Original title: New Oriental What is the new mode of education and training transformation of "fire out of the circle" of live video with goods?
Source: Securities Daily
Our reporter Li Chunlian, trainee reporter Xu Linyan
In the past week, New Oriental Live Delivery Platform - Oriental Selection continued to "fire out of the circle". The person selected by Dongfang for live broadcast of "Quan Fen" said directly, "I eluded Weiya and Li Jiaqi, but not Dong Yuhui".
On the capital market, the share price of New Oriental Online rose from HK $3.7 per share at the opening on June 1 to HK $25 per share at the closing on June 17, with a cumulative increase of 576% in 12 trading days. As of 18:00 on June 19, the number of fans selected by Dongfang has exceeded 16.19 million. It only took half a year for New Oriental to "look for hope from despair" from a leading education and training institution to the "top stream" of live broadcast and delivery. In the view of the industry, this is not an accident. Zhang Yi, CEO of iMedia Consulting Group, said to the reporter of Securities Daily that China's live broadcast e-commerce market is in the ascendant and has broad prospects. At present, the transformation of New Oriental is very successful.
From "no temperature and no fire" to "adverse wind overturning"
On December 28, 2021, New Oriental released the selection of its live broadcast cargo platform, and Yu Minhong, the founder of the company, carried out the first live broadcast cargo of agricultural products, officially opening the transformation of live broadcast cargo.
In fact, at that time, many people in the market were not optimistic that an education and training institution could do a good job of live broadcast with goods. In the first half of this year, the performance of Orient in selecting live broadcast goods has been tepid, even bleak.
Until recently, on June 9, Dong Yuhui, a famous English teacher of New Oriental, took goods with him in the live broadcast room of Oriental Selection, and won the first place in the dithering hot search of the night when he reached the summit in the bilingual live broadcast mode, realizing "turning the market against the wind". It also caused netizens to comment, "I haven't been so outrageous in 30 years of my life. I bought N bags of rice in the knowledge paying live broadcast room".
Since then, the mode of "bringing goods+teaching" has become completely popular. According to the data of the dithering platform, the average sales of the eight live broadcasts from June 11 to June 17 in the Oriental Selection Market reached 29.63 million yuan.
Analysts from Tianfeng Securities believe that at present, the competitive advantages of Orient in selecting differentiated labels and reducing dimensions in the e-commerce platform of Diaoyin Head are obvious, and it is expected to gain more support from the platform and take the lead in the live broadcast of Diaoyin E-commerce.
"Previously, New Oriental's live broadcast mode was the same as the traditional live broadcast with goods." Chen Liteng, an e-commerce analyst with the life service of the Economic and Social Council E-commerce Research Center, told the Securities Daily reporter that, but now, New Oriental has innovated the live broadcast with goods mode through the output of cultural knowledge, making everyone refreshing.
Self built supply chain based on the anchor matrix
Perhaps inspired by the fast circle, it was reported recently that Oriental Selection is trying to build its own supply chain and will vigorously develop its own products in the future.
In fact, the head broadcast e-commerce companies are trying to build their own supply chain, on the one hand, to reduce costs, on the other hand, to ensure product quality from the source.
Zhang Yi believes that "the foundation of self built supply chain is that enterprises must have a good anchor matrix." At present, New Oriental's anchor team has been recognized by many fans. In addition to Dong Yuhui, Yoyo, Dunton and other anchors in the team also have their own characteristics, which have been sought after by many fans.
Chen Liteng also believes that, although users ultimately look at the competitiveness of the product itself, on this premise, if Oriental Selection can innovate the live content for a long time, it will form a distinctive label, and this model will be sustainable. However, it has high requirements for the host and is not strong in replication.
Wei Jianhui, an analyst in the brand retail industry of Analysys, told the Securities Daily that, in general, the demand for goods delivered live depends on the flow, and the long-term steady development depends on the supply chain. The core is the continuous improvement of product selection and supply chain management capabilities.
It is difficult for other organizations to copy
After the popularity of Orient Selection, some A-share investors even urged relevant listed companies to establish cooperation with Orient Selection, and some listed companies announced cooperation with Orient Selection. Some listed companies in the education industry have also been "recruited" by investors, so they should learn from the new oriental live broadcast mode.
In fact, nearly a year after the release of the "double reduction" policy, how to transform education and training institutions is still the focus of the market. So, has New Oriental found a way for the teaching and training institutions in transition?
In this regard, Gao Guolei, Chairman of Zhanghe Investment, told the Securities Daily that most education and training institutions are difficult to transform successfully by relying on live broadcast with goods like New Oriental. In fact, there are fewer and fewer categories of live streaming products that can be selected at present.
"From the crossover of education and training to the live delivery of goods, New Oriental has taken an unusual path of its own. The fire of Oriental selection is not a flash in the pan, and even to a certain extent, it has raised the access threshold for the live delivery of goods, putting forward higher requirements for the cultural quality and moral cultivation of the anchors." Xiang Kai, a young Chinese playwright and director, accepted the Securities Daily The reporter said in the interview.
Xiang Kai said that over the past six months, Yu Minhong and Dongfang's selection team have been constantly changing. Their live broadcast with goods not only eliminates the traditional pit fee model, but also generally lower the commission than other leading anchors. This is also one of the important reasons for the good performance of Oriental Selection.
