In the past week, the new Oriental live broadcast platform - Oriental Selection has continued to "pop out of the circle".

The person who was selected by Dongfang to live broadcast the "circle fans" shouted, "Escaped Weiya and Li Jiaqi, but did not escape Dong Yuhui."

　　In the capital market, the stock price of New Oriental Online has risen from HK$3.7/share at the opening on June 1 to HK$25/share at the closing time on June 17, a cumulative increase of 576% in 12 trading days.

As of 18:00 on June 19, the number of Douyin fans selected by Dongfang has exceeded 16.19 million.

From a top education and training institution to the "top stream" of live broadcast and delivery, it took only half a year for New Oriental to "find hope from despair".

From the perspective of the industry, this is no accident.

Zhang Yi, CEO of iiMedia Research Consulting Group, told the "Securities Daily" reporter that my country'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 "tepid" to "reverse wind"

　　On December 28, 2021, New Oriental released its live broadcast delivery platform Oriental Selection, and Yu Minhong, the founder of the company, conducted the first live broadcast delivery of agricultural products, officially starting the transformation of live delivery delivery.

　　In fact, at that time, many market participants were not optimistic that an education and training institution could do a good job in live streaming.

In the first half of this year, the results of Dongfang’s selection of live broadcasts have been tepid, even bleak.

　　Until June 9th not long ago, Dong Yuhui, a famous English teacher of New Oriental, brought goods in the Dongfang selection live broadcast room, and reached the first place in the hot search of Douyin in the bilingual live broadcast mode that night, achieving a "return against the wind".

It also caused comments from netizens, "I have never been so outrageous in 30 years of my life. In the live broadcast room where knowledge is paid, I bought N bags of rice."

　　Since then, the bilingual "carrying goods + teaching" model of Dongfang's selection has become completely popular.

Data from the Douyin platform shows that in the 8 live broadcasts from June 11 to June 17, the average sales of Dongfang Selection reached 29.63 million yuan.

　　Tianfeng Securities analysts believe that the current Douyin head e-commerce platform Zhongdong has obvious competitive advantages in selecting differentiated labels and dimensionality reduction. It is expected to gain more support from the platform and become the leader of Douyin e-commerce live broadcast.

　　"Previously, New Oriental's live broadcast method is no different from traditional live broadcast delivery." Chen Liteng, a life service e-commerce analyst at the E-commerce Research Center of Netease, told the "Securities Daily" reporter, but now, New Oriental has innovated live broadcast delivery through the output of cultural knowledge. The form is refreshing for everyone.

Backed by the anchor matrix, self-built supply chain

　　Perhaps inspired by the fast circle of fans, it has been reported recently that Dongfang Selection is trying to build its own supply chain, and will vigorously develop its own products in the future.

　　In fact, the top live broadcast e-commerce companies are trying to build their own supply chains, on the one hand to reduce costs, and on the other hand to ensure product quality from the source.

　　Zhang Yi believes that "the basis of self-built supply chain is that enterprises must have a good anchor matrix." At present, the anchor team of New Oriental has been recognized by many fans.

In addition to Dong Yuhui in the team, Yoyo, Dundun and other anchors also have their own characteristics, which are sought after by many fans.

　　Chen Liteng also believes that although users ultimately look at the competitiveness of the product itself, under this premise, if Dongfang Selection can continuously innovate live broadcast content for a long time, it will form a distinct label, and this model will be sustainable.

However, it has higher requirements on the anchor and is not very reproducible.

　　Wei Jianhui, an analyst in the brand retail industry of Analysys, told the "Securities Daily" reporter that in general, live streaming depends on traffic, and long-term stable development depends on the supply chain. The core lies in the continuous improvement of product selection and supply chain management capabilities.

Other institutions may be difficult to replicate

　　After the explosion of Dongfang Selection, some A-share investors even urged relevant listed companies to establish cooperation with Dongfang Selection, and some listed companies announced their cooperation with Dongfang Selection.

Some listed companies in the education industry have also been "supported" by investors and should learn the New Oriental live broadcast model.

　　In fact, nearly a year after the release of the "double reduction" policy, the transformation of education and training institutions is still attracting market attention.

So, has New Oriental made a way for the education and training institutions that are in transition?

　　In this regard, Gao Guolei, chairman of Zhanghe Investment, told the "Securities Daily" reporter that it is difficult for most education and training institutions to rely on live broadcast to bring goods to successfully transform like New Oriental.

In fact, there are fewer and fewer product categories available for live streaming.

　　"From cross-border education and training to live broadcast delivery, New Oriental has embarked on an unusual path of its own. The popularity of Oriental Selection is not a 'flash in the pan', and even raised the entry threshold for live broadcast delivery to a certain extent. Chinese young playwright and director Xiang Kai said in an interview with the "Securities Daily" reporter.

　　Xiang Kai introduced that in the past six months, Yu Minhong and the selection team of Dongfang have been constantly changing, and their live streaming has not only cancelled the traditional slot fee model, but also the commission is generally lower than that of other top anchors.

This is also one of the important reasons for the good results in the selection of the East.

(Securities Daily)