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China’s Growing e-Commerce Graveyard: These Companies Already Failed in 2017

China’s e-commerce market is a dog-eat-dog world, with new companies popping up every day, while older ones are throwing in the towel. How (not) to make it in China’s crazy world of e-commerce has become a hot topic of discussion on Chinese social media. What’s on Weibo takes a look at 3 big – once successful – Chinese online companies, and why they failed in 2017.

Manya Koetse

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China’s e-commerce market is a dog-eat-dog world, with new companies popping up every day, while older ones are throwing in the towel. How (not) to make it in China’s crazy world of e-commerce has become a hot topic of discussion on Chinese social media. What’s on Weibo takes a look at 3 big – once successful – Chinese online companies, and why they failed in 2017. (Premium Content).

It is still early in the year, but already some big online companies have exited China’s chaotic world of e-commerce. The release of an ‘e-commerce dead list’ (#2017电商死亡名单#) became top trending on Chinese social media on February 22, and triggered discussions on the status-quo of the market.

“One by one they collapse, one by one they pop up,” one netizen (@逛吃秦皇岛) says. With an ever-growing Chinese online population and the world’s largest e-commerce market, more companies seek to join, hoping to find a goldmine. Instead, many of them soon end up on the e-commerce graveyard. The popular idea about China’s e-market that “when there’s enough wind, even a pig can fly” (当风来了, 猪也会飞起来) does not seem to hold true for all online businesses.

Their collapse does not necessarily mean the end – for many, it is just a new beginning. “This whole business is like gambling,” one Weibo commenter responds. Another micro-blogger says: “E-commerce companies all soon become like conventional businesses. The large online companies are just too strong. It is easy to join [the market], but hard to survive.”

Let’s take a look at 3 big companies that have already collapsed this year, and what experts say goes wrong in their approach to the Chinese online market.

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“China’s 2017 e-Commerce Dead List”

Along with other Chinese media, China’s influential online e-commerce magazine Ebrun.com recently released a list of big companies that have closed their doors this year. We have selected the 3 biggest ones.

 

1. Dingfangbao 订房宝

Business: Online Hotel Bookings

With the slogan “You only sleep ten hours, why would you spend all your money for the day on it?” (只睡十小时,为何要花整天的钱), Dingfangbao was an up-and-coming online hotel booking site (app + website) selling high-class hotel rooms at low prices, focused at offering clients a luxurious room for the night.

The company started in late 2014 with its own formula that allowed customers to search for available hotel rooms after 6 pm. Through the Dingfangbao app and site, four and five-star hotels in big cities such as Beijing, Shanghai, Guangzhou, and Shenzhen could offer their rooms at competitive prices if they were not occupied or reserved by 6 pm. A win-win situation: Dingfangbao users could get a top room for a cheap price, and hotels wouldn’t be left with empty hotel rooms.

The Dingfangbao service (Dingfangbao literally meaning ‘booking treasure’) was especially aimed at business travelers who won’t arrive at their hotels until the evenings due to late meetings and leave again early in the morning.

With Japanese nude model/(adult) film actress Sola Aoi (苍井空) as their company ambassador, it seemed that Dingfangbao was also aiming at luring customers to luxurious hotels at nighttime for other purposes – similar to the ‘love hotels’ in Japan.

Japanese sexy actress Sola Aoi was Dingfangbao’s spokesperson.

Dingfangbao had a promising take-off in 2014, with various fundings and an initial angel investment of 6 million RMB (±870K$), followed by second- and third-round funding of a total of 13 million RMB (±1.9M$) in 2015 and 2016.

But on 27 January 2017, Dingfangbao announced that it would be stopping its services. CEO Sun Jianrong (孙建荣) told the media that although there certainly is a market for the Dingbaofang formula, the frequency with which its clients used these services was too low and not enough to cover their operational costs.

