Summary of Key Points
This report breaks away from the emotional mourning typically associated with the death of celebrities. It starts with the unusual details that there was no unified official source for Li Tuchun’s death time, age, or cause of death, and not even a single institution was able to issue an official obituary for him. It provides a comprehensive account of Li Tuchun’s life: from resigning at the age of 30 to start his own business, making his first fortune by selling calendars; to becoming the “King of Lactobacillus Drinks” by winning a bid for a record price of 88.88 million yuan, turning “Taizi Milk” into a nationally recognized brand; to facing financial difficulties around 2008, getting involved in gambling controversies, being detained for 15 months, and then being released without charge. In his later years, he tried to revive his business by selling milk annual cards through live broadcasts, but his efforts ended in failure, leaving a multitude of consumers and distributors seeking compensation. The article avoids black-and-white judgments, debunking the long-standing rumor that foreign capital maliciously exploited a national brand, while also highlighting Li Tuchun’s consistent strategy of “using future earnings to secure immediate cash flow.” The conclusion is quite objective: it is true that he was wronged in the past, and it is also true that he deceived people by not delivering products after collecting payments, but these two facts do not cancel each other out.
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Detailed Explanation of Key Points
1. The Contradiction of “a King of Brands Without an Official Obituary” Reveals the Harsh Reality of Business
Many might find this absurd: a man who could afford to bid 88.88 million yuan for a CCTV bid and control 70% of the market couldn’t even get an official confirmation of his death from the media? Essentially, by the time of his death, Li Tuchun no longer had any substantial business assets of his own. “Taizi Milk” had been fully acquired by Sanyuan Co., Ltd., with annual revenue of just over 13 million yuan and incurring losses, so there was no way they could issue an obituary for him. The company he managed in his later years, Zicheng Dairy, was a defaulter, with almost no employees, and not even a proper public relations department. All of the business assets he built throughout his life did not belong to him, leaving his affairs to be handled by his family and old acquaintances, without any official statement.
2. The Success of “Taizi Milk” Was Not a Product Miracle, but the Ultimate Application of “Lending Money to Roll the Snowball”
Many think “Taizi Milk” became popular because of its taste, but its core strategy was to manipulate the “payment-first, delivery-later” rule in the fast-moving consumer goods industry more aggressively than its competitors. While Wahaha’s “joint sales” model only required dealers to pay in advance without guarantees or interest, Li Tuchun took it a step further: dealers had to pay a 10% deposit and receive interest higher than that of banks; if products couldn’t be sold, the deposit was refunded in full, with additional bonuses for high sales. This meant dealers had virtually no risk and were eager to pay, providing Li Tuchun with a large amount of interest-free or even interest-paying cash. He used this money to invest in CCTV advertisements and expand distribution channels, increasing sales and thus collecting more money. However, this model relied on skyrocketing sales year after year; any decline in sales could lead to financial collapse. After the 2008 melamine scandal, consumers lost confidence in dairy products, and sales plummeted. Li Tuchun then increased the deposit requirement to 30%, further damaging his cash flow. The claims of annual sales of 3 billion yuan and 70% market share were company-reported figures; since “Taizi Milk” was never listed, its actual performance was never disclosed, leaving the extent of its exaggerations unclear.
3. The Rumor That “Foreign Capital Killed Taizi Milk” Is Half-True, with Foreign Investors Also Suffering Losses
Many entrepreneurial narratives portray Li Tuchun as a victim of foreign investment banks, claiming that Goldman Sachs and Morgan Stanley tricked him into signing unfair gambling agreements and stole “Taizi Milk.” However, the actual bankruptcy records show otherwise: three foreign institutions invested $73 million, but all of this money was lost when “Taizi Milk” went bankrupt. It was Xinhualian and Sanyuan Co., Ltd. that paid off the company’s debts and acquired all its equity. The specific terms of the gambling agreements have never been officially disclosed, and the claims of malicious exploitation are merely unproven rumors. The real reason for “Taizi Milk’s” downfall was Li Tuchun’s reckless investment of his funds in real estate, opening children’s clothing stores, and expanding into supermarkets, which led to a series of failures.
4. His wrongful Detention and Later Acquittal Set a Legal Standard for Prepaid Services
In 2010, Li Tuchun was arrested on charges of illegal deposit-taking and was detained for 15 months. The prosecution later dismissed all charges, establishing a legal precedent for businesses involving prepaid services: if funds are collected from specific partners or internal employees (such as deposits or advance payments for products), it is considered legitimate business activity. However, if the funds are collected from the general public with promises of high interest or returns, it is considered illegal deposit-taking. Today, fitness cards, milk tea franchise deposits, and annual subscription sales are judged based on this standard, with Li Tuchun’s case becoming a benchmark in related industries.
5. The Failure of His Later Attempts to Revive the Business Was Not an Accident: An Old Trick That No Longer Works
Li Tuchun’s business strategy remained unchanged throughout his life: using future profits as guarantees for immediate cash. Thirty years ago, he used a 200,000 yuan deposit to win a bid, betting on future sales success; in his early years, he collected deposits from dealers, betting on increased sales; later, he entered into gambling agreements with foreign investors, betting on doubled performance. In his later years, he tried to revive “Taizi Milk” through live broadcasts, selling annual milk cards and collecting deposits from consumers, betting on three years of 1 billion yuan in sales. This strategy worked in the past due to supply shortages, but with current overcapacity, a brand based solely on nostalgia cannot sustain its promises without a stable supply chain and reliable operations. Ironically, his son, Li Shuai, is the legal controller of Zicheng Dairy, and Li Tuchun’s personal credibility was used to support the business. Now, with his death and Li Shuai’s disappearance, there is no clear entity to hold accountable, leaving consumers and distributors with unresolved issues.