Tianjin Haihe Dairy, a state-backed institution and recently minted 'China Time-Honored Brand,' is facing a severe identity crisis after a live-streamed marketing campaign dissolved into a scandal of sexual innuendo. On April 8, the company issued a formal apology and announced the termination of its partnership with a third-party distributor following a public outcry over vulgar language used to sell its products on the Douyin platform. The incident highlights the precarious balance legacy brands must strike between traditional values and the cutthroat, attention-seeking world of Chinese live-commerce.
The controversy erupted when viewers shared recordings of a host at the 'Haihe Milk Flagship Store' using local Tianjin dialect to make thinly veiled sexual references. Using terms like 'bengguo'—a local slang term repurposed as a sexual euphemism—and making suggestive physical gestures, the host sought to drive engagement in a crowded digital marketplace. The backlash turned personal when reports surfaced of a sixth-grade student asking her parents for the meaning of the host's 'coded' language, sparking a national conversation about the impact of 'edgy' marketing on minors.
Haihe’s initial response only fueled the fire. Company representatives initially attempted to distance the brand from the fallout, claiming the store was run by a distributor and was therefore 'beyond their control.' This dismissive stance was met with fierce criticism online, with consumers accusing the state-owned enterprise of profiting from 'borderline' marketing (known locally as 'ca bian') while shirking the responsibility of oversight. Records show the distributor, Tianjin Baiyi E-commerce, had generated sales between 100,000 and 250,000 RMB in just 30 days prior to the shutdown.
Founded in 1957 and currently a subsidiary of the state-owned Tianjin Food Group, Haihe Dairy represents a class of 'heritage brands' that the Chinese government has been keen to revitalize. However, the digital transition has proven treacherous. By outsourcing its digital presence to third-party operators with questionable track records—Baiyi E-commerce was notably listed as having 'abnormal operations' by regulators as recently as July 2024—Haihe risked its storied reputation for a short-term boost in traffic. The company now faces a dual challenge: scrubbing its digital image and navigating a potential investigation by the Binhai New Area Market Supervision Bureau.