For Haihe Dairy, a heritage brand synonymous with Tianjin’s local culture, a recent livestreaming blunder has become a cautionary tale for China’s aging giants. The incident began when consumers purchased products from what appeared to be an official flagship store, only to be met with a public apology from the manufacturer shortly after. While the immediate cause was a controversial statement by a host, the root of the crisis lies in the blurred boundaries between the brand and its third-party online distributors.
Haihe’s leadership admitted that the offending livestream was managed by a partner agency, acknowledging a significant failure in their oversight and regulatory protocols. This revelation highlights a growing friction point in China's digital economy where consumers often cannot distinguish between a brand’s direct presence and its authorized resellers. In the palms of their hands, users see the trusted 'Haihe' logo, oblivious to the fact that the underlying business entity may be an unrelated e-commerce firm located hundreds of miles away.
The stakes are particularly high for Haihe as it attempts to transition from a regional staple to a national powerhouse. Since 2022, under the leadership of bio-chemical engineer Dr. Zou Yang, the 68-year-old company has leveraged 'flavored milk' as its primary vehicle for expansion. By leaning into nostalgia and rapid-fire product innovation, Haihe has successfully placed its colorful milk pouches in 95% of Chinese cities, claiming the top spot in national flavored milk market share in 2024.
However, this aggressive growth strategy relies heavily on the 'big single product' model, which serves as a double-edged sword. While these flavored milks drive traffic and attract new demographics, any hit to the brand’s reputation in the digital space immediately jeopardizes the entire product line’s momentum. For a 'Time-Honored Brand' (Laozihao), the erosion of trust is far more difficult to repair than a simple supply chain disruption.
The urgency of mastering digital channels is underscored by recent market data showing a sharp divergence in the dairy sector. While offline sales for dairy products plummeted by over 20% in early 2026, online channels continue to show resilience and growth. For regional players like Haihe, the internet is no longer just a sales supplement; it is the primary arena for brand survival and national relevance.
Ultimately, Haihe’s apology suggests a realization that the traditional distribution models of the 20th century are incompatible with the instantaneous nature of livestreaming. The company has pledged to overhaul its screening of partners and implement a full-process audit for all broadcast content. This shift from 'selling products' to 'managing presence' will determine whether China’s heritage brands can truly thrive in the age of viral commerce.