On Weibo, the company still has around 19000 followers. Sola Aoi, who has a staggering 17 million fans on her Weibo page, announced on February 8 that she would step down as the company’s spokesperson. A day later, the company officially closed its doors, although its website is still live at the time of writing.

 

2. Greenbox 绿盒子

Business: O2O Children’s Clothing

Online trendy children’s clothing brand Greenbox (绿盒子) was a success story when it first entered China’s O2O (online-to-offline) retail market in 2010. The company was already established by businesswoman Wu Fangfang (吴芳芳) years before, but it made a conscious shift from offline to e-commerce when Wu realized the potential of middle-class moms spending more time shopping for their kids on the internet.

In 2010, Greenbox received two rounds of funding from Trust Bridge Partners (TBP) of 20 million RMB (3M$), and of 100 million (14.5M$) from DCM. Children clothing brands such as Miss de Mode, M.I.L. Boy, Jenny Bear, and a special Disney brand all belonged to Greenbox, which soon was named one of China’s top 10 e-retailers.

Greenbox tapped into the children’s clothing at the right time, as this retail segment has become especially booming business over the past few years. Together with the surge in other children-related products, there has been a shift to bigger sales of these ‘non-traditional products’ that show that China’s ‘Mummy Economy’ (妈妈经济) has become increasingly more relevant.

Wu Fangfang, the founder of Greenbox.

Soon after the brand was established, it became one of the most popular children’s clothing brands (ranking no.1 for three years in a row) on Alibaba’s online malls Tmall and Taobao. But Greenbox was not solely sold through Alibaba; it was also available through other online shopping platforms such as JD.com and Dangdang. The brand also had its own shop on WeChat.

In 2015, Greenbox started opening up physical stores besides its online ones. It had around 100 (flagship) stores in China’s first-tier cities, solely focused on online sales for the second- and third-tier cities. Was the company taking on more than it could? According to some Chinese media, the brand was “blindly expanding” and growing too fast, too soon, which led to recurring financial difficulties throughout the years. Their financial problems severely worsened in 2016, as the children’s clothing became increasingly competitive. In January 2017, the brand finally announced its bankruptcy.

On Weibo the brand still has 76000 fans, but it has been inactive for months. Some netizens are surprised that the well-known brand has quit, and wonder what this means for the future of other successful ‘Taobao brands.’

 

3. An Home 安个家

Business: Online Real Estate

An Home (安个家) was established in April of 2015. Headquartered in Shanghai, it was independently funded (10 million RMB, 1.5M$) by CEO Liang Weiping (梁伟平). Its business offered online real estate services with a focus on its mobile app, attempting to rival with traditional real estate services.

Different from offline realtors, An Home aimed to be an online (mobile) platform where its home-seekers, homeowners, and consultants could connect with each other, making the process of buying and selling a house less time-consuming and more efficient.

An Home was a promising start-up for which Liang Weiping gathered a team coming from prosperous companies such as Tencent and Alibaba.

But by late December of 2016, Liang admitted to Chinese media that the company was facing financial hardships, and that they had not succeeded in finding the right way to compete with their offline rivals through online channels. As booming as all corners of China’s e-commerce market might seem, people might not be ready for O2O when it comes to real estate.

One of the reasons for its failure was that eventually, no matter online or offline, access to a large number of houses is the key to winning over the real estate market – and it was precisely this issue where the company feel behind compared to the more traditional channels.

Late 2016, CEO Liang sent out a letter to all of its staff that An Home had to halt operations due to financial difficulties. The company has now closed its doors.

What Can We Learn from the Graveyard Companies?

The aforementioned online companies are not the only ones who did not make it this year. Bollain Home Textile (帛澜家纺天猫店), founded in 2012 and selling bedding and home textiles through over 50 online stores in China, has collapsed after running behind approximately 16 million RMB (2.3M$) in its payments to suppliers and staff.

