Produced by Radar Finance and Economics, Wen | Changfan, editor| Canghai
Just six days after winning the title of "2018 Star Enterprise fulfilling social responsibility", Hongmao Pharmaceutical ushered in a heavy blow. On December 26, the China Association of Chinese Medicines announced on its official website that it would revoke the recognition of Hongmao Pharmaceutical.
In 2018, Tan Qindong, a Guangdong doctor who posted that "Hongmao medicinal liquor is poison", was arrested across provinces, causing an uproar. According to incomplete statistics from the media, Hongmao medicinal liquor has more than 2,000 advertising violations in 10 years, and there have been 137 cases of adverse reaction reports.
Radar Finance and Economics found that Bao Hongsheng, the actual controller and chairman of Hongmao Pharmaceutical, is one of the marketing representatives of Mengpai, claiming to be the 19th generation of Genghis Khan's descendants. Under its single-handed operation, Hongmao medicinal liquor is sold as a health product without prescription drugs.
In recent years, the Mongolian marketing has declined, and many of the industry bosses who were in the limelight at that time have changed careers, some have gone abroad, and some have retired.
The health care product market is also a very cruel market. In the book "Shi Yuzhu's Self-Description: My Marketing Experience", which was released on June 17, 2013, it was revealed that there are more than 3,000 kinds of health care products in China, and there are 30 products of the same category even for brain platinum. 10 years ago, the top ten health product companies, only one of them insisted there, and the remaining 9 all collapsed.
It is worth mentioning that recently, the health product tycoon - Quan Jian Shu Yuhui and other suspected of organizing and leading pyramid schemes in court, Shu Yuhui and others pleaded guilty and repented in court.
It has become a star enterprise that fulfills its social responsibilities
In December 2017, Tan Qindong sent an online post entitled "Chinese Sacred Wine "Hongmao Medicinal Liquor", Poison from Heaven", which explained that Hongmao Medicinal Liquor will cause harm to the elderly from the aspects of myocardial changes, vascular aging, atherosclerosis, etc.
As of January 16, 2018, Tan Qindong's wife, Liu Xuan, blocked the account with 2,241 views.
Hongmao Pharmaceutical believes that Tan Qindong maliciously smeared tan, causing economic losses of 1.4 million yuan to himself, and used this as an excuse to call the police.
In January 2018, police in Liangcheng, Inner Mongolia, arrested Tan Qindong across provinces, on suspicion of "damaging the reputation of goods." On April 17, the case was returned to the public security organs for supplementary investigation and compulsory measures were changed. On the same day, Tan Qindong walked out of the detention center after being released on bail pending further investigation. On May 11, Tan Qindong suddenly suffered from mental illness and was hospitalized.
On May 17, 2018, Tan Qindong and his wife issued an apology statement on Weibo, and on the same day, Hongmao Medicinal Liquor issued a document accepting Tan Qindong's apology and withdrawing the report and infringement lawsuit. The incident came to an end.
Comparison before and after arrest
The "Tan Qindong inter-provincial incident" has aroused great concern in public opinion.
In the decade from 2008 to 2017, Hongmao medicinal liquor advertisements have been reported by 25 provincial and municipal food and drug regulatory departments in Jiangsu, Liaoning, Shanxi, Hubei and other provinces and cities to violate the law, with 2630 illegal times and dozens of times of suspension of sales.
For many years, reports of adverse reactions to Hongmao medicinal liquor have not been interrupted. In July 2011, on a medical consulting website, a netizen left a message: 48 years old, female, what should I do if I panic after drinking Hongmao medicine? In March 2012, there were media reports that the elderly in Jinan in their 70s had high blood pressure and cataracts, and immediately after drinking Hongmao medicine and wine, they had symptoms of blurred vision. In December 2015, a lawsuit mediated by the Food and Drug Administration of Yanqing County, Beijing, showed that ms. Guo, a consumer, had purchased Products such as Hongmao Medicinal Liquor and had serious physical discomfort after taking it, and after consultation, the operator agreed to refund the entire purchase price of 1627.8 yuan...
From 2004 to the end of 2017, a total of 137 cases of adverse reactions of Hongmao medicinal liquor were reported in the national adverse drug reaction monitoring system.
Although it faces many doubts, Hongmao Pharmaceutical is still "standing firm". On June 7, 2018, Hongmao Medicinal Liquor issued a letter to consumers and national partners, saying that due to the false and false reports of some self-media on Hongmao Medicinal Liquor, it has caused a lot of trouble and inconvenience to consumers, distributors and retail pharmacies across the country.
In addition, Hongmao Medicinal Liquor has been "supported" by a number of important institutions.
