Three Sheep's Second Chance: Can the Relaunched Xiao Yang Zhen Xuan App Redeem the Brand?
After a six-month hiatus, the "San Yang Xiao Yang Zhen Xuan" APP, a self-operated brand of Hefei San Yang Network Technology Co., Ltd., has been launched on multiple application markets, sparking heated discussions among netizens. The APP's release comes after the company paid a fine of 68.95 million yuan and implemented 89 rectification measures, as required by the Hefei City Joint Investigation Team. The company has now met the conditions for resuming operations.

8 April 2025
The APP is a self-operated commercial platform, offering a wide range of products, including leisure food, beauty and skincare products, daily necessities, beverages, and clothing. It adopts a paid membership model, with an annual fee of 99 yuan, and promises to provide high-quality products and transparent services. An internal source at San Yang revealed that the APP is just one of the company's business segments, and the company will continue to take a cautious approach to the market, making adjustments as needed. The source also stated that the company's goal of conveying a sense of joy and happiness to its customers remains unchanged.
Three Sheep, once a leading figure in the live streaming e-commerce industry, had fallen from grace due to its involvement in low-quality live streams, false advertising, and exaggerated product claims. The company's internal issues had led to frequent exposés, ultimately resulting in severe penalties from regulatory authorities and platforms. The newly launched "Xiao Yang Zhen Xuan" app is Three Sheep's self-operated shopping platform, allowing for more direct and transparent product presentation to the public. However, the company acknowledges that every step forward requires a cautious and humble approach, with a deep respect for the market.
In the past, Three Sheep had gained a massive following and impressive sales figures, thanks to its founder "Xiao Yang Ge" and his folksy, entertaining persona. However, as the company grew, it became increasingly mired in problems such as low-quality live streams, false advertising, and exaggerated product claims. The final straw came when the company was caught selling "high-end mooncakes from Hong Kong" that were actually unavailable in Hong Kong, leading to a scandal that crippled the company's reputation. The incident demonstrated Three Sheep's lack of respect for laws, regulations, and market norms, prioritizing short-term gains over long-term development and treating consumers as mere tools for profit.
The root cause of Three Sheep's downfall lay in its failure to adhere to basic principles of honesty and quality, instead using its massive following for quick profits. The company's internal management lacked strict quality control and supervision mechanisms, allowing problematic products to enter the market and harm consumers. By prioritizing short-term gains over sustainable growth, Three Sheep inevitably faced a backlash. Nevertheless, the company has been given a second chance, with the local government announcing in March that Three Sheep had paid its fines and met the requirements for resuming operations.
The relaunch of the "Xiao Yang Zhen Xuan" app marks a new beginning for the company, one that requires a renewed commitment to consumer rights, product quality, and regulatory compliance. To maintain its market presence, the company must enhance its internal controls, including the implementation of a rigorous quality oversight system and the standardization of advertising language to eliminate false promotions. Concurrently, regulatory agencies and consumers must sustain their scrutiny to forestall the resurgence of issues that prompted the initial suspension, thereby fostering a healthier market environment.
The relaunch of San Yang Xiao Yang Zhen's app after a six-month hiatus presents an intriguing case study on redemption and the quest for new opportunities. For the brand to truly revive and harness this second chance, it's crucial that it demonstrates a genuine capacity for self-reflection and lesson-learning. This involves not just verbal commitments but tangible actions that showcase a deep understanding of past mistakes and a solid plan for rectification. Consumers, on their part, must adopt a rational stance, moving beyond the fervor of fandom to scrutinize the brand's actions critically.
The broader industry can draw valuable lessons from this narrative. The ascendance to prominence often driven by the "traffic is king" mantra needs a paradigm shift towards a "compliance first" ethos. This entails a recognition that sustainable success is not merely about amassing followers but about building trust, adhering to regulatory standards, and fostering a culture of accountability. The relaunch of San Yang Xiao Yang Zhen's app serves as a litmus test, not just for the brand itself but for the industry at large, presenting an opportunity for a collective introspection on the values that should underpin the pursuit of success in the digital age. By prioritizing compliance, ethical considerations, and consumer welfare, brands can ensure that their growth is not only rapid but also responsible and enduring.
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