Editor's Introduction: Recently, New Oriental's Oriental Reserve Live Broadcast Room is very popular, and its novel way of bilingual goods has attracted many netizens. The sales performance of agricultural products such as rice and corn in the Oriental Selection Live Broadcast Room is acceptable, so will the Oriental Selection be a life-saving straw for agricultural products? Let's take a look at the author's analysis of this problem.
Will oriental selection be a life-saving straw for agricultural products? For now, the answer is no.
"I didn't show you the snow of Changbai Mountain, I didn't take you to feel the breeze blowing in the fields in October, I didn't take you to see the heavy bending down, like a wise man's grain, I didn't take you to witness all this, but, my dear, I can let you taste such rice."
Overnight, a bilingual teacher who looks like a terracotta warrior, has a humorous style and a slight literary atmosphere, is sent to the hot search. In Dong Yuhui's "like a mill" language, how many people pay for knowledge for a bag of rice?
Agricultural products, a species that are excluded from the list of products with goods by most head anchors, have once again entered the public eye.
Agricultural products refer to the goods produced in agriculture, such as rice, sorghum, peanuts, corn, wheat and local specialties of various regions. According to the "China Agricultural Outlook Report (2022-2031)" released by the Chinese Academy of Agricultural Sciences on April 20 this year, the mainland is expected to sow 1.77 billion mu of grain in 2022 and is expected to produce 688 million tons of grain.
Snowball statistics show that in 2021, the operating income of the mainland agricultural products industry will reach 4.79 trillion yuan, an increase of 2.2% year-on-year; The total profit of the industry exceeded 200 billion yuan, an increase of 5.9% year-on-year. From January to March 2022, the operating income of the mainland agricultural products industry reached 961.8 billion yuan, an increase of 26% year-on-year.
Image source: Snowball Net
As a large agricultural country, China has a long history in agricultural planting, and the type and scale of agricultural products are at the forefront of the world, but with the changes in technology, labor costs, mechanization levels, etc., domestic agricultural products have always been on the edge of the development mode of consumer goods, and the development of standardization, integration, process, branding and other aspects is limited.
And the Oriental Selection, with the taste of a hometown, let the goods that rarely appear in the live broadcast of e-commerce walk from the field into the market, will it be a new beginning for agricultural products, or a momentary joy?
I. The "Teaching" Brings Fire to the "Soil"
As of June 24, the topic of #董宇辉 Gu Cheaply Injured Farmers # has been read 120 million times and discussed 44,000 times on Weibo, at the same time, #我就买个玉米, you told me that you cried #, #不会做饭的我, the first time hoarded four bags of rice # and other hot searches have also added a little color to this pale 618.
Even if you don't know the oriental selection, you must have seen the three words "Dong Yuhui", accidentally out of the circle, so that Dong Yuhui became a fierce torrent of goods, a piece of driftwood of New Oriental, so that it became the top stream in the exclusive characteristics of carrying goods. And agricultural products are the basis of this top stream.
Image source: Baidu Encyclopedia
At present, there are 420 products in the window selected by the East, food and beverage account for 44%, fresh vegetables and fruits account for 26%, and agricultural products have become the main type of goods.
Among them, the highest contribution rate is the five permanent rice that has been out of file for a long time, including condiments that have not been shipped late, eggs, corn, pumpkin and other agricultural products are also "seconds empty" when the anchor has not finished introducing, and it is sold out.
Image source: Dongfang Select Douyin account
Rice, steak, grilled chicken, apples, corn, peanut oil... With its "moving" agricultural products, Oriental Selection has become a clear stream in the torrent of live broadcasting, and has seized a place in the competition of various products.
And the beginning of all this began with a piece of steak brought by Dong Yuhui.
"The taste of this steak, the first one called juicy juicy; Your teeth are bitten to something called tender, tender, and we generally say something tender and can also be calciate."
Bilingual teaching is not difficult for the teachers of New Oriental, but it is indeed a miracle to use it in live streaming, and if the product is a steak, it will arouse people's interest.
At the same time, Dong Yuhui's own cultural atmosphere, so that agricultural products have a story carrier, in the emotional resonance, corn, rice has become childhood memories, steak, pork, chicken wings have become the story of struggle, in empathy, to achieve the connection between users and products.
