Written at the top: long text carefully ~! $New Oriental Online(01797)$
1. This article is more inclined to present facts. Since it is a live record, there may be inaccurate wording, please refer to and judge as appropriate (investment needs to be cautious~). The content in ( ) in the article is supplementary, and some of my own thoughts.
2. The main record is the speech of founder Yu Minhong (hereinafter referred to as Teacher Yu) and CFO Yin Qiang (hereinafter referred to as President Yin)
3. This paper is divided into three parts:
(1) Summary of Mr. Yu’s speech
(2) On-site question answering (about 15 questions, some questions are asked in a row, and they are grouped into one)
(3) Other processes and knowledge (picture here~)
4. Overall experience: The format is on-site (about 30 people, including staff) + online, which is a shareholders meeting that exceeds expectations. As a ten-fold share this year, the scene is full of enthusiasm and fun, as well as Mr. Yu’s speech Some of them benefited a lot, and felt the long-termism and curiosity of new things of entrepreneurs, respect~!
Let’s start with a random photo taken at the door of New Oriental Online. The weather is very good today. I hope everyone can have a good profit~
I am the dividing line
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1. Summary of Mr. Yu’s speech (the subtitle is added by me)
1. How to do business transformation
New Oriental Group has contracted a lot of business in primary and secondary education in both China and the United States. It is difficult to say that the business transformation of New Oriental Online is a serious strategic design. Previously, the education was attributed to EDU (US New Oriental), and the products were attributed to New Oriental Online (I understand that this refers to the previous business layout). Mr. Yu mentioned that he played Douyin relatively early. He was the only one among the executives of New Oriental who played Douyin at the time. By coincidence, he went to Gansu in 20 years to help friends do publicity, and tested the water and live broadcast. I explored it), I achieved 8000+ orders in 1 hour for the first time, I found that there is no such energy offline, and the live broadcast has this impulse and explosion. The growth of users comes from the trust in the platform and people, and began to study the live broadcast belt. Goods, but the education business was still booming at that time, and only occasionally sold books. In November and December 21, it was decided to start the live broadcast e-commerce business from 0. At first, no one knew how to do it. In the first discussion, it was mentioned that the use of Mr. Yu made his personal IP, but later decided to make a platform (personal IP is risky).
After half a year, the team began to try to explore, and the team was relatively frustrated. In June 22, Mr. Yu helped the team to do a live broadcast. At that time, the number of fans was 980,000 & 1.5 million GMV. After the live broadcast, the number of fans was more than 990,000. After that, it began to grow explosively, and the number of fans quickly exceeded 10 million. At that time, I thought it was a hot phenomenon, and at least I had confidence in maintaining the current state and facing the future.
2. Regarding the direction selection of live e-commerce:
At the beginning, my friend suggested not to touch agricultural products (for fear of problems), and suggested products such as beauty makeup, but Mr. Yu believes that agricultural products can help users, so he can consider selling books.
Before it became popular, I planned to make a matrix, a satellite system based on the main platform (the main platform is mainly agricultural products), including Oriental Selection, Beautiful Life (daily necessities), books (in terms of books, guests can be invited to spread knowledge, and bring Popularity), in the future, there will be nearly wine (a dedicated wine platform), and self-operated products (a lot of self-operated agricultural products are displayed on the spot today). Here, I will focus on self-operated products. Now there are about 40 kinds of self-operated agricultural products. There will be daily necessities in the future. Big, the accounts of the Douyin platform are mainly non-self-operated products?)
3. Thinking about the business model:
It is mentioned that there are three modes of e-commerce evolution: offline search -> search and search -> ordering by content. Now it is the output of content that drives product sales, and users place orders after watching and listening. Here Mr. Yu further mentioned 2 points: (1) Agricultural products are generally supported, and platforms like Douyin Kuaishou have become an indispensable element in users’ lives. New Oriental will go all out to do things and get Recognition of the common people; (2) Unpredictable income, there is uncertainty, it is a balancing process for a long time, and the relationship with the partner is stable now
4. Regarding risk issues:
Sometimes the inappropriate remarks of individuals may have an impact (especially in the live broadcast related industry). New Oriental Online operates as a listed company system (to reduce this risk as much as possible), not in the name of an individual. In addition, the current anchor team is also the same as the original education (in education, it is to discover and train the best teachers), and individuals can be very good.
