The Fall of Three Sheep: The Bubble and Future of Live Streaming E-commerce

The Fall of Three Sheep: The Bubble and Future of Live Streaming E-commerceThree Sheep, once a "top streamer" in the live streaming e-commerce world, has fallen into dire straits. The news of their office equipment being sold off has sparked heated discussions on social media

The Fall of Three Sheep: The Bubble and Future of Live Streaming E-commerce

Three Sheep, once a "top streamer" in the live streaming e-commerce world, has fallen into dire straits. The news of their office equipment being sold off has sparked heated discussions on social media. Netizens are quick to make jokes: "Is Three Sheep going to have a 'tearful clearance sale'?" "Are the Yang brothers going to wash their hands of it and go back to raising sheep in the countryside?"

The decline of Three Sheep is not accidental but reflects the struggles and challenges faced by the entire live streaming e-commerce industry. From its initial meteoric rise to its current downfall, the story of Three Sheep is like a turbulent business epic.

From the Peak to the Valley: The Fateful Turn of Three Sheep

The rise of Three Sheep was fueled by the emergence of the live streaming e-commerce industry. The Yang brothers, with their down-to-earth style and humorous live streaming content, quickly established their presence in the fiercely competitive market and became industry icons.

In just a few years, the Three Sheep Group expanded its business rapidly, growing from a simple live streaming room to establishing its own supply chain, brand companies, and even opening branches in Hong Kong, becoming a benchmark enterprise in the local live streaming e-commerce sector. However, the sunny days were short-lived, and a crisis silently crept in.

In August 2023, an unexpected "crab incident" thrust Three Sheep into the spotlight. Their "internet celebrity war" with top streamer Simba not only revealed the chaos and disorder behind the live streaming e-commerce industry but also tarnished Three Sheep's reputation.

The subsequent "Meicheng Mooncake Incident" sent the Three Sheep Group into a tailspin. Consumers reported that the Meicheng mooncakes they purchased were falsely advertised. After the Hefei Market Supervision Department intervened in the investigation, it was determined that the Three Sheep Group engaged in false advertising and was fined a hefty 60 million yuan.

Before the "Meicheng Mooncake Incident" had subsided, the Three Sheep Group was embroiled in a "suspected counterfeit Moutai liquor" controversy. Consumers reported that Moutai liquor bought from their live streaming room was potentially counterfeit. The relevant authorities have already initiated investigations.

From the "internet celebrity war" to the "mooncake scandal" and the "Moutai cloud" - in just two months, the Three Sheep Group suffered a series of setbacks. Their former glory seemingly vanished overnight.

The Irregularities in Live Streaming E-commerce and the Regulatory Crackdown

The plight of Three Sheep is not an isolated case. In recent years, the live streaming e-commerce industry has grown rapidly, but problems have also become increasingly prevalent. Many streamers, in pursuit of viewership, exaggerate their claims, and the quality of the products they sell varies greatly. When consumers encounter issues, it is incredibly difficult to seek redress, leading to a decline in industry credibility.

In the face of the various problems plaguing the live streaming e-commerce industry, regulators have taken decisive action, enacting a series of policies and regulations targeting this sector. The State Administration for Market Regulation issued guidelines on strengthening the supervision of online live streaming marketing activities, while the Cyberspace Administration of China, along with six other departments, jointly released the "Provisions on the Administration of Online Live Streaming Marketing (Trial)" to further clarify the management regulations for the industry.

With the increased regulatory pressure, the live streaming e-commerce industry is undergoing a major cleansing. Streamers and merchants who rely on false advertising, substandard products, and sensationalized gimmicks to attract attention will gradually be eliminated from the market. Conversely, businesses and streamers that prioritize product quality, honest practices, and providing high-quality services will gain a competitive edge in the future.

The Future of Live Streaming E-commerce: Opportunities and Challenges Await

The rise and fall of Three Sheep reflects the evolution of the live streaming e-commerce industry. The new business model itself is sound, as it breaks down the spatial and temporal limitations of traditional e-commerce, providing consumers with a more convenient and intuitive shopping experience while creating new marketing channels for merchants.

For live streaming e-commerce to achieve sustainable growth, it must shed its chaotic nature and embark on a path of standardization. Platforms must exercise strict scrutiny, merchants must conduct business with integrity, streamers must self-regulate, and consumers must learn to protect their rights.

The struggles of Three Sheep have served as a wake-up call for many of its peers, demonstrating that traffic alone is insufficient. Product quality and user experience are paramount. The industry is maturing, and the casual approach of the past is no longer viable. The focus now is on product quality, supply chain management, brand building, and user satisfaction.

Many companies have already begun to take action. Some streamers are establishing their own brands, while other MCN agencies are shifting towards providing comprehensive brand marketing services. New technologies such as 5G and AI have brought about new developments like virtual streamers and e-commerce platforms, adding more excitement to live streaming e-commerce. New models such as cross-border e-commerce, live streaming short videos, and community group buying are also being integrated with live streaming e-commerce, making the field more diverse.

While the experience of Three Sheep has exposed some problems, it has also shown us areas for improvement. Live streaming e-commerce still holds many opportunities. The future winners will be those companies willing to embrace change, innovate, and focus on long-term development. We look forward to seeing how this industry continues to evolve and contribute more value to society.

Summary

The downfall of Three Sheep is not only a reflection of its own operational management issues but also a necessary growing pain in the development of the live streaming e-commerce industry. The industry is being reshaped, and regulators are cracking down, pushing live streaming e-commerce towards a more standardized and healthier development path. The future of live streaming e-commerce requires both businesses and streamers to work together. Only by operating honestly and providing excellent services can they earn the trust of consumers and stand the test of competition.

Source:

San Zhi Yang, fined 68,949,100 yuan, ordered to suspend operations! 2024-09-27 18:02 Kaifeng Public Security

Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])