Recently there have been fierce discussions on Chinese social media about the price of corn after e-commerce platform Oriental Selection (东方甄选) started selling ears of corn for 6 yuan ($0.80) per piece.
The controversy caught the public’s attention when the famous Kuaishou livestreamer Simba (辛巴, real name Xin Youzhi), who has labeled himself as a ‘farmer’s son,’ criticized Oriental Selection for their corn prices.
Founded in 2021, Oriental Selection is an agricultural products e-commerce platform under New Oriental Online. In its company mission statement, Oriental Selection says its intention is to “help farmers” by providing the channels to sell their high-quality agricultural goods to online consumers.
Simba suggested that Oriental Selection was being deceitful by promising to help farmers while selling their corn for a relatively high price. According to Simba, they were just scamming ordinary people by selling an ear of corn that is worth 0.70 yuan ($0.10) for 6 yuan ($0.80), and also not really helping the farmers while taking 40% of their profits.
‘Sales king’ Xin Youzhi, aka Simba, was the one who started the current corn controversy.
During one of the following livestreams, Oriental Selection’s host Dong Yuhui (董宇辉) – who also happens to be a farmer’s son – responded to the remarks and said there was a valid reason for their corn to be priced “on the high side.” Simba was talking about corn in general, including the kind being fed to animals, while this is high-quality corn that is already worth 2 yuan ($0.30) the moment it is harvested.
Despite the explanation, the issue only triggered more discussions on the right price for corn and about the fuzzy structure of the agricultural e-commerce livestreaming business.
Is it really too expensive to sell corn for 6 yuan via livestreaming?
The corn supplier, the Chinese ‘Northeast Peasant Madame’ brand (东北农嫂), is actually selling their own product for 3.6 yuan ($0.50) – is that an honest price? What amount of that price actually goes to the farmers themselves?
‘Northeast Peasant Madame’ brand (东北农嫂).
One person responding to this issue via her Tiktok channel is the young farmer Liu Meina (刘美娜), who explained that Simba’s suggested “0.70 yuan per corn” was simply unrealistic, saying since it does not take the entire production process into account, including maintenance, packaging, transportation, and delivery.
Another factor mentioned by netizens is the entertainment value added to e-commerce by livestreaming channels. Earlier this year, Oriental Selection’s host Dong Yuhui and his colleagues became an online hit for adding an educational component to their livestreaming sessions.
These hosts were actually previously teachers at New Oriental. Facing a crackdown on China’s after-school tutoring, the company ventured into different business industries and let these former teachers go online to sell anything from peaches to shrimp via livestreaming, teaching some English while doing so (read more here). So this additional value of livestream hosts entertaining and educating their viewers should also be taken into account when debating the price of corn. Some call it “Dong Yuhui Premium” (“董宇辉溢价”).
Dong Yuhui (董宇辉) is one of the livestreamers that have turned New Oriental’s e-commerce into a viral hit.
In light of all the online discussions and controversy, netizens discovered that Oriental Selection is currently no longer selling corn (#东方甄选回应下架玉米#), which also became a trending topic on Weibo on September 29.
But the corn controversy does not end here. On September 28, Chinese netizens discovered that corn by the ‘Northeast Peasant Madame’ brand (东北农嫂) was being sold for no less than 8.5 yuan ($1.2) at the Pangdonglai supermarket chain (胖东来), going well beyond the price of Oriental Selection.
Trying to avoid a marketing crisis, the Pangdonglai chain quickly recalled its corn, stating there had been an issue with the supply price that led to its final store price becoming too high. That topic received over 160 million views on Weibo on Friday (#胖东来召回8.5元玉米#).
Behind all these online discussions are consumer frustrations about an untransparent market where the field of agricultural products has become more crowded and with more people taking a share, including retailers, e-commerce platforms, and livestreaming apps. Moreover, they often say they are “helping farmers” while they are actually just making money themselves.
One Weibo user commented: “Currently, ‘helping farmers’ is completely different from the original intention of ‘helping farmers.’ Right now, it’s not about helping farmers anymore, but about helping the companies who have made agricultural products their business.”
“I bought a corn at a street shop today for 4 yuan ($0.55),” one Weibo blogger wrote: “It was big, sweet, and juicy, the quality was good and it was tasty – and people are still making money off of it. So yes, 6 yuan for a corn is certainly too expensive.”
By Manya Koetse
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