Reborn since 1993

Chapter 639 Dark Horse
A duck knows first when the river water warms in spring. Focus Media got the news from the advertising industry and was able to guess that Sanzhu Group’s capital chain is currently very tight.

After so many years of development, the health care product industry has now become a high-investment, high-return industry, which means spending a lot of money on advertising, hiring door-to-door sales, and then selling the products to recover the funds.

If any link in the process is broken, the whole game will collapse like a domino.

If the product cannot be sold, then you cannot get the money back. Without money you cannot advertise. Without advertising you cannot sell the product. You will soon fall into a vicious circle.

According to information obtained by Focus Media, Sanzhu has begun to default on advertising fees. This is a considerable blow to companies in the health care product industry, as it means that Sanzhu’s products have begun to become unsalable!

"Could it be possible that the three plants will really fall down?"

When Du Guoying heard this, he was also shocked. He didn't know much about Sanzhu, but Sanzhu was a giant with annual revenue of over 8 billion yuan.

If such a giant company collapses, the entire domestic health care products industry will probably be shaken.

"All good things must come to an end, and everyone must go their separate ways!"

Li Dongling said as he looked at the water surface under the fishing rod, recalling the scene of meeting Sanzhu Prince Wu Siwei at Yuhe Leisure Resort last year.

At that time, Sanzhu wanted to advertise through Focus Media's TV shopping platform, but Li Yan declined. Wu Siwei then ran to Li Dongling, but of course, was rejected by Li Dongling as well.

At that time, Wu Siwei was dissatisfied with Li Dongling for not advertising for Sanzhu, and he vowed that Sanzhu would become a century-old store and enter the overseas health care products market!

In addition, Wu Siwei is also preparing to start a new business, allowing Sanzhu to enter the traditional Chinese medicine market, revitalize traditional Chinese medicine, and establish a traditional Chinese medicine empire to challenge Western medicine.

But last year's words are still ringing in our ears, but this year Sanzhu has made a big mistake. If it can't pass this hurdle, Sanzhu will basically become history.

All the chips are already set. Sanzhu’s current predicament has two causes, or it can be said that the incident in September this year was just the beginning of Sanzhu’s troubles.

In September this year, an old man spent 428 yuan to buy ten bottles of Sanzhu. This price was really not cheap, but after drinking Sanzhu, the old man got into trouble and was sent to the hospital. He died two months later.

If it was just a medical accident, it wouldn't cause a big uproar, but when this incident was related to Sanzhu, the wind immediately changed.

At first, Sanzhu didn’t care about this matter at all, but when the old man’s family sued Sanzhu and won the case in the first instance, countless media began to pay attention to this matter, and Sanzhu’s competitors and friendly companies also began to add fuel to the flames.

The result was that the public opinion storm could not be stopped at all, and rumors that people had died from drinking Sanzhu began to spread widely.

Sanzhu, who felt something was wrong at this time, began to form a team of lawyers and then filed the lawsuit in the second instance. In the previous life, Sanzhu did win the second instance of this lawsuit.

But by then, it was already too late. Under the huge public opinion, Sanzhu went from being sought after to being avoided by people, as if it were arsenic, in less than a month.

Sanzhu is currently busy fighting that lawsuit, but public opinion has already completely developed. In the past, Sanzhu and other health products have been touting themselves as miracle drugs that can cure all diseases, with advertisements even printed on pig pens.

The more aggressively they boasted back then, the greater the backlash Sanzhu is suffering now!
Sanzhu's revenue has dropped visibly from 600 to 700 million yuan per month to less than 10 million yuan per month.

However, because of the difficulty in selling products, Sanzhu could no longer afford to support the 150,000 sales staff it recruited from all over the country and had to lay off employees. Sanzhu's sales channels, which had been the leader among health products companies, were directly abandoned.

With sales channels closed, more than 1 billion yuan worth of goods squeezed in inventory cannot be sold. The entire Sanzhu has basically collapsed, and now it is just holding on, hoping to make a comeback by winning the lawsuit.

But will friendly merchants give it a chance? Will those buyers who used to regard it as a miracle drug dare to joke with their lives? Although the dust has not settled yet, anyone with a discerning eye knows that Sanzhu is only one step away from collapse...

Not only has Sanzhu fallen, but those competitors who fanned the flames and took advantage of the situation are not much better off. The fall of Sanzhu, a representative of domestic health products, basically marks the end of the most brutal and profiteering era in the health products industry.

In the future, Yanjing will definitely introduce management rules for the health care product industry. There will no longer be a company like Sanzhu. It is not known whether it is selling water or medicine. In just a few years, its revenue has expanded to tens of billions. When the tide recedes, we will know who is swimming in fruit. In the past, even if it was bottled boiled water, as long as the advertisement was loud, it could be sold at a gold price. Such days will no longer exist.

Once the rules of health care products change, users' attitudes towards health care products will change, and the entire industry will begin to reshuffle. Among them, the good and the bad will be mixed together. No one knows how many of the health care brands that have been dominating the market in recent years will survive.

