Tik Tok's account was blocked, and it is too early for New Oriental to ＂fly solo＂

　　An "accident" made the Oriental selection fire in front of the public.

　　From 10: 00 to 13: 00 on July 26, the live broadcast room of Tik Tok was suddenly blocked in the live broadcast, which made many fans watching the live broadcast puzzled and asked in the comment area, "What rules did the Oriental selection touch?" "Why did you stop broadcasting?" .

　　Afterwards, the Tik Tok live broadcast room "Oriental Select Self-operated Products" issued a notice to stop broadcasting: "Due to the requirements of the rules, the Oriental Select Self-operated Products Store and the Oriental Select Self-operated Products live broadcast room will be closed for three days from 26th to 29th".

　　In fact, before the live broadcast room was blocked, it had been reported many times that the Oriental Selection was restricted by Tik Tok, and the rumors that the Oriental Selection was not in harmony with Tik Tok were also rampant.

　　At present, the self-operated account selected by Dongfang has not been rebroadcast yet. However, the live broadcast room of "self-operated products" in the selection of self-operated apps in the East is hot, and the total GMV has exceeded 30 million. This also directly led the East to select the stock price of Hong Kong stocks. As of the close of August 1st, Oriental Selection Holdings Limited (Oriental Selection, 01797.HK) closed at HK$ 40.6, and its stock rose 7.41%.

　　So, is Oriental Zhenxuan really so powerful that it dares to challenge Tik Tok?

　　Why was the Oriental Selection blocked?

　　Oriental Selection Studio belongs to Oriental Selection Holding Co., Ltd., a live broadcast platform of New Oriental, and currently has 1.83 million fans in Tik Tok.

　　As usual, the Tik Tok live broadcast room of Dongfang's self-operated products is maintained daily, and the live broadcast time is generally from 10: 00 to 0: 00 the next day, and the daily live broadcast lasts for 14 hours. However, on July 26th, the "Little Yellow Car" in the live broadcast room of Tik Tok, a self-operated product of Dongfang Selection, was suddenly towed away. Sun Dongxu, CEO of Dongfang Selection, said in the live broadcast that he felt "expect the unexpected" about this matter.

　　Up to now, the Tik Tok self-operated product account selected by Dongfang issued a notice of suspension of broadcasting, saying, "Due to the requirements of the rules, from July 26 to July 29, Dongfang selected self-operated product stores and Dongfang selected self-operated product live broadcast rooms, which were closed for 3 days." However, Tik Tok did not respond to the closure of the self-operated shops and self-operated live broadcast rooms selected by Dongfang.

　　In the end, which rule led to the ban on shops and live broadcast rooms was not disclosed, and there were different opinions from outside.

　　According to the first view, the reason for the closure is that when Oriental selected the anchor to explain the ingredient list, it did not avoid the QR code on the package, which was suspected of guiding consumers to place orders and purchase their own apps through Tik Tok, and was judged as drainage by Tik Tok, which led to the closure of the store.

　　The second view is that the main reason for the selection of banned shops and live broadcast rooms in the East is "multi-opening", that is, a video live broadcast source is distributed on multiple platforms.

　　The live broadcast of Oriental Selection can be watched on Tik Tok, WeChat applet and Oriental Selection APP at the same time, and all of them use the same live broadcast source. This practice is not allowed on all live broadcast platforms.

　　Either way, it seems that it is inseparable from the "independence" selected by the East and the strength of Tik Tok.

　　As early as the beginning of July, the Oriental Selection APP started live broadcast on its own platform. At present, all six matrix pages of Oriental Selection in Tik Tok have "APPlication Download" columns, including the main number of Oriental Selection with 30 million fans. Click to download the "Oriental Selection App".

　　"Creating your own APP platform is the normal behavior of the company's enterprising, and it is also to better serve users and suppliers." Yu Minhong clarified the initial intention of the establishment of Oriental Selection APP, and responded to the relationship between Oriental Selection and Tik Tok: "The relationship of mutual achievement and dependence is not that we beg him, nor is he begging us."

　　Obviously, however, it is against Tik Tok's interests to drain its own APP. The closure of the live broadcast room of Dongfang Selection is also a warning to Dongfang Selection by Tik Tok.

　　Why is Tik Tok so sensitive?

　　In fact, it is not a new thing to drain your own APP. In addition to Oriental selection, many MCN organizations are trying to introduce public domain traffic into private domain traffic.

　　Meiwan, Qianxun and Make a Friend have all launched corresponding WeChat applets, such as: All Girl Member Service Center, Viya Surprise Club VIP Center, Make a Friend Member Center, etc.

　　According to the Trend Report of Private E-commerce Platform in 2022, in 2021, the growth rate of private e-commerce reached twice that of the public domain, and the overall GMV exceeded 2.3 trillion. The private e-commerce platform has become the largest incremental market for brands, with some brands selling more than 10 million a day.

