First Year of University 2021.9 -- 2022.7

Literature Review on the Research of News Value in the New Media Era

Abstract: News value is a comprehensive element of facts that meets the needs of society and the public for news. The criteria used by news media workers to judge news value and news value orientation will directly affect the quality of news presentation in our entire society. Against the backdrop of the new media era, the definition of news value has been once again emphasized and studied by a large number of scholars. This paper uses the method of literature review to briefly summarize and organize the research literature on news value in the context of new media since 2017.
 
Keywords: News Value; Real-time Nature; People-oriented; Pan-entertainmentization
 
0 Introduction

The transformation of communication media has a huge impact on the content of communication. With the continuous improvement of China’s Internet construction, the news content that people receive every day is more rapid and diverse. At the same time, there are also more problems such as the difficulty in guaranteeing authenticity and the serious pan-entertainmentization of the content. When retrieving the literature, this paper found that the number of literatures published in 2017 reached its peak, and it has been in a decreasing trend until 2021. In today’s increasingly networked and informatized era, has the definition and element judgment of news value been updated according to the times? Has a suitable standard for judging the quality of news been found?

 

1 Research on the General Essential Element of News Value, “Freshness”

“Freshness” includes “recency” in terms of time and “novelty” in terms of content. In the literature from 2017 to the present, most articles have given a new definition to the “timeliness” of news updates. The audience has a higher demand for the real-time updates of news. While the audience’s demand for “timeliness” has increased, researchers have discovered a series of new risks. For example, in the article “The Change of News Value Standards in the ‘Post-truth Era’ – Taking the ‘Luo Er Incident’ as an Example”, when mentioning news value, it is stated that the shift from timeliness to real-time nature has led the audience to put forward higher requirements for the release time of news information: they hope to see not just news, but also the latest information, which forces the media to use new media channels such as WeChat and WeChat official accounts to release news in real time; on the other hand, today’s news production is no longer exclusive to professional media institutions [1]; In the article “The Changes of News Value Elements in the Post-truth Era”, it is mentioned that the fermentation and the speed of change of public opinion have also increased. If the timeliness in the elements of news value is to keep up with the change of the audience’s emotions, it needs to be further improved [2]; In the article “The Reconstruction of the Meaning of News Value in the Algorithm Era”, it is mentioned that the audience can receive the corresponding news content at the same time when a news event occurs [3]; In the article “Analysis and Reflection on the Changes of News Value under the 5G Technology Scenario”, it is mentioned that under the 5G technology scenario, with the continuous application of VR and AR technologies in news reports, the timeliness of news value will continuously develop towards instantaneity [4].

 

2 The Humanistic Care in News Value in the New Media Era

In the Western media system, news pays more attention to maximizing profits, and public opinion is in the hands of a few people. However, under the socialist news system, the media has paid more attention to the audience itself, and many news reports are edited from the perspective of the audience. For example, in the article “The Change of News Value Standards in the ‘Post-truth Era’ – Taking the ‘Luo Er Incident’ as an Example”, it is mentioned that in general, the news value in the “post-truth era” is closer to the “audience-centered system”, and it emphasizes more the value of “people”. Combining big data to make some innovations in news gathering and editing can make news works more “heartfelt” [5]; In the article “On the Changes of News Value in the We-media Era”, it is mentioned that “putting people first” is the fundamental purpose of the Communist Party of China and the core of the Scientific Outlook on Development, and it also applies to today’s traditional media. “Putting people first” can help traditional media find a breakthrough in the era of information explosion [6]; In the article “Rethinking News Value in the New Media Era”, it is mentioned that in the new media era, there are a large number of users paying attention on various media platforms, and a large amount of news information content is generated every moment. When a person, an event or a news event appears, it is easier to touch the inner world of the public, thus generating resonance [7].

 

3 Research on the Pan-entertainmentization of the Internet
In the new media era, the function of entertainment has been overly magnified and highlighted, and the phenomenon of pan-entertainmentization is serious. Although entertainment news has strong salience and interest, some marketing accounts hype some news from an overly one-sided perspective to attract attention, which not only occupies social resources but also misleads the audience. For example, in the article “The Choice of News Value under Pan-entertainmentization”, it is mentioned that providing entertainment is an important function of the media, but in the consumption era, this function has been strengthened. When material goods cannot meet the needs of consumers, culture represented by media information has become a consumer product. The emergence of the pan-entertainmentization phenomenon of the mass media is a manifestation of the mass media’s adaptation to the consumption era [8]; In the article “Research on the News Value Orientation under the Characteristics of New Media Communication”, it is mentioned that regarding excessive entertainmentization, some people believe that this is confusing the boundary between ratings and viewing quality. When there is excessive pleasure, it is often accompanied by the decline of the ability of spiritual reflection [9]; In the article “The Phenomenon of Entertainmentization of Online News: The Controversy between News Value and Entertainment Value”, it is mentioned that how to balance news value and entertainment value is a question that every media should think about. To grasp the relationship between the two at the source requires the joint efforts of new media workers. Professional news media must adhere to the seriousness tendency of news in the positioning of news value and adhere to the correct public opinion orientation in terms of political stance [10].
 
