New Oriental founder and CEO Yu Minhong issued a public apology, addressing 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 the company’s live sales platform, Dongfang Zhenxuan, was an expression of modesty among friends rather than objective criticism.
Yu elaborated on his leadership philosophy, emphasizing that no true entrepreneur ever considers his company’s operations to be perfect and beyond improvement. He acknowledged that although Dongfang Zhenxuan’s current strategy is imperfect, this imperfection fuels the company’s drive to improve. Additionally, Yu responded to specific issues surrounding Dongfang Zhenxuan’s drastic change in live broadcast style, which had attracted intense scrutiny on social media.
Critics and fans noticed a marked difference in the tone of Dongfang Zhenxuan’s broadcasts during the “618” sales event. Live streaming, once cultural, had abruptly shifted to a style characterized by aggressive sales tactics and strong calls to action, moving away from its traditional knowledge-based promotion. Yu explained that the change was a response to the platform’s demands to increase traffic, hinting that the nature of broadcasts may still be subject to additional changes.
Despite acknowledging these adjustments, Yu insisted on his commitment to the company. He recalled the early days when he enriched stories with history and geography products, turning live broadcasts into educational sessions. The drastic change in Dongfang Zhenxuan’s tone indeed led to a significant loss in stock value, but after Yu’s apology, the company’s stock price saw a partial recovery, hinting at the lasting strength of his leadership and of his vision for New Oriental’s future projects.
Key questions and answers:
– What controversy surrounded New Oriental’s online sales tactics?
The controversy centered around a drastic change in Dongfang Zhenxuan’s live broadcast tactics from education-oriented sessions to aggressive sales techniques, which led to public scrutiny and a drop in the company’s stock prices. business.
– How did the CEO of New Oriental address the controversy?
CEO Yu Minhong issued a public apology through Douyin, acknowledging the flawed nature of Dongfang Zhenxuan’s operations and explaining that the hard-sell approach was a response to the platform’s demands to increase traffic.
Key challenges or controversies:
– Maintain brand integrity: New Oriental, traditionally known for its educational services, has struggled to align aggressive sales tactics with its brand identity, leading to backlash.
– Shareholder Confidence: The drastic change in live broadcast style and subsequent public backlash led to a decline in stock prices, raising concerns among shareholders and investors about the direction and stability of the stock. business.
Advantages and disadvantages :
– Benefits : Live selling has the potential to reach a large audience, generate significant sales and improve brand visibility on online platforms.
– Disadvantages: Misalignment between sales tactics and brand identity can damage a company’s reputation, alienate existing customers and stakeholders, and impact financial stability.
For more 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 may change or cease to exist over time.