　　It can be said that in order to capture more traffic, the dual layout of public and private domains has become the consensus of many head broadcast organizations.

　　However, from Tik Tok's point of view, it is very unfavorable for the head anchor to "seek its own way". Tik Tok has always wanted to "weaken" the strength of the East in selecting this head anchor, make the platform ecology more diversified, and leave more initiative in his own hands.

　　Since this year, Tik Tok has vigorously promoted the "decentralization" of the live broadcast platform, which not only canceled the live broadcast entrance, but also greatly increased the cost of the anchor in advertising and incoming.

　　There are only 20,000 people left in the live broadcast room that used to cost 100,000 plus. In May of this year, Rainbow Couple, a blogger with millions of fans in Tik Tok, once voiced: "Ordinary people should stop broadcasting live ... if they are not careful, they will lose money."

　　During the 6.18 promotion in Tik Tok, a jewelry merchant took a screenshot of the live broadcast in Tik Tok, revealing that during the promotion period, he invested in the budget to buy a huge amount of Sichuan in Tik Tok, but the return rate exceeded 90% after impulsive consumption, resulting in "a big loss".

　　An entrepreneur who works in Tik Tok told the author that it is almost standard to do Tik Tok investment now. She runs a fruit account on her own behalf, and she has to invest in 1000 yuan at least every day to make a hundred orders, and even sends out the feeling that "if you don't invest in Tik Tok, you will die immediately".

　　At the same time that the live broadcast was decentralized, Tik Tok began to push the shopping mall and make efforts to the traditional "shelf e-commerce".

　　You know, Tik Tok used to be famous as an "interested e-commerce". In 2021, Tik Tok put forward the concept of "interest e-commerce", the essence of which is "content e-commerce", with video content as its core competitiveness, and the most obvious feature is "finding people for goods".

　　On the contrary, shelf e-commerce is in the form of "people looking for goods", represented by traditional e-commerce companies such as Taobao and JD.COM.

　　Although there is data to prove that more than 60% of users said that "interested e-commerce" can drive their desire to watch their own consumption, but it is more based on the impulse consumption of users when watching live broadcasts, compared with the demand consumption of "people looking for goods", the growth space is limited.

　　In 2022, the GMV of e-commerce in Tik Tok was 1.41 trillion yuan, up 76% year-on-year. However, the growth rate of daily life in Tik Tok slowed down after it exceeded 600 million yuan, and it became almost impossible for the interest e-commerce business in Tik Tok to maintain the same growth rate. Therefore, it is imperative to keep up with the traditional shelf e-commerce.

　　What's more, the ceiling of traditional shelf e-commerce is very high. According to the Morgan Stanley research report, in 2022, the GMV of Taobao Live, Aauto Quicker and Tik Tok home appliance live broadcast platforms will only account for 13.7% of the total e-commerce scale, while the traditional e-commerce platform with shelf e-commerce as the mainstay will account for 86.3%. Among them, the GMV of Amoy, JD.COM and Pinduoduo are 8.3 trillion, 3.47 trillion and 3.3 trillion respectively.

　　From the data point of view, shelf e-commerce has indeed brought rapid growth to the overall GMV of Tik Tok e-commerce. At present, its shelf scene GMV accounts for over 30% of GMV on Tik Tok platform. At present, there are 56% merchants, and the GMV of shelf scenes accounts for more than 50%.

　　In the era of peak Internet traffic, Tik Tok also wants to optimize the stock traffic, so as to make the ecology of the whole platform more diversified and retain users as much as possible. In this case, it is not surprising to "knock" the selection of the top stream in the East.

　　Where will New Oriental go?

　　When God closes a door for you, he will definitely open a window for you. The experience of Oriental Selection these days vividly interprets the connotation of this sentence.

　　After the live broadcast room in Tik Tok was blocked, Dongfang Selection temporarily decided to offer a 15% discount on the APP. In order to take care of users' feelings, Dongfang Selection indicated that users who bought products a few days ago could contact customer service to make up the difference.

　　On the evening of 26th, a large number of fans happily went to the East to select apps to place orders. The number of online users in the live broadcast room exceeded 26,000 at the same time, and the sales of self-operated products exceeded 10 million yuan. On the 27th, the Oriental Selection APP once rushed to the fifth place in the IOS free shopping list. As of 10: 30 that night, the total GMV of the Oriental Selection APP has exceeded 30 million.

　　This figure has already reached 77% of the sales of Tik Tok Live Studio in the past month. According to the data of Daduoduo, in the past month, the sales volume of self-operated products selected by Dongfang in Tik Tok was 38.88 million yuan.

