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Transformed New Oriental online: renamed Oriental selection, making a profit of nearly 600 million yuan in half a year.

2025-04-06 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >

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Shulou(Shulou.com)11/24 Report--

January 19 news, New Oriental online released financial results for the six months ended November 30, 2022, disclosed the financial data of its "Oriental selection".

In six months (June to November last year), the total revenue of the "proprietary products and live streaming e-commerce division" represented by "Oriental selection" reached 1.7658 billion yuan, accounting for nearly 85% of the total revenue of New Oriental online (2.0801 billion yuan). Gross profit reached 749.8 million yuan and gross profit margin was 42.5%. In six months, the GMV (Gross Merchandise Volume, total merchandise trading volume) selected by Oriental reached 4.8 billion yuan.

The average monthly revenue is nearly 300 million, and the monthly gross profit exceeds 120 million. The eye-catching performance of Oriental selection enabled New Oriental online to reverse its perennial losses, earning a net profit of 585.3 million yuan in the past six months, sparking heated debate in the former teaching and training circle.

In fact, since the implementation of the "double reduction policy" in July 2021, major education and training enterprises have ended the most lucrative K9 / K12 teaching and training business at the end of the year and began to explore the way to transform new business. As the "big brother" of the education industry, New Oriental's every move has attracted particular attention.

Can other online education companies follow the success of Oriental selection?

Transforming the live e-commerce model to run through New Oriental officials once wrote that the business transformation of New Oriental has been attracting much attention since the second half of 2021.

At that time, a group of teachers began to worry because they really didn't know what else to do. Yu Minhong, who once did "cantaloupe with goods" on his Douyin account, put forward the direction of direct broadcast of agricultural products. This is a direction of transformation that no one thought of, so when he first proposed this direction, everyone was surprised, doubted, argued and silent.

On November 7, 2021, Yu Minhong announced in a personal live broadcast that New Oriental plans to set up a large agricultural platform in the future. He and hundreds of teachers will carry goods through live broadcast, integrate upstream and downstream resources, help sell agricultural products, transform farmers, and make young farmers willing to return to rural areas to support the cause of rural revitalization.

Subsequently, Oriental selection was officially launched.

On June 9, 2022, Dong Yuhui, a former online English teacher of New Oriental, became an unexpected hit in the oriental selection studio with a steak video of "bringing goods in both Chinese and English". By the 10th, the Dongfang selection account had gained more than 470000 fans; by the 16th, it had more than 1000 million followers. A silent and nameless studio, with the popularity of "Dong Yuhui" 10 million fans. So far, Dongfang has more than 29 million fans who have selected an account.

In the six months from June to November 2022, the GMV selected by Orient reached 4.8 billion yuan.

At the same time of the rapid increase in fans and soaring sales in the East selection studio, the share price of New Oriental online also jumped.

New Oriental online shares fell to HK $3 at one point in the past year and have risen to about HK $65, up 700 per cent in the past year.

On the evening of January 5, New Oriental online also issued an announcement to change the company's dual foreign language name from "New Oriental online Technology Holdings Co., Ltd." to "Oriental selection Holdings Co., Ltd.". Talking about the reasons for the name change, New Oriental online said that the company recognizes that the focus will shift to live e-commerce and the long-term growth potential of this field, and that the new name can better reflect the development direction and future prospects of the existing business.

Oriental selection, which was born in surprise, doubt and debate, has achieved great success after only half a year of incubation and operation, and even has to replace the brand "New Oriental online".

Can Oriental selection be copied? New Oriental online transformation of live e-commerce success, so that other struggling to explore the road to transformation of the "former colleagues" to see the dawn, more education and training enterprises choose to test the waters of live streaming with goods business.

Just after Dong Yuhui became popular, in October 2022, Haofui launched the "excellent Science" studio on Douyin to carry out all-product categories.

On December 24, 2022, the brand-new e-commerce platform "Gaotujiapin" of Gaotuo was officially premiered. Chen Xiangdong, founder, chairman and CEO of Gao Tu, personally serves as the CEO of the independent business of Gao Tu live e-commerce. In January of this year, Chen Xiangdong officially settled in Douyin and began to operate personal IP, which is on a par with Yu Minhong.

The direct broadcast with goods asset mode is light, and the original live broadcast classroom equipment of the education company can be easily transferred to the live broadcast with goods, and the original subject teachers have become "stylish" carrier broadcasts without big cost. Online education enterprises transform live e-commerce to be easy to use.

However, after the transformation of live e-commerce, whether a "phenomenal head anchor" can be hatched in a short period of time is a relatively big problem of "uncertainty".

Including the success of Oriental selection, Yu Minhong himself did not expect so soon.

Yu Minhong once revealed that he told the company at that time, "give me five years and lose 100 million yuan a year to see if we can select Orient. It was opposed by many people on the board of New Oriental, but I didn't expect it to succeed in half a year."

At the 2022 New growth Conference in December last year, Yu Minhong mentioned that the "broken circle" of Oriental selection was "more or less accidental" and that "the success of Oriental selection was more accidental, plus the result of a certain inevitability."

A long-term observer of the live broadcast industry said that the frequent absence of super-head anchors such as Weiya and Li Jiaqi in 2022, a vacuum appeared in the supply of live broadcast track, and the cutting-edge anchor represented by Dong Yuhui was born with a "refreshing" mode of live broadcast and cargo. Strong complement, Oriental selection can be said to account for a little bit of "time, place and people".

As of November 30, 2022, Oriental selection has opened six live broadcast accounts in Douyin. In addition to the main account "Oriental selection", there are also "Oriental selection Beautiful Life", "Oriental selection Books", "Oriental selection to see the World", "Oriental selection will enter wine", and "Oriental selection will select proprietary products", forming a live broadcast matrix, product categories and SKU include agricultural products, food, books and daily necessities.

At present, follow the East to select to do live e-commerce "expert YouPin", "Gaotuojiapin" are doing a similar layout.

Experts bring goods in all categories, and play a major role in the "national trend" during the Spring Festival, bringing goods live for "time-honored brands" from all over the country. Gaotuo Jiapin also focuses on local specialties, agricultural products and so on.

So far, there are 82000 followers of YouPin Douyin and 42000 fans of Gaotujiapin, who are still waiting for their "Dong Yuhui" to appear.

The field of live streaming has always been highly competitive, and the first appearance of Chinese-English bilingual anchors and teaching anchors can also bring some freshness and differentiation to consumers. If they all go this way, it will undoubtedly cause aesthetic fatigue because of homogenization. Followers need to put more effort into creating differentiation if they want to replicate the success of Oriental selection.

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