Tik Tok's ＂yellow card＂ for Oriental Zhen Xuanliang

　　Source WeChat official account: Alphabet List (ID: wujicaijing)

　　Author: Xue Yaping

　　"How did the Oriental select the little yellow car to be suddenly towed away?"

　　On July 26th, many consumers who were waiting for the live broadcast room in the East looked puzzled: they were shopping in the live broadcast room, and suddenly they could not choose their own stores to buy their own products in the East.

　　Soon, the Tik Tok self-operated product account selected by the East posted a notice saying, "Due to the requirements of the rules, from July 26 to July 29, the East selected the self-operated product store and the East selected the self-operated product live broadcast room and suspended business for 3 days."

　　Up to now, there are 1.83 million fans in Tik Tok who choose their own products. Previously, the Tik Tok Live Studio of Dongfang's self-operated products was broadcast daily. The live broadcast time was generally from 10: 00 to 0: 00 the next day, and the daily live broadcast lasted for 14 hours. The last live broadcast stayed at 10: 00 to 13: 00 on July 26th.

　　Despite the explanation given by the Oriental Selection, on the social platform, there are still many fans of the Oriental Selection who have asked "What's going on?" "What rules did the Oriental selection touch?" "Why did you stop broadcasting?"

　　Sun Dongxu, CEO of Dongfang, also felt "expect the unexpected" about "the little yellow car was suddenly towed away". On the evening of 26th, in the live broadcast of Oriental Selection APP, Sun Dongxu called it "expect the unexpected", and said that in order not to affect the customer experience, Oriental Selection temporarily decided to carry out a 15% discount promotion on the APP, and users who bought products a few days ago could contact customer service to make up the difference.

　　Oriental selection can also be regarded as "ice and fire". While some fans are still asking why the live broadcast room was banned, some fans have hAPPily gone to the East to select an app to place an order, catching up with a wave of promotion that lasted for three days and returning home with a full load. This also led to the lively live broadcast of the member stores of the Oriental Selection APP on the evening of 26th: 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.

　　At present, Tik Tok has not responded to the selection of self-operated shops and self-operated live broadcast rooms in the East; Oriental Selection did not disclose which rule led to the ban on shops and live broadcast rooms.

　　For a time, there was a lot of talk that Dongfang Selection and Tik Tok had broken up. The outside world blamed Dongfang Selection's "shaking off" and seeking independence for the reason that its self-operated product shops and live broadcast rooms were shut down. However, most of this is untenable. Bento Finance has previously analyzed that the main camp selected by the East is still in Tik Tok, and the main number of 30 million fans is still broadcast in Tik Tok. Moreover, in the first half of fiscal year 2023, the major revenue of Dongfang Selection came from Tik Tok, and it will still maintain a good relationship with Tik Tok.

　　In October last year, New Oriental said to the public that in the past few months, the cooperative relationship established between Oriental Selection and Tik Tok has also deepened, and the interests and brand tonality of both sides are highly compatible, and the two sides will continue to deepen the cooperative relationship in the future. The alphabet list has been analyzed in previous reports, and there is a push from Tik Tok behind the selection of the East. And behind the rise of another trumpet selected by the East, "Oriental Select Beautiful Life", there is also the push of Tik Tok.

　　Earlier, Yu Minhong also said that the East selected App to develop live broadcast function, and the Tik Tok platform was mutually successful, and there was no contradiction or conflict. "It is the normal behavior of the company to create its own APP platform, and it is also to better serve users and suppliers".

　　However, this incident has had a great impact on the selection of the East. On July 27th, the stock price of Oriental Selection fell by 6.5%. On the evening of 27th, Yu Minhong, who was at the forefront, not only failed to respond to this matter, but also conducted a live dialogue with a choir composed of Mongolian children in his Tik Tok live broadcast room, and 2.43 million people rushed into the live broadcast room to witness the live broadcast.

　　Every cloud has a silver lining, the Oriental selection of APP has been very lively these two days, and the strength of "15% discount on all self-operated products" has attracted hundreds of thousands of people to rush into the live broadcast room of APP.

　　On July 27 th, the Oriental Selection APP once rushed to the fifth place in the IOS free shopping list. In the live broadcast that night, there were two live broadcast rooms on the Oriental Selection APP, namely "Oriental Selection Member Store" and "Oriental Selection Self-operated Products" at the center of this whirlpool. As of 10: 30 in the evening, 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.