Online recruitment company Job Tong (周伯通招聘), established in 2013 as a major social recruitment platform and even receiving a 28 million RMB investment from NetEase, also went down earlier this year – its online competitors, including lagou.com, liepin.com, and zhipin.com, simply grew too strong.

 

“Even the most clever housewife cannot cook without rice”

 

And then we have not even mentioned foreign brands such as Lotte and others that closed their doors this doors in the highly competitive Chinese e-market.

So what is the lesson to be learned from these start-up failures? Of course, there is not one answer.

But Chinese e-commerce guru Wang Yongjun (王勇军), who has over 2,5 million fans on his Weibo account (@老高电商圈子), thinks he knows what China’s e-commerce start-ups need.

Wang runs a large networking group called the ‘Laogao Club’ for online entrepreneurs in China that are active on Taobao, Tmall, JD.com, etc, and in response to the ‘2017 failing e-commerce list’, published a blog on February 22 in which he gives some main points on how to succeed in this dog-eat-dog e-commerce world.

Mr. Wang, founder of the Laogao Club, explains how businesses can become successful on platforms such as Taobao or JD.com.

According to Wang’s article (in Chinese), which received many views on Weibo on February 22, building up an online community is key for any e-commerce business in China.

“Even the most clever housewife cannot cook without rice”, Wang argues, seeing an online following as the key ingredient to any online-based business. Drawing in communal media followers costs time and energy – haste makes waste.

The ‘guru’ says that online businesses can’t just gather their following by simply arranging a KOL (Key Opinion Leader) or online celebrity (see the first Dingfangbao example) for their brand; it is something a brand has to do themself, since they are the core that needs to attract fans.

 

“No matter how good you are, or how good your product is, it is worth nothing without an online community.”

 

“No matter how good you are, or how good your product is, it is worth nothing without an online community,” Wang writes. In a time when netizens are drowning in the information that is presented to them, it is essential that brands and companies are precise in targeting their relevant audiences and shooting their arrows in the right place.

Wang strongly advises companies to set up the right online environment that suits their target audience, and to pick the right timing to market their messages. Sometimes brands are lucky when their campaign goes viral, but mostly it is about smart strategy.

Before converting your assets into cash, it is important to continue to be valuable to followers and give them a reason to stay. Wang stresses that it is never a good idea to start the money-making machine too soon – you first need to make sure you have a steady and loyal group of online followers that is attached to your brand/company.

 

“Don’t drown the pond to get at the fish.”

 

“Don’t be overhasty, don’t drain the pond to get to the fish” (不能操之过急、竭泽而渔), is one of the messages of the Laogao Club for their online entrepreneurs. You can only transform your brand and starting making money once your ‘fans’ trust your brand/company enough and feel connected to its ‘flavor.’

Keeping up the quality of your services and products, and always making sure it brings more than just a ‘bargain’, it is therefore key to survive in the fiercely competitive Chinese e-commerce market.

Reading from the Laogao Club’s road to e-success, we could draw the conclusion that Dingfangbao had not worked enough on creating its own communal following of trusting and loyal fans before attempting to converting its assets into cash. An Home jumped into the pond before there were any fish at all, and Greenbox went ahead of itself and became too hasty to expand.

“If you enter the pit, be cautious”, some netizens respond on Weibo: “It is risky business.”

“There are too many people who don’t understand and think they are already running an e-business simply because they openened an online company. It looks good on paper, but in reality, it’s nothing,” another person writes.

– By Manya Koetse

©2017 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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Manya Koetse is the editor-in-chief of www.whatsonweibo.com. She is a writer and consultant (Sinologist, MPhil) on social trends in China, with a focus on social media and digital developments, popular culture, and gender issues. Contact at manya@whatsonweibo.com, or follow on Twitter.

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China Digital

“Daddy Ma, Are You OK?” – Jack Ma’s Situation Discussed on Chinese Social Media

Public sentiments on Jack Ma have shifted, but the fans still defend their idol.

