Behind the Failure of Lanqin Lozenges: When the "Pharmaceutical Company's Aura" Meets the "Essence of Food", Who Is Misleading Consumers?
Hello everyone, I'm your financial journalist friend. Recently, due to the promotion by the popular star Wang Yibo, the "Lanqin Lozenges" produced by Yangtze River Pharmaceutical have become a sensation. But with the fame came the controversy. Many netizens realized they were buying a "food product" while thinking it was a "medicine," only to find that the ingredient list contained no "Lanqin" at all, only various sugars and plant extracts.
This is not just a marketing mishap; it's a typical case of "a trademark being legally registered, but the promotion possibly violating regulations." Today, we'll break down this issue in simple terms to understand the underlying issues.
Summary: A Crisis of Trust Caused by a Misalignment in Perception
In short, Yangtze River Pharmaceutical used the trademark "Lanqin," which originally belonged to their pharmaceutical product (main ingredients: Isatis root and Scutellaria root), on a regular food product, lozenges. Although they legally had the right to do so (since the trademark was registered), the packaging featured phrases like "Lanqin's Founder" and "Brand Established in 2000," and the company's reputation as a pharmaceutical giant led most consumers to believe the lozenges contained the "Lanqin" ingredient and had anti-inflammatory effects similar to those of an oral liquid.
The core issue is: The company exploited its brand assets to expand into a new category (from medicine to food) but blurred the distinction between food and medicine in its promotion, taking advantage of consumers' habitual thinking, thus sparking doubts about "false advertising" or misleading information.
---
Deep Analysis: Understanding the Controversy from Five Perspectives
1. What exactly is "Lanqin"? The Play with Words in the Name
First, we need to clarify what "Lanqin" represents in the business world:
- In medicines: "Lanqin" is a well-known traditional Chinese medicine product from Yangtze River Pharmaceutical, named after two herbs: Isatis root and Scutellaria root. When people hear "Lanqin," they immediately think of a medicine for sore throats.
- In food: The problematic "Lanqin Lozenges" are essentially a packet of regular food. If you check the ingredient list, it contains xylitol (a sugar substitute), maltitol, momordica powder, honeysuckle powder, licorice powder, etc. There is no Isatis root or Scutellaria root, so there is no "Lanqin" ingredient at all.
Plain language: It's like a chili sauce brand called "Lao Gan Ma" suddenly releasing a biscuit also called "Lao Gan Ma." Even if the biscuit contains some chili powder, if you claim it has the same flavor as the sauce, it might not be a problem. But if the biscuit doesn't contain chili and just uses the name to imply the same effect, it's misleading.
Here, "Lanqin" has shifted from a description of an ingredient to a pure brand trademark. Consumers are accustomed to associating "Lanqin" with throat relief, so when they see "Lanqin Lozenges," they automatically assume they contain the ingredient and have medicinal properties, when in reality, they're just candies with added plant extracts.
2. The Psychological Impulse Behind the "Pharmaceutical Company's Aura": Why Do People Believe It?
So, why did so many netizens fall for it? Some even said they were recommended these lozenges at pharmacies? There are two main psychological factors:
- Brand Authority: Yangtze River Pharmaceutical is a leading pharmaceutical company in China, consistently ranked among the top 100 in the industry. In people's minds, "pharmaceutical products = professional = effective." When a pharmaceutical company launches a product, they assume it's more reliable than a food company's.
- Confusion of Context: The lozenges were sold both online and in physical pharmacies, which are places where people buy medicine, not snacks. Seeing them side by side or being recommended by pharmacists can create a misconception. It's like ordering "anti-cancer vegetable soup" from a hospital cafeteria; even if it's just a regular vegetable soup, the name gives it a medicinal aura.
Plain language: This is the power of brand trust. Yangtze River leveraged this trust to make the food product seem more professional and medicinal.
3. Legal Boundaries: A Registered Trademark Doesn't Mean Free Promotion
Yangtze River argued that "Lanqin" is a registered trademark and they can use it, and the phrases like "Lanqin's Founder" were just advertising slogans without claiming medicinal effects. But lawyer Lin Xiaoming pointed out that trademark registration and advertising compliance are different:
- Trademark Rights: You can use a trademark in its registered category (like food), but you must consider the overall perception of the public.
- Advertising Laws: Using phrases like "Lanqin's Founder" on the packaging, along with images resembling medicine packaging, can lead to misleading messages. Even if the product doesn't explicitly claim medicinal effects, if it implies them, it violates advertising laws.
Plain language: You can register a trademark for "apple" and sell shoes called "apple," but if you package them like iPhones and claim they can make phone calls or access the internet, that's false advertising. The trademark gives you a name, but how you present it affects consumer expectations.
4. An Industry-wide Issue: From "Number One Pig" to "Original Research," Trademarks Becoming Confusing
The Lanqin Lozenges incident is not unique. This year, similar controversies have arisen:
- **"Number One Pig": It turned out to be a brand name, not a breed or origin.
- **"Original Research": Products claiming to be "original research" actually have registered trademarks for those terms.
Analysis: These cases show companies using trademarks to create specific associations in product names or packaging. The terms are legal on their own, but in the context of consumption, they become misleading.
Why do companies do this? To reduce cognitive effort. Consumers can't remember complex chemical names, but they remember brand names with strong associations. By using these terms, companies tap into public perceptions (e.g., "original research" implies higher quality).
The Risk: This approach is risky, as it borders on legality. If regulations tighten or consumers become more aware of their rights, such tactics can lead to legal issues. Regulatory authorities are focusing more on the substance of the product, not just the trademark.
5. The Strains of Strategic Transformation: Is a Pharmaceutical Company Selling Candy Innovation or a Bet on Trust?
Looking at the bigger picture, Yangtze River is trying to diversify from its core pharmaceutical business:
- Background: The company is facing pressure from centralized procurement and profit compression. Its founder has passed away, and the new management is seeking new growth areas.
- Strategy: They're transitioning to the "big health" market, moving from high-profit, heavily regulated pharmaceuticals to health products like lozenges and supplements.
- The Role of Lanqin Lozenges: This is an attempt to brand their pharmaceutical heritage. They want to show the market they're competent in both medicine and health products.
Potential Risks: If the "Lanqin" brand is damaged by the controversy, it could affect their pharmaceutical business. Consumers might question the quality of their medicines. Additionally, increasing regulatory scrutiny means more careful advertising for food products.
Plain language: It's like a top hospital selling yogurt labeled "hospital-exclusive." If the yogurt is truly healthy, it might be accepted, but if it claims medicinal properties, it could harm the hospital's reputation. Yangtze River is balancing brand influence with compliance.
Conclusion
The Lanqin Lozenges incident is a microcosm of the transformation of China's health industry. For companies, being legally registered doesn't mean their actions are reasonable or smart. In an era where consumers are more knowledgeable and regulations are stricter, using information asymmetry and cognitive biases in marketing is increasingly risky.
For consumers, remember: Check the packaging and ingredient lists, and understand the category of the product. A pharmaceutical company's food product is still just food, not medicine. Next time you see a food product labeled as "pharmaceutical," ask whether it really contains the ingredients mentioned in the name.