New Oriental founder and CEO Yu Minhong issued a public apology, addressing the concerns raised by the company’s online sales tactics and comments that led to a significant drop in stock prices. In a message to customers, shareholders, and investors on Douyin, Yu contritely explained that his statement about the chaotic state of his company’s livestream selling platform, Dongfang Zhenxuan, was an expression of modesty among friends rather than an objective critique.
Yu elaborated on his leadership philosophy, emphasizing that no authentic entrepreneur ever considers their company’s operations to be flawless and beyond improvement. He acknowledged that while Dongfang Zhenxuan’s current strategy is imperfect, this imperfection is what fuels the company’s drive towards betterment. Additionally, Yu responded to the specific issues associated with the dramatic shift in Dongfang Zhenxuan’s livestreaming style, which had garnered intense scrutiny on social media.
Critics and fans alike noticed a stark difference in the tone of Dongfang Zhenxuan’s broadcasts during the “618” sales event. The once-cultured livestream had abruptly changed to a style characterized by aggressive sales tactics and loud calls to action, departing from its traditional knowledge-based promotion. Yu explained that the change was in response to platform requirements aimed at increasing traffic, implying that the nature of the broadcasts may still be subject to further change.
Despite acknowledging these adjustments, Yu insisted on his commitment to the enterprise. He reminisced about the early days when he would enrich the product narratives with history and geography, turning sales streams into educational sessions. The dramatic shift in Dongfang Zhenxuan’s tone indeed led to a significant loss in market value, but after Yu’s apology, the company’s stock price saw a partial recovery, hinting at the enduring strength of his leadership and vision for New Oriental’s future endeavors.
Key Questions and Answers:
– What controversy surrounded New Oriental’s online sales tactics?
The controversy centered around a stark change in Dongfang Zhenxuan’s livestreaming tactics, shifting from education-oriented sessions to aggressive sales techniques, which led to public scrutiny and a decrease in the company’s stock prices.
– How did New Oriental’s CEO address the controversy?
CEO Yu Minhong issued a public apology via Douyin, acknowledging the imperfect nature of Dongfang Zhenxuan’s operations and explained that the aggressive sales approach was a response to platform requirements for increased traffic.
Key Challenges or Controversies:
– Maintaining Brand Integrity: New Oriental, traditionally known for educational services, faced a challenge in aligning aggressive sales tactics with its brand identity, which resulted in backlash.
– Shareholder Confidence: The dramatic change in livestreaming style and subsequent public reaction caused a decline in stock prices, raising concerns among shareholders and investors about the company’s direction and stability.
Advantages and Disadvantages:
– Advantages: Livestream selling has the potential to reach a vast audience, generate significant sales, and enhance brand visibility on online platforms.
– Disadvantages: Misalignment between sales tactics and brand identity can damage a company’s reputation, alienating existing customers and stakeholders, and impacting financial stability.
For further information about New Oriental and its educational services, you can visit their main website: New Oriental. Please verify that this URL is correct and operational at the time of use, as websites can change or cease to exist over time.