4 Problems Existing in the Research of News Value in the New Media Era
As a new thing in recent years, new media has brought both great benefits and great risks to us. In a society with information explosion, it is necessary to clearly define the criteria for judging news value. Most of the research in recent years has been on the redefinition of news value, but the solutions for judgment need to be further studied in depth. With the accumulation of the time since the emergence of new media, there will be more and more classic cases. Research can start from a small entry point and explore the process of realizing news value through representative cases.
 
References:
[1] “The Change of News Value Standards in the ‘Post-truth Era’ – Taking the ‘Luo Er Incident’ as an Example”, Youth Journalist. 2017
[2] “The Changes of News Value Elements in the Post-truth Era”, News World. 2018
[3] “The Reconstruction of the Meaning of News Value in the Algorithm Era”, Audio & Video. 2018
[4] “Analysis and Reflection on the Changes of News Value under the 5G Technology Scenario”, Reporter’s Observation. 2021
[5] “The Change of News Value Standards in the ‘Post-truth Era’ – Taking the ‘Luo Er Incident’ as an Example”, Youth Journalist. 2017
[6] “On the Changes of News Value in the We-media Era”, Journal of News Research. 2017
[7] “Rethinking News Value in the New Media Era”, West China Broadcasting TV. 2018
[8] “The Choice of News Value under Pan-entertainmentization”, Southeast Communication. 2017
[9] “Research on the News Value Orientation under the Characteristics of New Media Communication”, Media Forum. 2021
[10] “The Phenomenon of Entertainmentization of Online News: The Controversy between News Value and Entertainment Value”, Journal of News Research. 2019

The final form of this course includes two parts: examination and thesis. The following are the essay questions and my answers.

1. Read the following documentary materials and, in combination with the course content and historical background, analyze the reasons for the emergence and the communication characteristics of the small newspapers in the Song Dynasty.

“Small newspapers originated from the Jinzouyuan (the office responsible for transmitting official documents and information), and were mainly produced by the official messengers there. In recent years, when there were matters that were suspicious and the court and the public were unaware of them, the official messengers would surely compete to write them on small pieces of paper and quickly report them far and near. These were called small newspapers.” ——”Hailing Collection: On Banning Small Newspapers”

“The reports from the Du Jinzouyuan (the central Jinzouyuan) are distributed throughout the country. There are so-called internal investigations, provincial investigations, and yamen investigations, etc., all of which are privately run small newspapers. There are always prohibitions against leaks, so they are secretly called ‘news’.” ——”Essentials of the Court and the Public”

“The hobby of collecting anecdotes and strange stories was already very popular in the Tang Dynasty, and it became even more obvious in the Song Dynasty. Printing technology made the circulation of such works very extensive. They were composed of a series of short stories, all of which were extremely absurd and strange, but each had its own eyewitness. The names of people, places, dates, etc. were all accurately provided.” ——Jacques Gernet: “Daily Life in China on the Eve of the Mongol Invasion”

Answer:

Reasons: It was convenient for the central government to convey information and instructions to local areas; it was beneficial for the central government to collect local situations, strengthen its control over local areas, and consolidate centralization of power; there was a popular interest in collecting anecdotes and strange stories among the people; the emergence of printing technology provided a technical basis for the increase in the circulation quantity of small newspapers.

Communication characteristics: It had a wide range of dissemination, reaching both far and near areas; it was disseminated rapidly, with stronger timeliness and more characteristics of a news medium; the dissemination content and channels were hidden; the dissemination content was for the entertainment of the common people, highly readable, and the content was short and detailed.

2. Read the following two historical documents and analyze the early Chinese newspaper publishers’ cognition of the functions of newspapers and their influences.

