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Core Viewpoint - The article discusses the challenges faced by the tea brand Cha Bai Dao due to aggressive expansion and marketing strategies, highlighting the need for better management and response to public relations crises [1][5][10]. Marketing and Public Relations - Cha Bai Dao's recent public relations crisis stemmed from a marketing blunder involving its celebrity spokesperson, leading to significant backlash from fans [1][5]. - The brand's reliance on celebrity endorsements and aggressive marketing strategies has resulted in increased distribution and sales expenses, with growth rates of 193%, 134%, and 140% from 2022 to the first half of 2024 [9]. - The company has faced criticism for its handling of promotional materials and the management of its franchisees, which has led to consumer dissatisfaction [10][11]. Franchise Management Issues - Cha Bai Dao's rapid expansion through a franchise model has revealed significant management shortcomings, particularly in supply chain control and franchisee oversight [11][15]. - The number of franchise stores has increased dramatically, reaching 8,376 by the first half of 2024, but this growth has not translated into revenue increases, with a reported 9.4% decline in revenue to 24.22 billion yuan in the first half of 2024 [12][17]. - The company has implemented various incentives to attract new franchisees, including significant fee reductions, but this has not alleviated the operational challenges faced [14][15]. Financial Performance - Cha Bai Dao's net profit for the first half of 2024 dropped by 59.7% to 2.37 billion yuan, with projections indicating a potential annual decline of up to 60% [17]. - The rapid increase in franchise locations has led to a higher closure rate, with the closure rate rising from 0.2% in 2021 to 2.9% in the first half of 2024 [17]. - The brand's focus on quantity over quality in its franchise model has raised concerns about sustainability and long-term profitability [17].