Jan 1, 2019/EqualOcean/-A customer was surprised to find a screw nail in her drinking bought from popular tea-drinks brand Nayuki (Naixue's Tea, 奈雪的茶), reported by Chu Tian City News. An official of Nayuki's Marketing department replied that they were conducting in-store investigation immediately and the same type of screw was found nowhere. All the payment has been refunded.
It's not a rare phenomenon that China's startups have been reported with bad quality. China's internet giants are the primary drivers of this trend pushing traditional retailers into a new period, according to a PwC report, for example, Alibaba's Hema Xiansheng (Freshhema, 盒马鲜生) laid out 40% of area to be as cooking and dining areas, only aiming to provide upgrading physical environments and in-store ambiance. Moving towards a new retail era, China's retail market has seen fancy trends and fabulous gadgets.
Dec 7, 2018, Hema Xiansheng was told to sell expired goods for the second time in one month.
Smart entrepreneurs tout their innovative products, designs and experiences, in a way they redefine customer values, in a way they might ignore something really matter. Food safety is the basic line.
One strategy for startups to assure consumer confidence towards food safety is to publish its own protocols open for customers, like Starbucks.
Haidilao (HK:6862, 海底捞), a Chinese hot pot chain that raised nearly USD 1 billion in its Hong Kong initial public offering (IPO) , planned to use the proceeds to fund its international expansion into markets including the United Kingdom and Canada, and to develop and implement new technology in a bid to better control food safety after food hygiene issues, reported by CNBC.
Quality control aside, Starbucks is also heavily invested in a progressive brand image. April 2018, Starbucks closed its more than 8,000 stores in the United States for one day to conduct anti-bias training after an outraging event happened before. Neither Nayuki or Heytea (喜茶) was not positioning themselves as China's Starbucks, but they still compete in the same market, middle-to-premium market. Trends are evolving, so the customers. Once a company couldn't hold on their prime mission statements, they easily end up nothing. Food safety, after all, reflects the company's operation management.