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After 18 years of entrepreneurship and 18 days of collapse, why did Shu Yuhui's Quanjian empire collapse

author:The story of the first position

Hong Kong director Wong Kar-wai has been grinding a drama for three years, and the new drama "Flowers", which shows the dream of making a fortune in Shanghai in the 90s of the last century, immediately became a hot topic among netizens.

In the play, the uncle said to Po: In the Empire State Building in New York, it takes an hour to run from the bottom of the building to the roof, and it only takes 8.8 seconds to jump from the roof.

After 18 years of entrepreneurship and 18 days of collapse, why did Shu Yuhui's Quanjian empire collapse

A simple but vivid metaphor that encapsulates many life and business philosophies.

In the past few years, there are not a few bosses who have been imprisoned after the thunderstorm, but when it comes to the speed of collapse, Quan Jian's boss Shu Yuhui can be said to be far ahead.

On Christmas Day 2018, after the media exposed Kwon Jian, the government quickly intervened in the investigation. In less than a week, Shu Yuhui and his accomplices were officially arrested.

After 18 years of entrepreneurship, it collapsed in less than 18 days, and the "flowers" on Shu Yuhui's body became a thing of the past in the blink of an eye.

Such a wonderful story, I'm afraid that even a TV series can't be filmed.

1

Quan Jianneng earned a big name in the country, and it was inseparable from Tianjin football at the beginning.

In July 2015, Quanjian, a local health care product company in Tianjin, held a press conference to announce the purchase of Tianjin Songjiang Football Club.

In those years, "Jinyuan Football" was very popular, but the newcomer Quan Jian was a very ruthless character. For a time, foreign big-name players and coaches came to Tianjin Wei.

Quan Jian was promoted from the Chinese League to the Chinese Super League in the second year and achieved the second place in the league. What makes Tianjin fans even more ecstatic is that in 2018, Quan Jian was the only Chinese Super League team to enter the quarterfinals of the AFC Champions League that year.

In just 3 years, the competitive results have improved by leaps and bounds, and real money is naturally indispensable behind it. It is rumored that Quan Jian's boss Shu Yuhuiguang has spent two or three billion yuan on football in three years.

After 18 years of entrepreneurship and 18 days of collapse, why did Shu Yuhui's Quanjian empire collapse

Spending money is small, and what makes Shu Yuhui, an investor, the happiest thing is that he can finally sit with several other Chinese business tycoons who also invest in football.

The 50-year-old boss Shu has become famous, and when he talks about his entrepreneurial experience, he is naturally gushing.

The gestures are full of confidence, and they are no longer embarrassed when they arrived in Tianjin at the beginning of the year.

In the winter of 1993, as soon as Shu Bihe, who had not changed his name at that time, walked out of the train station, he was shocked by the traffic in front of him.

Going out to make a lot of money is the biggest thought in the heart of 25-year-old Shu Bihe. For this reason, he left his wife and children behind and came to Tianjin, 800 kilometers away, to find a way.

The prosperity of Tianjin Wei is not comparable to the hometown of Dafeng County, but if you want to make money quickly, it is not as easy as you think.

Shu Bihe shrunk his neck, dodging the biting cold wind of December while wandering the streets looking for opportunities.

A newly opened magazine is just short of people, although Shu Bihe has no editing experience, but the person in charge saw that the young man was very energetic and stayed.

1993 was a year of great significance in the history of Chinese health care products, and in the summer of that year, Ma Junren's Ma Jiajun won three gold medals at the World Athletics Championships in Stuttgart.

Overnight, Ma Junren became a household name, and it was only natural that the media flocked to him to ask him about the secret of his success.

And Ma Junren's answer was: Because we often drink Chinese soft-shelled turtle essence! As soon as this remark came out, Chinese soft-shelled turtle essence entered thousands of households.

After 18 years of entrepreneurship and 18 days of collapse, why did Shu Yuhui's Quanjian empire collapse

In the second year, the three strains of oral liquid for disease treatment and non-disease health care came out, creating a myth of health care product sales.