“Now, the benefits of newspaper offices can be roughly summarized into several aspects: Firstly, scholars and officials can understand the situations at home and abroad, expand their knowledge, and improve their abilities day by day. This is called ‘expanding talents’. Secondly, the ministers and high-ranking officials will gradually have a broader understanding, become more familiar with border affairs and the situations of other countries, and will not make major mistakes when handling affairs and signing treaties. This is called ‘protecting the territory’. Thirdly, scholars and officials are busy with their daily duties and then have social interactions. They have no time to read books at all. With newspapers, they can read one issue every day, covering various fields of study, and their knowledge will grow day by day. This is called ‘increasing knowledge’. Fourthly, officials will be afraid that their wrongdoings will be reported to the higher authorities, so they dare not act corruptly. This is called ‘eliminating malpractice’. Fifthly, the sufferings of the common people can be known in detail. This is called ‘conveying the hidden feelings of the people’. It can be said that one action can achieve several good results.” ——”A Brief Account of Newspaper Offices” (No. 18 of “The Review of the Times” (published by Kang Youwei in 1895))

“To remove the barriers and seek communication, there are more than one way, and the newspaper office is the starting point. Without eyes and ears, without a mouthpiece, it is called being disabled. Now, with all countries standing side by side, it is like living next door to each other, and within China, it is like living in the same room. If we don’t know about the affairs of our neighbors, and even don’t know what is happening within the same ‘room’, then we have eyes and ears but are actually without them. When the government makes some arrangements but cannot explain them to the people, and when the people have some sufferings but cannot report them to the monarch, then we have a mouthpiece but are actually without it. The one that can play the role of eyes, ears, and a mouthpiece and cure the ‘disability’ of the country is the newspaper office.” ——”On the Benefits of Newspaper Offices to National Affairs” (The Inaugural Issue of “Current Affairs Newspaper” in 1896)

Answer:

Cognition of the functions of newspapers: Cultivating talents; increasing the understanding of neighboring countries, formulating correct countermeasures, and serving as the “eyes and ears” of the country; improving the general knowledge level of the people; having the function of transmitting information both upwards and downwards, supervising officials, allowing the people’s sufferings to be reflected, and enabling the people to better understand the monarch’s policies, and serving as the “mouthpiece” of the country.

Influence: The early newspaper publishers’ cognition of the functions of newspapers led to the rise of the establishment of modern newspapers in China and set off two upsurges of private newspaper establishment by the people. At that time, it was beneficial for China to introduce advanced Western ideas, enlighten the people, and objectively promoted the process of China’s modernization.

3. According to the following materials, in combination with the relevant course content, analyze the status and influence of foreign newspapers in the development of modern Chinese newspapers, and try to analyze the cultural attitudes of the early Chinese newspaper publishers towards foreign newspapers and their significance for the present.

“Recently, Westerners have established daily newspaper offices in the trading ports in China. The funds all come from Westerners. The chief editors are mostly those who have lived in China for a long time and are familiar with the internal situations of China. Moreover, their remarks often suppress China and praise foreign countries, and even confuse right and wrong and invert black and white. Western people, who know foreign languages, believe that what they say is true. When it comes to Sino-foreign diplomatic affairs, they are influenced by the prior remarks, and it is difficult for China to compete with them. Now that we take the initiative and describe the whole story, the right and wrong will be clear. How can they continue to spread false information?” ——Wang Tao: “A Letter to General Fang Zhaoxuan”

“The conservative ideas of Chinese people have been gradually broken, and they have been inspired to study new learning. Up to this point, the opportunity for the integration of Chinese and Western cultures has been greatly opened, creating an unprecedented situation in history. Tracing back to the source, who is the forerunner of the two-way infusion? It is the books and newspapers published by foreigners.”

“At first, foreign newspapers still showed respect for China and did not dare to make random comments. After several wars, China’s difficult situation was fully revealed, and then their remarks became unscrupulous. They provoked disputes, covered up their faults, confused public opinion, and did all kinds of evil things.”

“The views of Western newspapers sometimes seem to be making plans for China, but in fact, most of them are for their own private interests and are a kind of diplomatic strategy. Now they are even taking advantage of the struggles among warlords, advocating to suppress the reform movement, and spreading a bad atmosphere in international relations. They are doing this without any scruples, which is truly a strange phenomenon unique to our country.” ——Ge Gongzhen: “A History of Chinese Journalism”

Answer:

The foreign newspapers in China are the carriers of Western civilization, and their status and influence in the development of modern Chinese newspapers have a dual nature. Firstly, from their false reports about China, which led to Western countries having a greatly deviated understanding of China and damaged China’s diplomacy, we can see that the foreign newspapers in China are the products of colonial aggression policies and serve the colonial interests of the West. Secondly, the foreign newspapers in China introduced Western ideas in various fields to China. Objectively, to a certain extent, they served as a bridge for the spread of Western civilization, broke the feudal ideas in China, and promoted the process of China’s modernization.

The early newspaper publishers showed a positive attitude of accepting and learning the Western cultural knowledge brought by the foreign newspapers in China, and integrated Chinese and Western cultures to promote their own development. However, they showed great disgust and resistance towards the actions of distorting right and wrong and disrupting China’s politics by these foreign newspapers. The enlightenment it gives us today is that when running newspapers, we must adhere to the truth and not distort right and wrong for the sake of achieving certain political goals. At the same time, when running newspapers now, we must, according to political needs, adhere to the leadership of the Party, publicize our own positive images, and create an image of a great nation for the Chinese nation in the world.

