China Consumer Brand Yousiyi Collapses After CCTV Expose: Fake Australian Origin, Real Chinese Factory

Yousiyi (Youth It/Healthy), once a popular Australian health supplement brand in China, has announced it is on the brink of collapse after a CCTV investigation exposed that the brand's Australian origin story was entirely fabricated.

The Scandal

CCTV Investigation (April 1)

The investigation revealed:

• "Melbourne factory" was actually a car repair shop
• Products were manufactured in China, not Australia
• Brand origin -- Australian heritage entirely fabricated
• Marketing agency -- Zhejiang Suoxiang responsible for brand packaging
• Celebrity endorsements -- multiple Chinese influencers and celebrities promoted the brand

The Collapse

Yousiyi's statement after the scandal:

• All accounts frozen -- unable to operate normally
• Cannot fulfill after-sales service or handle customer complaints
• At collapse edge -- company describes itself as on the brink
• Lawsuit filed -- against marketing agency Suoxiang

The Marketing Agency Problem

Zhejiang Suoxiang Marketing Planning Co. was responsible for:

• Creating the fake Australian brand story
• Fabricating connections to Australian universities and medical experts
• Designing copied elements in brand materials
• Exaggerating product claims
• Total contract: 2.3 million yuan

Celebrity Fallout

Multiple high-profile Chinese livestreamers promoted Yousiyi:

• "Yu Hui Tong Xing" (Dong Yuhui's channel) -- announced full refunds
• Chen Yanxi Studio -- issued public apology
• Other influencers -- distancing themselves

Industry Implications

For Chinese Consumers

• Trust crisis in imported health supplements
• Due diligence expectations increasing
• Regulatory scrutiny intensifying on imported brands

For Livestream Commerce

• Endorsement responsibility -- influencers face liability for promoted products
• Due diligence duty -- "I was just paid to say this" defense weakening
• Platform responsibility -- e-commerce platforms under pressure to verify brands

For Cross-Border Brands

• Authenticity verification becoming standard practice
• Supply chain transparency demanded by regulators and consumers
• Fake foreign brands face increasing regulatory action