BEIJING, June 14 (TMTPOST)—New Oriental Education & Technology Group has scaled up efforts for transition from its core business amid the tutoring crackdown in the home market as the Chinese online education giant tried to turn livestreaming into one of its most potential sales powerhouses.
New Oriental’s the live commerce platform Oriental Selection, also known as Dongfangzhenxuan, is fully controlled by Beijing New Oriental Xuncheng Network Technology Co., Ltd, (“New Oriental Xuncheng”), which has so far established six units offering a wide range of businesses from book publishing, cultural and creative industries to electronics, according to Tianyancha, an online database of Chinese businesses. Moreover, New Oriental Xuncheng has applied for various registered trademarks of Oriental Selection or Dongfangzhenxuan to obtain relevant intellectual property, and Oriental Selection itself sought to registertrademarks including Haowudongfang and Haowudongfanglai, which means “excellent goods from the oriental”.
These moves came as New Oriental’s promoting various products through livestreaming went viral and surprisingly showed its strength in live e-commerce these days. Oriental Selection’s e-commerce channel on the branded live stream platform of Douyin has gained about 1.6 million followers and generated a gross merchandise value (GMV) of nearly RMB18 million (US$2.67 million) in three days from June 10, days after New Oriental’s founder Yu Minhong announced to build a team of liverstream hosts. The results suggest the Chinese private education service giant achieved success in its unique online bilingual sales, namely, to sell goods while teaching related English words and phrases.
Take the most popular livestreamer Dong Yuhui, a New Oriental English teacher who has taught 500,000 students over the past eight years, for instance. His sales room saw more than 6,700 orders of peaches in a few minutes after he started the promotion last Friday morning alone. The third party data showed more than 12.7 million people viewed Oriental Selection’s sales program last Saturday, with a daily GMV of RMB21 million.
New Oriental has been shifting focus since China introduced so-called "double reduction" policy in last May to reduce burdens of both homework and after-school tutoring on students. To adapt itself to the new policy, Yu said that the US-listed New Oriental will continue to focus on education, while Hong Kong-listed New Oriental Online has opened a new business of live broadcasting.
The American depositary receipts (ADRs) of New Oriental surged about 24% Tuesday following the previous day’s rally of nearly 6%, when the stock was upgraded by JPMorgan Chase analyst DS Kim from neutral to overweight. Kim believes that New Oriental"s stock has been battered to the point where it"s a compelling buy, though uncertainties of tutoring regulatory in China remained.
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