Crisis management studies in the West
have shown that the consequences of loss of credibility
can be fatal to brands. Interestingly, the international
brands seem to take such warnings less seriously in the
developing country markets. Recently, General Mills saw
its premium brand Häagen-Dazs losing its hold at least
in Shenzhen, the border city next to Hong Kong, which has
a per capita GDP of $10,628 at the end of 2007 (average
annual growth rate over 14% in the past two decades), the
very first Mainland China city hitting the $10,000 mark
(www.sz.gov.cn).
The story started with a phone call to
the public complaint number at 12365. On June 16, 2005,
Luofu District Office of Shenzhen Quality & Technology
Monitoring Bureau sent an inspection team together with
Public Health and Commerce Regulation officials to Apartment
1004 of Zhenhua Building in Luofu district. They found
that this 80-square meter apartment of three bedrooms was
indeed producing ice cream cakes, with its production facilities
just next to the bathroom which had just been used for
washing and drying stockings. The three workers on the
spot failed to produce any certificate of health qualification
and certificate of training in hygiene knowledge. The inspection
team at first thought that this was another underground
workshop making faked international brands. However, to
their surprise, all documents including orders showed that
this workshop was indeed the manufacturing base of Häagen-Dazs
in Shenzhen. |
