Famous Sanitary Napkin Factory Idol’s Salary Promise Sparks Controversy
Ex-EXO Star Tao Enters Feminine Hygiene Market After Recycling Scandal
Table of Contents
- Ex-EXO Star Tao Enters Feminine Hygiene Market After Recycling Scandal
- Ex-EXO Star Tao’s Venture Into the Feminine Hygiene Market: A Q&A
- Introduction
- Who is Huang Zitao, and Why is he Entering the Feminine Hygiene market?
- What Triggered Tao’s Entry into the Feminine Hygiene Market?
- What Were the Details of the Sanitary Pad Scandal?
- How Has Tao Responded to the Scandal?
- What is “Douway”?
- What Makes Tao’s New Business Venture Unique?
- What Positions Are being Offered, and What Are the Salaries?
- Has tao’s Venture Faced Any Criticism?
- What is Tao’s Background?
- What is the Market Overview of the Sanitary Napkin Industry in China?
- What is the Projection of the Global Sanitary napkin Market?
- Summary of Key Facts
Huang Zitao, known as Tao, a former member of the South Korean-Chinese boy band EXO, is venturing into the feminine hygiene market following outrage in China over the resale of recycled sanitary products. His entry is marked by a hiring announcement boasting salaries reportedly five times the local average.
Response to Sanitary Pad Scandal
Tao addressed the sanitary pad scandal that stirred public anger across China during a social media livestream earlier this month. he condemned what he called “dirty money” being made from unsanitary practices in the hygiene product industry, including sanitary napkins, diapers, and disposable underwear.The announcement of his new business venture followed shortly after.
Details of the scandal
The controversy stemmed from a report by China Central Television (CCTV) exposing a waste recycling company in Zining, Shandong Province. The company allegedly repackaged and resold used sanitary napkins and diapers. According to the report, the company purchased discarded products from a large manufacturer at low prices, reprocessed them, and then sold them for a profit margin as high as 30 times their initial investment.
Footage from inside the company’s warehouse showed unsanitary conditions, with piles of used sanitary napkins and diapers left exposed, sparking widespread shock and anger.
Tao’s Response: Transparency and High Wages
Tao has stated that his decision to enter the market was driven by the CCTV report, though he claims the business was in progress as October of last year. He pledged to operate a transparent factory, with 24/7 monitoring of the production process. “We will run a transparent factory that reveals everything in the processing process 24 hours a day,” Tao said, according to reports.
To demonstrate his commitment to quality, Tao released a real-time monitoring video of his sanitary napkin production facility. He also plans to include a 24-hour real-time tracking code on product packaging, allowing consumers to monitor the production process. Test reports were also released via social media.
Reports indicate that Tao’s business partner, Shu Lee, tested the product for 90 days.
Competitive Salaries
Tao’s sanitary napkin brand, ‘Douway,’ is offering unusually high salaries for its employees. Open positions include e-commerce channel manager, live commerce host, product manager, shooting and editor, design expert, and distribution sales manager.
The distribution sales manager position, in particular, offers a salary of 30,000 yuan (approximately $4,150 USD), which is about five times the average Chinese salary of 6,050 yuan (approximately $840 USD) in 2023.
Controversy and Skepticism
Despite the promises of transparency and high wages,Tao’s venture has faced some opposition. Critics have pointed to what they perceive as aggressive marketing tactics and the existing history of the ‘Douway’ production plant. ‘Douway’ reportedly existed as an online sanitary napkin vendor before Tao’s involvement. Founded in 2021, the company is registered for hygiene products, disposable medical supplies, and paper products, obtaining production permits for sanitary napkins and diapers in September 2022.
Tao invested in ’Douway’ thru Hangzhou long Gelling Network Technology, a company he owns, in May, acquiring a 20% stake. Some online commentators have raised concerns about the quality of sanitary napkins and diapers previously produced by the brand, suggesting that Tao is leveraging the scandal for public relations.
Some critics have also questioned the speed with which Tao developed and tested the product, suggesting it was less than a month from the initial scandal.
Tao’s Background
Tao’s father, who died in 2020, was a real estate magnate ranked seventh in Qingdao. Tao debuted with EXO in 2012 under SM Entertainment, later returning to China after filing a lawsuit against the company. In 2016, he founded Long Tao Entertainment, producing movies and TV programs.
Sence then, the company has expanded into construction, food, and e-sports. Analysts suggest that Tao’s entry into the sanitary napkin market is driven by its rapid growth in China.