Manya Koetse

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Chinese tech superhero Jack Ma has become a hot topic on international social media this month since he has been missing in action for weeks, while Alibaba is facing an anti-monopoly investigation. Ma seems to have fallen out of favor, not just with authorities but also with many Chinese web users.

This month, the alleged ‘disappearance’ of Alibaba founder Jack Ma made headlines in various English-language media, from Reuters to CNN and the Financial Times.

The direct reason for speculation about Jack Ma’s whereabouts was his absence at Africa’s Business Heroes, a talent show he helped create in which Ma was part of the finale judge panel. According to FT.com, the final – which won’t be broadcasted until spring – took place in November.

Although an Alibaba spokesperson explained Ma’s absence from the show as a “schedule conflict” that made it impossible for the tech tycoon to participate, many Twitter users directly tied his ‘suspected missing’ to a critical speech he gave at the Shanghai Bund Finance Summit on October 24 of 2020.

In this speech, Ma made critical remarks on how China’s financial market is regulated and supervised. Kevin Xu at Interconnected provides an English translation of this speech here.

On November 3rd, two days before Alibaba’s fintech subsidiary Ant Group was set to raise around $37 billion with the biggest initial public offering of all time, Chinese regulators abruptly suspended the process. A report by the Wall Street Journal claimed that Chinese President Xi Jinping personally made the decision to halt the IPO of Ant Group after years of rising tensions between Ma and the government.

Pressure on Jack Ma and Alibaba further increased in December when Chinese regulators launched an anti-monopoly investigation into Alibaba and the Ant Group.

Alibaba announced the investigation of its company on its official Weibo channel on December 25 of 2020.

On December 25, People’s Daily also reported the anti-monopoly investigation. The state newspaper hosted a hashtag page about the matter on Sina Weibo (#人民日报再评阿里巴巴被调查#) which garnered over 240 million views. They wrote:

Large Internet platform companies should take the lead in strengthening industry self-discipline, in further enhancing their sense of social responsibility, and in safeguarding a favorable Internet economic ecosystem. The Internet industry has never been, and should never become, a place that is outside the law for anti-monopoly. Regarding platform economy, reinforcing anti-monopoly regulations is never a “winter” for the industry – it is just a new starting point for better and healthier development.”

Although Chinese official media have since not reported much on the issue, and have not published about Ma’s alleged ‘disappearance’, Ma’s whereabouts and his situation has become a much-discussed topic on various Chinese social media platforms.

 

Jack Ma in Short

 

Being among the top 20 richest people in the world, Jack Ma is world-famous as the founder of Alibaba, a multinational tech company specializing in e-commerce that was founded in 1999.

Jack Ma, whose Chinese name is Ma Yun 马云, was born in Hangzhou in 1964 to a family of low status. His life story has been retold in many books. Ma was bullied at school, had poor math skills, and flunked the entrance exam twice before he was accepted into the Hangzhou Teacher’s Institute, where he graduated in 1988 with a Bachelor of Arts in English.

Ma had been interested in English since he was a young boy. He would cycle to the main hotel in his city to connect with foreign tourists, acting as their local tour guide in return for English classes. The name ‘Jack’ was given to him by one of the tourist friends he made at that time.

image via kknews.cc

Ma went on to become an English teacher and barely even touched a keyboard before he traveled to the US in 1995 as an interpreter. It was during this trip that he was first introduced to the internet, after which he became inspired to set up his own commercial web site in China – a web site named ‘China Pages’ for Chinese businesses.

Although that business flopped, Jack Ma founded Alibaba in 1999, which would turn into an internet giant influencing virtually all corners of China’s digital world. The Alibaba Group now operates numerous businesses, including Taobao, TMall, AliExpress, and the Ant Group.

Ma’s success is a source of inspiration to many, and his ‘crazy Jack’ energetic behavior and willingness to make fun of himself has only made him and his story all the more captivating.