In October 2018, the Food and Drug Administration of the Inner Mongolia Autonomous Region answered a number of questions about Hongmao Medicinal Liquor in the form of a "Notice of Open Government Information".
According to the notice, among the toxic Chinese medicine varieties listed in the Measures for the Administration of Toxic Drugs for Medical Use (State Council Decree No. 23), there are Shengzhizi, Shengnanxing, and Shengbanxia, and the appendages (system), Tiannanxing (system) and Banxia (system) used in the prescription of Hongmao medicinal liquor are all processed products and are not toxic Chinese medicine varieties.
Leopards belong to the national protected animals, Hongmao medicinal liquor really contains leopard bones? In this regard, the Food and Drug Administration of the Inner Mongolia Autonomous Region said that the leopard bone contained in the products of Hongmao medicinal liquor, and the leopard bone used in it was approved by the competent department for wildlife protection under the State Council in accordance with Article 22 of the Wildlife Protection Law of the People's Republic of China (revised in 2009).
The notice also said that from 2004 to the end of 2017, there were 131 general cases of Hongmao medicinal liquor and 6 cases of severe cases. General cases are mainly manifested as dizziness, itching, rash, vomiting, etc., and severe cases are manifested as rash, flushing, palpitations, insomnia, etc., and no poisoning or death occurs.
On November 15, 2018, an authoritative media made a program, "Into Hongmao Chinese Medicine to Understand the Inheritance and Innovation of Medicinal Liquor Technology", live visiting the Hongmao Medicinal Liquor Production Base, walking into Hongmao Chinese Medicine, from medicinal liquor culture to modern production technology, to understand the ingenuity inheritance and innovative development behind an industry.
On December 6, 2018, Inner Mongolia Daily published the news that the General Office of the Party Committee and the General Office of the Government of the Inner Mongolia Autonomous Region issued the "Notice on Carrying out the Selection and Commendation Activities of Outstanding Private Enterprises in the Region", announcing 52 enterprises to be commended, and Hongmao Medicinal Liquor was listed.
On November 21, 2019, hongmao pharmaceutical was awarded the honorary title of "2018 Star Enterprise fulfilling social responsibility" at the "2019 China Traditional Chinese Medicine Innovation and Development Forum and China Traditional Chinese Medicine Corporate Social Responsibility Report" sponsored by the China Association of Chinese Medicines. Vice President of Hongmao Pharmaceutical was awarded the honorary title of "2018 Annual Person of the Year award for fulfilling social responsibility".
In this regard, Red Star News wrote an article entitled "Hongmao Pharmaceutical won the 'Star Enterprise Award for Fulfilling Social Responsibility' is an affront to society", saying that as we all know, it was precisely in 2018 that Hongmao Pharmaceutical fell into the dilemma of "social responsibility" and was criticized by public opinion. The Chinese Medicine Association awards the prize in this way, or does not put consumers in the eyes, which is essentially an offense to the "society" and the "public", which is not only not conducive to the change of the image of Hongmao Pharmaceutical, but also damages the credibility of the Chinese Medicine Association as an industry association. It is not known whether the medicinal liquor is poisonous, but this award is "poisonous".
On December 26, the China Association of Chinese Medicines issued an apology letter, saying that "in particular, the impact of the 'Hongmao Medicinal Liquor Incident' in public opinion is not understood, causing widespread doubts." "Decided to revoke this commendation, correct mistakes, and standardize management."
Trader Bao Hongsheng is the representative of "Mongolian marketing"
According to the enterprise investigation data, the actual controller and chairman of Hongmao Pharmaceutical is Bao Hongsheng.
In 2009, the article "Bao Hongsheng: I am a real Mongolian" published in the 2009 issue of "Excellent Product" magazine included by CNKI, Bao Hongsheng is the 19th generation descendant of Genghis Khan.
Although it is difficult to confirm the identity of Bao Hongsheng's 19th-generation descendants of Genghis Khan, Bao Hongsheng is a well-deserved representative of "Mongolian marketing".
The so-called "Mongolian marketing" is characterized by fierceness, shortness, fastness, liveliness and gathering. The team is basically composed of relatives and friends, fellow villagers, classmates, etc. who are related by blood, and marketing does not consider the advertising method, how to achieve results and how to advertise. The product cycle of The Mengpai marketing agent generally does not exceed three years.
In 1988, the founders of Mongolian marketing, Wu Shanxin, Wu Liji and Xu Yanhua, began their first battle - to hype Yang Zhenhua 851 oral liquid from Fujian, which was a great success. In the next 30 years, the wave of "Mongolian Pai" health care products pioneered by the three people swept across the country.