Market Analysis
A 2019 report by China Securities Co., Ltd. indicated that the sanitary napkin industry boasts a high gross profit margin, averaging 45%. The final selling price can be three times the factory price, while R&D and management costs account for only about 6% of total sales. Market data indicates the Chinese sanitary napkin market grew from 75.84 billion yuan to 90.83 billion yuan between 2018 and 2022, with an average annual growth rate of 4.86%.
The Chinese Institute of Industrial Research estimates the global sanitary napkin market exceeded $50 billion in 2023 and projects it will surpass $60 billion by 2025, with an average annual growth rate of approximately 5.2%.
Ex-EXO Star Tao’s Venture Into the Feminine Hygiene Market: A Q&A
Introduction
Huang Zitao, formerly known as Tao from the South Korean-Chinese boy band EXO, has entered the feminine hygiene market. This move follows a scandal in China involving the resale of recycled sanitary products. This article provides a detailed overview of his new business venture, the context behind it, and the market dynamics at play.
Who is Huang Zitao, and Why is he Entering the Feminine Hygiene market?
Huang Zitao, known as Tao, is a former member of the popular K-Pop group EXO. He is entering the feminine hygiene market in response to public outrage in China over the resale of recycled sanitary products.
What Triggered Tao’s Entry into the Feminine Hygiene Market?
Tao’s decision was driven by a scandal. A report by china Central Television (CCTV) exposed a company in Zining, Shandong Province, that allegedly repackaged and resold used sanitary napkins and diapers. This discovery led to widespread anger and concern among consumers.
What Were the Details of the Sanitary Pad Scandal?
China Central Television (CCTV) revealed a meaningful issue within the feminine hygiene industry in China. A waste recycling company in Zining, Shandong Province, was found to be repackaging and reselling used sanitary napkins and diapers.This company purchased discarded products from a manufacturer at low prices, reprocessed them, and sold them for a profit, potentially as high as 30 times its initial investment. The conditions at the company’s warehouse were unsanitary, with used products left exposed.
How Has Tao Responded to the Scandal?
Tao has pledged to operate a clear factory with 24/7 monitoring of the production process.He has also released a real-time monitoring video of his sanitary napkin production facility. Moreover, the product packaging will include a 24-hour real-time tracking code for consumers, alongside the release of test reports via social media.
What is “Douway”?
“Douway” is the name of Tao’s sanitary napkin brand.
What Makes Tao’s New Business Venture Unique?
A key differentiator is the salaries offered by Tao’s company,”Douway.” He is offering salaries that are reportedly five times the local average.Moreover,a commitment to transparency in the production process is being emphasized.
What Positions Are being Offered, and What Are the Salaries?
“Douway” is hiring for several positions, including:
E-commerce channel manager
Live commerce host
Product manager
Shooting and editor
Design expert
Distribution sales manager
The distribution sales manager position offers a salary of 30,000 yuan (approximately $4,150 USD), about five times the average Chinese salary of 6,050 yuan (approximately $840 USD) in 2023.
Has tao’s Venture Faced Any Criticism?
Yes, despite the pledge of transparency and high wages, Tao’s venture has faced criticism. Critics have raised concerns about aggressive marketing tactics and the existing history of the “Douway” production plant, which was already an online sanitary napkin vendor before Tao’s involvement. Concerns were also raised about the time frame in which the product was developed and tested.
What is Tao’s Background?
Tao debuted with EXO in 2012. His father, who passed away in 2020, was a real estate magnate. After leaving EXO, he founded Long Tao Entertainment in 2016, producing movies and TV programs. As then, the company has expanded into construction, food, and e-sports.
What is the Market Overview of the Sanitary Napkin Industry in China?
The Chinese sanitary napkin market is experiencing growth:
The market grew from 75.84 billion yuan to 90.83 billion yuan between 2018 and 2022.
The average annual growth rate was 4.86%.
The 2019 gross profit margin averaged 45%.
The global sanitary napkin market exceeded $50 billion in 2023 and is projected to surpass $60 billion by 2025.
What is the Projection of the Global Sanitary napkin Market?
The Chinese Institute of industrial Research estimates the global sanitary napkin market will exceed $60 billion by 2025, with an average annual growth rate of approximately 5.2%.
Summary of Key Facts
| feature | Details |
| ———————– | —————————————————————————————————————————————– |
| Initiator | Huang zitao (Tao), former EXO member |
| market Entry Reason | Response to the sanitary pad recycling scandal in China |
| Business Name | Douway |
| Key Promise | Transparent factory operation with 24/7 monitoring, high salaries |
| Criticisms | Concerns about aggressive marketing tactics, pre-existing business history, the time frame for product development and testing |
| Market Context | Growing market in China, with high profit margins, global market projected to exceed $60 billion by 2025 |