I think the reason why South Beauty went from being a red-hot restaurant industry to being on the verge of closure in the first place is that the first incentive is from the capital market. Secondly, the most fundamental reason is still due to the consumer market. And the product you also want to be more popular, must be constantly upgraded and updated, and South Beauty did not do.

The first reason was the major change in the capital markets. In 2008, Zhang Lan successfully introduced CDH investment, and promised to go public within 4 years, otherwise once CDH has the right to withdraw from South Beauty by way of share buyback, but the final result is that South Beauty is neither listed in China nor in Hong Kong and Macao. So there is no way, Zhang Lan can only abandon the equity, in 2015 when the complete withdrawal of South Beauty.

And the 2nd point I also think is the most fundamental reason, that is the consumer market. Around 2012, China's catering market changed dramatically, due to the end of the year traveling 8 regulations, strictly prohibited to crack down on public spending on food and drink, the country's blowing the wind of honesty, for those upscale catering, upscale clubs are a very serious blow. This is very fatal to South Beauty, which focuses on high-end consumers. Since this situation has occurred, South Beauty should have carried out a strategic transformation with this situation, adjusting the industry and service optimization, and fine-tuning the management and training. But South Beauty, which has been trying to go public, has not paid attention to this aspect of the problem.

And later on, South Beauty also exposed the back kitchen dirty, poor service attitude, dead fish as live fish and other crisis events, further pushing South Beauty into the limelight. So under the pressure of these public opinions, South Beauty has not thought of consumer upgrading, nor with the Internet to combine, so leading to the final slowly out of the stage of history.