A chain store selling goat milk powder in Nanjing recently collapsed due to operating a prepaid membership system, leaving many customers unable to use their prepaid funds and potentially losing their money. The news made it to the top searches on Baidu on April 6.
According to a report by Modern Express on April 5, a store named Heshi Yuxi Kang Goat Milk City opened at the end of last year in Nanjing. It launched a marketing campaign before the Chinese New Year and quickly opened seven to eight stores in a short period. The store attracted members by offering promotions, where customers could pay 198 yuan to become a member and receive a box of organic goat milk powder, 30 eggs per month for a year, and a 200 yuan voucher among other benefits. Subsequently, members were encouraged to upgrade their memberships by paying more money. Soon, it was discovered that VIP membership cards could not be redeemed, and even the store owner could not be contacted.
An elderly person told the media that the owner claimed to be an agent of Shaanxi Heshi Dairy Industry, and then gradually recommended the elderly to upgrade to VIP status. The most common recharge amounts were 1188 yuan, 2376 yuan, and 4752 yuan, with corresponding gifts of goat milk powder of equivalent value to the recharge amount, as well as additional gifts. For example, recharging 2376 yuan would receive two chickens; recharging 4752 yuan would entitle the customer to a monthly rebate of 384 yuan.
A man surnamed Sun recharged around 24,000 yuan around the Chinese New Year and was supposed to receive 10 boxes (each containing 12 boxes) of goat milk powder, but he did not receive even one box, and the balance on his card was essentially untouched, with no way of refund now.
As they could no longer use their membership cards for online broadcasts and offline purchases, on April 3, some elderly people visited the headquarters of Heshi Yuxi Kang Goat Milk City located on the 4th floor of Xihua Building at 302 Zhonghua Road, only to find the doors locked with two locks. When they inquired with the staff, they found that the staff were also trying to reach the owner for their wages. A knowledgeable employee revealed that this branch had just closed recently, and several other branches in Nanjing had also closed down.
The employee mentioned that the company had been abnormal since February. From February onwards, employees were mostly not getting paid.
A customer named Hu mentioned that the store claimed that Heshi Dairy had invested over 2 billion yuan in Nanjing and built a farm in Jiangning Hengxi. The elderly were taken to the farm in batches for visits, where they saw cows, goats, chickens, etc., and were told that the farm covered an area of 300 mu. After the visit, everyone had more confidence in the development prospects claimed by the owner, Chen.
However, on the afternoon of April 3, a reporter from Modern Express saw that the gate of “Heshi Farm” was still standing, but the electric gate was askew. The guard room was empty, and the interior was in disarray. The farmland was desolate, with the doors and windows of livestock sheds damaged, and there were no signs of cows, goats, or chickens.
It was reported that the company, Qinhuai District Chengzhi Da E-commerce Center, operated Heshi Yuxi Kang Goat Milk City, and its nature was that of a sole proprietorship. The enterprise was deregistered on February 26 this year.
On April 3, some members of the store and company employees had already reported the situation to the local police station. The store owner, Chen, claimed to be raising funds outside the region.
In response to this, a netizen from Shenzhen, Guangdong, named “RAINBOW,” commented: “Most of those who ask for prepayment will run away first!”
A netizen from Nanjing, named “Attitude Netizen 0sGO-N,” remarked: “Eggs are not for white-collar workers, right? You guys like taking advantage.”
And “Big Li 2011” commented: “This is a scam.”