Eliza Wong
The Unexpected Apology That Shook China’s Marketing World
In a dramatic twist that has captivated China’s business community, Huayuhua Marketing Consulting (华与华), the firm behind Xibei’s (西贝) controversial marketing strategy, has unexpectedly apologized to technology entrepreneur Luo Yonghao (罗永浩). This development comes amid an escalating public dispute over Xibei’s prepackaged meal offerings that has exposed deeper questions about marketing ethics and professional responsibility in China’s consumer sector.
The controversy began when Luo Yonghao, known for his blunt commentary, criticized Xibei’s pricing and quality during a live broadcast. What began as consumer feedback quickly evolved into a broader examination of marketing practices when Huayuhua, which has collected over 60 million RMB from Xibei during their decade-long partnership, initially encouraged the restaurant chain to stand firm against the criticism.
Key Developments in the Controversy
The situation took an unexpected turn when Hua Shan (华杉), Huayuhua’s founder, who had previously publicly supported Xibei’s position, issued an apology to Luo Yonghao. This reversal has raised questions about the consistency and reliability of marketing consultancies that position themselves as strategic partners to major Chinese brands.
Luo’s criticism specifically targeted Huayuhua’s role in the dispute: “As a paid marketing and positioning consultant for Xibei, Huayuhua knew Xibei was in the wrong but still encouraged them to take action on the sidelines. This proves that the company’s advice to enterprises is pure nonsense.” This blunt assessment from one of China’s most recognizable business personalities has amplified scrutiny on Huayuhua’s methodology and business practices.
The Huayuhua Phenomenon: China’s Most Expensive Marketing Firm
Founded in 2002 by brothers Hua Shan (华杉) and Hua Nan (华楠), Huayuhua has established itself as one of China’s most distinctive and expensive marketing consultancies. The firm’s journey began after Hua Shan’s earlier business ventures in electronics and coal trading yielded limited success. His entry into the media industry in 1995, followed by mentorship under advertising pioneer Yu Xiaosheng (于晓声), laid the foundation for what would become Huayuhua’s unique approach to brand strategy.
The company’s business model breaks from traditional advertising agency practices in several significant ways. Unlike firms that participate in competitive bidding processes, Huayuhua offers only one service option: comprehensive annual marketing consulting. They refuse project-based work and maintain no dedicated business development team, instead relying on clients approaching them after thorough research into their methodology.
The Super Symbol Theory in Practice
At the core of Huayuhua’s approach lies what they term the “super symbol theory” (超级符号理论), which emphasizes simple, repetitive, and easily memorable symbols and slogans to reduce brand communication costs. This philosophy has produced some of China’s most recognizable marketing campaigns across multiple industries:
– Food and beverage: “You love me, I love you, Mixue Ice City sweet sweet” (蜜雪冰城甜蜜蜜) jingle
– Healthcare: “Blue bottle calcium, delicious calcium” (蓝瓶的钙，好喝的钙) for Sanjing Pharmaceutical (三精制药)
– Consumer goods: “Take pictures and shout Tianqi loudly” (拍照大声喊田七) for Tianqi Toothpaste
The firm’s client roster includes numerous publicly listed companies beyond Xibei, such as Haidilao (海底捞), Six Walnuts (六个核桃), Mixue Ice City (蜜雪冰城), Dongpeng Beverage (东鹏饮料), Juewei Food (绝味食品), and Dook Media (读客文化).
Controversies and Criticisms: Beyond the Super Symbol Theory
Despite their commercial success, Huayuhua has consistently faced criticism regarding their creative approach and business practices. The firm’s designs and slogans have frequently been described as “tacky,” “brainwashing,” or even “a mudslide in the design world” by critics and consumers alike.
Aesthetic and Plagiarism Concerns
Recent controversies have highlighted ongoing concerns about Huayuhua’s creative output. In 2023, bakery chain Luxihe (泸溪河) paid 6 million RMB for a new logo featuring a cartoon depiction of their bald founder, which was widely mocked online as “too ugly to appreciate.” Similarly, the “Uncle Logo” for Lao Niang Jiu (老娘舅) restaurant chain, which placed the character for “uncle” (舅) inside a cooking pot, was criticized as “brutal without下限.”
Beyond aesthetic complaints, Huayuhua has faced plagiarism allegations. In 2020, their “Mercury Home Textile Super Lace” brand system for Mercury Home Textiles (水星家纺) was accused of closely resembling design elements from luxury brands Burberry and Hermès, particularly in its use of orange backgrounds and interwoven letter patterns.
