East Buy's Public Opinion Storm and Strategic Conflict
Origin of the Public Opinion Storm
East Buy recently became the focus of public opinion due to the "Mini Essay" controversy. This controversy originated from the company's editors mentioning the collaboration between the host and the team in video comments, revealing a conflict between the "Internet Celebrity Mode" and "Product Route." East Buy chose to adhere to the product route to address this conflict.
Management's Response
East Buy's CEO Sun Dongxu and Dong Yuhui responded to this event on live streams and Weibo. Dong Yuhui confirmed that part of the copy was written by him or based on his ideas and suggestions, while others were created by the editors. Founder Yu Minhong admitted in a live stream that there were management flaws in the company.
Changes in Stock Price and Fan Base
Due to this controversy, East Buy lost nearly 100,000 fans, and the company's stock price also experienced a significant drop. From December 11th to 14th, the stock price fell by more than 25%.
Controversy in the Live Stream Room
Furthermore, some behaviors in the East Buy live stream room sparked heated discussions among netizens, especially a host imitating Sun Dongxu smashing a phone and making provocative comments to fans, further igniting online public opinion.
Significant Changes in Senior Management
Changes in Sun Dongxu's Position
On December 16, 2023, East Buy announced on the Hong Kong Stock Exchange that the board had decided to remove Sun Dongxu from his position as CEO and as an executive director of the company, effective immediately. This change was due to Sun Dongxu's poor performance in brand and reputation management. The board believed that Sun Dongxu's departure from these positions would better protect the interests of the company's shareholders.
Yu Minhong Becomes the New CEO
Following Sun Dongxu's departure, the board appointed Yu Minhong as the new CEO. Yu Minhong continues to serve as the chairman of the board and has been reassigned as an executive director of the company. East Buy stated that Yu Minhong has rich experience in business decision-making and management and is a spokesperson for the group.
Promotion of Dong Yuhui
In these series of changes, Dong Yuhui was promoted to a senior partner at East Buy. This news was first announced in a live stream preview on East Buy's Weibo account and later confirmed through an event poster. Yu Minhong mentioned in a live stream that Dong Yuhui would have more say in the future.
Changes in Stock Price
Following these high-level personnel changes and announcements, East Buy's stock price opened high on December 18th, with an increase of 11.62%, reaching a price of 29.3 Hong Kong dollars per share. This contrasted sharply with the significant decline in the previous few days.
