Introduction: Oriental selection Taobao debut "overturned": Tobacco potato red envelopes were marked incorrectly and urgently removed, and the official admitted compensation
Debut "Rollover"
Oriental Selection said that it will be shipped normally
At 8 a.m. on August 29, the Taobao debut of Oriental Selection (HK1797) - "Oriental Pan Taobao Club" was launched.
However, the debut of Oriental Selection Taobao encountered a "rollover" incident. A "Oriental Selection Self-operated Tobacco Potato 4.5 Pounds" product, 88% off to the hand price of 23.16 yuan, Oriental Selection live broadcast room order also give away 25 yuan in red envelopes, equivalent to 0 yuan purchase and 1.84 yuan.
Hundreds of thousands of netizens squatting in the live broadcast room discovered this loophole and quickly placed an order for wool. In the absence of a lecture by the anchor, Oriental Selection sold more than 20,000 pieces of this tobacco potato in one hour. Subsequently, the live broadcast room was removed from the shelves for emergency operations. Oriental Selection said that this product will be shipped normally.
On the same day, Oriental Selection was broadcast live on Taobao for the first time, only one hour after its launch, with sales exceeding 10 million yuan and more than 2.1 million online users. Among them, Oriental Selection self-operated grilled sausages sold 6,000 orders in 1 hour, Oriental Selection Ecuador South American white shrimp sold 5,000 orders, and Dyson hair dryer sold 1.5 million yuan in 1 hour. In addition, Oriental Selection also released 2 new products, one is snail powder, which sold 5,000 orders. The other is an upgraded version of the Oriental Selection Mooncake that sold more than one million orders last year, and sold 10,000 units.
According to the data released by Oriental Selection, a total of 223 products were listed in today's live broadcast room, covering dozens of categories such as agricultural products, daily necessities, beauty, home appliances and digital. At the same time, during the premiere period, Oriental Selection and Taobao jointly distributed multiple benefits to consumers, including welfare activities such as million red envelope rain and tens of millions of subsidies, and 88% discount for Oriental Selection's self-operated products.
However, it may be because this is the first time that Oriental Selection has tried Taobao red envelope welfare activities, which has led to the problem of "overturning".
It is reported that Oriental Selection has launched similar discount offers in its own App. From July 26 to 29, the sales of Oriental Selection's self-operated App exceeded 110 million yuan. As of press time, the number of fans in the live broadcast room of Oriental Selection Taobao has increased to 1.058 million, and the number of views in the live broadcast room has exceeded 10 million.
The annual GMV reached 10 billion
August 25, Oriental Selection (1797. HK) announced its full-year results for fiscal year 2023 from June 1 last year to May 31 this year. The data shows that Oriental Selection achieved revenue of 4.5 billion yuan, net profit of 971 million yuan, GMV of 10 billion yuan and total orders of 136 million orders throughout the year.
According to the financial report, the significant increase in revenue and profit was mainly due to the strong development of self-operated products and live streaming e-commerce business. In fiscal 2023, the revenue of Oriental Selection's self-operated products and live streaming e-commerce segment was 3.9 billion yuan, accounting for about 86% of the total revenue.
It is worth mentioning that the revenue of self-operated products has exceeded 2.6 billion yuan, and its strong development has also become a major driving force for the growth of Oriental Selection. Since the launch of its first self-operated product in April 2022, Oriental Selection has continuously expanded its product categories from fresh food to fruit juice, coffee, tea, bedding, etc., and has developed more than 120 self-operated products.
Among them, Oriental Selection self-operated grilled sausage is currently the highest sales self-operated product of Oriental Selection. It is reported that as of July 31, the cumulative sales volume of self-operated grilled sausages of the Oriental Selection brand was 112 million, more than 4 million orders, and the revenue of only one self-operated product of grilled sausages exceeded 300 million yuan according to the sales price.
Minhong Yu, Chairman of Oriental Selection Holdings Limited, said: "FY2023 marks the first year that we have become a brand new private label product and live streaming e-commerce company under the name of Oriental Selection. At present, Oriental Selection has become a well-known platform for selling high-quality, cost-effective agricultural and other products, accelerating rural revitalization while promoting Chinese traditional culture and positive values, and providing more valuable contributions by promoting high-quality products that originally lacked sales channels and improving supply chain operation efficiency. ”
Launch a multichannel strategy
Since 2023, Oriental Selection has gradually launched a multi-channel strategy.
On July 26, Douyin shut down the company's self-operated live broadcast room, and the company temporarily decided to open APP live broadcast, and launched a 3-day APP 85% discount activity for all self-operated products (extended by two days to July 31). On August 29, Oriental Selection opened its first live broadcast on the Taobao platform.
Behind the attempt to have its own APP and Taobao live broadcast outside the Douyin live broadcast room, Oriental Selection has passed the strong traffic dividend period in the Douyin live broadcast room, facing the pressure of declining user freshness and reduced Douyin push.
According to the data compiled by Everbright Securities Research Report, from May to July 2023, the average daily total GMV, daily total viewers and comprehensive conversion rate of the matrix live broadcast room of the Oriental Selection Douyin platform decreased month by month (weighted average of each live broadcast room). In the future, with Oriental Selection further innovating live broadcast content, it is expected to maintain a certain interest and loyalty of the audience in the future.
In its fiscal 2023 financial report, Oriental Selection also announced for the first time the layout idea of the recent "multi-channel strategy": the multi-channel strategy is to directly cover a wider range of user groups and continuously enhance brand awareness and influence. Oriental Selection said that in the future, it will combine the needs of target customer groups in different channels to layout the product portfolio.
Source of this article | Comprehensive daily economic news, Yicai, Oriental Selection Taobao Live Broadcast Room, Oriental Selection Financial Report