Produced by Radar Finance and | Li Yihui, ed. | Deep Sea
After withdrawing from the education and training industry, New Oriental once announced its entry into live streaming with goods, two months have passed, what is the effect?
According to the new jitter data platform, as of February 20, the cumulative number of goods selected by Oriental was 367, with cumulative sales of 5.4947 million yuan and cumulative sales of 110,300 pieces. Among them, on the day with the highest single-day sales, Oriental Selection sold 12,100 items.
On December 28, 2021, New Oriental announced the establishment of "Oriental Selection" to enter the live broadcast with goods, which is also a new path chosen by New Oriental for development after the implementation of the "double reduction" policy.
At present, New Oriental has not responded to this achievement. However, on February 16, Yu Minhong, the founder of New Oriental, personally posted that during the Spring Festival, due to the supply chain and logistics of agricultural products could not keep up, Oriental Selection also stopped live broadcasting. Now that work has begun, live streaming will slowly resume this week.
In addition to the transformation to live streaming, New Oriental Online, a subsidiary of New Oriental, released its first-half financial report in January 2022, which mentioned that after the double reduction divestment of k9 business, it will turn to STEAM and intelligent learning hardware. But the transition process was destined to be difficult and slow, with the company making a net loss of $544 million for the six months ended November 30, 2021.
Where is the transformation road of New Oriental?
Live streaming 2 months sales of 5.5 million
According to xinjiao data, since New Oriental "Oriental Selection" began to carry goods on December 28, 2021, as of February 20, the brand has broadcast live 30 times with goods, with a cumulative number of viewers of 4.0171 million and a cumulative live broadcast sales of 5.4947 million; an average of 1214 online users and an average live broadcast time of 4.52 hours; an average sales volume of 3675 pieces and an average sales volume of 183,200 per game; and a total of 367 products on the shelves.
Specifically, after completing the live broadcast on February 20, in more than two months, the sales volume of the Oriental Selection Day live broadcast was as high as 11,100 on January 21 and 12,100 items sold on February 19.
Among them, since February 10 after the Spring Festival, the sales volume of Oriental Selection Live With Goods has ushered in a wave of growth, and the sales volume of a single game has gradually risen from about 2500 pieces to more than 8000 pieces.
In terms of live broadcast goods, as of February 20, Oriental Selection had sold a total of 25,000 items with a unit price of less than 50 yuan; more than 4,000 items with a unit price of 50 to 100 yuan; more than 2,100 items with a unit price of 100 to 300 yuan; and about 160 pieces of goods with a price of more than 300 yuan. In addition, the top three commodity categories in terms of sales are food and beverage, books, entertainment, and medicine and health care.
According to the new trembling data, the first few types of goods in the east selection sales are Thai golden pillow frozen durian meat, Chilean cherry, shrimp shrimp slip and Xuanzi ham lunch meat canned, but the sales amount is generally not high, and the cumulative sales of the most sold Thai golden pillow frozen durian meat are only 350,000 yuan.
In terms of the number of fans, since the beginning of the broadcast, the number of fans selected by the East has increased by 203,400, the total number of fans is 260,800, and the number of fans has increased by 0.78%. Among them, most of the fans are women, accounting for 61.44%; the majority of fans aged 31-40, accounting for 43.25%; the majority of fans in Guangdong, accounting for 9.81%.
In addition, since its inception, Oriental Selection has accumulated 4.0171 million viewers and a single peak of 15,900 in the case of an average live broadcast time of 4.52 hours.
According to media reports, on November 7 last year, Yu Minhong opened the first live broadcast on Douyin, and he revealed that New Oriental plans to set up a large-scale agricultural platform that will work with Teachers of New Oriental to help farmers live.
Suddenly, the sound of New Oriental's transformation of live broadcast with goods spread overwhelmingly, and New Oriental, which chose a new track, became the focus of public opinion. According to Yu Minhong at that time, he would lead 100 New Oriental teachers to enter the Douyin platform, and these 100 teachers all signed a contract through internal recruitment, formulating selection criteria, screening, five online trainings, and finally reaching the anchor contract.
On December 7, New Oriental Investment established a company called "Oriental Selection (Beijing) Technology Co., Ltd.", the legal representative of the company is Sun Dongxu, CEO of New Oriental Online, and registered trademarks such as "New Oriental Agricultural Products Preferred" and "New Oriental Preferred".
