NO PEOPLE ARE GETTING INSIDE THE STORE TO BUY. NO SALES FOR MAJORITY OF THE CONSIGNORS FOR THE LONGEST TIME THEY WERE THERE.
Be associated with our company therefore having a new set of clientele loyal to Cinderella: NEW SETS? WHO ARE THEY? WHERE ARE THEY? WE DON’T EXPERIENCE ANY ASSOCIATION BECAUSE NOBODY IS GETTING INSIDE THE STORE.
4. Opportunity to have extra mileage on promotional activities and advertising campaigns: NO PROMOTIONAL CAMPAIGN! WHERE IS THE MILEAGE? NO ADVERTISEMENT OR PROMOTIONAL WERE EXTENDED TO ZURI. Besides BASED ON ANALYSIS, NO AMOUNT OF CAMPAIGN CAN MAKE PEOPLE GET INSIDE THE STORE TO BUY.
ZURI is doing well and have a solid market on its own. The very reason we signed up with CINDERELLA is because we were looking on the “ADDED VALUE” as HIGHLIGHTED in the BENEFITS and MARKETING PROPOSALS. But once you’re in already you will discover that their BUSINESS OFFERINGS were all imaginary and non-existent. So in compliance with the Termination provision in the contract
(AT LEAST 60 DAYS NOTIFICATION PERIOD)– ZURI wrote a letter of Intent to Pre terminate our Consignment Contract with CINDERELLA after 1 month.
Ms. Gigi Rosales in turn responded to our termination call and has notified us that we have to pay the pre termination fee amounting to P 42,000.00. As per Ms. Rosales, the computation will be for the MINIMUM REQUIRED NET SALES x 2 (P21, 000 x 2 = P42, 000.00).
Much to our surprised with the Pre – Termination computation, ZURI contested. Why P 42,000. 00? As you explained in the contract the Pre Term computation will be based on CINDERELLA’s Required Sales Revenue x 2, so that will be (P21, 000.00 x 30% x 2 = P12, 600.00) not P42, 000.00
But GIGI ROSALES insisted that what they meant for MINIMUM SALES REVENUE is the P21, 000.00 already and this is based on the REQUIRED SALES QUOTA they set for us. The computation of quota is based on the SQM we occupied inside the CINDERELLA STORE multiplied by P7, 000.00 rate per SQM. So for ZURI it will be 10SQM x P7, 000.00 = P70, 000.00 “REQUIRED QUOTA PER MONTH” and in this P70, 000.00 they will get their minimum 30% monthly commission with or without Consignor SALES and even if we didn’t get to occupy the 10SQM area.
The claims of CINDERELLA are obviously “BOGUS” and ONE SIDED. How in the world can a consignor earn P70, 000.00 per month with the current dying business condition of CINDERELLA? CONSIGNORS cannot even generate a P1.00 sale! For ZURI They will get the P21, 000.00 commission even if ZURI is not generating any SALES at all. If you want to avoid future loses any consignor will have to at least pay 2 Months of that “FIXED and REQUIRED” commission as a Pre-termination fee.
What Happens if a Consignor don’t pay the Malicious Pre-Termination Fee?
CINDERELLA:
will Hold, will confiscate and will not return all INVENTORIES of every CONSIGNOR inside the CINDERELLA warehouse.
will continue to SELL and make money out of all the unreturned and hostage inventories from all CONSIGNORS even without the proper negotiation and permission from the CONSIGNORS as still the LEGITIMATE owners of the sold products.
Will not notify CONSIGNORS of all SALES PROCEEDS and will no longer return the MONEY to the CONSIGNORS because their claim is that CONSIGNORS are no longer paying the REQUIRED SALES REVENUE or the REQUIRED COMMISSION to CINDERELLA.
ZURI have almost P300, 000.00 worth of INVENTORIES inside the CINDERELLA warehouse. We also have generated P30, 922.12 SALES PROCEEDS from October 2014 to February 2015. Despite our repeated proposal to rightfully OFFset the PRETERM FEE against our SALES, CINDERELLA still continue to claim that we have to PAY the P42, 000.00 PRETERM FEE and we are forfeiting our GENERATED P30, 922.00 SALES. And they are not willing to return our INVENTORIES as well unless we pay and settled their computed amount.