A younger Ma in one of his fun song-and-dance appearances – as Snow White.

Ma officially stepped down as Alibaba’s CEO in 2019 but is still the company’s largest individual shareholder.

 

“What’s up with Ma Yun?”

 

Until recently, Jack Ma was one of the more popular Chinese celebrities on social media. Jack Ma quotes, memes, videos, or stories would frequently go viral.

As one of the most respected and powerful entrepreneurs of China, bookstores have entire sections dedicated to Jack Ma and his role as a business magnate, the richest man of China, and also as a welldoer and an inspiring influential.

Books about Jack Ma.

Whatever Ma would say or do would go trending, with many people praising what he did, what he said, or where he went.

In 2017, the meeting between US President Trump and Alibaba’s Ma was a big topic of discussion, with many Chinese web users taking pride in Ma’s meeting with Trump, calling him the perfect ambassador to China in their dealings with Trump. “Ma Yun [Jack Ma] for president!” was a much recurring phrase.

It is a phrase you won’t read as much, if at all, on Chinese social media these days anymore. The silence surrounding Jack Ma recently has led to speculation and reflections on his current situation.

On Chinese search engine Baidu, the search prediction reflects web users’ confusion over his whereabouts; upon searching for ‘Ma Yun’ in the first week of January, the first five automatic predictions are the following:

– Jack Ma fled abroad
– Did Jack Ma really flee abroad?
– Jack Ma sentenced to prison
– Jack Ma disappeared
– Jack Ma Shanghai Bund speech

On Douyin (the Chinese TikTok), the first sentence to come up when searching for Ma Yun, is “What’s up with Ma Yun?”

On Weibo, where Jack Ma has over 26.4 million followers on his official account, there have not been any new posts since October 17. But Ma’s last post, which talks about an educational event, is still attracting new comments every few minutes.

“Daddy Ma, come on, ok? We’re rooting for you,” one commenter writes.

“We haven’t seen you in a long time, Brother Ma,” some write: “When will you come back into the public arena?”, with others saying: “Teacher Ma, what happened?”

But besides the messages from those who seem concerned about the well-being of the tech tycoon, there are many angry ones.

Some blame Ma for praising the ‘996’ work system (working from 9am-9pm, 6 days a week). In 2019, Ma called the 12-hour working day a “blessing,” causing much controversy online. Because the death of a young employee at Pinduoduo was also linked to her long working hours, the ‘996’ work system is a hot topic this week, with many condemning how Chinese tech companies are exploiting their employees and revisiting Ma’s 2019 comments.

Others also turn to Jack Ma’s Weibo page to complain about the shutdown of Alibaba’s music streaming app Xiami. Although Xiami only holds a small percentage of China’s music streaming market – apps such as QQ Music and KuGou are more popular – there are still many people who have been using the app for years and hate to see it go: “Why can’t you give it another chance, why can’t you take care of our Xiami!?”

And then there are those commenters who, in light of the recent developments and anti-monopoly investigations, call Ma a “greedy capitalist” and a “bloodsucker.” “Maybe he’ll be punished,” one person writes: “Is that a ‘blessing’ too?” “I went from being a fan to a hater,” another commenter writes, with others calling him an opportunist.

 

Changing Sentiments on Social Media

 

Jack Ma used to be an idol for many young people in China, but now it seems they have started to oppose him. On the Chinese video sharing site Bilibili, mainly used by younger generations, comments appearing in some videos featuring Ma are filled with anger and scolding.

This shift in Ma’s popularity among young people was recently also explained by young Chinese vlogger Yu He in this video, who argues that young people do not adore Jack Ma in the same way older Chinese people do.