On December 28, New Oriental announced through the public account that "Oriental Selection" is a new platform for New Oriental Live Streaming. In the live broadcast room of the day, Yu Minhong introduced his own live broadcast platform, he said that he will appear on the live broadcast platform selected by the East from time to time, and the first live broadcast brought dozens of agricultural products.
According to the third-party data platform, Yu Minhong's first live broadcast was viewed by 1.869 million people, with a peak number of 33,000 people, a total of 25 agricultural products on the shelves, sales of 54,000 pieces, sales of 4.689 million yuan.
Although this achievement is far less than Luo Yonghao's transaction volume of more than 110 million yuan in his Douyin debut, compared with the sales of 5.5 million yuan in the past two months of "Oriental Selection", Yu Minhong's debut can be regarded as "brilliant".
As for the reason why "Oriental Selection" chose to sell agricultural products, according to Yu Minhong's statement in his public account "Old Yu Gossip", he himself likes agriculture.
He wrote, "Since I was a child, I have loved watching crops, such as wheat seedlings, emerge from the ground, slowly become green, grow vigorously after the frost and winter, and finally produce a golden ear of wheat, which gives me an incomparable sense of earth closeness and happiness." ”
In addition, Yu Minhong has always regarded "doing the right thing and doing things correctly" as the internal proposition of New Oriental, and he believes that helping farmers live broadcast can help rural revitalization.
Why is it difficult for Yu Minhong to copy Luo Yonghao?
When New Oriental tested the water to live stream the goods, it once caused controversy.
Some media pointed out in the article that live streaming with goods is very profitable, and there have been celebrities who have failed to start a business to live stream goods, and they have basically paid off 600 million yuan of debt in more than a year, which shows the high profits. It is understandable that New Oriental, which is in urgent need of transformation, is eyeing this road of "becoming rich".
The article said that from the perspective of objective conditions, it is difficult for live broadcasting to help farmers become a new pillar of enterprises. Compared with live streaming with goods, the study track may not make money so fast, but it is more in line with the educational background of New Oriental. What's more, there are already many "Li Jiaqi" on the e-commerce platform.
However, it turns out that the money from live broadcasting is not as fast as imagined, and some people even think that "Yu Minhong can't become Luo Yonghao." ”
On April 2, 2020, Luo Yonghao's Douyin debut live broadcast lasted for 3 hours, with a total payment transaction of more than 110 million yuan and a cumulative number of viewers exceeding 48 million.
By the beginning of 2022, Luo Yonghao, who has successfully fought a turnaround battle by live e-commerce, is about to leave with dignity. Yu Minhong, who also sought the hope of transformation in the live broadcast room, failed to get the answer he wanted.
However, compared with "make a friend" and "Oriental Selection", the timing of the two is different, the ideal feelings are different, and various factors determine that on the fiercely competitive live streaming track, Yu Minhong is difficult to replicate Luo Yonghao's successful road.
The data shows that in 2020, when Luo Yonghao cross-border live broadcasting, more than 65,000 new live broadcast-related enterprises were added to the mainland. As of June 2021, the scale of live broadcasting users in mainland China has reached 638 million, of which 384 million are live e-commerce users.
For New Oriental, in terms of timing, it has missed the industry dividend during the barbaric growth period of live streaming with goods, and now with the normalization of live broadcasting and the implementation of regulatory policies, the fierce competition faced by Yu Minhong and Oriental Selection can no longer be compared with the past.
Secondly, Yu Minhong and Luo Yonghao's original intentions and feelings are also different. Luo Yonghao, who is burdened with 600 million yuan of debt, although he has repeatedly revealed his heart, live broadcasting is not his ideal and love. But debt repayment pressure is the driving force, two years have passed, Luo Yonghao and the "make a friend" behind the live broadcast room commercialization speed is fast, and now has sat firmly in the position of "Douyin brother".
The 2021 report card released by the "Make a Friend" live broadcast room shows that its actual paid sales reached 5 billion yuan in the past year, ranking first in the Douyin live stream.