　　At present, Oriental Selection is accelerating the construction of recommended apps. Functionally, the small window playback in the background has been realized; There is also a separate live broadcast entrance, and there are also channels such as self-selection, good goods and good prices, and new taste. In terms of live broadcast accounts, nine live broadcast accounts have been set up, in addition to the previous "Oriental Selection", "Treasure of Mountains and Rivers", "Guest Record", "Self-service Supermarket", "Oriental Selection Member Store" and "Oriental Selection Seeing the World", they have been added.

　　On the one hand, Oriental Selection speeds up APP construction, on the other hand, it is trapped by the platform rules of Tik Tok. Different people have different opinions on the reasons why the live broadcast room of self-operated products selected by the East was blocked.

　　Zhuang Shuai, an expert in the retail e-commerce industry and founder of Bailian Consulting, believes that the reasons for violations in the live broadcast room are not ruled out. Zhuang Shuai explained that e-commerce in Tik Tok has clear rules. For example, e-commerce in Tik Tok issued the Code of Conduct for Price Publicity of E-commerce Creators in Tik Tok in January 2023, which was further revised and improved in March, clearly stipulating that commodity prices must be described in a standardized way, consistent with the actual payment price, and no fictional comparison price, fictitious price protection, and no price (such as bargaining) acting.

　　According to The Paper, a person familiar with the matter revealed that Tik Tok decided to close the live broadcast room of Dongfang Selection because it displayed the QR code of its own APP in the live broadcast room in Tik Tok, so as to divert its own APP and guide consumers to place orders and purchase its own APP through Tik Tok, in violation of Tik Tok regulations.

　　But in fact, it is not new for the East to be selected as its own APP drainage. Bento Finance previously reported that in February this year, Oriental Selection was very active in diverting water from Tik Tok to its own APP. Up to now, the six matrix pages of Oriental Selection in Tik Tok have all set the "APPlication Download" column, including the main number of Oriental Selection with 30 million fans. Click it to download the "Oriental Selection App".

　　Although both Dongfang Selection and Tik Tok kept their mouths shut, they did not give too much explanation on this matter. However, an insider close to Tik Tok told Bento Finance that the main reason for Dongfang's selection of banned shops and live broadcast rooms was "opening more", that is, a video live broadcast source was distributed on multiple platforms. In other words, the same live broadcast room uses a live broadcast source in Tik Tok and its own APP, which is not allowed on all platforms.

　　Regarding the above statement, the Oriental selection said that it did not know.

　　According to the above-mentioned insiders, it means that it will be difficult for Dongfang to select Tik Tok platform and Dongfang to select APP for dual-platform live broadcast. So far, on Tik Tok and its own APP, the live accounts with overlapping platforms are Oriental Selection, Self-operated Products, Book Number, Seeing the World and Coming into Wine respectively.

　　Yu Minhong has always been full of hope for dual-platform live broadcast. Previously, when Dongfang selected the APP for solo broadcast, Yu Minhong explained that it would be broadcast live on dual platforms in the future. According to Yu Minhong's vision, the same accounts established by these two platforms will realize "dual platform live broadcast" in the future. Among them, the accounts that have achieved dual-platform live broadcast include "Oriental Selection" and "Looking at the World".

　　Looking at the world is the earliest account for dual-platform live broadcast. On July 5, the Oriental Selection APP was launched for the first time, and the Gansu special event selected by the East to see the world shouldered the burden of dual-platform live broadcast. Since July 11th, the live broadcast of the Tik Tok account of Orient Watch the World has been suspended for more than half a month, except that on July 20th, Watch the World in Tik Tok synchronized with the live broadcast of the sunrise in Heilongjiang.

　　It is worth noting that the live broadcast of the Oriental Selection APP can be watched directly in the WeChat applet selected by the East. In other words, the live broadcast of Oriental selection can be watched on three platforms at the same time, one of which is a WeChat applet with 600 million daily activities.

　　Up to now, the Tik Tok page of Oriental Selection to See the World is still marked with "July 29th, Yangzhou (Double Broadcast)".

　　Although Yu Minhong and Oriental Selection are vigorously promoting their own apps, to a large extent, Oriental Selection has maintained a good relationship with Tik Tok by virtue of dual-platform live broadcast.

