The once prestigious correction pharmaceutical industry has been riddled with negativity after stepping into the health care products industry. I thought that big pharma selling health care products was a dimensionality reduction attack, but judging from its play, it was more like "cutting leeks". Behind this, it is not only a matter of mode, but also a deeper reason.
Conscience medicine, reassuring medicine, medicine that works. ”
Relying on this advertising slogan, Correction Pharmaceutical won the trust of countless consumers that year.
Over the past 20 years, the business of the correction pharmaceutical industry has become bigger and bigger, and simply selling drugs has long been unable to satisfy its ambitions.
So, it played crossover. The field of health care products is an important part of its diversified layout.
However, after this well-known pharmaceutical company stepped into the field of health care products, it did not reflect the pattern that a big pharmaceutical company should have. On the contrary, it is riddled with negativity, and it is often exposed to scandals.
Why did the well-known pharmaceutical companies in the past not cherish their reputations so much? What's the problem?
In the past, well-known pharmaceutical companies are now frequently named
Correction is a big brand", this is the consensus of countless consumers.
Not long ago, Correction Pharmaceutical Group ranked 158th in the "2023 List of China's Top 500 Private Enterprises" released by the All-China Federation of Industry and Commerce, and ranked 104th in the "2023 List of China's Top 500 Private Enterprises in China's Manufacturing Industry".
In addition to brand awareness, the strength of the correction should not be underestimated.
According to the data of enterprise investigation, Correction Pharmaceutical is a large-scale modern private pharmaceutical enterprise integrating scientific research, production and marketing of patent medicines, chemical pharmaceuticals and biopharmaceuticals, drug chain management, and standard cultivation of Chinese herbal medicines. As of 2016, the group has 127 subsidiaries and more than 100,000 employees.
According to the list of "2023 China's Top 500 Private Enterprises" released by the All-China Federation of Industry and Commerce, the revenue of the revised pharmaceutical industry in 2023 will reach 66.9 billion.
2023 China's Top 500 Private Enterprises** from the Internet.
From scientific research and pharmaceuticals to business sales, the correction has a very complete product channel system, and it stands to reason that selling a health care product should not be a big problem. Unexpectedly, in recent years, its health care product business has been frequently named due to false publicity and other issues.
In December 2023, the Beijing News said in the article "Sticking eye film to treat myopia, eating lutein and not drying eyes, correcting the "words and routines" in the live broadcast room", the anchor in the correction live broadcast room continued to cycle "5 boxes of stickers below 200, 10 boxes of 200-500, and 15 boxes of more than 500......Words to guide consumers to think that the eye mask has the effect of reducing myopia.
However, through investigation, it was found that the so-called eye mask is just a "makeup" cosmetic, and it does not have the effect of reducing or even myopia as they say. These words are suspected of false propaganda and exaggerated efficacy.
When selling revised blueberry lutein ester vitamin C tablets tablet candy products in the live broadcast room, the anchors often come to the sentence "Dry eyes, astringent eyes, easy eye fatigue, electronic products to see a lot, small mirrors and small frames to wear, all go to eat our lutein tablets", which also makes those office workers and bowed heads excited.
The essence of lutein products is tablet candy, and drugs, health care products expression, industry insiders also said that the product is added to lutein, lutein has a certain effect on improving macular degeneration and vision, but it has little effect on dry eyes and astringent eyes, and it has nothing to do with the "small mirrors, small frames" myopia suggested in the live broadcast room, myopia is caused by muscle fatigue and refractive error caused by excessive eye use.
In addition, Wang Hai, a professional anti-counterfeiter, has repeatedly released the test results of corrected products on the Internet, among them, the correction of Yuanben Shennong Baicao Cream, Chengbei brand antibacterial cream, Correction Qiaoqiao Firming Beauty Cream, Correction Yuanben men's massage cream, Correction of wolf poison weed antibacterial combination, Correction of Sense of Healing Kang cold compress gel, CP Pharmaceutical Skincare antibacterial cream and other big-name products were detected with concealed preservatives or pharmaceutical ingredients.