As the editor of the "China Health Care Journal", Shu Bihe can naturally collect health care recipes from all over the country, and he knows that these health products "can't eat people who can't die, and they can't eat people well", but they are an opportunity to make a lot of money for themselves.

In 1995, Shu Bihe heard that a health care product company in Tianjin had just been established, so he immediately resigned from the magazine and came to this company called Tiens.

At that time, Tiens was the main product of a calcium tablet called high calcium, which was naturally not magical compared to turtle essence and three strains, but Shu Bihe witnessed the magic of Tiens direct sales here.

At that time, MLM was a sales model that was no different in nature from direct selling. And it is Tiens that really makes MLM prosperous in China.

In April 1995, Amway officially entered the Chinese market and began to sell its products in a direct sales model, while Tiens was approved to start direct sales in August.

With the entry of a large number of female textile factory workers in Tianjin into the Tiens direct sales team, Tiens ushered in explosive growth in the second year of its establishment.

The performance exceeded 300 million in one month, and such a strong performance even the international giants Avon and Amway could not match.

In the first half of 1998, Tiens sent out 30 or 40 Hongqi cars to its dealers at once, which was undoubtedly an "atomic bomb", which not only shook the health care product circle, but also shocked the entire direct selling industry.

In the past few years, the sales of health care products relied on newspaper advertisements and celebrity endorsements, but I did not expect that health care products plus direct sales were more direct and powerful.

For a time, the health care products rivers and lakes were driven by the strong wind of pyramid schemes, and the tide ebbed and flowed, and the sediment fell.

However, this time, the myth of human-to-human benefit began to rise.

With the rampant operation of various pyramid schemes, the negative color of "pyramid schemes" has gradually increased.

In April 1998, the state promulgated the Circular on Prohibiting Pyramid Selling Activities, and all pyramid marketing activities were uniformly implemented.

Tiens' career came to an abrupt end, and Shu Bihe also left at this time, because he felt that he was ready to make a fortune.

2

It's a pity that God didn't open the door to the expected wealth for Shu Bihe, but played a big joke with him.

Founded in 2000 and closed down in 2003, Shu Bihe's two companies did not survive until 2004, and Boss Shu still owed a lot of debt.

The 36-year-old Shu Bihe was not reconciled, he changed a new name to Shu Yuhui, and also found a relationship to mix a new name - the executive deputy director of the Natural Medicine and Health Care Professional Committee under the National High Health Commission.

After 18 years of entrepreneurship and 18 days of collapse, why did Shu Yuhui's Quanjian empire collapse

At the end of 2004, Shu Yuhui moved his remaining desks and chairs from Hedong, Tianjin to Wuqing, and the company reopened and renamed Quanjian Medicine, which means national health.

Shu Yuhui, who has experienced entrepreneurial failure, decided to play something different this time after a deep review.

The poor boy from Dafeng, Yancheng, turned into a family of traditional Chinese medicine, visited the country and found more than 600 kinds of folk secret recipes for the treatment of incurable diseases, and after high-tech means, it became Quanjian's health care products.

One of Quanjian's starting products, "Guzhengji" health care insole, claims to have miraculous effects on O-shaped legs, lumbar disc herniation, poor sleep, heart disease, etc.

Another product, negative ion sanitary napkins, is claimed to be able to activate blood and eliminate blood stasis, regulate the body's magnetic field and menstruation, enhance immunity, and prevent cervical cancer.

These health care products that sound a little incredible at first glance are just the tip of the iceberg of Quan Jian, and what really makes Shu Yuhui make a lot of money is the magic weapon he learned from Tiens - pyramid scheme.

In 1998, after a one-size-fits-all approach to MLM, the Regulations on the Administration of Direct Selling and the Regulations on the Prohibition of Pyramid Selling were promulgated and implemented in 2005.

However, there are policies and downstream countermeasures, and a large number of direct selling enterprises have bypassed various forbidden areas set up by supervision through the dealer model.

