Core Viewpoint - The controversy surrounding "Rongmei High-end Women's Wear" highlights the brand's declining performance and negative consumer perception, exacerbated by the owner's dismissive comments during a live stream [2][3][5]. Company Overview - Rongmei High-end Women's Wear is backed by A-share listed company Rongmei Co., Ltd. (301088.SZ), which was established in 2006 and initially focused on selling Japanese-style women's clothing on Taobao [3]. - The brand achieved significant growth, becoming the top women's clothing brand on Taobao by 2015, with a transaction volume exceeding 1 billion yuan [3]. Financial Performance - In 2021, Rongmei Co., Ltd. reported record revenues of 949 million yuan and a net profit of 167 million yuan [3]. - However, the company has faced a decline in revenue, with projections indicating a year-on-year decrease of 19.13% and 10.2% for 2023 and 2024, respectively, bringing revenues down to 767 million yuan and 689 million yuan [3]. - For the first half of 2023, the company reported revenues of 298 million yuan, a decline of 13.9%, and a net profit of approximately 37 million yuan, down 19.3% [5]. Inventory and Sales Metrics - As of June 2023, the inventory turnover days reached a record high of 382.9 days, compared to 341.17 days in the previous year [5]. - The flagship store on Taobao, which generates 99.9% of the company's revenue, saw a decrease in key performance indicators, including a drop in half-year browsing volume from 742 million to 670 million and a decline in total order value from 1.21 billion yuan to 1.11 billion yuan [5]. Legal Issues - The company has faced legal challenges, including a copyright infringement case from the brand Zhihuo, which resulted in a court ruling against Rongmei [6]. - In July 2023, another designer brand, Fabrique, won a lawsuit against Rongmei for copyright infringement and unfair competition, further damaging the company's reputation [6].

Core Viewpoint - The controversy surrounding "Rongmei High-end Women's Wear" highlights issues of consumer respect and brand reputation, particularly following a live-stream incident involving the brand's owner [2][3]. Company Overview - Rongmei Co., Ltd. (301088.SZ) is an A-share listed company that originated from a Taobao store established in 2006, focusing on Japanese-style women's clothing [4]. - The brand achieved significant growth, becoming the top women's clothing brand on Taobao by 2015, with a transaction volume exceeding 1 billion yuan [4]. - The company went public in October 2021, reporting record revenues of 949 million yuan and a net profit of 167 million yuan in the following year [4]. Financial Performance - In 2023 and 2024, Rongmei's revenue is projected to decline by 19.13% and 10.2%, respectively, returning to 2019 levels with revenues of 767 million yuan and 689 million yuan [4]. - For the first half of the year, the company reported revenues of 298 million yuan, a year-on-year decrease of 13.9%, and a net profit of approximately 37 million yuan, down 19.3% [6]. Inventory and Sales Metrics - As of June 2023, Rongmei's inventory turnover days reached a record high of 382.9 days, compared to 341.17 days the previous year [7]. - The flagship store on Taobao, which generates 99.9% of the company's revenue, saw a decline in key performance indicators, including a drop in browsing volume from 742 million to 670 million and a decrease in the number of buyers from 1.3121 million to 1.1314 million [7]. Legal Issues - The company has faced legal challenges regarding copyright infringement, including a 2016 case where it was found to have infringed on the works of another brand, Zhihe [8]. - In July 2023, another designer brand, Fabrique, won a lawsuit against Rongmei for copyright infringement and unfair competition, further damaging the company's reputation [8].