4. According to the following materials, in combination with the relevant course content, analyze the relationship between the news industry and politics.

“It is impossible to advocate giving up politics. All newspapers that advocate giving up politics are also engaged in politics. The question is only how to engage in politics and what kind of politics to engage in.” ——Friedrich Engels: “The Political Action of the Working Class”

“In the life of every party, especially a working-class party, the publication of the first daily newspaper always means a big step forward! This is the first position where it can at least fight against its enemies with equal weapons in the field of the press.” ——Friedrich Engels: “Letter to Victor Adler”

“The colleagues and readers of this magazine (‘New Youth’) often do not approve of my talking about politics. …… The politics I am talking about now is not an ordinary political issue, nor is it an administrative issue. It is a fundamental political issue related to the fundamental survival of the country and the nation. If the Chinese people do not have a thorough understanding of this fundamental issue and urgently seek reform, then other political issues will surely lead to endless troubles, and the country will perish and the race will be exterminated! People of the country, wake up quickly!” ——Chen Duxiu: “The Political Issue in China Today”

Answer:

The news industry, in addition to having an enterprise attribute, is also endowed with a strong political attribute. At every stage of its development, politics has become an indispensable rigid need. Especially after the proletariat stepped onto the political stage, the class nature of news newspapers became more obvious. From the reorganization of “New Youth” into the central organ newspaper to publicize Marxist theory, to the establishment of the “Red China” newspaper during the period of the Nanjing Nationalist Government and the formation of the news communication system in the Communist Party’s Central Soviet Area, to the establishment of the “Xinhua Daily” during the Anti-Japanese War, etc., including the choices of private newspapers after the Liberation War. After the founding of New China, China’s newspapers adhere to the leadership of the Party and establish a series of excellent newspapers such as “People’s Daily”. Whether it is a party organ newspaper or a private newspaper, they all use news newspapers as their theoretical and public opinion positions to publicize their own political ideas, so as to achieve revolutionary undertakings and build the country.

5. According to the following materials, in combination with the course content, analyze the problems and limitations of the theory of social responsibility of the press that originated in the United States.

“The theory of social responsibility is neither a real communitarianism nor a serious threat to the class and corporate control of the media. On the contrary, it actually endorses the status quo by establishing standards for industry performance, making the monopolistic media seem like the mouthpiece of the people, even though the media is keeping the people silent and ignorant.” ——John Nerone, etc.: “The Last Rights”

“The theory of social responsibility has become a theory that causes disputes among various parties regarding the relationship between the news media and other institutions. It is just a joke to imagine that the news media is free and plays an independent role. One thing that should be kept in mind is that insisting on this idea exactly caters to the interests of the real people in power, because only in this way can they manipulate the news industry and make it serve their own goals.” ——J. Herbert Altschull: “

Answer:

Agents of Power: The Media and Public Affairs” The problems and limitations of the theory of social responsibility of the press mainly lie in its failure to point out the essence of the capitalist monopolistic media. It provides explanations and endorsements for the control of freedom of speech by the Western monopolistic media, enabling those in power to more justifiably control public opinion in society. Although this theory was put forward for the freedom of speech of the people, in the American society at that time, on the one hand, due to the great power of the US government during the war, people were willing to sacrifice press freedom, and on the other hand, newspaper owners would not give up the huge profits brought by the news industry. Class nature makes the government and big businessmen have no time to consider the interests of the general public, or perhaps the essence of capitalism is to exploit the workers. Those who hold the right to speak will find countless reasons to prove that the news content they release conforms to and represents the interests of the vast majority of people in society. It cannot prompt the monopoly capitalism itself to think about the freedom of speech in the news. Therefore, although the proposal of this theory is helpful for making the news content closer to the truth and beneficial for rectifying the atmosphere of the news industry, the dominant power of the news still lies in the hands of a few people, and most people still cannot voice their opinions. It is just a theory established on the basis of monopoly capitalism.

Later in the course, we simulated press release writing in different situations. Here are the assignments I submitted.

Q:Write a campus news based on what happened on campus this week.
A:
During the May Day holiday, a close contact of a COVID-19 case suddenly appeared on the campus.
 