In addition to the above, as early as 2014, the amendment was made by People's Daily Online for declaring Youer capsules as a "miracle drug".
People's Daily Online pointed out in the article "Correcting Pharmaceutical Health Products into "Miracle Drugs" that in order to concoct a health care product without any ** effect into a "miracle drug", claiming that it can turn Xiao Sanyang into Yin, the company also produced a ** for patients and doctors to speak for the efficacy of Youer capsules, advocating that it can cure all diseases.
Whether it is suspected of false propaganda or concealment of added preservatives and other ingredients, the reason why the revised health care product business is riddled with negative emotions is, in the final analysis, a problem of model.
relied on OEM and authorization to make money, but lost word of mouth
The revised health supplement business has repeatedly overturned, which is related to its model. Most of the health care products on the market with the "Correction" logo are actually OEM products.
The author found in the topic related to the correction of the post bar that the amendment said that the product can be corrected by OEM, can be operated online and offline, and can even be authorized at the first level, covering food, cosmetics, medical equipment, sanitization, daily necessities and other fields.
*From the post bar.
For example, although the product is printed with the amended trademark and the "blue hat" logo, its manufacturer and the consignee have nothing to do with the amendment, that is, the small company only borrowed the trademark of the big brand for OEM processing.
It is understood that this company was registered in 2019 and is a small-scale foundry, and the company has no equity relationship with Correction Pharmaceutical, and the so-called Correction Eye Patch is just an OEM product.
In this era of "everything can be OEM", many products are actually OEM, but it is difficult for consumers to distinguish for a while, and the threshold for OEM is not high.
Previously, the Southern Weekend reporter claimed that the first store consulted with the correction investment promotion personnel, and learned from them that the brand's authorization model is actually very simple, which is nothing more than two ways to authorize dealers and factories.
To sum up, the first is that the product distributor negotiates with the brand, and then the OEM designated by the brand will produce after the specific introduction, and the second is to directly complete the OEM production through the brand resources in the hands of the OEM, and the OEM will provide one-stop service.
Among them, the most important is the brand licensing fee, through comparative analysis, it is concluded that the revised licensing fee is the most expensive, accounting for 70%-80% of the ex-factory price of the product, followed by Renhe. Of course, according to the product variety and order volume, the brand licensing fee will also be adjusted accordingly.
In addition to the authorization fee, the distributor also needs to pay a certain amount of deposit, which will be deducted if the pharmaceutical company cannot meet the task volume requirements.
As a big brand, the amendment only needs to authorize the trademark to be able to earn the license fee, while expanding the popularity of the market, and the authorized manufacturers, distributors once the use of special certificates and labeled trademarks, can quickly produce and sell on multiple platforms, in this way, greatly reduce the cost of time and testing.
Previously, the relevant person in charge of the OEM processing plant for a certain product had said, "Special cosmetics need a national special batch number, and it takes a year and a half to apply for this special certificate normally, and various documents and reports need to be submitted during the approval process, and the cost is about 100,000 yuan after many tests and review meetings." ”
However, there is one point that has been overlooked, everything will not be fine after the trademark is authorized, and the absence of follow-up supervision may lead to a decline in its own reputation and consume its own brand power.
Not long ago, following the revelation of the exaggerated advertising of the correction of Jinori Gegen soft capsules, the illegal publication of advertisements by the "Correction Acupoint Magnetic Therapy Patch" with the Jin Machinery Guangshen (Wen) number was also **, and in addition, the false publicity of the correction brand shampoo was filed and the illegal acts continued.
Negative news is frequent, and I am afraid that consumers' trust in the correction will also be greatly reduced.
Search for "amendment" on the black cat complaint platform, as of now, there are 2913 complaints, many of which are false products and deceive consumers, etc., and some consumers say that the products have caused harm to their bodies.
Regarding the amended complaint, **from the black cat complaint**.
In addition, the author found from major social platforms that in addition to being criticized by consumers for quality problems, improper after-sales processing is also an important factor leading to the decline of its reputation.
Some consumers' feedback on the revised product comes from various social platforms.
