Australian-born luxury platform Cettire has “categorically” rejected allegations shared in a media article against the global business regarding non-genuine products being sold via its platform.
In a statement released today, the company declared that it has been the subject of negative press articles in recent weeks, “that have sought to amplify claims from parties who have openly taken short positions in Cettire shares and sought to profit from a short-term decline in the share price.”
According to the statement, the latest article in question by The Australian cited a report commissioned by a short seller as a primary source material.
The Cambridge Dictionary describes a short seller as someone who sells shares that they have borrowed, hoping that the price will fall before they buy them back and return them to their owner in order to make a profit.
Cettire added it has not sighted the report, nor been given an opportunity to comment on it or to check its accuracy.
“The board is concerned that the claims in this article may further mislead and influence the market in a way that significantly and negatively impacts Cettire’s business and its shareholders,” the company shared.
In the same statement, Cettire confirmed that it aggregates more than $2 billion of luxury inventory – reportedly one of the largest selections of luxury goods available globally, which has tripled since Cettire’s IPO in 2021.
Cettire also confirmed that it works with a large and diverse global supply chain, which includes inventory sourced both directly from brands and distributors, with the company adding it does not have any product suppliers located in China, the Marshall Islands, Hong Kong, the Philippines or Vietnam.
“Since commercial launch in 2017, Cettire has handled more than 2 million individual orders,” the statement continued. “There is not a single confirmed case of a non-genuine item being sold on Cettire’s platform.
“None of the examples presented to Cettire by The Australian contain any verifiable evidence that a non-genuine item had been purchased via Cettire.
“Based on information provided by The Australian, the items used as examples have not been inspected by either Cettire or the relevant manufacturer to verify their authenticity.”
Cettire then added that it has experienced a substantial improvement in 12-month customer retention, with 62 per cent of its gross revenues coming from repeat customers in the third quarter of FY24.
“These metrics provide Cettire with strong proof points that its proposition is not only resonating with consumers but also improving over time.
“Cettire is not aware of any ACCC investigation into its customer service practices.
“Cettire categorically rejects the entirely unfounded allegations contained in the article.
“Selective use of, and reliance on, a small number of unverified customer reviews when more than 60 per cent of Cettire’s revenues come from repeat customers and the company is transacting over 1 million orders per annum, is an entirely unreasonable representation of Cettire’s business.
“It is the board’s opinion that the article misrepresents the Company’s supply chain, product quality and levels of customer satisfaction.”
These allegations come as Australian luxury retailer Cosette fields over 1,000 complaints that allege the business has sold counterfeit goods. Cettire has also been subject to other media scrutiny surrounding its duty payment processes.