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the three sheep incident: where did momo and the profits go?

2024-09-06

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"we didn't even have a place to sit when we went to their business conference." a merchant in shandong described his experience dealing with live streaming e-commerce company sanzhiyang to huxiu esg. "they opened their business but asked us to send flower baskets. if we didn't, they wouldn't help us promote the business."

"we have already paid them a commission, but they still asked us to bear the expenses for festivals and promotions, and asked us to get rebates, which is not included in the contract. they threatened that if we don't pay, they will not let us cut videos in the future."

in front of the leading live-streaming e-commerce companies, it seems difficult for ordinary merchants to get equal dialogue rights.

now, the boss no longer sells through three sheep, but he still hasn't gotten back the 500,000 yuan deposit. "they said they would refund it in a month, but it's been half a year and they haven't refunded it yet. they gave all kinds of reasons, sometimes they said they were off duty, sometimes they said the legal process hadn't been completed yet."

the experiences of ordinary merchants may not attract attention, but when simba blasted the three sheep, public opinion was ignited.

the war of public opinion is naturally related to public opinion management, but its causes can be traced back to supply chain management.

business war takes the form of public opinion war

"on the internet, companies that are closely related to traffic are creating traffic for their own commercial interests and attacking without any bottom line. now it has reached an outrageous level, seriously damaging the public opinion environment and market order." in the view of li guowei, a senior brand marketing expert and president of wenyuan dacheng management consulting company, simba's move is particularly damaging, but also powerful. "the actual goal is to hit the opponent's hairy crab sales, but not directly attacking the sales itself, but attacking your morality and destroying your reputation."

judging from simba’s public statements, the reason for launching the public opinion war was that the crabs he sold were priced relatively low, which led to xiao yangge’s malicious report.

he then launched a series of combined attacks, saying that three sheep co-founder lu wenqing was sentenced (with a suspended sentence) for fake orders; hinting that three sheep had schemed against its own female anchor (presumed by netizens to be momo), leading to her imprisonment; and again mentioned the three sheep "315 bad meat" incident and other incidents.

on the evening of september 4, lu wenqing also released a video on his douyin account, the main content of which included:

1. apologize for the uncivilized language used in the live broadcast room.

2. regarding the “315 bad meat incident”, three sheep has not received any official punishment for the incident so far; if it does in the future, the company will not shirk or evade responsibility.

3. regarding the online rumor about the female anchor, lu wenqing said that this is a rumor and he has called the police. he asked the public to respect personal privacy and not cause more harm to the female anchor and her family.

4. regarding the rumors that he was punished for fraud, lu wenqing claimed that he "has never done anything to cheat, harm or deceive others", but said that he had taken a detour and was willing to be punished by law; he also said that this experience was also a wealth, reminding him to operate in compliance with regulations and produce legally at all times.

however, judging from the comments on the video, doubts accounted for an overwhelming majority, many of which mentioned "where did momo go".

there are also some places where lu wenqing's logic is not completely self-consistent, for example,is personal privacy more important than personal freedom?

even though we cannot completely deny that people have a tendency to watch the show, we cannot say that people’s attention is just for the purpose of prying into personal privacy - public opinion contains a simple sense of justice - there are many voices sympathizing with momo, and people are concerned about whether she has been set up.

obviously, lu wenqing's privacy theory may not convince the public. on the contrary, if momo is indeed imprisoned, social attention will help her receive fairer treatment.

in addition, although lu wenqing did not directly acknowledge his criminal record, he seemed to have acknowledged the facts.

well-known criminal lawyer wei jingfeng told huxiu esg:executive crime can damage corporate reputationas the representative of the enterprise, the criminal behavior of the executives will directly affect the image and reputation of the enterprise, resulting in a decrease in the trust of the public and investors in the enterprise; if the enterprise is a listed company, the crime of the executives will directly affect the stock price, causing significant losses to the market value, and the investors' stocks will also depreciate. "

the three sheep are on the defensive side of the war of public opinion.

there are casualties in every battle. from the perspective of the factual debate, simba seems to have a certain advantage online as of press time. however, from the perspective of the opinion debate, simba himself has also encountered negative public opinion. including lu wenqing, many people accused simba of hype and traffic, and said that simba had also promoted problematic products.

li guowei said that three sheep was not completely defenseless. he analyzed that in this war of public opinion, three sheep's basic foundations such as product quality and compliance management were still stable; lu wenqing's criminal punishment was a thing of the past and had nothing to do with three sheep's current business.

