Abstract: With its long history, distinctive national culture, traditional technical characteristics, and good business reputation, Chinese time-honored craft forms a unique Chinese-style brand. However, under the impact of the contemporary social market economy, its inheritance and development are often faced with challenges. In recent years, one of the few representatives with high market activity and strong vitality, the century-old brand “Zhang Xiaoquan”, that makes knives and scissors, also caused a brand crisis due to a “knife breaking event” that triggered the network public opinion , which is a typical case worthy of more attention. This study reviews the historical development of Zhang Xiaoquan’s brand, the course of “knife breaking event” and its effect, and analyzes the problems in terms of product positioning and technological development of the time-honored brand behind the event. On this basis, this paper discusses the risks and opportunities faced by the time-honored craft in social communication, points out the role of online social media as a catalyst, and emphasizes the need to excavate and retain the brand culture “core” of traditional craft in technique and brand innovation.