At around 10 p.m. on May 1st, it was found in a boys’ dormitory building on the East Campus of China Agricultural University that the parents of a day student had positive nucleic acid test results, and this student was identified as a close contact. The school immediately launched a screening operation, requiring all students on the floor where this student lived to go to the school hospital for emergency nucleic acid screening. By May 3rd, the screening results showed that all were negative.
On the night of May 1st, although this news was not officially notified to all students in the school, some students, who learned about it in advance, chose to go shopping and stock up on goods at the commercial street, preparing sufficient daily necessities in case they were sealed in the dormitory.
At the same time, after strictly conducting the “three nucleic acid tests within five days” for all students last week, China Agricultural University did not relax its prevention and control measures. It still carried out nucleic acid tests for all students during the three days of the May Day holiday from May 2nd to 4th.
 
五一小长假校内突然出现新冠密接

5月1日晚十点左右,中国农业大学东校区男生宿舍楼查处一名走读男子父母核酸为阳性,该同学为密接。学校立刻采取排查行动,要求该同学所在宿舍楼层到校医院进行紧急核酸排查,至5月3日排查结果为全员阴性。

5月1日当晚该消息虽未正式通知全校同学,但部分同学提前得知后选择到商业街进行购物囤货,准备充足封在宿舍后的生活必备品。

  同时,中国农业大学在上周严格进行过全员“五天三检”后并未放松,依旧在5月2到4日三天五一小长假期间进行全员核酸检测。

Q:Please SIMULATE THE People’S Daily REPORTER, PICK AND WRITE a THING WITHIN a WEEK, WRITE a NEWS MESSAGE of 600 WORDS OR so(Chinese), the title is self-determined, there is news head, genre is not limited.
A:
When the Dragon Boat Festival Meets the Last Day of the Community’s Lockdown
The Heartwarming “Big Whites” Deliver Zongzi House by House

 

(This newspaper report) June 3rd, 2022, was the Dragon Boat Festival, and it was also the last day of the lockdown of Minyue Jiayuan Community in Fengtai District. Considering that since the lockdown started more than 20 days ago, the residents were unable to go out for shopping or receive express deliveries, the community specially ordered zongzi gift boxes for everyone on the Dragon Boat Festival and had the volunteers deliver them house by house. The soft, glutinous, sweet and fragrant zongzi served as a full stop to the lockdown life, bringing a strong sense of ritual to the Dragon Boat Festival during the lockdown.

 

Since a COVID-19 positive patient was found in the Western Area of Minyue Jiayuan Community in Fengtai District on May 15th, 2022, the entire community was quickly upgraded to a lockdown state. Entering the lockdown state unpreparedly and the constant sense of urgency of being notified for centralized quarantine at any time every day had always made all the residents quite upset. This situation continued until before the Dragon Boat Festival holiday. Finally, the community informed everyone that if there were no special circumstances, the community would be downgraded to a controlled management state on June 4th. The residents were all very happy about this news. Although the Dragon Boat Festival couldn’t be celebrated as joyfully as in previous years, the fact that they could soon go out and get some fresh air made them feel much more cheerful.

 

Even so, the community still cared about everyone. On the last day of the lockdown, which was also the Dragon Boat Festival, it sent zongzi gift boxes to everyone. During the lockdown period, everyone stayed at home and the nucleic acid tests were carried out by volunteers who came to their doors. After a whole day of “door-to-door service”, the “Big Whites” continued to wear the airtight protective suits, held boxes of zongzi, and from afternoon to night, under the evening dusk and with the summer evening breeze, they knocked on the doors of each household and sent their Dragon Boat Festival blessings.

 

Ms. Liu, who had been in isolation at home alone since the beginning of the lockdown, after receiving the zongzi sent by the community, posted this warm Dragon Boat Festival gift on her WeChat Moments and sincerely expressed her gratitude, saying, “It’s so late, but the community still cares about the people and sent zongzi 💗. I’m so excited that I kept expressing my thanks 🙏.”
当端午节遇到小区封控的最后一天
暖心“大白”挨家挨户送粽子

  (本报讯)2022年6月3日这一天是端午节,也是丰台区民岳家园封控的最后一天。社区考虑到自封控20多天以来,居民无法外出采买,无法接收快递,特意在端午节为大家订购了粽子礼盒,由志愿者挨家挨户送达。让软糯甜香的粽子作为封控生活的句号,为封控中的端午节依旧带来满满仪式感。

  自2022年5月15日发现一例新冠阳性患者属于丰台区民岳家园西区后,整个小区迅速升级为封控状态。毫无准备地进入封控状态,以及每天随时被通知集中隔离的紧迫感,一直让所有居民心烦不已。这种状态一直持续到端午小长假前,社区终于通知大家:若无特殊情况,6月4日小区将降为管控状态。居民们都为都为这一消息高兴不已,端午节虽无法像往年一般欢乐度过,但马上就能出门透透气的生活让大家心情舒畅许多。