Bao Hongsheng is the leader of "Mongolian marketing". In 1996, Bao Hongsheng, as the national general agent of the "Kidney Protection Treasure" brand, pioneered the "full service marketing model", and in just three months, "Kidney Protection Treasure" became popular throughout the country and became the first domestic brand of kidney supplement products that year. Bao Hongsheng became the second generation representative of "Mongolian marketing".
In 1997, Bao Hongsheng was the exclusive agent of the "Meifuler" series of weight loss products, creating the first domestic sales of slimming products for two consecutive years; in 1997, Bao Hongsheng first introduced Tibetan medicine to the national market. Among them, "Mangjiao" has created a hot situation of strong sales of Tibetan medicine in the national market, which has also led to the gradual development of a hospital-run Tibetan medicine preparation room into a large-scale pharmaceutical group.
In 1999, Bao Hongsheng cooperated with Zhao Qiang and Zhou Feng to develop Tingmei underwear, which was initially sold to protect the cervical spine. After Bao Hongsheng took over, he decided to vigorously develop the potential market for women, proposing "Tingmei underwear, body contouring, and changing as soon as you wear it", and then bombarded intensively on various TV channels, which soon became popular in the market.
In 2000, Bao Hongsheng was named one of the "Top Ten Marketing Figures in the New Millennium" by "Moving Sales Pharmaceutical" and "Sales and Marketing" magazines.
In 2001, Bao Hongsheng acted as an agent for "Aoqu Light" slimming capsules, and within 5 months of the product listing, it completed the manufacturer's annual sales expectations, and sold more than 100 million yuan for three consecutive years.
In 2002, the pharmaceutical industry ushered in major changes. Advertising of prescription drugs in the mass media is prohibited, and local standard drug batch numbers will be revoked. All product approvals for Yaojian brand name will be voided before the end of 2002, and all will be withdrawn from the market before January 1, 2004.
In 2006, Bao Hongsheng took aim at Hongmao medicinal liquor, and jointly with Du Haijun acquired Hongmao medicinal liquor at a valuation of 5 million yuan, and two years later, the major shareholder Du Haijun transferred the shares to Bao Hongsheng.
After taking over, Bao Hongsheng began the classic "Mongolian marketing" operation, and on his official website, he introduced that Hongmao medicinal liquor is a valuable 67-flavor compound liquor in the history of traditional Chinese medicine wine, which was founded in 1739 (the fourth year of The Qianlong Qing Dynasty).
Hongmao Pharmaceutical said that what really made Hongmao medicinal liquor famous was its unusual "entering the palace" experience.
According to the "Chronicle of Liangcheng County", after the advent of Hongmao medicinal liquor, "with its remarkable curative effect and well-known in all directions, buyers flocked to it, and soon it spread to the Qing Palace, used by the royal family, and became a valuable product for a while." Compiled by the Central Compilation Publishing House, "The Health Recipe Recommended to the Emperor by The Imperial Physicians of Past Dynasties" introduced in detail the secret health recipes of the imperial families of the past, and also wrote a separate article in the book to describe the road of Hongmao medicinal liquor to "enter the palace": "In the tenth year of The Qing Daoguang (1830), Hongmao medicinal liquor was dedicated to the imperial court. The Daoguang Emperor was very happy after drinking it, and kinged the Hongmao medicinal liquor as the imperial liquor of the court. ”
Since then, Hongmao medicinal liquor has entered the Forbidden City and is used by the royal family, and its value has doubled, and the golden sign of Hongmao medicinal liquor has gradually become louder.
In addition, Bao Hongsheng has cooperated with Chen Baoguo, Zhang Tielin, Dedema, Lei Gesheng, Huang Jianxiang and other well-known figures to promote Hongmao medicinal liquor.
What to do about rheumatic bone disease, drink Hongmao every morning and evening; how to do if the kidneys are urinary frequently, tonify the kidneys and strengthen the body and drink Hongmao; what to do if the spleen and stomach are cold, how to drink Hongmao with a healthy spleen and stomach... With the intensive broadcast of advertisements, the sales of Hongmao medicinal liquor have increased rapidly.
According to data from The Intranet, the sales of Hongmao Medicinal Liquor in 2016 at retail pharmacy terminals (including physical pharmacies and online pharmacies) were about 1.63 billion yuan, second only to Dong Ejiao.
In the case of high performance growth, Hongmao Pharmaceutical also seeks to go public. The Company signed a counseling agreement with China Galaxy Securities Co., Ltd. on July 31, 2017, and filed a counseling filing on August 1, 2017. It is worth mentioning that Bao Hongsheng was also selected as the 2017 Inner Mongolia Economic Person of the Year.
