September 18, 2024
The popular Douyin (TikTok in China) influencer, Trisheep, has recently faced a major setback as its main account was suspended, resulting in a dramatic drop in daily sales by over 90%. This incident has sparked widespread concern and scrutiny over the practices of influencer marketing and the regulatory environment in the e-commerce industry.
Trisheep, a well-known online influencer, had been generating significant revenue through live streaming on Douyin. On September 1, 2024, the company’s live streaming sales ranged from 7.5 million to 10 million yuan, but by September 16, sales had plummeted to just 100,000 to 250,000 yuan.
According to a report from the Observer, the suspension of the main account was followed by a decrease in daily viewership and revenue. In the past 30 days, excluding the day of the report, Trisheep’s live streaming sessions averaged 1.651 million viewers and 1 million to 2.5 million yuan in sales. However, on September 16, viewership and sales were drastically reduced.
The sudden decline in sales and viewership can be attributed to the recent investigation launched by the Anhui Hefei High-tech Industrial Development Zone Market Supervision Administration Bureau. The investigation focuses on the company’s live-streaming campaign featuring the Hong Kong Mei Cheng Mooncake, which has been accused of misleading consumers.
The report states that the company, Trisheep Network Technology Co., Ltd., founded on March 18, 2021, has been under investigation for potentially misleading advertising practices. The company’s founder, Zhang Qingyang (also known as Xiao Yang Ge), is facing legal scrutiny as a result of the investigation.
The incident highlights the challenges faced by e-commerce platforms and influencers in maintaining transparency and honesty in their marketing practices. According to Dong Yizhi, a lawyer from Shanghai Zhengce Law Firm and an expert on e-commerce, platforms have a responsibility to ensure that the information provided by merchants and influencers is accurate and legal. They must also monitor the promotional activities of these individuals and protect consumer rights.
The investigation into Trisheep’s practices comes at a time when the Chinese e-commerce industry is facing increased scrutiny from regulators. In recent years, the government has implemented stricter regulations on the online advertising and influencer marketing sectors to combat false and misleading claims.
The incident serves as a reminder that influencers and e-commerce platforms must adhere to ethical and legal standards in their operations. The suspension of Trisheep’s main account and the subsequent investigation demonstrate the importance of maintaining integrity and transparency in the digital marketing landscape.
As the Chinese e-commerce industry continues to grow, it is crucial for all stakeholders to prioritize honesty and consumer protection. By doing so, the industry can ensure its long-term success and maintain the trust of its customers.
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