Toly Bread(SH:603866) Bei Jing Shang Bao·2025-09-08 11:33Core Viewpoint - The controversy surrounding the advertising campaign by Tao Li Bread highlights the challenges the company faces in maintaining its brand image amidst declining sales and profits, as well as the need for more consumer-sensitive marketing strategies [3][5][6]. Company Overview - Tao Li Bread primarily focuses on bread products, with "short shelf-life bread" as its flagship product. The company launched its mooncake product line in 2020, with revenue from mooncakes projected at 126 million yuan in 2024, accounting for only 2.07% of total revenue [4]. - The innovative "egg mooncake" product was introduced before the Mid-Autumn Festival, emphasizing a refreshing taste [4]. Financial Performance - Tao Li Bread has experienced a decline in both revenue and net profit for four consecutive years. Revenue figures from 2021 to 2024 were 6.335 billion yuan, 6.686 billion yuan, 6.759 billion yuan, and 6.087 billion yuan, with growth rates of 6.24%, 5.54%, 1.08%, and -9.93% respectively. Net profit figures were 763 million yuan, 640 million yuan, 574 million yuan, and 522 million yuan, with declines of 13.54%, 16.14%, 10.29%, and 9.05% respectively [6]. - In the first half of 2025, revenue further decreased to 2.611 billion yuan, down 13.55%, and net profit fell to 204 million yuan, down 29.7%. Revenue from bread and pastries was 2.585 billion yuan, a decline of 13.4% [6]. Marketing and Advertising - The controversial advertisement that linked consumer preferences for five-nut mooncakes to life experiences was criticized for being patronizing, leading to a backlash and potential damage to the brand's image [3][5]. - Following the controversy, Tao Li Bread's official customer service confirmed the advertisement was being taken down, and the company issued a public apology, acknowledging the criticism and emphasizing the quality of their products [3][5]. Research and Development - Tao Li Bread's investment in research and development has significantly decreased, with R&D spending of 22.968 million yuan in 2024, down 31.84%, and 10.661 million yuan in the first half of 2025, down 30.81%. In contrast, advertising and promotional expenses reached 42.96 million yuan, an increase of approximately 40% [6]. Market Trends - In the competitive baking market, health-oriented products such as low-sugar, low-fat, and high-fiber options are becoming mainstream. However, Tao Li Bread's recent product launches indicate a slower market response, suggesting a need for better alignment between product innovation and consumer trends [7].