East Buy’s Identity Crisis: Mass Talent Exodus Exposes the Perils of Corporate Transformation

East Buy is facing a major internal crisis as four core livestreaming anchors resigned simultaneously, citing an incompatible management style under CEO Sun Jin. The turmoil reflects the company's difficult transition from a personality-led influencer platform to a standardized, product-centric retail giant.

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Key Takeaways

  • 1Four core anchors, known as the 'F4,' resigned within two days, explicitly blaming new management for a toxic shift in corporate culture.
  • 2CEO Sun Jin is spearheading a 'de-anchoring' strategy to reduce the company's dependency on individual superstar influencers.
  • 3Founder Yu Minhong admitted to management failures, stating that the company over-prioritized rigid systems over employee well-being.
  • 4East Buy is pivoting toward an 'online Sam’s Club' model, focusing on private-label products and offline retail integration through New Oriental schools.
  • 5Despite growth in product revenue, the company is seeing a decline in paid app members, suggesting the strategic shift is meeting market resistance.

Editor's
Desk

Strategic Analysis

East Buy is currently navigating the 'charismatic founder's dilemma' on a corporate scale. By attempting to institutionalize success that was originally built on the unique intellectual appeal of former teachers, management is essentially trying to turn a boutique, personality-driven service into a commodity-driven retail engine. The push for efficiency under Sun Jin is a logical move for a publicly traded company seeking to mitigate the 'key man risk' associated with anchors like Dong Yuhui. However, this transition risks stripping the brand of its 'soul'—the very quality that allowed East Buy to charge a premium and command fierce loyalty. If East Buy becomes just another efficient e-commerce platform, it loses its competitive moat against incumbents like JD.com or Pinduoduo who already dominate the efficiency game.

China Daily Brief Editorial
Strategic Insight
China Daily Brief

The sudden departure of the 'F4'—a group of four core anchors including Ming Ming and Tian Quan—marks a watershed moment for East Buy, the livestreaming arm of education giant New Oriental. Within a 48-hour window, the company lost the backbone of its secondary talent pool, signaling a deep-seated cultural rift following the earlier, high-profile departure of its biggest star, Dong Yuhui. This collective resignation points to a growing friction between the company’s pedagogical roots and its new, hard-nosed corporate direction.

At the center of the controversy is CEO Sun Jin, a 20-year veteran of the New Oriental system who took the helm in late 2025. While founder Yu Minhong initially lauded Sun as a 'problem-solving expert' capable of doubling operational efficiency, the departing anchors described an environment that had become cold, overly regulated, and hostile to individual creativity. The anchors explicitly targeted the new leadership, citing a cultural shift they found impossible to reconcile with their professional values.

This exodus is not merely a human resources failure but the byproduct of a deliberate, if painful, strategic pivot. East Buy is attempting to 'de-anchor' its business model, moving away from a reliance on celebrity influencers toward a standardized, product-focused retail model often described as an 'online Sam’s Club.' The goal is to build a stable enterprise where the brand outshines the individual, yet the execution has clearly alienated the talent that built the platform’s initial rapport with audiences.

Founder Yu Minhong has publicly admitted to management 'deviations,' acknowledging that the recent focus on rigid institutional control came at the expense of 'humanistic care.' This confession highlights the fundamental challenge of transitioning a company built on the charisma of former teachers into a streamlined e-commerce machine. As the company expands its private-label goods and integrates with offline schools, it faces a crisis of morale that could undermine its brand loyalty.

While East Buy’s self-operated product revenue continues to grow, its paid membership numbers have begun to show signs of stagnation. The strategy of using New Oriental’s physical campuses as distribution hubs and supermarket locations is ambitious, but it requires a motivated workforce to succeed. The 'F4' departure serves as a stark warning that in the attention economy, efficiency gains cannot always compensate for the loss of authentic, personality-driven engagement.

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