At the headquarters of Three Squirrels Inc., visitors encounter a series of buildings and rooms named after squirrels, such as "Squirrel Nest," "Squirrel Brainwashing Academy," and "Squirrel Hustle Gym." Notably, employees are required to adopt "mouse names" upon joining the company and must address customers as "master," while the CEO and his wife refer to themselves as "Squirrel Dad" and "Squirrel Mom." These practices have sparked accusations of demeaning employees.
Zhang Liaoyuan, founder and CEO of Three Squirrels, recently defended the company culture on social media, stating that if employees willingly embrace these practices, they constitute good corporate culture. However, customer service representatives from the company’s Taobao flagship store clarified that refusing a "mouse name" could disqualify applicants from employment.
This "brainwashing culture" has not always yielded positive results. In the first three quarters of this year, Three Squirrels reported dismal financial performance, with net profits plunging 52.91% year-on-year. The company’s stock price has also been on a downward trajectory, prompting investors to demand solutions on shareholder platforms.
**Mandatory "Mouse Names" and Addressing Customers as "Master"** Recent online posts revealed that new hires at Three Squirrels must adopt names like "Mouse [Surname]." Public opinion on this practice is divided—some find it endearing, while others argue that mice carry negative connotations in Chinese culture and view forced name changes as manipulative.
Leaked internal meeting footage shows employee badges prefixed with "Mouse," with the CEO and his wife titled "Squirrel Dad" and "Squirrel Mom." An internal document emphasizes the core value of "treating customers as masters," even mandating that e-commerce客服 address shoppers as "master." One netizen criticized the practice as "weird and demeaning." The Taobao客服 responded that the term is part of role-playing as "the master’s cute pet" and assured it becomes habitual over time.
**Unconventional Workplace Naming** The company’s官网 showcases creatively named facilities: the office building is dubbed "Squirrel Nest," the training room "Squirrel Brainwashing Academy," and the gym "Squirrel Hustle Gym." Zhang Liaoyuan reportedly renamed the training center himself, boasting, "While others have elite business schools, we dominate the ‘brainwashing’ niche—the world’s largest blue ocean."
Addressing criticism, Zhang defended the culture on social media, stating that any method fostering employee buy-in, consumer-centric values, and internal synergy qualifies as positive corporate culture. However, in past interviews, he openly endorsed the "brainwashing" approach, labeling himself "Chief Brainwashing Officer" and asserting, "At Three Squirrels, you must adopt Dad’s beliefs without question." He described the academy’s goal as creating "abnormally driven workaholics" who endure low pay and ridicule en route to success.
**Declining Profits Amid Cultural Backlash** Despite Zhang’s pride in the culture, its efficacy appears to be waning. Q3 financials revealed revenue of ¥7.759 billion (up 8.22% YoY) but net profits of ¥161 million (down 52.91% YoY). Soaring sales and management expenses—up 24.06% and 50.7%, respectively—outpaced modest revenue growth, squeezing profitability.
The company remains heavily reliant on e-commerce, with online platforms contributing 78.42% of H1 revenue. Expanding offline channels under financial strain poses challenges. In March, Three Squirrels filed for a Hong Kong IPO, but discrepancies between its A股 and港股 disclosures raised eyebrows. The company attributed the variance to differing accounting standards.
**Stock Price Slump and Investor Frustration** Three Squirrels’ shares have tumbled over 47% from their December 2024 peak of ¥42.88 to ¥22.59. On investor platforms, shareholders vented: "What concrete steps are being taken to protect minority interests?" and "Explain the operational roadblocks and whether offline models are viable."
The controversy highlights tensions between unconventional corporate culture and sustainable business performance.
Comments