Since the topic of #New Oriental Teacher Teaching English While Bringing Goods became popular on June 10, Dong Yuhui has become popular, and the GMV in the Oriental Selection Live Broadcast Room has soared from one million to 40 million before the 10th, and the cumulative GMV in the past five days has exceeded 120 million yuan; single-day sales have increased from 100,000 yuan to 20 million yuan.
Among the top 50 sales talents during the 618 period, Oriental Selection ranked second with 1583.2w, and the number of fans soared by 10 million to 18.848 million, while driving the stock price of the parent company New Oriental Online, up 600% in one week, more than 5 times the increase.
Image source: Wall Street Insider
The popularity of Oriental Selection did not happen overnight, and half a year ago, the number of viewers in the live broadcast room of Oriental Selection was at most about 6,000.
At the end of 2021, new Oriental Online, which was "double-reduced", began to transform into e-commerce live broadcasting, and positioned itself in agricultural products and founded Oriental Selection.
At that time, Yu Minhong said: "The future of New Oriental Online lies in the establishment of the Oriental Selection Live Selling System and the transformation into an e-commerce platform with agricultural product screening and sales as the core."
But the opposite happened, in last year's live broadcast debut of helping farmers, the Oriental Selection Live Broadcast Room launched 31 agricultural and sideline products including fruits, vegetables, fresh meat, grain and oil, etc., with sales of nearly 5 million yuan on the same day, and after Yu Minhong left the live broadcast room, the turnover of Oriental Selection continued to decline. It is reported that from December 29, 2021 to January 9, 2022, the cumulative sales of 9 live broadcasts selected by Oriental are less than 1 million yuan.
15 apples 128 yuan, two pounds of strawberries 168 yuan, in the consumer "too expensive" call, the oriental selection of agricultural products have not been accepted by the market.
Second, the "curse" of unbreakable agricultural products
Why not sell agricultural products, the return of anchors is very unified: not making money, difficult to control.
Live streaming with goods to sell agricultural products oriental selection is not the first case, after the e-commerce live broadcast fire, a large number of agricultural products out of the farmland, on the table. Previously, a series of agricultural products with goods activities, such as the live broadcast of county mayors, the live broadcast of college students returning to their hometowns to start a business, and the live broadcast of visiting villages, brought a certain degree of income. However, it can be seen that these special cases are basically limited to the personalized sales of a village, a person, and a certain product, and have not brought about a significant change for the development of the entire agricultural products.
After the heat subsides, the phenomenon of oversupply will even cause financial losses to farmers.
In addition, the low profit margin has become one of the important reasons why it is difficult for agricultural products to embark on the list of head anchors with goods. Different from the production industry with high marginal efficiency, the cost of agriculture in labor, fertilizer, machinery, transportation and other aspects is basically balanced, the efficiency brought by technology increases, while increasing the cost of expenditure, farmers on a corn cost input, there will not be too much fluctuation, and thus limit the premium space.
However, uncertain factors such as the commission of the live broadcast of Internet celebrities, the pit fee of the head Internet celebrity, and the transportation cost will only raise the price, but for ordinary consumers, the high price of agricultural products does not meet psychological expectations, and the inherent market cognition has also become the development of the "high price and high quality" sales model.
In addition, in a large number of overturned goods, the return rate of agricultural products is very high. On the one hand, it comes from the greater difficulty of quality control. At present, the agricultural products with live broadcast goods lack self-operation, most of them are double-line operations, and the anchors bring goods + merchants deliver goods. Therefore, the quality of the product is completely controlled by the commodity side, and the quality is difficult to control.
At present, Oriental Selection has not formed its own supply chain, and the mode of carrying goods is to divert traffic for merchants with the help of the Douyin platform, and the merchants are responsible for delivery and after-sales.
On the other hand, the fragility and difficulty of storage of agricultural products have extremely high requirements for cold chain and logistics. The entire transport chain needs to be well controlled and tracked to ensure the freshness of the product. For example, the main reason for the high bad rating of the fruit is the problem of rot and mold.
Recently, some media reported that a consumer placed an order for Shaanxi peaches in the "Oriental Selection" live broadcast room, and found that about a quarter of them had moldy and long hair after signing. After reporting to customer service, the merchant initiates a full refund.
