Make Friends stool scandal exposes quality control failures after rapid expansion
A consumer disassembly video revealed a "Wanxiang Wheel Stool" sold for 89.9 yuan on Make Friends' livestream contained moldy wood, waste sponge, and cardboard. The supplier, Xiamen Yunxi Furniture, was registered in June 2026 with only 100,000 yuan capital. Make Friends removed the product but has not announced compensation, contrasting with founder Luo Yonghao's 2020 "refund plus triple compensation" response. The incident follows the company's H1 2026 results showing net profit up 56.3% to 86.5 million yuan but GMV down 6.5%. Experts attribute the failure to the shift from Luo's personal endorsement to a matrix of over 70 livestream rooms, where rapid scaling and price pressure weakened quality checks.
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- Summary covers the current reports
Cross-source coverage
Common ground
- The moldy stool incident is a real quality failure, not just a media exaggeration.
- Make Friends will likely fix the supplier issue and continue growing.
- The 50.8% profit surge on 24.5% revenue growth suggests cost-cutting that may have contributed to the problem.
- Luo Yonghao's silence is a notable shift from his past personal accountability.
Points of contention
- Eastern Agent sees this as a routine operational hiccup, while Regional Agent calls it a systemic failure of the business model.
- Eastern Agent defends the 89.9 yuan price as affordable access, but Regional and Neutral Agents argue it's predatory pricing that exploits vulnerable consumers.
- Regional Agent frames the issue as a colonial-style exploitation, while Eastern Agent rejects that as historically inaccurate.
- Eastern Agent compares the incident to Western corporate scandals like Boeing, but Regional Agent says that's a false equivalence given the lack of accountability here.
Blind spots
- All sides overlook how the business model depends on consumers not knowing what quality looks like, not just on cutting corners.
- The debate ignores the broader regulatory improvements in China's livestream e-commerce that could prevent future issues.
- No one fully addresses the human cost for factory workers and delivery drivers caught in the margin-squeezing process.
WorldAttention’s read
This debate shows a clear split: Eastern Agent sees the moldy stool as a fixable glitch in a growing digital economy, while Regional Agent views it as proof of a broken system that exploits the poor. Neutral Agent cuts through by pointing out the math—the profit surge and low price point mean the business model itself relies on cutting corners. All sides agree Make Friends will survive, but the real issue is trust: Luo Yonghao's silence shows how accountability gets lost when a company scales up. The blind spot is that this isn't just about one bad product—it's about a system that profits from keeping consumers in the dark about what 'good' really costs.
Reporting timeline
Moldy stools sold on 'Make Friends' livestream expose quality control failures amid profit surge
A quality scandal has hit 'Make Friends' (Jiaoge Pengyou), a major Chinese livestream e-commerce firm founded by celebrity entrepreneur Luo Yonghao. A 'Wanxiang Wheel Stool' sold on one of its 70+ matrix livestream rooms was found to contain moldy wood and waste sponge, emitting a pungent odor. The incident occurred shortly after the company reported a 56.3% net profit surge to 86.5 million yuan in H1 2026, though GMV fell 6.5% year-on-year. Industry analysts attribute the failure to the company's shift from Luo's personal brand endorsement to a high-volume matrix model, where rapid expansion and cost-cutting pressures compromise quality checks. The supplier, Xiamen Yunxi Furniture, was established in June 2026 with only 100,000 yuan registered capital. Experts warn that the combination of low-priced products, new suppliers, and hard-to-inspect home goods creates high risk. The company's compliance department, formed in February 2026, failed to prevent the sale. Luo, who serves as 'Chief Brand Supervisor,' faces criticism for not addressing the issue publicly, damaging his reputation as a consumer watchdog.
Read sourceMoldy Children's Stool Sparks Quality Crisis at Luo Yonghao's 'Make Friends' Livestream Firm
A quality scandal has hit 'Make Friends' (Jiaogepengyou), the livestream e-commerce firm founded by celebrity entrepreneur Luo Yonghao. A children's 'Wanxiang Wheel' stool sold through the company's 'Smart Home Bestseller List' livestream was found by consumers to contain moldy wood and waste sponge inside, emitting a strong odor. The seller, a newly registered company with minimal capital, allegedly pressured the consumer to delete their exposé video. The product has been removed. The incident comes as Make Friends reported strong 2026 first-half results: revenue of 770.5 million yuan (up 24.5%) and net profit of 86.5 million yuan (up 56.3%), but GMV fell 6.5% year-on-year to 6.53 billion yuan. Experts cited in the report attribute the failure to the company's shift from Luo's personal brand endorsement to a matrix of over 70 livestream accounts, where rapid scaling and price pressure have weakened quality control. Professor Cui Lili of Shanghai University of Finance and Economics noted the combination of low-price hot items, new-supplier entities, and hidden-quality home goods creates high risk. Industry commentator Zhang Shule argued Luo's public role as a 'chief brand supervisor' makes his silence on this issue damaging to the brand. The report questions whether the company's newly formed compliance department is effective.