The reason why "Oriental Selection" chose live broadcasting is Yu Minhong's personal preferences and feelings of helping farmers, which is considered to be full of idealism. Yu Minhong said many times in the interview that in addition to the need to make money, this choice is also closely related to his rural feelings, and he hopes that this move can contribute to the revitalization of the countryside.
In fact, New Oriental's revenue consideration for live streaming is not strong. The Oriental selection staff once responded, "We are not only GMV theory, only look at GMV is meaningless, just like the student meritocracy, what we have to do is to help farmers and farmers, which is a long-term cause." ”
In terms of product categories, Luo Yonghao, who has done mobile phones, chooses digital 3C, and Li Jiaqi, who is from cosmetics sales, sells beauty, but yu Minhong is difficult to have a strong category like them. The origin of agricultural products is scattered, the unit price is low, the quality control requirements are high, and it involves food safety, which is difficult to increase the scale but is easy to step on.
Some industry insiders believe that the "Oriental Selection" has been broadcast for less than two months, and it is too early to judge too much. However, from the "brilliant" performance of the debut to the current decline in popularity and low sales, it may be able to give a wake-up call to New Oriental, which is eager to seek transformation, and the road of live streaming with goods is not good.
Multi-field transformation to test the waters
In the 2021 year-end summary, Yu Minhong said that in the past year, New Oriental's market value fell by 90%, operating income decreased by 80%, employees dismissed 60,000 people, and cash expenses such as tuition refunds, employee dismissalS N+1, and teaching point rent withdrawals were nearly 20 billion.
In the process, New Oriental decided to completely stop K9 ground and online training. At the same time, like other education and training institutions, as the environment changes, the company has to find new directions.
These transformation attempts, in addition to live streaming with goods, New Oriental said that it will continue to work hard in the field of education, and there are still four or six levels, examination and research, Chinese language (English, small language), study abroad consulting, international study tours, domestic research, camp education and other educational services. In addition, the company will also try to make efforts in student general education and quality literacy education.
Judging from the financial report, after New Oriental stopped the K9 discipline training business, its performance turned from profit to loss.
On January 21, New Oriental announced that it expects the Group to record a net loss of US$800 million to US$900 million for the six months ended November 30, 2021, mainly due to the material adverse impact of the termination of business on total revenue for the reporting period.
In contrast, for the six months ended November 30, 2020, New Oriental's net profit was $229 million.
On the evening of January 21, New Oriental Online, an online education website owned by New Oriental, also disclosed its mid-term performance announcement. According to the data, in the six months ended November 30, New Oriental Online achieved operating income of 574 million yuan, down 15.3% year-on-year; the loss during the period was 544 million yuan, narrowing by 19.3% year-on-year.
During the reporting period, the total revenue of the Company's University Education Division decreased by 8.5% to RMB268 million, the total revenue of K12 Education decreased by 19.7% to RMB270 million, and the total revenue of the Preschool Education Segment decreased by 62.2% to RMB1.679 million.
New Oriental Online's current business focus is on providing educational products for postgraduate entrance examinations, and it plans to expand the product range by offering new courses for post-secondary students, while expanding the range of subjects offered, such as the master of business administration, the master of public administration and the master of engineering management.
In terms of new business exploration, in the K-12 and preschool education segments, after the introduction of the policy, the company reduced the traditional tutoring subjects and shifted to more innovative, quality-based and more comprehensive online off-campus education products and services, including STEAM (science, technology, engineering, art and mathematics) courses and intelligent learning hardware.
In addition to the field of education, the various companies established by New Oriental range from food and alcohol, fertilizers and pesticides to integrated circuit design and sales, making the outside world exclaim that Yu Minhong wants to "make cores"? However, cross-border new industries start from 0, and it is difficult to break through.
Taking the smart hardware that New Oriental Online just started to do as an example, in December last year, New Oriental Online and Tmall Genie launched a smart dictionary pen, New Oriental Online Dictionary Pen T1, and the products have been sold on the e-commerce platform.
Radar Finance inquired about the mainstream e-commerce platform and found that the monthly sales of this product were in single digits.
Some analysts believe that in the short term, it is difficult for New Oriental to find pillar businesses like K9, and New Oriental's transformation road still has a long way to go.
Note: This article is the original of Radar Finance (ID: leidacj). Unauthorized reproduction is prohibited.