　　Sun Dongxu even announced in the live broadcast that due to a large number of new customers downloading and using the Oriental Selection APP every day, in order to thank the new and old customers, Oriental Selection decided to extend the preferential period, and the promotion of APP self-operated products was 15% off, which was extended for 2 days until July 31.

　　Oriental selection is also accelerating the construction of APP, laying the foundation for the subsequent live broadcast. Functionally, Oriental Selection has realized small window playback in the background and set up a separate live broadcast entrance. In terms of the account number of the live broadcast room, Oriental Selection also added "Coming into Wine" and "Book Number".

　　Many people think that the Oriental Selection has sounded the clarion call of "independence" and is fully capable of going it alone, but the author thinks that this idea overestimates the strength of the Oriental Selection, and it is not yet time for the Oriental Selection and Tik Tok to completely turn their faces.

　　At present, Oriental Selection relies heavily on Tik Tok. On the one hand, the main camp of Oriental Selection is still in Tik Tok. Compared with the 43 million fans in the whole matrix of Oriental Selection in Tik Tok, the fan conversion rate of Oriental Selection APP is less than 10%. Judging from the financial report for the first half of fiscal year 2023, most of the revenue selected by Dongfang comes from Tik Tok.

　　Although the Oriental Selection APP has 9 accounts, it only achieves online live broadcast of two live broadcast rooms on average every day. Moreover, the recent live broadcast sales of the main selection number of the East have shrunk severely.

　　Daduoduo data shows that since the launch of the Oriental Selection APP on July 5, as of July 27, the sales volume of Tik Tok's main number selected by the East was 279 million yuan, and the cumulative number of viewers was 147 million; Compared with the same period in June, this figure was 360 million yuan and 188 million person-times respectively.

　　On the other hand, it is very difficult for the East to select its own e-commerce APP. The advantages of Oriental Selection are the agricultural product supply chain initially established by Yu Minhong and New Oriental with their personal resources and appeal, the sales scale of 100 million and the profitability.

　　However, if you want to make an APP well, in addition to the content, you need to improve the operation, governance, technology and other aspects of the e-commerce platform and strengthen the supply chain construction of all categories.

　　Traffic is also a difficult problem in front of Oriental selection. APP must have a certain number of daily users in order to maintain the development and operation costs of an APP. Once it is separated from the platform of Tik Tok, which is a mass user, the apps selected by Dongfang need to advertise and pay a large amount of money to get traffic, and it is hard to say whether the users are loyal.

　　To put it simply, just promoting and attracting traffic+building a full-category supply chain may consume a lot of profits from Oriental Selection.

　　This hot event effect has promoted the spread and popularity of self-operated apps in the East in a short period of time. However, when the popularity is gone, how long the daily activities of the East selection can last, many people have to ask a question mark.

　　In addition, New Oriental is also engaged in cultural tourism business recently, and Yu Minhong has invested one billion yuan in cultural tourism.

　　New Oriental publicly stated, "After the selection of the East, we will start a business again, and New Oriental will officially open up the business of cultural tourism. This time, what New Oriental has to do is to provide high-quality cultural travel services with a sense of cultural happiness, knowledge acquisition and personal pursuit for middle-aged and elderly people. Middle-aged and elderly people and culture are the key words of this venture. Since then, New Oriental will provide services for everyone in the three major fields of education, life and cultural tourism. "

　　For the cultural tourism business, Yu Minhong has high hopes for the special live broadcast on location. However, if we only rely on the traffic of our own platform, Yu Minhong's dream of traveling will be greatly reduced.

　　Live broadcast is the most important part of the future business map of New Oriental, whether it is the selection of the East or the business of cultural tourism. Once it falls out with Tik Tok, the future blueprint of New Oriental may become a bubble.

　　In my opinion, this big promotion event is more like the weight of the East's selection to raise prices in Tik Tok, rather than an independent signal. For New Oriental, it is not easy to transform from online education. What Yu Minhong should think about now is how to balance the relationship between Tik Tok and its own platform, otherwise it is likely to fall wrong and fall short.

　　The simplest and most direct way is to have its own platform to provide some additional services to its members. Those who value the brand selection in the East will naturally go to their own platforms, but only spend impulsively. Users who depend on the supply and price will naturally stay in Tik Tok.

　　Everyone wants to engage in private domain, but isn't the source of attracting private domain users with low cost a public domain platform like Tik Tok?

　　References:

　　1. "Oriental Selection APP, 4-day sales exceeded 100 million" electric business newspaper

　　2. "The East selected a Tik Tok account to stop broadcasting for 5 days: accidental injury or" going down ""Beijing News.

　　3. Another mirror of "Oriental selection is" in a dilemma "and cannot be separated from Tik Tok flow pool"

　　4. There is no way out for the selection of "shake off" in the East. Titanium media