Many of the consumers who buy these products do so out of trust in the brand. Many consumers trust a brand because they trust it, so they trust all the products under that brand.
However, the dazzling OEM products have caused the brand to gradually lose control over product quality, resulting in frequent product quality problems. Product quality problems will lead to a decline in brand reputation and make consumers gradually lose trust in the brand.
However, behind the correction of negative entanglements, in addition to the pattern, there may be a deeper problem.
Caught in the trap of diversification, it has long been strayed
Correcting the black material of the pharmaceutical industry is not only in the field of health care products.
In the past ten years, the correction pharmaceutical industry has a lot of "black history". The drug test failed, the "poison capsule" incident, the P2P investment thunderstorm, and the chairman Xiu Laigui was caught in the bribery case......
For example, in 2014, the raw materials of one of the hot-selling products of Correction Pharmaceutical, "Lung Ning Granules", were found to be moldy and deteriorated, and the act of fabricating false test reports was also found, and the production qualification of the relevant drugs was later withdrawn by the Jilin Food and Drug Administration; In 2017, a bribery scandal broke out in Correction Pharmaceutical, and the person who paid the bribe was the company's chairman Xiu Laigui.
In 2018, a number of P2P platforms invested by Xiu Laigui, including Yongli Bao, Huo Finance, Qian Nanny, Qianzhuang.com, Yipai.com, Weijinshi, etc., were basically all thunderstorms.
On June 20, 2023, the State Food and Drug Administration issued a notice that 15 batches of drugs such as women's health tablets produced by 15 companies did not meet the requirements, and the amendment pharmaceutical industry was also on the list.
In recent years, the correction pharmaceutical industry can be said to be riddled with lawsuits. According to the judgment documents recorded by the enterprise, the number of cases in which the pharmaceutical industry was the defendant was as many as 101, involving product liability disputes, contract disputes, tort disputes, unfair competition disputes, network communication rights disputes, etc.
The reason why the correction pharmaceutical industry, which once had a tall image in the hearts of consumers, has become like this may be related to its development strategy.
After becoming bigger and stronger, the correction pharmaceutical industry did not develop in the direction of innovative drugs, biological drugs, innovative medical devices, etc., but embarked on the road of diversification.
It can be seen on the official website of the amendment group that its product system has covered health care products, traditional Chinese medicine ingredients, medicine and food homology, daily chemical cosmeceuticals, medical devices and other aspects.
In 2019, the Amendment Group established a Correction Liquor Company, focusing on ginseng wine, deer whip wine, maca wine and other health wines, determined to be "China's No. 1 brand of health wine", but its business was bleak.
Correction Liquor has also cooperated with Moutai and Wuliangye, and launched two series of products, "Correction Guoding" and "Correction Jian Sauce", but they have not been done, and it is difficult to find them in the market now.
Carefully combing the diversification of the correction pharmaceutical industry, it can be found that it likes to chase the trend, big health, P2P, liquor, these are all once hot, or still hot.
Correcting the pharmaceutical industry's style of play also seems to be more inclined to obtain short-term benefits, which can be seen from its OEM-based health care products business.
The ambition to revise the pharmaceutical industry is too great. It had set a goal of achieving 100 billion revenue in 2015, but it has not yet been achieved. The goal of 100 billion yuan has not yet been achieved, and it has set its sights on trillion revenue, and plans to achieve the trillion sales revenue target by 2023.
According to public data, as early as 2016, its sales revenue reached 63.6 billion yuan, increased to 64.6 billion yuan in 2022, and 66.9 billion yuan in 2023. Although the revenue of the revised pharmaceutical industry still maintains growth, it is still far from the target of 100 billion.
Open the official website of the correction group, you can still see the company's brand concept on the homepage - "to do medicine is to be a conscience, to be an enterprise is to be a people's heart, and to be a market is to be a people's heart." The following is also signed by the company's chairman Xiu Laigui.
Perhaps, at that time, he believed these three sentences from the bottom of his heart, but now it seems that he may have gone astray.
This article was originally published by Magnesium Jing (mgjing001).
Author: Yuan Huanxin.
Editor: Wang Damei.
Design: Lan Sheng
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