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wrote a column · Apr 3 15:53

Product-driven approach outperforms individual IPs: Understanding the essential divergence of live-streaming e-commerce through the YouSiYi incident

As consumers become more rational, live-stream e-commerce will eventually shed its traffic bubble and return to the essence of retail — the product is the ultimate truth, and reliability is far more important than traffic.
As consumers become increasingly rational, live-streaming e-commerce will eventually shed its traffic bubble and return to the essence of retail - product quality is the ultimate truth, reliability far outweighs mere traffic. When the scam behind Australia’s YouSiYi was fully exposed, the entire live-streaming e-commerce industry fell into deep reflection. The health supplements touted as Australian imports turned out to be manufactured in a car repair shop in Melbourne, with actual production outsourced domestically. Many top-tier influencers eagerly promoted the products, yet Dongfang Selection had never touched this item from start to finish.  More intriguingly, after Dong Yuhui left Dongfang Selection, his personal live stream pushed the same product to blockbuster success. Meanwhile, despite losing its top influencer, Dongfang Selection not only maintained but even slightly improved its performance.This seemingly contradictory phenomenon is no coincidence; it reflects fundamental differences between product-focused live streams and single-influencer IP live streams, spanning underlying logic to product selection and risk control.As industry observers, let’s set aside the allure of traffic and delve deeply into these two models using a professional yet accessible perspective.  The YouSiYi Scandal: A Mirror Reflecting Two Live-Streaming Models  Let’s first clarify the trick behind YouSiYi simply, without complex industry jargon, so everyone can understand:This is by no means some high-end Australian health supplement; it’s merely a “fake foreign brand” operated by domestic companies.Claiming to have an exclusive factory in Melbourne and that the products are made in Australia, but in reality, the factory address is an auto repair shop and the products are all manufactured by domestic contract factories. Even the so-called import qualifications and efficacy claims are exaggerated, relying on high commissions to attract influencers to promote their goods, selling products with a cost of just a few dozen dollars...
When the scam of the Australian brand U-Sync was exposed, the entire live-stream e-commerce industry fell into deep reflection: health supplements purportedly imported from Australia turned out to be produced domestically, with the supposed Melbourne factory being nothing more than an auto repair shop. Many top influencer live streams eagerly promoted it, yet Oriental Selection had never touched this product from start to finish.
More interestingly, after Dong Yuhui left Oriental Selection, his personal live stream turned this product into a bestseller. However, despite losing its top-tier host, Oriental Selection's performance not only didn’t collapse but remained stable with slight growth.This seemingly contradictory phenomenon is no accident but reflects a fundamental difference between product-focused live streams and single-IP influencer live streams, spanning everything from underlying logic to product selection risk control.As industry observers, we should set aside the allure of traffic and provide a thorough explanation of these two models using both professional and accessible perspectives.
The U-Sync Scandal: A mirror reflecting two different live-streaming models
First, let’s clarify the issues with U-Sync simply, without complex industry jargon, making it easy for everyone to understand:This is not some high-end Australian health supplement; it is merely a 'fake foreign brand' operated by a domestic company.While claiming to have an exclusive factory in Melbourne and that the products are made in Australia, in reality, the factory address is an auto repair shop, and all products are manufactured by domestic contract factories. Even the so-called import qualifications and efficacy claims are exaggerated, relying on high commissions to attract influencers to promote their goods, selling items with a cost of just a few dozen dollars at inflated prices.
Such a problematic product was heavily promoted in Dong Yuhui's 'Journey with Hui' live stream, achieving extremely high sales; however, Oriental Selection never gave it a chance to be listed. It wasn't that Oriental Selection didn't receive a collaboration invitation or that the product's commission was low, but rather, it was eliminated during the initial product selection review. This rejection versus acceptance highlights the core distinction between the two models.
Dong Yuhui's Personal IP Development: Reaching the Peak of Traffic but with Hidden Worries in Quality Control
After leaving Oriental Selection, Dong Yuhui leveraged his accumulated national recognition and fan trust, making his personal IP development an unparalleled success. The 'Journey with Hui' live stream quickly rose to prominence, with its fan base and single-session GMV firmly placing it among the top tier of live-streaming e-commerce. Whether selling daily necessities, health products, or engaging in cultural tourism and cultural IPs, he could effortlessly generate explosive traffic and maximize commercial value, fully carving out his own independent path.
The rapid growth of his live stream can be attributed tothe core logic that fans trust the person more than the product.People are willing to make purchases largely because they recognize Dong Yuhui as a person and trust his recommendations. This IP effect based on personal charisma can quickly translate into sales and allow the live stream to break through traffic bottlenecks in a short time.
