Huaxi Biology And Furida Fight The Battle Of The Terminal Market Of "Hyaluronic Acid".

Nearly a month later, the "war of words" between Huaxi biological and furida biological (hereinafter referred to as "furida") caused by the dealer has been upgraded again.

Did Frieda publish "black PR" in his official WeChat public address?!!!!! "One article said that since mid April," black public relations "behavior has been encountered one after another. It originated in a public letter issued by Hua Xi biology in April 17th to consumers. Huaxi biology said Fred's mask was inappropriate in the propaganda of some electric business shops and WeChat circle of friends, and was angry that some of the latter products had unfair competition behaviors on the platform of e-commerce and social media. On the following second days, furida released an open letter to respond.

In May 14th, the economic report of twenty-first Century asked Hua Xi biology for its attitude toward the "black public relations" incident. The other side said they wanted to express their findings in the previous letter to consumers.

A public relations industry veteran pointed out that in the era of Internet, public relations are also a killer in addition to the technology and operation of competition.

Public relations "war of words"

    In April 17th, "Huaxi biology" released its "open letter to consumers" in the WeChat public of its enterprise. It said that there was consumer feedback. When furida products were publicizing in some Taobao skin care products and WeChat circle of friends, it was mentioned that "furida medicine is Hua Xi", "Hua Xi is responsible for paying money, Shandong furida is responsible for technology and products", "run Bai Yan, muscle live, de Mun run, Mi Bei". The hydrolyzed sodium hyaluronate products used by children can be said to be from Shandong, "furida" and other related wording.

In this regard, Huaxi biology claims that all these products are Huaxi's own research and development. The core technologies and property rights of the products are self owned, have their own technical capabilities and product advantages. There is no such claim that "Hua Xi is responsible for paying the money, and Shandong's technology and products". There are three irrelevant connections between the company (between companies, between operations and brands, between the ownership of technology R & D) and Frieda's relationship with the US industry, and to accuse Frieda of blurring the boundaries between online and offline marketing, which is misleading consumers.

In April 18th, furida, Shandong, also issued an open letter, saying that a brand issued a directive speech to confuse the public, which had a certain impact on the fairness and objectivity of market information, and pointed out that Huaxi furida was one of the hyaluronic acid enterprises incubated by furida Pharmaceutical Group. In 2018, Huaxi furida completed the change of equity and renamed the Huaxi bio Polytron Technologies Inc, so "Frida" has nothing to do with it.

Huaxi has no official response to this. However, Zhu Sinan, deputy general manager of Huaxi biological brand center, told the industry media that he did not agree with the "incubation" theory mentioned by Frieda in the open letter. For example, "the early development of China's automobile industry also adopted a joint venture Road. Guangzhou Automobile Group and TOYOTA cooperate to introduce the latter into the Chinese market. Then the Guangzhou automobile group develops rapidly, but TOYOTA can say that Guangzhou automobile is incubated with them. Is it changed? Can we say that all the technology used by GAC comes from TOYOTA?

In the past month, Huaxi and furida have not issued any official statements. However, in May 11th, WeChat's official black public relations was illegal.!!! This article breaks the "calm" of both sides.

Furida said that since mid April, the Internet has started attacking articles on Frida and its brands. The article refers to the so-called "false propaganda, unfair competition, misleading consumers, infringement" and so on, all pointing to furida.

Frieda told the media that the official announcement will be issued again for the matter, and the details will not be disclosed for the time being. Huaxi biologically told the economic news reporters twenty-first Century that the content they wanted to express was clearly stated in the consumer's letter before that.

Competition for terminal market

From the confrontation between the two sides, we can see that the focus is on the relationship between Hua Xi biology and furida organisms and "who is in unfair competition".

According to Huaxi biological prospectus and industrial and commercial information, in 2001, Huaxi International Investment Group invested in Shandong Frieda Biological Medicine Co., Ltd. in 2012, Shandong Shandong Biological Medicine Co., Ltd. was renamed Shandong Huaxi Frieda Biological Medicine Co., Ltd. in 2018, after a series of equity changes, Shandong Huaxi Frieda Biological Medicine Co., Ltd. was renamed as: Huaxi biological Polytron Technologies Inc, Huaxi biology and Frida have no equity relationship since then.

Although there is no longer ownership relationship, the two sides still have close business ties. In twenty-first Century, the economic news reporter inquired about Hua Xi biological prospectus information. In 2017, 2018 and 2019 first quarter, Frida has always been one of the top five suppliers of Huaxi biology. In 2018, the supply of furida and Huaxi was 20 million 395 thousand and 700 yuan, accounting for 9.88%, the largest supplier of Huaxi biology. 2019 annual report shows that Hua Xi bio and Shandong furida related transactions amounted to 6 million 143 thousand and 800 yuan.

According to public information, Huaxi biological predecessor bought the initial technology of producing hyaluronic acid by fermentation method to Shandong Institute of biological medicine. In reply to the fourth enquiry of the Shanghai Stock Exchange, Huaxi bio revealed that the technology transfer fee of the project was 450 thousand yuan, which was bought out in August 2001 and bought out the technology.

Behind the friction between the two sides is the competition of interest in the market of terminal consumption of hyaluronic acid.

Frieda, Sodium Hyaluronate Injection and other products cover Department of orthopedics, Department of respiration, gynecology and other fields. However, in the context of drug gathering, drug sales have been affected.

Recently, Jia Qingwen, general manager of furida Pharmaceutical Group, said in an interview: "under the new crown pneumonia epidemic, Frida sells on the cosmetic plate line to maintain a relatively high growth rate. The sales loss in the drug sector can be digested through future efforts. In the second half of the year, we hope to push the marketing mode innovation through the Internet platform, and strive to lose the time in the first quarter. The sales gap is back. "

Furida has more clearly defined the strategic orientation and development direction of the pharmaceutical health business, focusing on drugs and cosmetics, focusing on building the leading brand of Chinese Department of orthopedics drugs and hyaluronic acid high-end cosmetics.

In recent years, Huaxi has also begun to actively layout the terminal consumer market.

Zhao Yan, chairman of Huaxi biological products, told the twenty-first Century economic news reporter that the new generation of consumers' cognition of domestic products and their dependence on big brands were small, which provided opportunities for the development of Huaxi biological functional skin care products. In 2019, the business sector achieved operating income of 634 million yuan, an increase of 118.53% over the previous year, accounting for 33.66% of the main business.

In May 7th, at the online communication conference of Huaxi biological 2019 annual report, Zhao Yan pointed out: "the market share of C terminal will be bigger and bigger in the future, and the proportion of revenue will also be bigger and bigger."

It can be seen that Huaxi biological and furida biological are targeting the terminal market, and in some publicity, they mentioned that they are the leading enterprises of hyaluronic acid, and the market competition between them is still continuing.