For this matter, New Oriental Online responded that "we have received relevant feedback, we attach great importance to the satisfaction of consumers in the live broadcast room, and have refunded to consumers in a timely manner." The relevant person in charge said in an interview that the preliminary judgment of the peach is caused by deterioration during transportation, and the follow-up company will find a way to prevent similar situations.
Earlier, some consumers had reported that the weight of the oil apricot purchased on the Oriental Selection did not reach the promised size; When you buy prawns, the ice has melted away when you receive them.
Although Yu Minhong once said that the agricultural products selected by the East currently have no pit fees, and the goal of the enterprise is to promote agricultural development, but at present, as a representative of non-standardization, agricultural products, low premium, uncontrollable quality and other characteristics, more and more product problems gradually appear, follow-up development needs to be solved.
And from the selection of agricultural products such as Oriental Selection and other live broadcast platforms, most of them are high-profile brands such as Wuchang Rice and Texas Grilled Chicken, and the sales characteristics of agricultural products with large brands and niche roads have not changed, and it is also difficult for tail niche products to embark on the selection list of Oriental selection.
"Last year, I led everyone to build the Oriental Selection, hoping to open up a road for agricultural products that are not very related to education. Now that half a year has passed, there have been stable sales and the road to agricultural products of their own brands has begun."
On June 8, Yu Minhong said on his own social platform. Dong Yuhui accidentally became popular, New Oriental undoubtedly found the password of traffic, in the creation of a number of Net Red IP teachers such as Dunton Teacher, Qiqi Teacher, YOYO Teacher, MingMing Teacher, etc., the agricultural products selected by Oriental began to enter their own track.
However, the results show that from the agricultural products, the oriental selection of agricultural products that are on fire also requires a longer-term development strategy.
Third, the East selects "agriculture", and what agricultural products need is "product"
"You ate a lot of dishes later, but those dishes have no taste, because every time you eat vegetables, you have to answer questions, you have to be sent, you have to toast, you have to be cautious, you are not free to eat, you come home later, it is such a scrambled egg with tomatoes, mapo tofu, and even shredded potatoes, really fragrant, the more you eat the more comfortable." 」
It can be seen from a very romantic sentence of liberal arts students that the strategy of selecting agricultural products in the East is to start from the story, rely on emotional impressment, play the "halo effect" of KOLs, and realize the turn of agricultural products to farmers, agriculture, and rural areas.
Among them, the story of "farming" catalyzes emotions in the interaction of the three and realizes the purchase.
The "Oriental Model" of three points of English teaching, three points of encyclopedic knowledge, three points of life philosophy and one point of humorous golden sentences has evolved into childhood memories and hometown plots in agricultural products.
From Li Jiaqi to Luo Yonghao to Liu Qihong, the attribute of "twilight and death" of Douyin has always existed. Economic behavior, catalyzed by emotion alone, cannot go very far.
According to Feigua data, the per capita length of stay in the "Oriental Selection" live broadcast room began to decline after June 15, the average length of stay on June 18 fell by 15%, and on June 19, the data fell again, down 18% from the peak day.
In terms of stock price, as of the close of trading on June 24, Hong Kong stock New Oriental Online (01797. HK) at HK$ 15.80 / share, the stock price fell by more than 30%, earlier there were media reports, Tencent Holdings, JPMorgan Chase and Citibank recently reduced their holdings of New Oriental Online. At the same time, the increase in fans selected by the East has shown a significant decline.
Image source: Mother Cicada
At present, the selection of products selected by the East has begun to cover the fields of electrical appliances, cosmetics, books and other fields, thus expanding the broader consumer market. There will be no permanent produce, but there will always be produce.
The development of agricultural products does not belong only to the selection of the East. Agricultural products need to move out of the content narrative and grow into long-term development.
From a distance, the widely circulated Chu orange, with high quality and high reputation, starting from the story, but there is a jump out of the feelings, becoming the industry standard, standing at the top of the pyramid.
Close observation, focusing on and subdividing the track of the Yellow Swan, set up the first domestic raw egg research institute, and established the first domestic enterprise standard for raw edible fresh eggs. And through the joint release of "raw egg milk tea" with tea Baidao, docking the new consumer market and naming a new track.