However, every advantage has its downside, and the YouSiYi incident exposed the shortcomings of a single-IP live stream:Over-reliance on IP trust often weakens product selection risk control.These live streams chase blockbuster effects and high turnover efficiency. Faced with suppliers presenting 'perfect credentials,' it is difficult to trace the entire supply chain or conduct on-site verification. As a result, carefully falsified products can easily exploit loopholes. In short, the model of a person driving product sales is fast but risky, with product quality entirely tied to personal reputation.
Oriental Selection's Product Philosophy: It’s Not Just a Slogan, but a Bottom Line Engraved in the Process
Many people think that Oriental Selection's 'product-oriented approach' is just empty talk, but that’s not the case. Its implementation involves concrete actions with no hint of pretense, and this is also the fundamental reason it rejected Optislim.
First, there is an extremely stringent product selection risk control,which is Oriental Selection's first line of defense. Every product has to go through multiple rigorous checkpoints: qualification review, raw material traceability, on-site factory inspections, third-party quality checks, and efficacy compliance verification. No step can be skipped. A product like Optislim, which misrepresents its origin and has questionable qualifications, wouldn’t even pass the initial qualification review, getting immediately disqualified without any chance to proceed to subsequent stages.
Second, it focuses on developing self-operated products, taking control of the supply chain.Oriental Selection invests significant effort in creating self-operated products, overseeing every aspect from raw material selection, production processes, factory management to pricing. It avoids private labeling and false advertising, focusing only on delivering genuinely essential quality goods. This model doesn't rely on influencers; instead, it retains users through product quality, naturally leading to higher repurchase rates.
Lastly, it adheres to compliance and authenticity, rejecting products that exploit consumer naivety.Whether it’s health supplements or food items, if there is any violation in promotion, exaggerated pricing, or identity fraud, regardless of how high the commission or how good the traffic, Oriental Selection will outright reject them. Its product selection logic has never been about 'selling what sells best' but rather 'selling what is reliable,' which is the most straightforward implementation of product-oriented principles.
Did performance rise after Dong Yuhui’s departure? Oriental Selection tapped into the long-term logic of live streaming.
Losing a top-tier influencer, Oriental Selection not only avoided decline but actually saw steady growth in performance. Many found this unexpected, but it is precisely the victory of the product-oriented approach.
On one hand, Oriental Selection has fully completed 'de-influencerization,' no longer tying itself to any single individual but building a platform-based, branded live streaming matrix.The hosts can rotate, but the platform's quality control reputation and supply chain advantages remain constant. Users make purchases because of Oriental Selection's brand, not a specific host, significantly enhancing risk resistance.
On the other hand, consumers are becoming increasingly rational. After the traffic frenzy, everyone places greater emphasis on the product itself.In the past, people followed influencers to buy products, only to encounter numerous pitfalls. Now, they prefer live streaming rooms that ensure quality control and avoid gimmicks. Oriental Selection has retained a large base of loyal users through long-term quality accumulation, with self-operated product sales continuously rising, naturally leading to steady overall performance growth.
To put it simply, Dong Yuhui’s departure has allowed Oriental Selection to return to its original focus on products, shedding its reliance on individual hosts and embarking on a more stable long-term development path.
Product-focused live streaming vs. single IP live streaming: What are the fundamental differences?
When comparing the two models side by side, the distinctions become clear without requiring complex professional analysis. In simple terms:
Oriental Selection (product-focused): Operates as an online retail brand, with its core being 'products driving people.'Its core competitiveness lies in the supply chain, quality control system, and brand reputation. Product selection prioritizes safety, quality, and compliance above all else, while the host merely acts as a 'product explainer.' This model progresses slowly but steadily, with a long lifecycle, and won’t collapse due to the departure of any individual. The sole goal is to retain existing users with high-quality products.
Dong Yuhui-style single IP live streaming: Operates as a personal traffic business, with its core being 'people driving products.'Its core competitiveness depends on the host's personal charm and fan trust. Product selection focuses more on potential hit products and commission rates, with product quality tied to the host’s persona. This model ramps up quickly and generates profits fast, but it carries extremely high risks. If a product fails, the host’s reputation will be directly damaged, and it’s difficult to break free from dependence on the personal IP.
In conclusion: The endgame of live-stream e-commerce ultimately comes down to the product
The YouSiYi incident has taught the entire live-stream e-commerce industry a lesson:Traffic and personas are temporary, but product-centricity is the long-term strategy.
A single IP live-stream studio may rely on personal charm to reap short-term traffic dividends, but it can never avoid the pitfalls of quality control; whereas a product-focused live-stream, though perhaps requiring more initial effort in supply chain management and quality control, moving slower at first, can accumulate long-term reputation through quality, leading to increasingly stable growth.
The choices made by Oriental Selection and Dong Yuhui are not absolutely right or wrong, but they do represent a divergence in two different business philosophies. However, one thing is certain:As consumers become more rational, live-stream e-commerce will eventually shed its traffic bubble and return to the essence of retail — the product is the ultimate truth, and reliability far outweighs traffic.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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