5. Conclusion:
The world is unpredictable, the most important thing is to work hard to find opportunities and not give up (focus on ~)
2. Answering questions on the spot
1. New Oriental Online does not invest (information stream distribution), and has a partnership with Douyin?
Teacher Yu: It is more inclined to natural growth. Now it is the flow rate of natural fans, which is relatively stable at present; according to the different anchors, the changes of fans are normal; whether or not to stream in the future will depend on the specific situation, and will adhere to long-termism
2. Is there a supply chain situation for agricultural products?
Teacher Yu: I hope that the agricultural products from the mature supply chain will not be fresh. If there is, I will greet users in advance (here mentions a previous case of cantaloupe. Teacher Yu personally participated and will tell fans about it. It is to help this place get through the difficulties, there is no strong supply chain to guarantee)
3. Do agricultural products (1) Safety aspects? (2) Competitive relationship between self-operated products and agency products?
Mr. Yu: Most merchants would like to turn their products into self-operated products of Dongfang Selection. Their products can be supplied safely and continuously. With sales guarantee, it is more cost-effective than selling them by themselves. Will not go to open a factory, choose the best factory to process products (such as Muji); if we do not cooperate, there may be a problem with the product quality
4. (1) A joint venture company has been established. Will the interests of the anchors transition to this company? (2) Will the character design be broken after Mr. Yuhui succeeds?
Teacher Yu: (1) No. And this is an internal business inconvenient to say (2) No
5. Two questions were asked about platform transfer (there have been many articles about this recently); the possibility of multiple platforms?
Mr. Yu: Tmall’s education business is wrong. The answer is that the platform transfer of e-commerce is wrong (Mr. Yin mentioned that the university education business is growing. In addition, the continuing business in the financial report is divided into – university education, institutional business, live broadcast e-commerce ); will not transfer the platform casually, the cost is high, and the information level is over-interpreted
6. For someone who is intentionally interpreting the information unfavorably, the current response is very good. Is there any advance prevention in the future?
Teacher Yu: Yes, our response to anything we do is based on the premise of more trust from fans. From past experience, we are also relatively assured of New Oriental Online’s ability to handle crisis events.
7. Will it develop to the Costco model?
Mr. Yu: There is no possibility of a huge store, because the relationship involved is complex and assets are heavy. We may achieve a certain degree, have a huge fan base, and establish a space in each place, such as reading space, Activity space, discussion area, for display, what users may be interested in can directly scan the code to place an order, etc. (sounds like an offline experience store)
8. What will happen to the wine platform?
Mr. Yu: (1) The major categories of wine are classified as agricultural products, and the domestic level is uneven. Most of the main platforms for the selection of Oriental are women and teenagers, and the platforms specializing in wine may have more male audiences; (2) Chinese culture and wine Inextricably linked, it also involves the popularization and introduction of wine knowledge; (3) the unit price of wine is higher
9. Have you considered any plans to use the tiktok platform to look at the wider global market? If yes, at what stage?
Mr. Yu: Yes, there is no set time period. It is a long-term way to communicate with the world financial industry. The internal and external circulation of Chinese products starts from inside -> outside, then outside -> inside (preferably sell good domestic products to overseas, and then reverse. Come over), and our anchors do not need too much effort to do overseas markets
10. How is your energy distributed?
Teacher Yu: Form an efficient and innovative team, pay attention to the general direction, and young people do it
11. (1) It is said that the suppliers on Douyin are generally profitable, and they are worried about the ecology of Douyin; (2) Like the current rhythm of Jijinjiu and other accounts?
Mr. Yu: (1) We will not squeeze the merchants too much; we are not worried about the ecology. Douyin appears but cannot replace Pinduoduo, Taobao, and JD.com (the new ones cannot completely replace the previous ones); Cultural tourism, with a business model behind it)
12. The financial report shows that in the continuing operations, the university education and institutional customer business are highly profitable, and what is the growth potential?
Mr. Yin: Maintain stable growth. For example, university education includes postgraduate entrance examinations, and the number of postgraduate entrance examinations is increasing (mentioned a growth rate of 20%, uncertain caliber)
13. Could the strategy be broader?
Teacher Yu: The main line is agricultural products and daily necessities (I don’t remember too much here, it is not a problem to mention company profits)
14. Can the format of live broadcast be changed? For example, the Shandong special, immersive live broadcast
Teacher Yu: Sometimes it is limited by equipment and network. In the future, it will definitely be possible.
15. Compared with Costco, Costco is 1.5 trillion, compared with Costco’s commercial efficiency?
Teacher Yu: I haven’t compared, we are still small and don’t expect too much
3. Other processes and knowledge
After 1.5 hours, it turned into a book signing. Everyone came with books, I forgot. .
The Oriental selection of self-service products at the scene, I took a box of hanging ear coffee (self-cultivation of the workers), and the words on the packaging are very beautiful
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