As long as you buy a pair of "Guzhengji" insoles worth 1068 yuan, you can become a member of Quanjian. As long as the member consumes seven orders and the amount reaches 7,476 yuan, he can become a distributor of Quanjian.

The benefits of becoming a dealer are not only that you can learn Xi fire therapy technology and get the goods for free, but more importantly, you can enjoy a commission bonus according to your performance.

In Quanjian's bonus system, each dealer can get a "promotion award" of 780 yuan as long as he develops two downlines and successfully develops two business areas.

After the two new business areas continue to develop new down-line dealers, the sales performance reaches 19 orders, and Quan Jian will be rewarded with a one-time reward of 3,000 yuan, which is Quan Jian's "return to capital award".

In addition, Quanjian also allows dealers to take 10% of their promotion awards as a commission from the upline and the downline on the 2nd, 5th, and 8th floors.

At the same time, the better the performance, the higher the level of dealers, the more the proportion of the step-by-step commission.

How efficient this method is, in a case investigated by the Jiaohe City Procuratorate in Jilin Province in 2012, we can see the leopard.

In 2009, Quanjian Medical founded the sales team "Renren System", and Meng was appointed as the top leader of the system. In less than 3 years, Meng directly or indirectly developed 5,000 downline members and received a commission income of more than 230 yuan.

In the end, Meng Moumou was sentenced to three years in prison, suspended for five years, and fined 4.63 million yuan for organizing and leading pyramid marketing activities.

And how many such sales systems there are within Quan Jian, I'm afraid only Shu Yuhui himself knows.

In 2012, Shu Yuhui published the book "The Price of Life", in which he detailed his experience of seeking various secret recipes, especially focusing on the process of making dragon liquid.

After 18 years of entrepreneurship and 18 days of collapse, why did Shu Yuhui's Quanjian empire collapse

Fire dragon liquid has a variety of functions such as activating meridians, dispelling wind and relieving pain, activating blood and removing blood stasis, and regulating human blood veins, respiratory, nervous and other systems.

The treatment method of using dragon liquid is very simple: it is to make a "firewall" on the body with a towel and plastic film, and then light the fire.

To put it simply, burn where you are uncomfortable.

The opportunity behind this kind of fire therapy hall has become popular all over the country in just a few years, and the opportunity behind it is that in August 2013, Quan Jian got the 39th direct sales license, and since then it has a legitimate and legal signboard.

Despite the suspicion of product fraud, the controversy of organizing pyramid schemes, and the continuous occurrence of fire healing and hurting people, Quan Jian is getting bigger and bigger.

By 2015, Quanjian's annual sales had reached 20 billion yuan.

3

Making a fortune without forgetting one's neighbors is the simple moral requirement of Chinese society for the rich.

From this point of view, Shu Yuhui has not forgotten his hometown of his father's blind date.

In 2015, Shu Yuhui took over an unfinished hotel in Dafeng and transformed it into the Quanjian East China International Conference Center.

In May 2016, the Jiangsu Provincial Department of Commerce officially approved the establishment of Jiangsu Dafeng Life Science Industrial Park, which covers an area of 2,000 acres.

From 2016 to 2018, taxi drivers in Dafeng were busy pulling people between the train station and various hotels every day.

These people did not come to Dafeng for sightseeing, but mainly for pilgrimage and meetings.

The East China International Conference Center has become the main meeting place for dealers around the country, and the most eye-catching thing is a golden-bodied double-sided medicine Buddha at the main entrance of the hotel, which is said to cost as much as 20 million.

After 18 years of entrepreneurship and 18 days of collapse, why did Shu Yuhui's Quanjian empire collapse

Under the gaze of the golden-bodied double-faced medicine Buddha, the hotel is bustling with people at the door every day.

One group of people has successfully developed offline, and another group of people have gone on the road with the dream of making a fortune.

