[Chinese Packaging Network News] As the legal dispute over the red can design remains unresolved, JDB (Jiaduobao) has reportedly decided to change its packaging due to mounting pressure. According to sources, the company is preparing to replace its iconic red cans with a new gold-themed design. While JDB’s official representatives have not publicly confirmed the move, internal staff have acknowledged the change. Analysts suggest that the red can was more than just a package—it was a key visual identity for the brand. Losing it could be as damaging as the trademark infringement case from three years ago.
The transition appears to be well underway. According to market reports, mass production of the new packaging began last week, and the updated herbal tea product is expected to hit shelves before the Dragon Boat Festival. This shift comes after a December 2023 ruling by the Guangdong Provincial Higher People’s Court, which determined that Wanglaoji owned the rights to the red can design, leading to accusations of infringement against JDB.
Despite initial resistance, JDB has now taken proactive steps to rebrand. Industry insiders believe this signals a possible acceptance of the court’s decision, as the chances of overturning the first-instance ruling are slim. A source close to the company told the Beijing Daily News that the packaging change is already in progress, though specific details about when the old red cans will be phased out or when the new version will launch remain unclear.
This development is particularly significant given that the legal battle between JDB and Wanglaoji is still ongoing, with JDB having filed an appeal. However, making such a major change at this stage suggests that JDB may no longer be confident in its legal position. According to legal experts, the case is expected to take until 2015 to finalize, leaving little time for JDB to adjust without affecting its market presence.
Experts also highlight the potential impact on sales and brand perception. Zhang Zheng, a research director at Beijing Fulai Brand Consultancy, noted that packaging plays a crucial role in shaping consumer perception. “For years, the red can became synonymous with herbal tea in the minds of consumers,†he said. “Changing it could significantly affect sales and brand recognition.â€
Moreover, the cost of rebranding could put additional pressure on JDB’s profits. In 2012, when the company changed its branding, it spent over 5 billion yuan on marketing, leading to a sales increase of more than 20%. However, these high costs also led to a significant reduction in profit margins. With the current packaging change, similar expenses are expected, further straining the company’s financial performance.
Analysts also warn that the shift could create challenges within JDB’s distribution network. Zhu Dan Peng, a food industry researcher, pointed out that distributors and agents might face risks, potentially causing instability in sales. This could provide an opportunity for Wanglaoji, which has a weaker sales system but could benefit from JDB’s struggles.
Overall, the move to rebrand represents a major shift for JDB, signaling both a strategic response to legal pressures and a challenge to its long-standing brand identity. Whether this change will ultimately help or hurt the company remains to be seen.
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