A top Chinese social media agency suspended two years ago for selling counterfeit Hong Kong brand mooncakes has resurfaced, pivoting to selling live-streaming courses. Three Sheep Network, based in Anhui province, is drawing attention again under a new business model. The firm's top influencer, Zhang Qingyan—known as Crazy Younger Brother Yang—has 95 million followers, a significant drop from over 100 million before the suspension.
The shift comes amid a wider government crackdown on live-streaming e-commerce in China, which targeted misleading sales practices and tax evasion. Regulators have tightened oversight of top influencers, forcing agencies to diversify revenue streams. Three Sheep Network's move into educational courses reflects an industry-wide scramble to adapt to stricter rules that have upended the sector's traditional profit model.
The network, which also represents Zhang Qingyan's twin brother Zhang Kaiyang, is marketing its courses as a path to mastering live-streaming sales—the very activity that led to its downfall. Pricing details for the courses have not been publicly disclosed, but industry watchers suggest they target aspiring influencers. The company has not commented on whether revenues from courses offset losses from its suspended e-commerce operations.
Analysts view this as a test case for how banned influencers can legally re-enter the market. Yet skepticism is rife. Critics question whether an agency punished for fraud can credibly teach others, highlighting the regulatory gray area around influencer-led education. The course's legitimacy and value remain unverified.
Counter-argument: Some market observers argue that the pivot to training represents a genuine attempt at compliance and that the agency's expertise, despite past missteps, could offer valuable insights to newcomers in the tightly regulated industry.