Core Viewpoint - The incident involving Antarctic krill oil has exposed management issues within Beijing Tongrentang (Group), leading to a brand trust crisis despite the company's long history of 356 years [1][3]. Group 1: Incident Overview - On December 20, Tongrentang issued a formal apology and announced a zero-tolerance brand management initiative following the Antarctic krill oil incident [1]. - The product in question claimed to contain "99% high-purity Antarctic krill oil" with a "phospholipid content of 43%" but was found to have zero phospholipid content in testing [2]. - This incident is not isolated; a previous scandal in 2018, known as the "honey incident," involved the use of expired honey by a subsidiary, further damaging the brand's reputation [2]. Group 2: Management and Quality Control Issues - The complexity of Tongrentang's operations, with over 2,600 products across various categories and 36 production bases, has made quality control and brand management increasingly challenging [2][4]. - The company's large scale, which should provide a competitive advantage, has instead become a liability, leading to a loss of consumer trust [2]. - Effective management of brand assets requires comprehensive monitoring of all subsidiaries and associated companies throughout the production process [2][4]. Group 3: Consumer Trust and Brand Reputation - Consumer sentiment has shifted dramatically, with some expressing a complete loss of trust in the brand due to repeated management failures [3]. - The erosion of trust stems from a series of management lapses, indicating that consumers value the quality promise behind the Tongrentang brand rather than just the name itself [2][3]. - To restore trust, the company must implement rigorous quality control standards and a unified brand authorization protocol across all operations [4][5].