What are the underlying rules in the home appliance industry? Probably few outsiders can articulate them clearly. However, after the "purple clay scandal" was exposed by CCTV, almost everyone became aware of the hidden rules behind purple clay products. As people react with fear to the mention of "clay," the public has shown more criticism and disappointment toward manufacturers. Once the hidden rules behind purple clay were revealed, it triggered a societal examination into the integrity and thorough investigation of the purple clay industry's product brands.
The Crisis Behind the "Hidden Rules"
Looking at the entire course of events surrounding the "purple clay scandal," I can only confirm that major brands like Midea and Jiuyang merely played the role of scapegoats. Other brands' purple clay products are even less likely to be genuinely made from real purple clay. The reason is simple: Purple clay, originating from Yixing, Jiangsu, has nearly depleted its resources due to limited reserves. Since 2000, the state has banned mining in Yixing to prevent excessive exploitation, meaning that only high-end products use purple clay as a raw material.
Under such circumstances, many brands in the home appliance industry have self-scripted and self-directed their operations, harboring侥幸 (lucky) thoughts. They use common earthenware materials like "field soil," "red soil," "black mud," and "white mud," mixed with chemical dyes such as "iron red powder" and manganese dioxide to produce what they claim are "health-promoting" purple clay products. These are then marketed enthusiastically and exaggeratedly to consumers.
The "purple clay scandal" has uncovered the hidden rule of "concept炒作" (hype) in the home appliance industry—a well-worn cliché within the sector's unwritten rules. Throughout the development of the home appliance industry, this practice has never ceased. Especially with the emergence of high-tech and innovative designs in home appliances, "concept炒作" follows closely in step with the times, gaining prominence and influence in market competition.
What causes the concept hype in the home appliance industry to persist, even dominating the market?
In my view, the lack of consumer knowledge about home appliances and irrational consumption psychology form the basis for its existence. Manufacturers' and dealers' lack of long-term brand planning provide the conditions for it to thrive. The short-term, substantial profits generated by "concept炒作" serve as the direct incentive for its proliferation. For example, the purchase price of these so-called purple clay products ranges from 50 to 100 yuan, yet on the market, various brands sell their purple clay pots for prices mostly between 200 and 1000 yuan, leaving an unimaginable profit margin.
Another reason for the persistence of concept hype is the difficulty in exposing the false concepts attached to products. In this case of the "purple clay" concept, without the involvement of powerful media, consumers would likely still be enjoying the so-called nutritious soups cooked in these supposedly health-enhancing purple clay pots, all shrouded in mystery.
Once the media exposes these false concepts, the brand integrity of the manufacturer will also be revealed to the public. The most severe consequence manufacturers face is significant brand damage or even the elimination of the product line. This has precedent; the earlier case of Sanzhu Oral Liquid demonstrates how high profits drove merchants to extreme measures. Thus, while manufacturers manipulate product concepts, they simultaneously try to prevent the exposure of these false notions. Unbeknownst to them, the longer this layer of deception exists, the deeper the latent crisis of brand integrity becomes.
Calling for Ethical Spirit
Currently, the Chinese public has evolved from a vague understanding of public relations to a level of familiarity. Companies in their growth and maturity phases have established PR departments to handle various crises during business operations. The existence of large and small PR firms in society is due to sufficient market demand for their services.
In reality, public relations is not just about crisis management but more importantly about preventing crises—this is the ultimate goal. In my opinion, advertising may quickly establish a brand in the short term, but maintaining brand longevity requires a high regard for the role and value of public relations. To prevent various crises, the solution boils down to two words: integrity.
Examining globally renowned brands, they are all built on foundations of integrity.
Johnson & Johnson's response to the "Tylenol poisoning incident" followed the company’s highest crisis management plan...