Core Viewpoint - The article discusses the brand integrity issues faced by Beijing Tongrentang, a historic Chinese medicine brand, due to its extensive licensing and outsourcing practices, which have led to product quality concerns and consumer confusion regarding authenticity [2][5][12]. Group 1: Brand Integrity and Licensing Issues - Beijing Tongrentang has faced backlash after a product, "99% High Purity Antarctic Krill Oil," was found to have no phospholipid content, highlighting the risks associated with its brand licensing strategy [2][3]. - The company has a complex network of over 400 subsidiaries, leading to confusion among consumers about which products are genuinely from the original brand [9]. - The brand's licensing practices have resulted in a proliferation of products under the Tongrentang name, often produced by third-party manufacturers, which has diluted the brand's reputation [5][9]. Group 2: Financial Performance and Market Strategy - Beijing Tongrentang's net profit for 2024 is projected to be 1.526 billion yuan, a decline of 8.54% year-on-year, marking the first negative growth in five years [13]. - The company has attempted to modernize and attract younger consumers through new retail initiatives, but these efforts coexist with traditional practices that may undermine brand trust [12][13]. - The brand's expansion into direct sales of health products has raised concerns about the potential risks associated with this business model, which is often viewed negatively in China [12].