How did Xurisheng go bankrupt?

1. The predecessor of Hebei Rising Sun Group was Jizhou City Supply and Marketing Cooperative. In the early 1990s, the supply and marketing cooperative took a unique approach and made a fuss about China's traditional beverage "tea" and took the lead in launching the "ice tea" concept. In 1993, Hebei Jizhou Supply and Marketing Cooperative was renamed Rising Sun Group. In 1994, Xurisheng Group invested 30 million yuan in the production and launch of ice tea, and soon received millions of yuan in market returns.

2. The great success of Rising Sun has attracted many competitors to follow suit. In 2001, Xurisheng's market share quickly dropped from the initial 70% to 30%, and its market sales also dropped from the peak of 3 billion yuan to less than 2 billion yuan. When the advantage of being the first to enter a product is gradually weakened, or even disappears, management problems are exposed, especially the rapid expansion of production and sales, which shows that the company's system and talent protection are increasingly lagging behind.

3. At a time of internal and external troubles, Xurisheng’s management began drastic changes. The company's senior management underwent a major change, and more than 1,000 former front-line sales staff were assigned to the production department. The structure of the Rising Sun Group was reorganized into five major divisions, including the Beverage Division, the Ice Tea and Red Wine Division, the Tea Division, and the Capital Management Division. , and textile and other business departments to achieve diversified operations. Tragedy arises from this.

Fourth, before the drastic reforms allowed the product’s market performance to “stop falling and rebound”, the organization was in chaos. When the "Airborne Troops" entered the Rising Sun Group and took up important positions, the gap between the old and new teams deepened day by day. More than 1,000 business personnel who were originally working on the front line were transferred back to the production department. The transformation brought major changes to the company's value chain. As a result, conflicts inevitably became acute, and the company lost control and split.

5. The bankrupt Xurisheng has been taken over by China News Service Xuri Group, and its trademarks are being processed one after another, including the once-famous "Iced Tea" brand. Huiyuan Juice Group officially announced that it has obtained the ownership of all 164 trademarks of "Rising Sun" through bidding. According to the court's ruling, the exclusive right to the above trademark belongs to the buyer, Hengshui Huiyuan Food and Beverage Co., Ltd. "Xurisheng" will be an independent product brand and will be operated and operated by Huiyuan's subsidiaries.

Extended information

1. Huiyuan Juice, which obtained the Xurisheng trademark of "Ice Tea Originator" through bidding three years ago, was ambitious and stated that it would enter tea beverages. However, yesterday, Huiyuan It was confirmed that the company has made the decision to suspend the production of Xurisheng products. However, Huiyuan also said that it will choose the right time to re-introduce it to the market.

2. It is understood that when Huiyuan acquired Xurisheng, it was not to truly revitalize the Xurisheng brand, but rather to take a fancy to some preferential policies provided by the local government in terms of land and other aspects. In addition, although Xurisheng is It was once a famous brand, but it has been in decline for many years. Consumers in the 1990s had some affection for it, but these groups are no longer the main consumers of tea drinks; for young consumer groups, Rising Sun seems to be very unfamiliar.

3. Xurisheng created a myth of rapid corporate development in 5 years. However, with the rapid expansion of the company, corporate management became a flaw that restricted the development of Xurisheng. Extensive management led to costs. Control is just a formality. Incentive and constraint mechanisms are misaligned, and high-altitude bombing of advertising is carried out regardless of cost; in addition, the extensive marketing model of "Rising Sun" leads to constant stock rush in the market, and then the chaos in the market order leads to corporate credit crisis, "Rising Sun" Already in a critical situation.

Reference materials: People's Daily Online - Huiyuan confirms that Xurisheng has stopped production

Reference materials: Baidu Encyclopedia - Xurisheng iced black tea