China’s New Oriental fires live-streaming e-commerce platform CEO, promotes top influencer after corporate infighting
- New Oriental’s East Buy fired Sun Dongxu after he appeared to back the idea that star live-streamer Dong Yuhui was taking too much credit
- After a brief absence that incensed fans, Dong returned to the platform on Monday evening as partner and assistant to New Oriental chairman Yu Minhong
Sun Dongxu, the company’s sacked CEO, became the subject of ire when he backed a social media post insinuating Dong was taking too much credit for himself because scripts came from a team of writers. East Buy said in a filing to the Hong Kong stock exchange on Monday that Sun’s mishandling of the incident hurt the firm’s brand and reputation, and that Yu, the chairman, would take over as CEO.
Replacing Sun will protect the interests of shareholders, the company said in the statement, and “allow for a more experienced director to take over the management”.
The case comes as Chinese e-commerce platforms have been forced to navigate uneasy relationships with big influencers. After betting big on popular personalities to attract consumers and drive sales, platforms are now trying to reduce their reliance on any one individual.
The case of East Buy illustrates the precariousness of this balancing act. Dong skipped out on the company’s regular streaming schedule after the row about hogging credit. That resulted in a revolt from his loyal followers who thought East Buy was not being nice enough to their idol.
Both Dong and the company have a lot on the line. The two are mutually reliant on each other to pull off the work, according to Li Chengdong, founder and chief analyst at Beijing-based e-commerce consultancy Dolphin.