However, on December 28, 2018, the originally lively hotel lost its former hustle and bustle and suddenly quieted down. Just when the taxi driver was depressed about his business, the well-informed Quanjian dealers received the news that something had happened to the company.

The cause of the incident is still from 6 years ago, on that star-studded stage.

On December 24, 2012, Zhou Dali, the "pancake brother" from Chifeng, Inner Mongolia, appeared on the stage of the Avenue of Stars, he played and sang a song "Flower Girl", and then told the story of his niece Zhou Yang.

In this year, Zhou Yang, a 4-year-old girl, was diagnosed with sacrococcygeal malignant germ cell tumor. In the 9 months after being diagnosed with the disease, Zhou Yang underwent 4 major surgeries, 23 chemotherapy treatments and 1 radiotherapy, spending a total of 400,000 yuan in medical expenses, but there was no hope.

The day after the show aired, a man claiming to be from Kwon Jian's company contacted the Zhou family and told the little girl's father, Tuesday, that "this disease can be completely cured, and it will be cured in a few months."

After that, on Tuesday, Li rushed to Quanjian's Tianjin headquarters, and Shu Yuhui prescribed a secret anti-cancer recipe that he "bought for 80 million yuan", including an essential oil for comfrey body, a powdered solid drink and a bag of traditional Chinese medicine preparations without a formula description.

On Tuesday, Li was also told that Zhou Yang should not take Western medicine or chemotherapy while taking Quanjian's anti-cancer drugs.

With such a big boss personally going to the scene for treatment, Zhou Li felt that his daughter was saved now, so he took Xiao Zhouyang to go through the discharge procedures.

However, in the third month of taking Quanjian's drugs, Zhou Yang's tumor markers continued to rise, and he had to return to the hospital for chemotherapy.

In May 2013, Zhou Yang was given a critical illness notice. But a magical thing happened, and a large number of photos and text materials of Zhou Yang began to appear on the Internet, saying that he was cured after receiving treatment from Quan Jian.

After 18 years of entrepreneurship and 18 days of collapse, why did Shu Yuhui's Quanjian empire collapse

Although at this time, the Zhou family was watching as little Zhou Yang was slowly devoured by the disease. In December 2015, Xiao Zhouyang passed away

Exactly three years later, Ding Xiangyuan, a self-media with millions of fans, published an article, tearing off Quan Jian's glamorous cover, and falling from the altar with Shu Yuhui.

At the beginning of 2018, Shu Yuhui was just elected as a member of the National Committee of the Chinese People's Political Consultative Conference.

4 ends

In January 2020, Shu Yuhui was sentenced to nine years in prison and fined 50 million yuan for organizing and leading a pyramid scheme, and Quan Jian Company was fined 100 million yuan.

The Quan Jian case is a big shock to the entire direct selling industry, and many companies that have also behaved out of line have reined in, but these companies in the name of health care will still make a comeback after temporarily avoiding the limelight.

Quanjian's Tianjin factory is still in production, reducing the number of products from more than 1,000 to about 100.

Quanjian's products are still circulating in the market, and Quanjian dealers who do not go to direct sales can only advertise in their own circle of friends.

Back then, it cost 1068 a pair of bone insoles, but now it only costs 150 yuan a pair.

From September 9th to 10th, 2023, Fukeman, a new social retail platform headquartered in Hangzhou, held its third anniversary celebration at the Dafeng East China International Conference Center.

On the surface, this company has nothing to do with Kwon Jian. But the magic is that many Quanjian products are listed on the platform after changing the logo.

The venue of the celebration was formerly the Quan Jian East China International Conference Center, and now the double-faced Buddha outside the door of this conference center has disappeared like the word Quan Jian.

Quan Jian's current management strategy is very clear - to keep the old factory and wait for Shu Yuhui to come out.

After 18 years of entrepreneurship and 18 days of collapse, why did Shu Yuhui's Quanjian empire collapse

is coming in 2024, counting Shu Yuhui's 9-year sentence, if you don't count the commutation, you can be released from prison in just 4 years.