Xinjiang goji berries, Yantai apples, Yunnan coffee, Wuchang rice and other agricultural products can go far into the geographical restrictions, sold at home and abroad, brand awareness to create the best choice. As the most effective persuasive force, brand power promotes the long-term activity of agricultural products.
Recently, the General Office of the Ministry of Agriculture and Rural Affairs issued the "Agricultural Brand Quality Cultivation Plan (2022-2025)".
The plan proposes that by 2025, focus on grain and oil, fruits and vegetables, tea, animal husbandry, aquatic products and other categories, strengthen a number of regional public brands of agricultural products with excellent quality, distinctive characteristics, strong driving force, high popularity and reputation, and high consumer loyalty, and cultivate and promote a number of enterprise brands and high-quality characteristic agricultural product brands with excellent products, good reputation, obvious industrial driving role, and core competitiveness.
In 2007, the Ministry of Agriculture issued the Measures for the Management of Geographical Indications of Agricultural Products, and the agricultural products that are marked are different from ordinary products, not only with unique regional characteristics, but also with local culture, history, folklore and other factors, so it far exceeds the edible value itself. At the same time, the origin, space and quality of landmark agricultural products are strictly controlled, the integrity of the production, transportation and sales industry chain is high, and the feasibility of source traceability is large.
According to the data released by Ai Media Consulting, from 2008 to 2018, the number of agricultural products with geographical indications on the mainland increased from 121 to 2524, and the price, popularity, quality and logistics of landmark agricultural products were higher than those of general agricultural products.
Image source: Ai Media Consulting
It can be seen that taking the road of branding agricultural products is an effective way to strengthen development. In addition to branding, it is a perfect supply chain.
Want to do a good job in agricultural products, you need to deeply cultivate the supply chain, but this is also the most difficult point, Cui Lili, executive director of the E-commerce Research Institute of Shanghai University of Finance and Economics and professor of e-commerce, said in an interview that whether it is live e-commerce or ordinary e-commerce, it is necessary to do a lot of homework in the agricultural product supply chain, such as production estimation and sales volume estimation, so that the source end and the market side can achieve a better match.
At present, there are three main sales models of agricultural products:
- Farmers directly connect with consumers;
- Unified acquisition of limited products by the state;
- Converted into integrated sales of brand products.
The highest premium capacity is the last.
Taking fresh food as an example, through the conversion of agricultural products to brand products, the upstream end changes from farmers to food enterprises, the raw materials are strictly controlled, the midstream joins and differentiates into online and offline dual channels to reduce transportation losses, and the downstream end allocates goods according to different consumption scenarios and expands the market scope.
Image source: Agricultural Industry Watch
Sun Dongxu, CEO of New Oriental Online, said in an interview that it will unswervingly take agricultural products as its strategic positioning, and there will be two major directions of efforts in the future: One is self-operated agricultural products, and Oriental Selection will paste the live broadcast room products on the "Oriental Selection" brand in the future to promote high-quality agricultural products. Official information said that in the future, there will be 5-10 self-operated goods on the shelves every month, and the preliminary plan has reached 100.
Agriculture is the industry with the longest development and the most competitive advantage in China, but it is undeniable that the domestic agricultural modernization is still in its infancy, and the problems of agricultural product branding and supply chain completion still exist.
For Oriental Selection, letting agricultural products enter the consumer family with emotion is the first step to gaining a good feeling, but the strategy of simply relying on the audience's feelings to sell at a high price will not last long.
For agricultural products, Oriental Selection is only a "selling intermediary", and long-term development requires multi-dimensional improvement and exploration of brand power, channel power, industrial chain and so on.
Reference Articles:
- China Agricultural Industry Development Report 2022;
- Wall Street News: "Once soared 100%! New Oriental is on fire again, with bilingual live broadcast with goods counterattack";
- Investment Times: "4 days of live broadcast room GMV more than 70 million! Behind the Oriental selection circle, the unit price and selection of products to be examined";
- China Consumption Network: "The return rate is high, the commission pit fee is also high, and the live broadcast with goods is deep "pit" and makes people worry.
Author: Tangerine; Official account: New Consumer Think Tank (ID: cychuangye);
Original link: https://mp.weixin.qq.com/s/LwzoeNsDWo3eT-xFVIpJtQ;
This article is published by @New Consumer Think Tank with permission from Everyone is a Product Manager. Reproduction without permission is prohibited.
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