Core Insights - The brand "Lao Gan Ma" is experiencing a significant trust crisis, attributed to changes in product quality and brand strategy since the founder's retirement in 2014 [2][3][4] - The introduction of new products and a shift in pricing strategy have led to a decline in sales of classic products, causing confusion among long-time customers [3][4] - The brand's image has suffered due to controversial marketing decisions and quality complaints, leading to a significant drop in consumer preference among younger demographics [5][6] Product Quality and Changes - The replacement of traditional chili peppers with cheaper alternatives has resulted in a loss of the original flavor, with over 83% of participants in a taste test able to distinguish between older and newer products [2] - The cost-cutting measures have saved the company nearly 400 million yuan annually but compromised the core taste that consumers associate with the brand [2][3] Brand Strategy and Market Position - The expansion into over twenty new product lines has led to a decline in the sales rate of classic products by 30%, creating pressure on inventory management [3] - The price increase from 7-10 yuan to 15-20 yuan for certain products has alienated consumers, with social media discussions highlighting the perception of "unaffordable" products [3][4] Marketing and Consumer Perception - The brand's shift from a no-advertising policy to spending millions on celebrity endorsements has not resonated with consumers, who continue to demand classic products [4] - Complaints regarding product quality have surged by 470% over five years, indicating a significant decline in consumer trust [4] Consumer Trends and Competitive Landscape - The preference for "Lao Gan Ma" among the 18-35 age group has plummeted from 67% in 2016 to 29% in 2022, reflecting a broader trend of younger consumers gravitating towards new brands [5] - Competitors like Hai Tian and Li Zi Qi are reshaping the market, emphasizing the need for "Lao Gan Ma" to reassess its value proposition and adapt to changing consumer needs [5][6]