Up to this date, no arm of resolution has been extended to us by the BOGUS CINDERELLA COMPANY. They are continuously selling our products and benefiting from this situation and are continuously not minding our legitimate appeal. They are insisting that the only way out in this deal is to PAY them the amount they want no matter how impractical it is.
If not ALL – MAJORITY of the CONSIGNORS inside the CINDERELLA store specially the starting, small and aspiring ones has experience the same “SCAM,” “HARASSMENT” and Monkey BUSSINESS from the CINDERELLA MARKETING CORPORATION CONSIGNMENT BUSINESS and PEOPLE. Most are wanting to pullout after discovering CINDERLLA’S MODUS OPERANDI. Most have gone out of the STORE with huge amount of losses and for some the deal has even eaten out their CAPITAL and for us we LOST our nearly half a million INVENTORY.
Our CONSIGNMENT CONTRACT with CINDRELLA GLORIETTA will end this July 2015. Obviously what they want is to take all our INVENTORIES and make money out of it.
OUR FINAL ANALYSIS
CINDERELLA MARKETING CORPORATION ITS CONSIGNMENT PEOPLE, THE MANAGEMENT already knew from the beginning that a merchant or a consignor will never make SALES, nor will make money inside their store.
They have full knowledge and awareness that CINDERELLA MARKETING CORPORATION is no longer a “POPULAR” BRAND and their STORES anywhere in the Philippines is no longer at its prime that is why they have to come up with a STRATEGY that is favorable to them to sustain their company. BASeD ON WHAT WE EXPERIENCED, WE CALL IT SCAM.
They have to TRAP aspiring and budding businessmen with their “OUTRAGEOUS LIES” regarding SALES REVENUE and EXPANSION OF NETWORK. They are making FALSE CLAIMS about BRANDING, MARKETING and SUCCESS.
The PULLOUT rate on their consignment stores was extremely high but CINDERELLA will not care, not at all because from the incubation of the contract they knew already that all provisions in their “CONTRACT” are Unattainable, Exaggerated and Unrealistic. It is Intentionally BEING MISPRESENTED DURING NEGOTIATIONS to get the approval of their potential victim. Then will do a totally different implementation once issues arise.
It doesn’t concern them if a CONSIGNOR doesn’t make any sales at all because they already anticipated and calculated the MONEY they will make out of the “MALICIOUS PRE-TERMINATION FEE”, More money from the SALE of CONFISCATED and ABANDONED INVENTORY of every CONSIGNORS who are not willing to agree with their FICTIONAL TERMS, or worst CINDERELLA’s money making business is primarily rested on those GULLIBLE businessmen who has small capital and cannot to fight the HARASSMENT they make.
CINDERELLA in its finest form HAS MASTERED THE CALIBER OF THEIR BUSINESS FICTION!
We believes that the Business People of this country are entitled to protection from such unfair practices. Misleading information should not be intentionally used to gain CONSIGNORS, which would not even generate a P1.00 sale inside their dying BRAND and STORE.
We want to give warnings to small and aspiring businessmen who would get such CONSIGNMENT invitation from CINDERELLA MARKETING CORPORATION. Don’t give in! The deal will bring much sorrow and regrets after you put in your inventory inside their messy warehouse.
WE ARE APPEALING TO THE AUTHORITIES, DTI for one to investigate the legalities of the CONSIGNMENT Operations of CINDERELLA MARKETING CORPORATION. If given the chance and the proper forum more victims will come out and testify about these intentional malicious practices.
To this date CINDERELLA MARKETING CORPORATION – CONSIGNMENT is operating on the same staggering and lucrative scale.
Victimizing every GULLIBLE BUSINESSMEN who would believe their FICTIONAL CLAIMS.
For more information and details about this post, you can contact us on the below number:
Landline: 632-831-6766
Mobile Number: 63919-515-7746
Look for Lala / Illumine Import Export Marketing Inc. distributor of ZuriBabyCouture Brand