However, with the outbreak of the "Tan Qindong Cross-Provincial Incident", the reputation of Hongmao medicinal liquor plummeted.
The decline of Mongolian marketing and cruel health care products
The dilemma encountered by Hongmao medicinal liquor is only a microcosm of the decline of Mongolian marketing.
Zhang Jinli, one of the marketing representatives of Mengpai, said in an interview with the media that if the history of domestic health care products is divided into 2001, then from 1995 to 2000, Mengpai marketing can spawn one or more billionaires every year, and there are dozens of rich people worth more than tens of millions of yuan. However, from 2001 to the present, there are almost no general agents of products that make a net profit of hundreds of millions of yuan per year, and there are only a few who can have tens of millions of yuan in net profits.
According to China Business Daily, since 2010, with the rapid development of Internet technology, the rise of e-commerce, and the gradual improvement of government supervision, fewer and fewer people have mentioned "Mengpai" marketing, and the effect of "Mengpai" marketing has not been as good as before. Many of the industry bosses who were in the limelight at that time changed careers, some went abroad, and some retired.
In fact, the health care product market on which Mongolian marketing relies is itself a very cruel market.
After the success of the trader Yang Zhenhua 851 oral liquid, Wu Shanxin created the well-known health product brand of three oral liquids.
In 1995, Sanzhu published the first "Five-Year Plan" in the People's Daily, and Wu Bingxin proposed the goal: "In 1995, it reached 1.6 billion yuan to 2 billion yuan, and the development rate was 1600%-2000%; in 1996, the growth rate fell back to 400%, reaching 10 billion yuan; in 1997, the speed fell back to 200%, reaching 30 billion yuan; in 1998, the speed fell back to 100%, reaching 60 billion yuan; in 1999, it grew at a rate of 50%. Strive for sales of 90 billion yuan. "
In 1996, Sanzhu Group announced that it had completed sales of 8 billion yuan.
However, the huge sales performance of the three plants is buried in a huge crisis. As more than 100,000 people and thousands of large and small command headquarters are fighting on the front line, all kinds of incidents of exaggerating efficacy, making things out of nothing, and slandering opponents have occurred frequently. In the first half of 1997 alone, the three companies were sued for more than a dozen cases of "false advertising" and other reasons.
In 1997, the national sales of the three plants fell sharply, down 1 billion yuan from the previous year. Wu Bingxin lamented the "15 major mistakes" of the three strains at the year-end conference, and exposed the crisis of the three strains for the first time.
In 1998, the "Chen Boshun case" officially broke out, triggering three dangerous situations. Chen Boshun, a retired old shipwright, spent 428 yuan to buy back 10 bottles of three strains of oral liquid under the advertising promise of "disease treatment, disease-free health care". When taking three to four bottles, Chen Laohan appeared to be red and swollen all over the body, and the whole body was itchy, and after the eighth bottle was taken, Chen Laohan's whole body festered, and the pus flowed. The hospital diagnosed "three strains of drug hyperprotein allergy" and eventually died.
The Changde Intermediate People's Court sent two bottles of three strains of oral liquid that Chen Laohan had not taken to the China Institute for The Verification of Pharmaceutical and Biological Products for verification, and the product was an unqualified product. According to this report, on March 31, 1998, the Changde Intermediate People's Court rendered a first-instance judgment that Sanzhu Company lost the lawsuit, demanding that Sanzhu compensate the family of the deceased for 298,000 yuan.
Since the end of April of that year, the national sales of the three plants have fallen sharply, and the monthly sales have suddenly fallen from hundreds of millions of yuan to less than 10 million yuan.
In 1999, three oral solutions collapsed.
On November 29 this year, the report letter of Rao Yi, the "old cannon" of the academic circle, was circulated. Rao Yi reported academic fraud by three scientific researchers in real name. Radar Finance and Economics found that one of the scientific researchers reported by Rao Yi, the funder behind Lu Songtao, can be called a generation of "medicine gods".
Lu Songtao packaged the health products approved by bribery into anti-cancer miracle drugs. And many rehabilitation models vigorously promoted by its subsidiary Green Valley Company returned to Huangquan after taking the medicine. The number of times the above-mentioned anti-cancer miracle drugs have been included in the national "Illegal Drug Advertising Announcement" has exceeded 800 times, creating the highest number of illegal drug advertisements in China. It is worth mentioning that the new drug (GV-971) invested by Lu Songtao has been approved recently, which is used for mild to moderate Alzheimer's disease (commonly known as Alzheimer's disease). Its medicinal effect has been questioned by many heavyweights such as Fang Arkzi and Rao Yi.