However, there are examples, such as the boss of Giant, who went against the trend. He no longer promoted health products as miracle drugs that could cure all diseases. Instead, he linked health products with filial piety and holiday gifts.

This move also made Melatonin the swan song of the domestic health care product industry. From now on, this industry will not be as crazy as it has been in recent years.

Li Dongling didn't have any special feelings about whether Sanzhu would fail or not. To be honest, even if this incident hadn't happened, the health care product industry was already at the end of its rope. After all, that thing couldn't be eaten. Who had so much money to buy it for food every day?

Countless families have already spent enough money on this. To a certain extent, health products have served as a substitute for medical shortages in towns and rural areas. They are cheaper than medicines and only provide psychological comfort to users. With the improvement of medical standards and medicines in these areas, health products will naturally disappear in these areas in the future.

Regardless of the right and wrong of Sanzhu, it is true that Sanzhu is involved in traditional Chinese medicine. If it could really be successful, traditional Chinese medicine would have a chance to rise earlier. But after Sanzhu fell, traditional Chinese medicine also declined. Li Dongling just felt a little regretful about this.

Li Yan and Du Guoying listened to Li Dongling's words. They had heard of Li Dongling's vision a long time ago. Even Focus Media and Beibeijia were operating according to the plan made by Li Dongling for them.

Now that Li Dongling is not optimistic about Sanzhu, it means that Sanzhu may really become the giant that falls.

Hearing that all three strains might fail, Du Guoying was shocked, but at the same time he couldn't help but feel fortunate that the Beibeijia he launched had undergone medical-level review and improvement in terms of safety and quality.

It seemed that when selling Beibeijia, Li Dongling required Beibeijia to set up those red tapes and patiently explain to customers the usage and precautions, including that the wear time should not exceed a certain number of minutes at a time, it should not be worn for more than three hours a day, and it should be stopped for a period of time after wearing for a month.

The Beibeijia Foundation was also established to provide insurance for customers who purchased Beibeijia, ensure the safety of users, and provide scholarships to users who have purchased the product.

These previous constraints on Beibeijia have now become a moat to protect the Beibeijia brand. Some people now accuse Beibeijia of collecting IQ tax and saying that wearing Beibeijia is useless at all, but no one accuses it of stealing money and killing people.

Compared with Sanzhu, which is being criticized a lot now, Du Guoying's reputation is much better.

The picture that Li Dongling had drawn for Du Guoying before, which was about a contemporary Confucian businessman who could take care of himself if he was poor and help the world if he was rich, was still hanging in front of Du Guoying's forehead.

Compared to the man in his previous life who used all means just to reap profits, the current Du Guoying obviously has his own pursuits and his methods are very restrained. It is true that he wants money, but he also does not want to bear the infamy.

As he was speaking, Du Guoying's fishing rod shook, and then a fish was caught by Du Guoying.

Li Dongling saw this and looked at the fish on Du Guoying's fishing rod. The kind-hearted Li was not envious of this and felt that Du Guoying was just in the novice protection period.

No matter it is playing cards, fishing, or stock trading, there is no protection period for novice. You may have a great start, but after your luck runs out, everything will return to normal. Now you are just luckier!
But right after Du Guoying, Li Yan caught another bass. Li Dongling looked at the fishing rod in his hand, which was specially customized by the Guangwei Fishing Gear Technical Department, and fell into deep thought. Could it be that the fish in the pond were afraid of this fishing rod?
Afterwards, when Du Guoying caught fish one after another and filled half of the bucket at hand, Mr. Li became a little uneasy. Could it be that the bait he caught today was not enough, and he had to scatter two more bags of disaster relief grain?
When Li Yan saw Li Dongling's eyes on the bucket next to Du Guoying, he touched Du Guoying and coughed lightly.

"Beibeijia's performance this year should be out, right?!"

Du Guoying, who was still a little confused, immediately reacted and put away the fishing rod. "I'm lucky today. Maybe it's because of the good feng shui here. Sorry for making fun of me!"

Listening to Du Guoying's words, Li Dongling looked around the fishing ground and felt that what Du Guoying said made some sense. In a few days, he should invite a Feng Shui master to come and look for dragons and caves to find a good Feng Shui location for fishing. Otherwise, wouldn't it be a waste of Mr. Li's fishing skills?
"This year, Beibeijia has entered markets in Japan, South Korea, Singapore and other places in addition to inland and port markets.

The final sales statistics have not yet been completed, but it is expected that the total sales this year may be around 35 million sets, with total revenue of RMB million, and Beibeijia's profit of around %! "

When talking about the sales volume of Beibeijia, Du Guoying's expression was a little proud. This year, Beibeijia is definitely one of the biggest dark horses in the country.

Now that Beibeijia has entered the overseas market, its sales and revenue are much more impressive than in the past!

(End of this chapter)