Core Viewpoint - The company, once a trusted brand for elderly footwear, is now facing significant quality issues and financial distress, prompting a shift into the organic food sector as a means of self-rescue [1][19][39] Group 1: Quality Issues - Consumers have expressed disappointment with the quality of footwear, with reports of shoes cracking after only two months of use [2][13] - The brand's reputation has deteriorated, with numerous complaints about discomfort and product failures from long-time customers [11][14] - Regulatory bodies have previously flagged quality concerns, with multiple instances of non-compliance reported since 2019 [15][16] Group 2: Financial Distress - The company is embroiled in over 101 legal cases, with total claims exceeding 8 billion, and has been listed as a dishonest executor multiple times [18] - The founder has faced personal financial challenges, including involvement in 59 legal cases and restrictions on consumption due to financial issues [18] - By 2023, the company reported a debt of 7 billion, with significant repayments made in the previous year [38] Group 3: Strategic Shift to Food Industry - In response to declining footwear sales and mounting debt, the company has ventured into the organic food market, aiming to address the dietary needs of the elderly [20][39] - The new product line includes various food items, with a focus on affordability and high quality, such as dumplings priced at 4.9 yuan per bag [22][30] - The company has adopted a membership strategy to attract customers, offering significant discounts and incentives for new members [26][30] Group 4: Market Challenges - The transition to the food sector has been met with skepticism from consumers, who question the brand's expertise in this new domain [30] - The competitive landscape for organic food is intensifying, posing additional challenges for the company to establish credibility in a market where it is not traditionally recognized [39]

Core Viewpoint - The article discusses the strategic expansion of the company "足力健" (Zulijian) from its core business of elderly footwear into the organic food sector, aiming to create a comprehensive ecosystem that addresses the needs of the elderly population [5][20]. Group 1: Business Expansion - 足力健 is diversifying its offerings to include organic food, aiming to cover four major needs of the elderly: footwear, clothing, daily necessities, and food [5][20]. - The company has opened approximately 32 organic food membership stores in Zhengzhou since June, with plans to expand to 1,000 stores in Henan province by the end of next year [8][13]. - The membership model requires an initial deposit of 300 to 600 yuan, with a reported membership base of 80,000 as of August [11]. Group 2: Strategic Shift - The founder, 张京康, views the entry into the organic food market as a strategic decision made in 2019, aligning with the company's broader goal of serving the elderly demographic [20][22]. - The company plans to adopt a combination of direct sales and partnership models for store expansion across various provinces [12]. - The brand "足力健" is seen as a versatile platform that can support multiple product categories under a single brand, similar to strategies employed by other successful companies [22]. Group 3: Financial Challenges - The company faces significant financial pressures, with 70-80% of its annual revenue allocated to debt repayment, amounting to approximately 1.8 billion yuan in repayments for 2023 [31]. - As of 2024, the company still has around 700 million yuan in debt, and its core enterprises have faced multiple legal and financial challenges [32][33]. - Despite these challenges, the company continues to seek growth opportunities in the elderly footwear market, aiming to enhance its brand appeal among younger consumers [35].