Click 'Read Original' for details. "Fight for 45 days to ensure that wherever herbal tea is sold, JDB must be present, and wherever JDB is present, both red and gold cans must be available. Fully ignite JDB's peak-season sales, achieve this year's double-digit growth target, and achieve both sales volume and profit gains." On June 15, while announcing the relaunch of its red-can herbal tea, JDB Group President Li Chunlin stated this in his "Mobilization Order" to employees. More than half a month has passed since the red-can JDB launch conference. How is the red-can herbal tea performing in the market? With this question, a reporter from Securities Daily visited supermarkets in Beijing and Shandong, but unfortunately, the shelves still displayed gold-can JDB and red-can Wanglaoji, with red-can JDB nowhere to be found. Industry insiders believe the scarcity of red-can JDB in the market is due to two reasons: on one hand, it takes time for a company to distribute a new product; on the other hand, JDB may have new concerns, as GPHL has again requested a retrial of the red-can packaging case, introducing uncertainty. Halfway Through the Promise, Red-Can JDB Hard to Find in Most Markets Nearly half of the 45-day preparation period has passed, yet red-can JDB is not visible where herbal tea is sold. "We heard red-can JDB is coming, but there's no stock in Weifang yet, and we don't know when it will arrive," a JDB market manager in Weifang, Shandong, told the Securities Daily reporter. Similarly, when the reporter called the JDB market manager in Linyi City, posing as a seller of red-can JDB, the response was, "We've already ordered from the factory, and it should be on the market around mid-July." In Beijing, the reporter visited several supermarkets and found red-can JDB only at the RT-Mart store on North Third Ring Road, priced at 48 yuan for a 12-can case. Other large supermarkets only had gold-can JDB and red-can Wanglaoji. In response, Zhu Danpeng, a researcher at China Food and Beverage Industry Research, told the Securities Daily reporter that he had seen a small amount of red-can JDB in the Guangzhou market, indicating very low market coverage. Zhu believes that launching a new product requires time for large supermarkets to enter barcodes, and in northern regions, the weather turns cool by August, reducing demand for herbal tea, making distribution more difficult for JDB. Additionally, local distributors may resist the new red-can product. Zhu told the reporter that JDB's problem cannot be solved simply by a red can; the fundamental issue lies in internal management, with inventory clearance being the top priority. There is still a large inventory of gold-can JDB in the market, and distributors will not purchase new stock. Therefore, considering all factors, red-can JDB will face challenges in both distribution and sales. A community supermarket staff member told the reporter that herbal tea has not been selling well in recent years, so they would not consider stocking red-can JDB. It is worth noting that nearly 20 days have passed since the June 15 press conference, and red-can JDB has not been widely distributed. Apart from market speculation, the company has not provided a clear reason. Regarding the distribution of red-can JDB, the Securities Daily reporter attempted to interview JDB, but as of press time, JDB had not responded. "Red Can Case" Retrial: Packaging Ownership in Flux? Notably, just as JDB relaunched its red-can herbal tea, the Supreme People's Court formally accepted GPHL's retrial application for the red-can packaging case. In fact, after the Supreme People's Court's second-instance judgment in 2017 that the red-can packaging could be "shared" by GPHL and JDB, academic interpretations of "sharing" have been varied. "Literally, the court's 'sharing' refers to 'past' red-can 'sharing,' without clarifying future ownership, leading to issues such as unclear rights division, potential trademark infringement risks, market order disruption, and consumer confusion," Zhu Danpeng said. Legal experts also noted: "The second-instance judgment determined that the disputed packaging could be jointly owned by GPHL and JDB. Such joint ownership may face serious legal, enforcement, and logical obstacles." According to the Securities Daily, in February 2018, GPHL filed a retrial application with the Supreme Court against the final judgment, seeking a clearer ownership ruling and hoping for a reversal. After four months of consideration, the Supreme Court formally accepted GPHL's retrial application on June 21, 2018. Regarding GPHL's retrial application, Zhong Anlan, a lawyer at Beijing Jingshi Law Firm, told the Securities Daily reporter that JDB's reuse of the red-can packaging based on the Supreme Court's judgment is a legitimate exercise of its rights, beyond reproach. Wanglaoji's retrial request is also a legitimate exercise of legal rights. As for the retrial outcome, since the case has already been publicly heard by the Supreme Court, unless Wanglaoji submits evidence of errors in the original judgment, the chance of a reversal is low. However, Zhu Danpeng holds a different view: "The Supreme Court's acceptance of the retrial application means the ownership of the red can remains uncertain. If the 'red-can sharing' is ultimately limited to the packaging during the disputed period, then JDB's risky relaunch of the red can may face removal again. Currently, this possibility seems high." In Zhu's view, JDB will likely complete distribution only by July or August, inevitably missing the peak sales season. Moreover, compared to the massive market investment for the gold can, JDB has been much quieter this time, lacking the large-scale investment of the past. "The era of JDB relying solely on herbal tea is over. It will be very difficult for Li Chunlin to turn JDB around in a short time, because JDB's current problems cannot be solved simply by changing the can color." Source: Securities Daily From August 22 to 24, the "2018 FMCG China Digital Innovation Conference (2018FDIC)" with the theme "Finding New Growth Engines" will be held in Shanghai, hosted by the China FMCG Industry Association and organized by New Distribution. The three-day conference will focus on two main themes: marketing and supply chain, with six parallel forums on brand, channel, communication, B2B, local logistics, and innovative retail. We will invite industry leaders, CEOs, and brand executives to deeply interpret the trends and drivers of digital transformation in the FMCG industry. We will invite over 500 FMCG enterprise executives, 200+ B2B industry CEOs, and 1000+ major FMCG distributors to discuss how the FMCG industry can leverage digital tools to achieve renewed high growth in the digital era. This conference will bridge brand owners, distributors, retail enterprises, and marketing agencies, helping FMCG manufacturers obtain the latest information, understand best practices, and master more transformation skills. Invited Companies Conference Time August 22-24, 2018 Conference Venue Shanghai Baohua Marriott Hotel Conference Content August 22: All-day registration 14:00-17:30: Distributor local logistics parallel forum 18:30-21:00: New Distribution Night Gala Dinner August 23: Theme: Marketing Digital Innovation 9:00-12:00: Marketing Digital Innovation Main Forum 14:00-17:30: Brand, Channel, Communication Parallel Forums August 24: Theme: FMCG Supply Chain Digital Upgrade All day: FMCG Supply Chain Conference Registration Registration is now open. Long press the QR code below or click 'Read Original' to register. Limited-time group discount tickets are available! Registration Consultation Ticket inquiries: Media cooperation inquiries: Highlights of Previous New Distribution Conferences Click the links below to review the highlights of the 1st, 2nd, 3rd, and 4th FMCG + Internet Conferences: -END-
Management & Methods
Red Can JDB Hard to Find in Market; Supreme Court Retrial May Change Packaging Ownership
Despite JDB's announcement to relaunch its red-can herbal tea, the product is barely visible in most markets. The Supreme Court's acceptance of GPHL's retrial application for the red-can packaging case adds uncertainty to the packaging ownership.