  尽管如此,社区仍然心系大家。在封控的最后一天,也是端午节当天,为大家送上了粽子礼盒。封控期间,所有人都足不出户,核酸都是志愿者上门检测。在结束了一整天的“上门服务”后,“大白”们继续穿着密不透风的防护服,抱着一盒盒粽子,从下午到夜晚,踩着傍晚的黄昏,随着夏日的晚风,敲开了每家每户的门,送上了端午节的祝福。

  从最早封控开始,一直独自一人在家隔离的柳女士,在收到社区送的粽子后,将这份端午节的温暖礼物发在朋友圈,并由衷感谢道:“这么晚了,社区心系百姓,送粽子💗,激动的连连感谢🙏。”

Q:Create a theme and edit a news story.

Analysis of the Crisis Public Relations of Luckin Coffee in the Financial Fraud Incident

Abstract: Since its establishment, Luckin Coffee has been developing rapidly. Its product taste, efficient service, and simple packaging design have all received widespread acclaim. Judging from the recent financial statements, Luckin Coffee has further advanced in its development. However, in 2020, the financial fraud incident of Luckin Coffee dealt a heavy blow to this emerging enterprise. The following will use the classic theories of crisis public relations to analyze the public relations measures taken by Luckin at that time, as well as the process of its reconstruction corporate image after the major crisis.
Keywords: Crisis public relations; Luckin Coffee; Crisis communication management
1. Overview of the Basic Situation of Luckin Coffee
1.1 Company Introduction
Headquartered in Xiamen, Luckin Coffee makes full use of the new retail model based on mobile Internet and big data technology, deeply cooperates with high-quality suppliers in various fields, creates a high-quality consumption experience, and creates lucky moments for customers. With the mission of “creating lucky moments and stimulating the longing for a better life”; with the vision of “creating a world-class coffee brand and making Luckin a part of people’s daily life”; it builds a good corporate image around the core values of “seeking truth from facts, quality first, continuous innovation, a sense of ownership, mutual trust and win-win cooperation”. It conveys the concept of a better life to a large number of customers and stimulates their eager expectations for a better life.
Since the opening of its first store in 2017, Luckin has focused on product production, improved the taste of its beverages, continuously launched classic new products, had exquisite packaging designs, made coffee quickly, and won several international related awards. After just a few years of operation, Luckin Coffee has won the favor of the public and rapidly developed into a leader in its field.
1.2 Daily Public Relations and Promotion Activities
Luckin Coffee attaches importance to daily public relations and promotion activities. It actively promotes new products on its official Weibo account, interacts with customers and fans, and shoots internal corporate documentaries. At the same time, it builds a positive image of itself by combining with public welfare activities. When the COVID-19 epidemic first broke out in Wuhan, considering the high work intensity of medical staff, and that many beverage enterprises had closed the operation and marketing of their local stores in Wuhan at that time, and the material operation and supply conditions in Wuhan were very limited with a shortage of resources, in order to assist in the fight against the epidemic, Luckin’s first unmanned coffee machine “LuckinGO” and unmanned vending machine “Luckin Bargain” were officially put into use in Wuhan and were free for medical staff to use [1].
 
2. Overview of the Specific Incident
2.1  The Outbreak Process of the Crisis Incident
On January 31, 2020, Muddy Waters, which is famous for shorting Chinese concept stocks, claimed that it had received an 89-page anonymous short-selling report, directly pointing out that the domestic Internet coffee brand Luckin Coffee had data fraud. The report stated: “After Luckin’s IPO of $645 million, the company began to fabricate financial and operational data from the third quarter of 2019, and it has evolved into a fraud.”

On the evening of April 2, 2020, before the opening of the U.S. stock market, Luckin Coffee posted a document on the official website of the U.S. Securities and Exchange Commission (SEC). The company admitted that from the second to the fourth quarter of 2019, the company’s Chief Operating Officer (COO) and director Liu Jian and others may have inflated the transaction volume by 2.2 billion yuan. The company also reminded that the previously released financial reports were no longer credible and might need to be readjusted. Affected by this, Luckin’s stock price plummeted by more than 80% before the market opened, and once dropped to $4.9 per share during the trading session. By the close of the market, it plunged by 75.57% to close at $6.4. Overnight, its market value shrank by nearly $5 billion. Luckin Coffee fell into a huge crisis.

On the morning of April 5, 2020, in response to the suspected financial fraud of 2.2 billion yuan by Luckin Coffee, Lu Zhengyao, the chairman of Luckin Coffee, expressed his apologies in his WeChat Moments.

On the afternoon of April 5, 2020, Luckin Coffee officially issued an apology statement on its official Weibo account, stating that the involved executives and employees had now been suspended for investigation, and the company had entrusted a special committee and a third-party independent institution appointed by it to conduct a comprehensive and thorough investigation, and would disclose the investigation results in a timely manner.