Ma’s vision of working really hard, praising the ‘996’ work culture, and “everybody can be successful if you really try hard” was an inspiration to previous generations, but many post-90s people in China today – who are struggling in a highly competitive job market – do not have a lot of faith in Ma’s work philosophy when their everyday lives are not about working to live, but about living to work. To them, Ma’s ideas about working around the clock to get further in life do not make sense, as some feel they are working themselves to death while others get rich.

There is also anger over consumer lending platform Huabei, a product of Alibaba’s Ant Group. Huabei previously encouraged users to spend more money in its ads, and its platform makes it very easy to spend money first and pay it back later – even for those who might not oversee the long-term consequences of excessive debt.

The question of why Jack Ma seems to have fallen out of favor with many Chinese people is also a topic of discussion on question-and-answer platform Zhihu.com.

One popular analysis by the e-commerce account Zhiser claims that Jack Ma used to be supported by the ordinary people because he made it possible for so many of them to make money through the Taobao marketplace platform, which started in 2003. Alibaba’s Alipay online payment platform made it possible for common people to conveniently transfer money without extra fees.

But over recent years, Zhiser argues, Alibaba’s business strategies have changed in such a way that its own profits are maximized and small sellers are negatively impacted.

With the arrival and growth of Alibaba’s Tmall, where only brand owners or authorized dealers can open an online store & where transaction commissions are much higher, the traffic of small sellers on the Taobao marketplace has been reduced. Alibaba’s activities are increasingly focused on benefiting the bigger companies – and itself -, while small entrepreneurs are increasingly struggling to be noticed and make money.

Without the means to open their own Tmall shop, without the capital to afford advertisement and paid promotions for their shops, the small sellers are watching helplessly how the big boys dominate the platform algorithms and take the money, Zhiser explains.

Alibaba is now also increasingly focusing on the fruit & vegetable market. There’s Alibaba’s Hema Fresh supermarket brand, for example, with big plans to open hundreds of stores nationwide in the upcoming years. The rise of Alibaba’s fresh food businesses directly impacts the livelihood of ten thousands of ordinary Chinese who have their own small vegetable shops or street stalls – exactly those people who are already in vulnerable social groups.

Although the rise of Alibaba was once a great opportunity for common people, the changing business strategies have now resulted in Jack Ma getting more enemies, including small entrepreneurs, small sellers and buyers, offline shops, offline vendors, etc.

For them, the ‘Alibaba dream’ of using the power of the Internet and technological advancement to enable small businesses and young people to share the benefits of free trade has lost credibility.

“These years, Jack Ma has played the role of the destroyer rather than the savior,” the author writes. His article received over 10,500 endorsements.

Zhiser’s article reflects a perspective that surfaces in many places. “We believed him, that he really was making things better for us,” another blogger writes.

Others think that Jack Ma was true about his intentions and dreams when he was a teacher and then started his business, but changed when he became surrounded by money-driven big investors, causing him to become alienated from his former ideas and philosophies, losing touch with China’s younger generation, the small shop owners he promised to serve and the ordinary people.

 

“He changed China, he changed the world”

 

Despite the recent criticism of Ma, many people still defend and support him. There are even those who criticize him but still express their admiration for him.

Regarding the criticism coming from post-90s generations, one Chinese web user commented:

You have no idea what it was like before Jack Ma came around. You’re too young to know. If you want to go back [in that time], I suggest you go live on the moon.”

Discussing the changing sentiments regarding Ma, Zhihu author Qing Rui writes:

Jack Ma is a great entrepreneur of this era. He changed China, he changed the world. A lot of nonsensical people scold him for damaging China’s real economy, while he’s actually worked hard to improve the efficiency of the business sector, which has not only greatly boosted the real economy, but also greatly improved the living standards of the Chinese people.”

It is a sentiment shared by many, who express that they think the recent shift in views on Ma is uncalled for, or reminding people of the positive effect Ma and his businesses have had on China’s development.

“Those who scold Jack Ma are brainless idiots,” some write.

