Core Viewpoint - The controversy surrounding Pang Donglai's jade products, initiated by influencer Chai Dui Dui, has led to increased sales and heightened public interest in the brand, despite initial negative publicity [3][5][10]. Group 1: Incident Overview - Influencer Chai Dui Dui accused Pang Donglai of selling low-quality jade at inflated prices, prompting the company to disclose pricing and return policies and to file a defamation lawsuit [3][6]. - Following the accusations, Pang Donglai's founder, Yu Donglai, expressed his frustration on social media and indicated a potential withdrawal from the business if ethical standards are not upheld [4][6]. - The controversy escalated, leading to regulatory scrutiny, with local authorities confirming the compliance of Pang Donglai's jade sales [7][9]. Group 2: Sales Performance - Despite the negative publicity, Pang Donglai reported a significant increase in jade sales, with Q1 2025 revenue from jade reaching 21.9 million yuan, contributing to a total sales figure of 6.27 billion yuan [6][10]. - The company’s proactive measures, including publicizing pricing and quality standards, have enhanced its reputation for quality, resulting in increased foot traffic and sales at its stores [12][26]. Group 3: Industry Context - The jade market is characterized by a lack of transparency and consumer trust, with many consumers falling victim to scams due to the high barriers to quality assessment [13][26]. - Recent regulatory changes have aimed to improve market conditions, but challenges remain in enforcing standards and managing online sales effectively [28]. - The rise of live-streaming e-commerce has shifted jade sales online, increasing the risk of fraudulent practices and consumer dissatisfaction due to high return rates [22][24].