Regulatory and Legal Challenges
According to Tianyancha (天眼查) data, Huayuhua has faced regulatory action for advertising violations. The Shanghai Jing’an District Market Supervision Administration confiscated 88,235.29 RMB in advertising fees and imposed a 1 million RMB penalty for serious problems in advertisements published by the company.
Hua Shan has consistently defended his firm’s approach, stating: “Our purpose is to make people remember, not to make people appreciate.” This focus on memorability over aesthetic appeal has become a defining characteristic of their work, even as it generates controversy.
Business Performance: Beyond the Super Symbol Theory
The current controversy coincides with challenging business conditions for companies associated with the Hua brothers. Dook Media (读客文化), controlled by Hua Shan and Hua Nan, has experienced declining performance since its July 2021 listing on China’s Growth Enterprise Market.
Financial Performance Trends
Dook Media’s revenue has declined consistently since its IPO. The company reported 519 million RMB in revenue in 2021, followed by 514 million RMB in 2022 (down 1.04%), 434 million RMB in 2023 (down 15.49%), and 406 million RMB in 2024 (down 6.61%). First-half 2025 revenue reached 168 million RMB, representing a 15.38% decrease year-over-year.
This financial performance has been accompanied by shareholder actions that have raised eyebrows among investors. Former core executive Zhu Xiaoxiao (朱筱筱) cashed out over 60 million RMB through share reductions within a year of the company’s IPO. In early 2025, controlling shareholders Hua Nan and Hua Shan, through their affiliated Ningbo Dook Enterprise Management Partnership, announced plans to reduce their holdings by 11.19 million shares, potentially cashing out approximately 114 million RMB.
Market Implications
The combined 170 million RMB in share reductions exceeds Dook Media’s total net profit since its listing, raising questions about shareholder confidence in the company’s future prospects. This situation has added another layer of scrutiny to the Hua brothers’ business operations beyond the current marketing controversy.
Broader Implications for China’s Marketing Industry
The Huayuhua-Xibei controversy reflects larger questions about the role and responsibility of marketing consultancies in China’s consumer economy. As brands face increasing scrutiny from consumers and regulators, the strategies advocated by high-priced consultants are receiving unprecedented examination.
Professional Standards and Accountability
The incident has sparked discussions about whether marketing firms should share accountability when their strategies lead to public relations crises. Industry experts are debating whether consultancies have an ethical obligation to advise clients toward transparent and consumer-friendly approaches, rather than simply maximizing short-term memorability and controversy.
This case also highlights the tension between traditional marketing approaches focused on repetition and memorability and evolving consumer expectations for authenticity and transparency. As Chinese consumers become more sophisticated and critical of marketing tactics, firms like Huayuhua may need to adapt their super symbol theory to address these changing expectations.
Looking Forward: The Future of Marketing Consultancy in China
The Huayuhua apology represents more than just a resolution to a specific dispute—it signals a potential shift in how marketing consultancies operate within China’s rapidly evolving consumer landscape. The incident demonstrates that even the most established marketing approaches must evolve to maintain credibility in an era of heightened consumer awareness and social media scrutiny.
Strategic Considerations for Brands
For international investors and business professionals monitoring Chinese consumer trends, this case offers several important insights. First, it highlights the importance of evaluating marketing partners not just on their creative output but on their ethical framework and crisis management capabilities. Second, it demonstrates that controversial marketing approaches, while potentially generating short-term attention, can create significant long-term reputation risks.
Finally, the situation illustrates how quickly social media controversies can escalate in China’s digital ecosystem and the importance of having responsive crisis communication strategies in place. Companies operating in China should ensure their marketing partners have robust protocols for addressing consumer complaints and public criticism before they escalate into broader reputation crises.
Key Takeaways and Strategic Guidance
The Huayuhua-Xibei controversy offers valuable lessons for marketers, investors, and corporate leaders focused on China’s consumer markets. The super symbol theory, while effective for creating memorable campaigns, must be balanced with considerations of consumer sentiment and ethical marketing practices. As China’s consumers become more discerning, marketing approaches that prioritize memorability over authenticity may face increasing resistance.
For companies selecting marketing partners in China, this case underscores the importance of due diligence beyond reviewing past campaign successes. Evaluating a firm’s approach to crisis management, their understanding of evolving consumer expectations, and their willingness to adapt strategies in response to market feedback should all be part of the selection process.
As the Chinese market continues to evolve, marketing strategies must balance creative impact with consumer trust. The firms that will thrive in this environment are those that can combine memorable branding with authentic consumer engagement and transparent business practices.
Monitor these developments closely as indicators of broader shifts in China’s marketing landscape. The outcome of this controversy may influence how consultancies approach client relationships and crisis management throughout Chinese consumer industries.