　　However, according to the above-mentioned insiders, the road of APP may be bumpy for Oriental Selection who still needs to rely on Tik Tok and tap traffic in Tik Tok. Bento Finance has previously analyzed that one of the major problems that Yu Minhong has to face is how to balance the relationship between Tik Tok and its own platform.

　　On the one hand, the main camp of Oriental selection is still in Tik Tok. Compared with Tik Tok Shangdong's selection of 43 million fans, the conversion rate of Oriental selection APP fans is less than 10%; This can't be compared with Tik Tok's 800 million daily life.

　　On the other hand, the live broadcast of the Oriental Selection APP has not yet fully taken shape. At present, the Oriental Selection APP only achieves online live broadcast of two live broadcast rooms on average every day, and the "sequela" of the dual-platform live broadcast of the Oriental Selection App has already appeared.

　　For example, the selection of the main number in the East, the sales of live broadcasts in the past two months have been seriously reduced. 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.

　　Most importantly, it may affect Yu Minhong's "new goal"-cultural tourism. The selection of the Orient to see the world is related to Yu Minhong's dream of "literary travel". It is a live broadcast room with high hopes in Yu Minhong in the past six months, and it is also the live broadcast account of Dong Yuhui who has appeared live for many times in the past six months. Not long ago, Yu Minhong invested one billion yuan in cultural tourism.

　　The special live broadcast on location can be said to be a sales magic weapon for Oriental selection. When the daily sales of Oriental Selection fluctuate around 20 million GMV, the special live broadcast of Oriental Selection can basically create over 100 million sales, and the daily sales will remain around 50 million. Therefore, Yu Minhong may hope to use the special live broadcast on location to stimulate the selection of the East to see the growth of the world. However, if we only rely on the traffic of our own platform, Yu Minhong's dream of traveling will be greatly reduced.

　　On July 27th, it was not only the first day after the store and live broadcast room for self-operated products were banned, but the night before, New Oriental also released the fourth quarter and annual performance report of fiscal year 2023, in which Oriental Selection was mentioned.

　　Compared with the ban on live broadcast, a set of financial data worthy of attention is that the marketing expenses of Oriental Selection have increased greatly.

　　According to the financial report, the operating costs and expenses of New Oriental in the fourth quarter of fiscal year 2023 (March-May, 2023) were US$ 810 million, up 29.% year-on-year. Among them, sales and marketing expenses increased by 54.3% year-on-year to reach $148 million; Revenue costs increased by 58% year-on-year to reach $390 million. The main reason for the increase points to the substantial increase in costs and expenses related to the selection of self-operated products and live e-commerce business in the East.

　　Source: New Oriental Financial Report

　　That is to say, compared with March-May, 2022, when Oriental Selection was not out of the circle, the money spent on marketing by Oriental Selection in March-May this year is increasing. According to the analysis of Dolphin Investment Research, the operating profit of New Oriental is much weaker than the market expectation (BBG) due to the high consumption of related expenses on live e-commerce. The financial report shows that the operating profit margin of New Oriental in the fourth quarter was 5.5%, lower than 8.8% in the third quarter.

　　Even if it is as powerful as Oriental Selection, it has to invest money in marketing and publicity to tap traffic. Therefore, Oriental Selection needs to tap traffic from the whole platform, and then seek more possibilities for commercial landing, thus boosting the company's revenue and profit margin.

　　Recently, the selection of the Orient has taken aim at the paid membership mode, and it is likely to learn from "Sam". In a live broadcast on July 19, Sun Dongxu revealed the positioning and development direction of the APP for the first time, which mentioned that "in the future, the Oriental Selection Association will establish a member service system to provide paid members with valuable things". According to the "E-commerce Headline" report, at the beginning of this year, it was reported that Dongfang Selection (New Oriental Online) had been studying the cases of Sam, Costco and other warehouse member stores.

　　Whether it's depositing private domain traffic to the APP, or doing cross-border cultural travel with the world account as a seesaw, or launching a paid membership model, it takes time to do it slowly. What do you think? This is not the time for Oriental Selection and Tik Tok to break up. As Dong Yuhui said in the live broadcast room, the Oriental Selection APP will be done slowly, and there is no hurry.

　　Fortunately, however, when the Tik Tok rules are violated, the Oriental Selection can be broadcast live on the APP. A fan selected by the East said, "No matter how good the landlord is, no one likes to rent a house all the time. After all, it is still under the fence, and even if his house is rough, he will feel at ease when he lives."