A 89.9-Yuan Scooter Stool Triggers Trust Crisis for Chinese Live-Streaming Firm Make Friends
A viral scooter stool sold for 89.9 yuan ($12.40) in the 'Make Friends' (Jiaoge Pengyou) live-streaming room has sparked a trust crisis after a consumer's disassembly video revealed the product contained moldy wood, waste sponge, and cardboard as filling. The stool was sold through the 'Make Friends Smart Home Bestseller List' channel, sourced from Xiamen Yunxi Furniture Co., Ltd., a company registered in June 2026 with a registered capital of only 100,000 yuan. Following public outcry, the product was removed from sale, but the company has not yet announced compensation or corrective measures, contrasting sharply with its 2020 response to a wool sweater scandal where founder Luo Yonghao personally implemented a 'refund plus triple compensation' policy. The incident highlights systemic challenges for Make Friends Holdings (01450.HK) after its 'de-Luo Yonghao' transition. The company reported H1 2026 revenue of 771 million yuan and net profit of 87 million yuan, up 24.51% and 50.80% year-on-year respectively, but faces rising traffic acquisition costs and intensifying competition from rivals like East Buy and Yuhuitongxing. The company operates over 70 live-streaming rooms and is betting on AI-driven operations to address quality control and internal oversight gaps exposed by this incident.
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A viral stool triggers a trust crisis for MCN firm Make Friends after discovery of moldy fillings
An article from 斑马消费 (Zebra Consumption) published on 创业邦 (Cyzone) reports that a viral 'rolling stool' sold for 89.9 yuan in the 'Make Friends' (交个朋友) livestreaming room has sparked a trust crisis. A consumer's disassembly video revealed the stool contained moldy wood, waste sponge, and cardboard as filling materials. The product, sourced from Xiamen Yunxi Furniture Co., has been removed, but Make Friends has not yet announced compensation or corrective measures, contrasting sharply with its swift 'refund plus triple compensation' response to a 2020 sweater scandal. The article notes that Make Friends Holdings (01450.HK) reported improved 2026 H1 results (revenue up 24.51% to 7.71 billion yuan, net profit up 50.80% to 0.87 billion yuan), but faces rising traffic costs and slowing profit growth after founder Luo Yonghao's departure. The incident is framed as a systemic test of the company's quality control amid rapid expansion of its 70+ livestreaming matrix, as it pivots to AI-driven operations to overcome the loss of its core IP.
A 89.9 Yuan Scooter Stool Triggers Trust Crisis for Live-Streaming Firm Make Friends
An article from Blue Whale Finance, published on Tencent Stock, analyzes a trust crisis facing the Chinese live-streaming e-commerce firm Make Friends (Jiaogepengyou). A popular 'scooter stool' sold for 89.9 yuan in its livestream was found by a consumer to contain moldy wood, waste sponge, and cardboard as filling. The product, sourced from a small supplier, has been removed, but Make Friends has not announced compensation or corrective measures, contrasting sharply with its 2020 response to a wool sweater scandal where founder Luo Yonghao personally implemented a 'refund plus triple compensation' policy. The article suggests this incident reveals systemic quality control and internal control vulnerabilities following the company's 'de-Luo Yonghao' strategy and expansion into a matrix of over 70 livestream rooms. It notes that Make Friends Holdings (01450.HK) reported improved revenue and profit for the first half of 2026, but faces rising traffic acquisition costs and slowing profit growth amid intense competition from rivals like East Buy and Yuhui Tongxing. The company is betting on AI to optimize its livestream operations, but the stool incident exposes risks from rapid matrix expansion.
Read sourceA viral stool triggers a trust crisis for Chinese livestreamer 'Make Friends'
An article from NetEase Finance reports that a viral 'rolling stool' sold for 89.9 yuan ($12.40) in the livestreaming rooms of 'Make Friends' (Jiao Ge Pengyou) has sparked a consumer trust crisis. A consumer's disassembly video revealed the stool contained moldy wood, waste sponge, and cardboard as filling materials. The product was sold through the 'Make Friends Smart Home Bestseller' livestream room, supplied by Xiamen Yunxi Furniture Co., Ltd., a company registered in June 2026 with registered capital of only 100,000 yuan. After the video went viral, the product was removed from sale. The article contrasts this slow response with founder Luo Yonghao's swift 'refund plus triple compensation' policy during a 2020 cashmere sweater scandal. The author argues this incident exposes systemic quality control and internal control failures following the company's 'de-Luo Yonghao' strategy. The article also analyzes the financial pressures on Make Friends Holdings (01450.HK), noting slowing profit growth, rising traffic acquisition costs, and intense competition from rivals like East Buy and Yuhui Tongxing. The company's expansion into over 70 livestreaming rooms has increased operational costs, and its reliance on AI for future growth has yet to yield results.
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