On June 26, 2020, Luckin Coffee announced on its official website that the board of directors had decided to require Lu Zhengyao to resign from his positions as a director and chairman. On June 27, 2020, Luckin Coffee issued an official statement saying that it would suspend trading on NASDAQ on June 29 and file for delisting. In the domestic consumer market, more than 4,000 stores of Luckin Coffee across the country will operate normally, and nearly 30,000 employees will still provide high-quality products and services to users as always. The company sincerely thanked the vast number of consumers for their support and love, and once again sincerely apologized to all sectors of society for the adverse impact caused by the incident.

On July 31, 2020, the China Securities Regulatory Commission announced that important progress had been made in the investigation and handling of the financial fraud of Luckin Coffee. In the end, if the relevant responsible parties are suspected of crimes, they will be transferred to the public security and judicial organs according to law for further investigation of their responsibilities.
 
2.2 The Great Harm of Corporate Fraud
The financial fraud of Luckin Coffee this time not only violated the legal bottom line, but also seriously disrupted the normally operating market economy, deceived a large number of investors, and caused serious damage to the interests of the users of relevant financial information. At the same time, financial indicators are also important criteria for evaluating a company’s profitability, operation and other capabilities. The exposure of fraud in financial data undoubtedly makes the company’s operation ability greatly doubted in the industry, which is not conducive to the long-term development of the company in the future. It also makes the favorability of the vast number of customers towards the company drop sharply.
 
3. Analysis and Summary of the Case
The response strategies of Luckin Coffee in this crisis public relations incident have both strengths and weaknesses. Its lack of sensitivity to the crisis incident and low efficiency in handling emergencies led to the outbreak of the financial fraud incident, which was widely exposed by various media and brought serious consequences. Since then, Luckin Coffee has spent a long time and experience repairing the damage to its corporate image caused by this crisis. The following will analyze it in combination with the classic theories of crisis public relations.
3.1 Clarifying the Crisis

3.1.1 Implementation of Crisis Communication Management Organization

The implementation of the organization includes five parts: the setting of the crisis management organization structure, the establishment of the “spokesperson” system, the establishment of the rapid response channel at the first time, the prediction of the organization’s crisis situation, and the evaluation of the organization’s potential crisis. The financial fraud of an enterprise exposes many loopholes in its governance. From the perspective of crisis public relations alone, Luckin Coffee is not perfect in predicting the organization’s crisis situation and evaluating the organization’s potential crisis.


When the financial fraud was exposed at the end of January 2020, it did not take corresponding countermeasures. Blocking is the first choice of crisis strategies. When an enterprise has its own problems, it needs to block; when its own fault is not clear but to avoid the expansion of the situation, it can block. Generally, it includes three aspects: blocking the source of the attack, blocking the attack channel, and blocking the reason for the attack [2]. However, Luckin Coffee only denied it and did not take any measures to limit the spread of this information in the media. The crisis public relations department did not timely realize the seriousness of this incident, issue a crisis warning and make a plan. After the situation broke out in full, its overall employees were in a state of confusion and bewilderment.

3.1.2 Analysis Based on the 5S Principles of Crisis Public Relations
When dealing with a crisis, crisis public relations should adhere to the 5S principles of taking responsibility, sincere communication, speed first, systematic operation, and authoritative verification according to the actual situation.


The most direct reason why the Luckin incident spread to such an extent is the slow speed and low efficiency of Luckin in the face of the crisis. Whether it was within the three months after Muddy Waters exposed the false accounts or after Luckin exposed the false accounts by itself, it did not respond in a timely and rapid manner, missing the best opportunity to suppress the spread of information and gain the initiative. Its procrastination and failure to stand up in a timely manner to admit mistakes and take responsibility greatly damaged the public’s trust in its brand.


Reputation is the foundation of long-term operation. Sincere communication requires good corporate credibility. At first, Luckin Coffee once denied the fact of financial fraud but failed to produce strong evidence. Later, it was “forced” to admit this matter, and its corporate credibility in the face of partners and the public instantly vanished.
Three days after exposing the fraud by itself, Luckin Coffee made a small part of the leadership at that time take responsibility. Although finding a “scapegoat” solved the crisis to a certain extent, Luckin did not establish an image of the whole enterprise taking risks.

3.2 Analysis Using the “Fact-Value” Model
Starting from the “fact-value” model, the scope of crisis communication management can be defined as: crisis early warning, crisis handling, and management recovery [3]. Although Luckin Coffee missed the opportunity at the beginning, it can still be used for reference in reversing public opinion and rebuilding its corporate image later.
 
