Since the “fake mooncakes” scandal last September resulting in nearly 70 million RMB (9.66 million USD) of fines and a time limit to rectify its issues, Three Sheep Group, the company founded by “Crazy” Little Brother Yang is set to return after a 135-day absence from livestreams. In the 6 months in between, many streamers under the management of Three Sheep have left for pastures new. Others felt it might be the end for the company and once the number 1 streamer.
However, on 23 March, an official notice on the rectification progress of Three Sheep brought hope to both the company and the Yang brothers. The notice makes clear that the company had paid the 68.95 million RMB (9.51 million USD) fine and 27.79 million RMB (3.83 million USD) in compensation to consumers, as well as completed the 89 articles required in the official order of rectifications. As a result, local authorities and consumer watchdogs have approved Three Sheep Group’s application to resume operations.
On Weibo, China’s Twitter equivalent, topics about the return of the once-biggest star in livestream sales quickly made several Hot Search-worthy hashtags. The topic “Three Sheep pays 68.95 million RMB fine” (#三只羊公司缴纳罚没款6894.95万元#) reached number 2 on the list with 31.65 million views. Similarly, Three Sheep’s response and question about when it will start to stream again all made it to the Hot Search list. Most netizens, however, are far from impressed and are suspicious of the rectification. Many expressed the view that sales on Yang’s channel were overpriced to begin with even without the quality problems.
Since March, food safety issues made several headlines for both tea chains and restaurants, including livestream social commerce, such as Dong Yuhui’s Walking with Hui channel. With more robust regulations and cautious consumer sentiment, as well as platforms moving towards merchant-led and small-to-medium streamers, how “Crazy” Yang plans to return is certainly worth watching.
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