New Oriental Aims to Rebuild Dong Yuhui in 300 Days?

06/23 2024 463

During the 618 promotion period, New Oriental's live streaming studio encountered numerous challenging issues.

The once-familiar scholarly atmosphere was gone, replaced by the hurried shouting of anchors urging viewers to place orders with "321" promotions, blending in with the crowd.

On the evening of January 24, 2024, New Oriental released its unaudited financial results for the second fiscal quarter ending November 30, 2023. During this quarter, New Oriental's revenue reached $869.6 million, an increase of 36.3% year-on-year; net profit attributable to shareholders was $30.066 million, an increase of 4007.4% year-on-year.

On the evening of April 24, New Oriental's latest quarterly report showed that in the third fiscal quarter of 2024, the company's net revenue was $1.207 billion, an increase of 60.1% year-on-year; net profit attributable to shareholders was $87.2 million, an increase of 6.8% year-on-year.

Despite the increase in revenue and profits, the capital market's response was surprisingly tepid. On April 25, New Oriental suddenly faced a massive sell-off, briefly hitting a one-month low of 57.25 yuan, only to be pulled back to 68.65 yuan the next day. The intricacies of this situation are perhaps only truly understood by New Oriental itself.

Currently, New Oriental's share price stands at 59.7 Hong Kong dollars, having been in a downward trend since reaching 77.05 yuan in March.

With Dong Yuhui no longer frequently appearing on New Oriental's platforms, the company is struggling to find new stories to tell. After Dong Yuhui and Dongfang Zhenxuan parted ways, Yu Minhong faced a dilemma: protect the top anchor or cultivate a new one.

Dong Yuhui and the Failed Influencer Replication

The knowledge-driven sales approach he pioneered initially overwhelmed the previous market trend of attracting viewers through steep discounts and guiding orders in the live studio. This was because knowledge-driven sales emphasized the experience, combining fragmented knowledge with the specific attributes of products to showcase their inherent charm. Dong Yuhui was the final piece of the puzzle, his scholarly demeanor elevating the sales process beyond mere numbers and bland selling points.

However, during the subsequent "small essay" controversy, the feud between him and Sun Dongxu, CEO of Dongfang Zhenxuan's supply chain, was revealed by their own editors. The latter claimed that behind every brilliant creation was a team effort of copywriting, filming, and editing, implying that Dong Yuhui was merely the face in front of the camera.

This controversy ended with Yu Minhong symbolically transferring Sun Dongxu and elevating Dong Yuhui, but it was clear to all that New Oriental preferred the supply chain, leaving Dong Yuhui with little room to maneuver in Dongfang Zhenxuan.

On January 9, 2024, the premiere of "Travel with Hui," a show tailored for Dong Yuhui, estimated a GMV of 160 million yuan, gaining over 2.7 million new followers and attracting over 54 million views. By January 30, "Travel with Hui" achieved sales of 800 million yuan in just 20 days. By March 16, 2024, the account had over 17.11 million followers, while Dong Yuhui's personal account had over 24.73 million followers.

These figures surpassed his previous numbers on Dongfang Zhenxuan.

From June 1, 2023, to November 30, 2023, Dongfang Zhenxuan's total revenue was 2.795 billion yuan, an increase of 34.4% year-on-year; net profit was 249 million yuan, a year-on-year decline of 57.4%; and adjusted net profit was 509 million yuan, a year-on-year decline of 15.4%. According to the financial report for the

Solemnly declare: the copyright of this article belongs to the original author. The reprinted article is only for the purpose of spreading more information. If the author's information is marked incorrectly, please contact us immediately to modify or delete it. Thank you.