3.2.1 Change of Public Opinion
The fraud incident of Luckin Coffee this time has seriously violated the law and is unforgivable. It has overdrawn the credibility of Chinese enterprises in the international market, and its reputation will definitely decline among the industry and a small number of people who pay attention to and understand this field. Therefore, if Luckin wants to create a positive public opinion environment, it needs most users who only care about its usual high-quality product services and are not very concerned about economic and corporate credibility issues to cover up its illegal acts and defend itself.
Under the Weibo of Luckin’s apology statement in early April, public opinion was divided into two camps. One side said that they would continue to support Luckin because of its good service and because it is an “excellent domestic product”, while the other side was very angry that Luckin ignored the market rules and overdrawn its corporate credibility. When Luckin announced its delisting again in June, the public opinion trend had completely turned to the supportive side.

During these two months, Luckin guided and diverted the public’s attention from the truth itself. In this incident, ordinary consumers are not the direct victims of interests. As a third party, Luckin chose to establish a third-party discourse alliance with this large force. With the support of these ordinary consumers, Luckin’s sales will not decrease. After people forget about this matter, they will still pay for the high-quality service that Luckin takes pride in. At the same time, most people do not understand the serious economic consequences brought by the financial fraud itself as an economic problem. Luckin takes advantage of this and, together with its “domestic product” exemption card, confuses the public’s 视听,diverting people’s attention from the financial fraud of Luckin Coffee to a “promising” domestic product that is on the verge of bankruptcy due to the sharp decline in the international stock market. At this time, people will blindly and impulsively consume for it.
3.2.1 Rebuilding the Corporate Image
Luckin rebuilds trust with the public through three paths: adaptation, guidance, and reorganization. After the end of 2020, Luckin shot its first corporate documentary “Record of 2020”. When mentioning the financial fraud incident in this short film, it mostly showed the anxiety of many middle and lower-level employees about possible unemployment, their concerns about the enterprise, and the support of the employees’ families, which largely resonated with more consumers. At the same time, the delisting statement it issued in June also said that Luckin would continue to operate and serve everyone, and all its employees would still work normally, winning favor.

Luckin has also been very successful in choosing its brand ambassador. It has successfully created the image of an effective communicator. Perhaps people still had some shadows of the financial fraud of Luckin before. However, after choosing Eileen Gu as its brand ambassador, it not only won the love of young people but also attracted some middle-aged people. Joining hands with Eileen Gu is enough to prove the superiority of its quality among its peers.
 
4 Enlightenment from the Analysis of the Luckin Coffee Case
As a “four-high” enterprise, that is, an organization with high popularity, high growth potential, high brand ranking, and high regulation, Luckin Coffee should not only pay attention to food safety when considering crisis public relations early warning, but also pay attention to every aspect of its entire enterprise operation system at all times. Luckin was able to get through this difficult time, which is inseparable from its previous beverages and high-quality services. Also, because this incident has no direct interest relationship with us “small customers” who only care about its food, the overall reputation of Luckin Coffee has not been affected. However, imagine that in the future, when there are project cooperations with other companies, it will more or less have a negative impact on Luckin’s capabilities.

When facing a crisis incident, it is necessary to ensure that speed comes first and quickly release relevant information by oneself to prevent the further spread of unfavorable news. The approach of Haidilao in the “rat incident” can be regarded as a model. Following the principle of the “golden three hours”, controlling the development of the situation and preventing it from becoming severe, Haidilao only took 4 hours to respond to this crisis public relations, admitted the enterprise’s problems, made the reasons for the development of the matter transparent, effectively prevented the viral spread of the news, and avoided the spread of false information on the Internet [4].
 
5 Conclusion
Before this crisis incident, Luckin Coffee could be said to be the “pride of domestic products”, but after the fraud incident was exposed, it brought a great negative impact on Chinese enterprises in the international market. According to Luckin’s performance in recent years, its enterprise operation and reputation have gradually recovered, and Luckin itself has also made great adjustments after this incident. We can see that Luckin has great ambitions, and we also look forward to the development of Chinese enterprises in the coffee beverage industry. Therefore, an enterprise should not only establish a crisis public relations handling mechanism for such financial problems, but also establish a complete and effective supervision mechanism in all aspects of the enterprise!
 
References:
[1] Shen Yue’e, Zheng Yujia. Research on the Brand Communication Strategy of Luckin Coffee’s Crisis Public Relations. Time-honored Brand Marketing. 2022, (02)
[2] Li Guowei. Should One Apologize or Delete the Post in the First Place in Crisis Public Relations? Sales & Marketing (Management Edition). 2021, (11)
[3] Hu Baijing. Public Relations. Beijing: Renmin University of China Press, 2008.1