Core Insights - The announcement from the Zhongshan Second People's Court in Guangdong Province reveals a payment dispute between Shanghai Yongxi, the parent company of the makeup brand blankme, and the OEM factory Norsbel, highlighting the brand's decline from its previous status as "the number one domestic foundation brand" [1] - Once celebrated for its deep ties with top influencers like Li Jiaqi, blankme achieved significant sales during major shopping events but has faced challenges since 2024, including being listed as an executed party multiple times by 2025 [1] Group 1: Financial Distress - Since 2025, Shanghai Yongxi has been involved in 17 court announcements as a defendant, with a total of approximately 12.41 million yuan in executed amounts [2] - The brand's founder, Yang Boya, has been subject to nine "restriction on consumption orders," indicating severe financial distress since at least June 2025 [3] Group 2: OEM Payment Dispute - The Guangdong court is handling a case where Norsbel is seeking payment of 80,878.65 yuan for overdue payments, along with a penalty of 8,087.87 yuan, totaling 88,966.52 yuan [4] - Norsbel, a wholly-owned subsidiary of Qingsong Co., reported a revenue of 937 million yuan in the first half of the year, with Norsbel's revenue accounting for 99.66% of the company's consolidated revenue [4] Group 3: Investment Withdrawal - At the end of 2024, LVMH's private equity fund, LVMH Capital, publicly distanced itself from Shanghai Yongxi, stating that it had no investment relationship with the company [5] - LVMH Capital had previously engaged in discussions regarding investment but withdrew due to unsatisfactory due diligence results and undisclosed legal issues [6] Group 4: Brand History and Growth - Shanghai Yongxi was established in 2016, with its brand blankme focusing on professional foundation products across various categories [7] - The brand's rise is characterized as a "standard" new consumer brand story, achieving significant sales milestones during major shopping events [8][9][10] Group 5: Decline and Lessons - Industry analysis suggests that new consumer brands often rely on "massive marketing investments for growth," leading to pitfalls as the flow of traffic diminishes [11] - High marketing costs have become a burden for blankme, compounded by high product costs due to reliance on Japanese and Korean materials [11] - The brand's focus on Tmall has limited its growth opportunities, particularly as platforms like Douyin gain market share in the beauty sector [11] - The decline of blankme serves as a cautionary tale for the industry, emphasizing that core competitiveness lies in product quality, operational efficiency, and brand value rather than short-term marketing successes [11]