Core Viewpoint - The brand's success in a category is achieved through time, quality, efficiency, and consistency, rather than slogans or consumer education [1][5][6] Group 1: Brand Positioning and Strategy - The chairman of Baiguoyuan, Yu Huiyong, stated that the company will not cater to consumers but will educate them, which sparked public criticism and highlighted the tension between brand positioning and commercial execution [2][5] - Baiguoyuan's initial ambition to become a "big fresh produce" player has shifted to focusing on being a "high-quality fruit expert and leader" after facing challenges in expanding its product range [2][4] - The franchise model of Baiguoyuan, while allowing rapid expansion, poses challenges in maintaining quality control and brand standards, which are crucial for high-end fruit sales [3][4] Group 2: Challenges and Consumer Perception - The high-end positioning of Baiguoyuan has not translated into success, as evidenced by the planned closure of 966 stores in 2024 and a 27.1% drop in membership from 1.17 million to 854,000 within a year [4][5] - The dissatisfaction among franchisees regarding high commissions and inventory pressures has compounded the challenges faced by the brand, leading to a loss of consumer trust [4][5] - The reliance on consumer education as a strategy to reshape market perception is criticized as ineffective, with the article suggesting that true brand success comes from consistent quality and operational excellence over time [5][6]

Core Viewpoint - The controversy surrounding the statement made by the chairman of Baiguoyuan, Yu Huiyong, reflects the tension between brand positioning and operational execution, highlighting the challenges faced by the company in maintaining its high-quality image while relying on a franchise model [2][6]. Group 1: Brand Positioning and Strategy - Baiguoyuan initially aimed to become a "big fresh produce" player but has shifted its focus to being a "high-quality fruit expert and leader" due to challenges in execution [2][4]. - The company's high-end branding efforts, including premium gift packaging and visual upgrades, have not effectively addressed the gap between consumer expectations and actual product quality [4][5]. - The reliance on consumer education as a strategy to reshape market perception is criticized as insufficient for building a successful brand [7][8]. Group 2: Operational Challenges - The franchise model, while allowing for rapid expansion, poses significant challenges in maintaining quality control and standardization across thousands of stores [3][4]. - Recent operational issues have led to a decline in membership numbers, with a drop from 1.17 million to 854,000, representing a 27.1% decrease [5]. - The company faces mounting dissatisfaction among franchisees due to high commissions and costs associated with inventory management, which further complicates its high-end positioning [5][6].