During this period, due to the slow follow-up of Meichu's products and the launch of no similar competitive products, the market has begun to decline; on the other hand, Meichu's research on the Chinese consumer market and market segmentation also appears to lack planning and extensive product upgrading. The slow and slow taste did not adapt to the Chinese market, causing Meichu to gradually lose its advantage in terms of products; Meichu cultivated a group of high-quality sales teams in the early days, which is also an important factor in ensuring its market stability. At that time, Meichu provided these market sales staff with relatively competitive wages, complete training mechanisms and standardized sales management, so that Meichu’s channels in the Beijing market have always been healthy, from first-level stores to second-level stores to In third-level stores, almost all the sales staff of Meichu can manage and communicate effectively. At that time, the sales representatives could even know the birthday and hobbies of the main person in charge of each shopping mall, and maintain a relatively good cooperative relationship with them; however, as time goes by, As Meichu's investment in China decreased and its sales force was gradually neglected, these sales personnel were gradually lost. The sales and marketing personnel who were later added have deteriorated a lot in terms of overall quality and professionalism. Without good marketing personnel, Meichu's channels It was difficult to maintain it well. Because the service could not keep up, Meichu's terminals in major shopping malls in Beijing began to lose control. There were fewer and fewer products on display, and they were almost submerged by Master Kong and Uni-President. Meichu’s marketing has also declined from its early days of innovation to almost no decent publicity and promotion. An advertising company that has served Beijing Meichu for many years reported that the early Meichu advertising business There were still quite a few, and promotions and advertising were often done, but later they became less and less. Even if there was business, it was basically basic things such as packaging design and poster design. As for advertising, there was no action, and with this At the same time, TV advertisements for Uni-President and Master Kong were not only frequently placed on national satellite TV stations, but in 2001, Master Kong instant noodles also broadcast advertisements during prime time on CCTV.

As a family business and a wholly foreign-owned enterprise, Meichu’s internal management problems have gradually emerged with the decline in operating efficiency. Communication barriers have arisen between the management team composed of employees of different nationalities. Mutual suspicion, difficulty in communication, and mutual opposition between employees in the factory and management departments have brought huge hidden dangers to the company's internal management and weakened the company's core competitiveness. Loopholes in management also cause continuous loss of corporate assets. For example, when Beijing Meichu purchased a vehicle, the driver lost all the car purchase procedures and the car. In the end, he only gave the driver a penalty; once, when a kind of palm oil imported by Meichu was weighed at the weighing station in the development zone, the difference was 270 per car. Kilograms; the financial statements submitted to the general manager by Chinese personnel and foreign personnel for their respective interests turned out to be hugely different. Due to foreign parties' lack of understanding of the Chinese market, it is unfavorable to supervise Chinese management. There are various signs that Meichu's management has begun to get out of control. Starting from 2000, Meitu began to have problems in the market. First, there was an incident where products on the assembly line failed to meet hygiene standards and were investigated and punished by the Industrial and Commercial Bureau. Then, in May 2001, there was an incident where the marshmallows given in the promotion were counterfeit products. When Beijing Meichu sells Meichu instant noodles, it gives a bag of "JINGTANG" brand soft white sugar with the box and states that "the box contains exquisite gifts." These soft white sugars include both genuine products purchased from regular channels and fake products purchased from wholesale markets. There are more than 20,000 bags in total, with a total price of more than 40,000 yuan. Among them, at least 8,700 bags of soft white sugar have flowed into the market along with instant noodles. . For this reason, the Beijing Sugar Industry Tobacco and Liquor Company, the manufacturer of "JINGTANG" brand soft white sugar, claimed damages from Meichu on the grounds that it had infringed its registered trademark rights. The court held that Meichu Company purchased "JINGTANG" brand soft white sugar many times and should know whether the purchased goods were counterfeit goods; Meichu Company sold the sugar in boxes as gifts, and this act of giving away was still a common practice. a sales behavior. Accordingly, the court determined that Meichu Company’s infringement was established.

This incident was widely publicized by the media, and ultimately Meichu was fined 50,000 yuan by the Beijing Municipal Administration for Industry and Commerce. After the spread and impact of this incident, the reputation of Beijing Meichu has been severely hit, especially the sales channels, which have been fatally affected. Many shopping malls no longer sell Meichu instant noodles.