Lu Songtao himself is also a health product tycoon, and his entrepreneurship has failed three times. On January 12, 2008, CCTV News Network exposed Green Valley for five minutes. Hundreds of media focused on Green Valley, and the relevant competent departments across the country began to strictly investigate Green Valley. Lu Songtao's third entrepreneurship fell to the freezing point, the entire company went to the empty building, and a considerable company once again returned to zero.
"The collapse of the company in 2008 gave me an unprecedented impact. These two years were like cutting flesh, cutting off the flesh on my body piece by piece, leaving a pair of white bones. With the collapse of the company's business one by one, I had to put it down, almost deprived to the point of cruelty. Lu Songtao once recalled. After returning to China during the Spring Festival in 2009, Lu Songtao immediately began the fourth entrepreneurial journey, reorganizing people and horses, and by 2012, the scale of the entire company exceeded that of 2006.
Compared with the encounter of the health product tycoon Shu Yuhui, the encounter of Wu Bingxin, Lu Songtao and others has been called lucky.
In December 2018, an article titled "Quan Jian, the Ten Billion Health Care Empire and the Chinese Family in Its Shadow", opened the prelude to the collapse of Quan Jian. The article said that the girl Zhou Yang ate Quan Jian's anti-cancer products for more than two months, her condition deteriorated, and eventually died, but Quan Jian publicized that Zhou Yang had regained her new life...
Quanjian's external sales products include fire therapy, bone positive base insoles, negative ion sanitary napkins and so on. Among them, the so-called fire therapy can "cure all diseases", the bone insole is sick and put out, and the sanitary napkin claims to cure the prostate of men. Among these products, such as bone Zhengji insoles, as early as the Jiaohe Municipal Court trial of the "Renren System" pyramid scheme case, there were witnesses to testify and had no effect; there are countless cases of personal injury to users such as fire therapy, and most of the people who provide fire therapy services do not have doctor qualifications, and its efficacy is unknown.
Quanjian has a variety of reward methods such as brand promotion awards, cultivation awards, welfare awards, and cooperation awards. Among them, in the cooperation award, the promoter can enjoy 10% of the second, fifth and eighth layer promotion awards under the subordinate. This is the source of CCTV exposure in "one layer up, two or five or eight layers down".
As early as 2012, Quanjian was successively exposed by six media outlets suspected of pyramid schemes, namely People's Network, Xinhua Net, Qilu Net, China Quality News Network, Economic Herald, New Financial Observer, etc., all of which involved the sales link of Quan Jian. In 2012, the People's Court of Jiaohe City, Jilin Province, made a judgment and found that "Quanjian Natural Medicine Development Co., Ltd." was suspected of pyramid schemes in the process of selling Quanjian products. Four of the top members of its "Everyone System" sales team were also sentenced to "organizing and leading pyramid schemes."
Quan Jian always retreated from the whole body because he found a dealer as a "shield", but after the public opinion of "Quan Jian of the Ten Billion Health Care Empire and the Chinese Family in Its Shadow" broke out, Quan Jian and the actual controller Shu Yuhui could not escape after all.
On December 16 this year, the Wuqing District People's Court of Tianjin Municipality held a public trial of the case of the defendant Unit Quanjian Natural Medical Science and Technology Development Co., Ltd. and the defendant Shu Yuhui suspected of organizing and leading pyramid schemes. According to CCTV News, Shu Yuhui and others pleaded guilty and repented in court.
The encounters of Wu Bingxin, Lu Songtao and Shu Yuhui are just a microcosm of what happened to China's health product tycoons.
As a former health care product tycoon, Shi Yuzhu revealed in the book "My Marketing Experience" published in 2013 that there are more than 3,000 kinds of health care products in China, even if there are 30 products of the same category as brain platinum. The top ten health care product companies 10 years ago are now left with their own one by one, and the remaining 9 have all collapsed. Among the more than 3,000 health care products, the first place in sales is brain platinum, and the second place in sales is the golden partner, which means that both of its products have been done in the front.
When Shi Yuzhu saw this sign, he felt that there was not much space in the health care products industry. In the end, Shi Yuzhu decided to transfer the company owned by Brain Platinum, established Giant Network Company, and entered the online game, with the latest market value of 36.216 billion.
On December 6, 2019, at the 30th anniversary celebration of Giant Group, Shi Yuzhu said: "From the first day of brain platinum on the market, that is, the second half of 1997 to today, I am eating brain platinum every day, and many people say that brain platinum is deceitful, which is a great injustice. ”
However, some doctors said that the main ingredient of brain platinum is "melatonin", and it is not recommended to take it for a long time!