"three sheep actually has the ability to fight back. simba arranged 100 million in cash to compensate three sheep consumers. it can be said that he is too involved and is obviously trying to attract traffic. the country has laws, the government has supervision, and consumers have rights. it is not your turn to 'catch the rat with the dog'."

li guowei also emphasized that the essence of the war of public opinion is a business war. using public opinion war to fight business war is becoming the normthe most intense public opinion war is in highly competitive industries with high interaction with consumers. in the past two years, the public opinion war in the automobile and internet industries is spreading to other industries. preparing for and fighting the public opinion war has also become a new issue for corporate growth.

the author contacted three sheep, but after learning that huxiu esg was paying attention to the relevant public opinion, the operator hung up the phone directly.

sharing value is the only sustainable way

since three sheep refused to communicate with huxiu esg, the merchant’s statements at the beginning of this article are difficult to verify.

however, according to past reports, there have indeed been collective incidents of merchants and restaurants protesting against live-streaming e-commerce and platform e-commerce. the key point of their accusation is that their profits have been suppressed or even squeezed dry by the leading e-commerce companies.

in response to this incident, southern metropolis daily published an article stating: "'the lowest price on the entire network' was once one of the core competitive advantages of super head anchors. the head anchors used their number of fans and past sales as bargaining chips to negotiate with brands to get low prices, and then exchanged low prices for higher attention and sales, thereby increasing their bargaining chips, obtaining the 'lowest price on the entire network', and even further increasing their live broadcast commissions... but this model has also been controversial..."

in addition to simba's statement that he was reported for price issues, the three sheep side also responded: "the price of 0 yuan for the second order was a discount negotiated by brother yang. if you have the ability, you can also negotiate."

the two sides talked back and forth, but the interests of suppliers were not discussed.

according to the analysis of many experts, simba and three sheep have not reached the standard of monopoly, but there are certain tendencies and risks. dr. liu wenhua, a lawyer at yunnan liu wenhua law firm, said: "leading e-commerce companies use their market dominance to lower prices too much when negotiating with upstream and downstream suppliers, and sell goods at unfairly low prices, which is easy to form a price monopoly. the low prices of the goods sold will form a 'siphon effect' on the market, affecting the normal market order."

he also stressed: "although consumers tend to think 'the lower the price of the same product, the better', the healthy development of the market requires that market players have reasonable profits, otherwise they will flee the market due to loss of profits, resulting in insufficient number of market players and affecting market prosperity. therefore, our country's laws prohibit the sale of goods below cost without reasonable reasons and prohibit the sale of goods at unfair prices."

from an esg perspective, leading e-commerce companies should also improve the value sharing mechanism with stakeholders rather than blindly pursuing their own profits.

lang hua, esg expert, director and partner of syntao zongheng, pointed out: "a business model that lacks value sharing directly risks straining the relationship between leading e-commerce companies and suppliers. in the long run, it will have a negative impact on the operating stability of suppliers. if suppliers have difficulties in operation or go bankrupt, it will also lead to supply chain disruptions for e-commerce companies. the ultimate impact will also be transmitted to consumers - in order to achieve a certain profit, suppliers will reduce costs and produce consumer goods of lower quality."

sustainable development not only concerns the sustainability of nature, but also the sustainability of business and society.

lang hua said: "we benefit a lot from the low prices of e-commerce, and there is no shortage of high-quality and low-priced goods. but if this business model continues for a long time, it will affect the real economy and squeeze the living space of convenience stores and small supermarkets. however, traditional formats are not without necessity. small supermarkets are needed to facilitate the daily lives of community residents.

"esg is also concerned about the impact of business on the community and society. the community is a place for living, and physical stores can play a role in gathering people. neighbors and acquaintances meet at convenience stores, or gather nearby to chat, forming a community atmosphere. some residents also regard going to the vegetable market to buy vegetables as a lifestyle. if the diversity of the business environment decreases, the diversity of life will also decrease.

"sometimes i wonder: as the times change, if physical stores have to disappear in large numbers, large platforms and leading e-commerce companies will have a social responsibility to recreate a good community atmosphere. we have seen that when e-commerce companies deliver goods, they may be stored in convenience stores and consumers need to pick them up. is it possible for e-commerce companies to increase their support for convenience stores and shape a new community environment?"

yes, express delivery is acceptable, but monopolizing the market is not. sharing value is the basic requirement of esg - humans should not only share responsibility for nature, but also for the economy and society. behind the live broadcast e-commerce war of words, we may be able to think a little more.