[direct network reported that Beijing May 27 news, the 21st Century Business Herald) on May 23 afternoon, the high court of Hong Kong after 39 days after the trial, the final determination of the defendant one weekly Publishing Co., Ltd. lost, shall be to the king for HK $3 million, to the plaintiff compensation for 80% of the litigation fee.

"I feel very sorry and disappointed, and even a little unfair. But after all, we are listing Corporation, to respect the views of independent directors, the board of directors will ultimately decide whether to continue the claim." 24, King Chen Qiyuan, chairman of the group to accept the twenty-first Century economic report, said in an interview with reporters.

In fact, "dioxane" events triggered by the Hong Kong "one week" to then heady overlord shampoo bring destruction. Since the outbreak of the incident so far, the overlord group has a continuous loss of 6 years. Last year, the overlord group turnover of over yuan, down 21.2%, a loss of $.

Last year, just from the hands of the mother Wan Yuhua successor Bawang group chief executive officer Chen Zhenghe told reporters, next year, the king will with firm give priority to, the company's focus will be placed in to enhance the profit, this king has been completely cut off the herbal tea business, and will cut into the field of maternal and child, speed channel transformation.

"Two evils" case awarded 3 million

On July 14, 2010, Hong Kong "one weekly" published an article the "king of the cancer", the report title, the content directed at the king's two herbal shampoo and shampoo, carcinogenic substances dioxane exceeded.

In view of the huge impact, the relevant authorities in the country to intervene quickly. Three days later, the State Food and drug supervision and Management Bureau, the Guangdong Provincial Food and drug supervision and Management Bureau has official notification confirmed, Overlord shampoo samples in dioxane levels not to consumers of health cause any harm was found by sampling the samples.

But the incident still has a serious impact on the overlord. On the day after the report was published, the king price plunge up to 18%, the afternoon to the suspension, the market value has evaporated HK $2 billion 400 million a day.

"The hardest hit was when we were going to argue with him. The more the debate, the more force on the more, a lot of people holding the 'would rather believe it, do not believe its no' mentality, and finally did not dare to use our products." Chen Qiyuan admits that the company was in the event of a crisis on the lack of experience. In order to recover the loss and prove innocence, the king group eventually Hongkong, one week to court, and claims more than HK $.

In this field for up to six years of litigation, the prosecution and the defense concentration of dioxane is carcinogenic, mainland media reprint and huge amounts of compensation three controversial each question.

"One week" toxicological experts said, according to the European Union and the Australian research dimension calculation, dioxane content of 10 ppm respectively caused a year per million people among 18 and 3 people suffering from cancer; and the prosecution of the king of the experts pointed out, national regulators in animal experiments the Shanghai real carcinogenic, but stressed that there is no evidence to suggest that the human cancers dioxane, "one week" the title from "overlord containing carcinogens" changed to "king of cancer", in order to achieve the effect of attracting the reader's sensational and.

Followed by a huge amount of compensation. In this case, the overlord in all to the "one week" to put forward as high as the Hong Kong dollar claims. But one week to refute, it is estimated that the actual profit loss of only about one million yuan or so.

But in the end, the court ruled the king of Hongkong and awarded 3 million Hong Kong dollars and 80% of the cost of litigation. In this regard, Chen Qiyuan said, will discuss with the board of directors to decide whether to continue legal rights.

Adjust diversification strategy

"Dioxane" after the incident, Overlord shampoo industry appeared cliff style decline, more being squeezed out of the ranks of the first echelon of the cosmetic. According to Chen Qiyuan said that before the accident overlord shampoo with 16.8% market share ranked third, second only to rejoice and Head and Shoulders. But the whole of the second half of the year after the accident, Overlord shampoo turnover fell as high as 63.2%.

In order to save the performance of the downturn, the king turned the attention to the herbal tea market. Chen Qiyuan admits, due to the errors of understanding of the channel, Overlord herbal tea does not do well in the imagination.

"We used to think of herbal tea with the shampoo channels, but later discovered that actually herbal tea in the supermarkets sell rarely, but much is grocery stores and food channel." Chen Qiyuan said.

It is understood that in 2011 the overlord group in the sales revenue of herbal tea business segment was $, but in 2012 fell sharply to 17 million 600 thousand yuan, in 2013 only 790 thousand yuan, a loss of 2 million yuan.

In order to avoid further losses, in July 1, 2013 the king officially halt herbal tea business. Subsequently, king once again to start the diversification, has expanded Zhuifeng brand product line, launched Li Tao bath and washing liquid, Overlord toothpaste and snow beauty skin care products, but to no avail.

Reporters found that access to the annual report of the king, in 2010 brand established at the beginning, Zhuifeng brand accounted for 22.6% of sales revenue, declined year after year, to 2015 brand income accounted for only 2.8%. In addition Li Tao, Herborn and brand is also in a similar situation. In this regard, Chen Zhenghe told reporters that due to changes in the team previously, stalled the Herborn brand development, this year overlord will re force skin care market, in addition to the entry field of maternal and child, launched baby bath and skin care products.

Chen Qiyuan said that the diversification strategy of the future overlord will focus on traditional Chinese medicine and natural concept, in the scope of the big day of mining can be shared with the original channel categories.