“How is it possible for the public opinion on Daddy Ma shifting 180 degrees? It’s like throwing stones at someone who fell down,” one Weibo user from Shenyang writes.

Although perhaps less crowded than before, online ‘Ma Yun Fanclubs’ are still active. One Weibo fan writes: “Let’s all hope our favorite idol Ma Yun will smoothly sail through this crisis!”

As for the ‘disappearance’ of Jack Ma that has previously been reported – although Ma has not been out in public, it is highly unlikely that he is actually missing.

CNBC reported on January 5 that the Chinese billionaire is lying low, according to a person familiar with the matter.

When famous Chinese actress Fan Bingbing got caught up in a tax evasion scandal in 2018, her ‘disappearance’ also made headlines in international media. After months of silence and wild rumors, the actress returned to social media with a public apology. She was ordered to pay taxes and fines worth hundreds of millions of yuan.

Meanwhile, Jack Ma’s Weibo page is still receiving dozens of new messages. In between the “evil capitalist” scoldings, there are some who really hope Ma will come back to public life soon: “We’ll support you, teacher Ma, don’t give up!”

 

By Manya Koetse

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2021 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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Pinduoduo Employee’s Suicide Intensifies Online Debate on Company’s Working Culture

For the second time this month, Pinduoduo makes headlines for the death of an employee.

Manya Koetse

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The suicide of a Pinduoduo staff member is trending today on Chinese social media, where discussions on tough ‘996’ working schedules (working 9am-9pm, 6 days a week) have been ongoing since the sudden death of another employee.

The staff member named Tan (谭) reportedly jumped from the 27th floor of an apartment building in his hometown of Changsha in Hunan province, where he had arrived that same day. The incident occurred around 0:30 AM 12:30 pm on January 9.

Pinduoduo published a statement about the death of their employee, expressing their condolences. They also said they were awaiting the results of the ongoing investigation into the death of Tan.

Meanwhile, the company stated they would immediately open a special channel within their office system for psychological support and consultation.

Tan had been working at Pinduoduo since July of last year as a technology development engineer. He was unmarried.

Pinduoduo is China’s largest interactive online shopping platform. The company has been under fire on social media recently, with stories coming out on the company’s overwork culture that is putting an enormous strain on its employees.

The death of a 22-year-old female staff member, who suddenly collapsed after a long day of work on December 29, is still being investigated. Although no official cause of death has been given, her death has been linked to Pinduoduo’s extreme working culture.

“A Second Foxconn?”

Since Pinduoduo is making headlines again for another employee death, people on Weibo are now mentioning the electronics manufacturer Foxconn (富士康). Foxconn attracted major media attention after a series of employee suicides in 2010 and 2012 linked to low pay and poor working conditions.

On Weibo, many commenters wonder if Pinduoduo is becoming a second Foxconn.

Meanwhile, more staff members are speaking out about Pinduoduo’s working culture. The stories of former employees of the company’s community group buying unit Duoduo Maicai (多多买菜) were shared by Sohu News. They talk about 12-hour workdays and “supersize” work weeks (超级大小周) where staff would work 13 days in a row, then get one day off, or not getting days off at all. They also speak of requirements to minimally work 300 hours per month.

Despite the waves of criticism on Pinduoduo, there are also online voices who praise the company for bringing out a clear and honest statement right after the death of their employee and opening up a support channel for staff members.

Update January 11:

In an updated statement released to the media, Pinduoduo states that their employee had applied for leave from his supervisor on January 8 at 8:37 a.m., without giving a reason. He reportedly passed the probationary period and was a high achiever who received an average 80 out of 100 assessments at the company.

The company also states that when their support team flew to Changsha to provide assistance to the family, they learned that the employee already booked his return flight for January 9 from Changsha to Shanghai.

 
By Manya Koetse, with contributions by Miranda Barnes

 

For information and support on mental health and suicide, international helplines can be found at www.befrienders.org.

 

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2021 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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