[The Power of Capital] Live-Stream Shopping vs. Conversations Among Friends: Has Yu Minhong Turned Live Streaming into an Entertaining Show?

Yu Minhong is actively engaged on the front lines of live streaming.

Recently, Yu Minhong, the founder of New Oriental, has been increasingly active, engaging in live video chats with leading experts and scholars from fields such as literature, psychology, and collecting. These conversations cover topics like emotions, mental health, and cultural relics, offering modern audiences a steady stream of "chicken soup" for the soul.

Just as Yu Minhong is pivoting to live-streaming to boost his popularity, New Oriental's shares on both the Hong Kong and US stock markets have gradually stabilized, with US shares up more than 15% and Hong Kong shares up more than 14% over the past 20 days.

Yu Minhong's "de-New Oriental" transformation?

Whether it's livestreaming sales or connecting with celebrities from all walks of life to discuss "silk and hemp," the New Oriental brand imprint and symbolic association tied to Yu Minhong seem to be fading.

In 2021, following the "Double Reduction" policy, Yu Minhong, as an education professional, wholeheartedly embraced the livestreaming boom and joined the ranks of numerous internet industry leaders who have taken to live broadcasting.

After sparking the 2020 livestreaming boom among entrepreneurs, figures like Liang Jianzhang of Ctrip and Dong Mingzhu of Gree have since shifted their focus away from the livestreaming space. By contrast, Zhang Chaoyang of Sohu has consistently pursued livestreaming programming, yet his efforts have struggled to attract a broad audience, with far less buzz than that generated by e-commerce influencers like Li Guoqing of Dangdang.

Li Guoqing also turned to livestreaming after leaving Dangdang, launching an online book-reading show—yet in the end, it was livestreaming that truly made him feel at home. Looking back, Li Guoqing recalls that after leaving Dangdang he sank into a week-long slump, even getting drunk at one point, only to pull himself together and immediately set out to start another venture. One can't help but wonder whether Yu Minhong has ever experienced a similar emotional journey amid the relentless tide at New Oriental.

Looking at it now, despite both being Peking University alumni and having devoted themselves to the livestreaming industry, Yu Minhong and Li Guoqing have each forged strikingly different styles and paths.

Li Guoqing has now reached a remarkable peak in his livestreaming e-commerce ventures, and with the line "Please call me Qingzi," he has showcased his humorous self-deprecation and bold, unrestrained personality to the public.

Meanwhile, Yu Minhong's livestreams no longer seem to focus on product sales; he is now thriving on his WeChat Video Account, "Old Yu's Chats," where he sometimes comes across as a poised master of emotion and at other times as a seasoned sage.

It can be said that Yu Minhong's livestreams place greater emphasis on "casual chat" and "everyday life."

In conversations with a group of wise intellectuals and experts, Yu Minhong seems to have truly found peace and inner stillness, occasionally distilling his reflections into inspiring essays that he shares on his personal WeChat public account—words that both motivate himself and uplift his readers.

Livestream Shopping vs. Joint Discussion on "Mulberry and Hemp"

Since the "Double Reduction" policy was implemented in 2021, the market has been closely watching the developments of New Oriental, the leading education and training company.

At this juncture, social media has become Yu Minhong's platform for expressing his thoughts and feelings, sharing personal updates, and even engaging with the outside world. Yu Minhong is also spending more time online.

In November 2021, Yu Minhong launched a livestream on Douyin, sparking a viral sensation online. At first, he focused on selling books and agricultural products through his livestream channel.

Opinions among netizens on this matter are fairly divided: some say that for Yu Minhong, who once reigned supreme in the industry, his livestream audience of just over 10,000 is already a far cry from his former glory.

However, Yu Minhong appears to have found his niche: during a livestream, he revealed that New Oriental plans to build a large-scale agricultural platform.

Following a brief period of promotion and groundwork, Yu Minhong kicked off his first agricultural-product livestream on Douyin on the evening of December 28, 2021, while simultaneously launching "Dongfang Zhenxuan," New Oriental's dedicated livestreaming platform for agricultural products.

On the day, the livestream showcased dozens of agricultural products, including rice, flour, cooking oil, fresh fruits, and New Year gift boxes; however, many viewers complained that the prices were relatively high. In response, Yu Minhong said, "The products we are promoting may not be the cheapest in their category, but they are certainly the best. These agricultural goods are grown using green, pollution-free methods, which naturally increases production costs."

In other words, Dongfang Zhenxuan positions itself as offering premium quality rather than affordability, such as a box of 15 apples priced at 128 yuan, a box of quinoa from Sunan, Gansu, priced at 199 yuan, and an eight-jin package of high-calcium Daohuaxiang rice priced at 268 yuan.

However, many industry insiders believe that, among the countless livestreaming e-commerce models, it is extremely challenging for agricultural product livestreaming to achieve significant success.

It can be said that Yu Minhong has chosen the toughest challenge.As for why he chose to promote agricultural products through livestreaming,Yu Minhong stated on his official WeChat account, "Old Yu's Chats," that he has a deep affection for agriculture: having grown up in the countryside and once worked the land, he has long cherished watching crops grow.

However, since the beginning of 2022, Yu Minhong appears to have stepped back from livestreaming for Dongfang Zhenxuan. Whenever he does make headlines, it’s usually because he’s connected via livestream with figures like Fan Deng and Li Guoqing for a friendly chat.

Occasional bursts of insightful quotes and wise remarks resonate deeply with viewers, fostering a sense of shared understanding and emotional connection. This "chatting about everyday life" livestream format, in fact, has drawn substantial audience participation and garnered a positive response.

Even under relentless pressure, Yu Minhong recently published a new book, "Traveling Far Through the Years," and penned a foreword titled "Moving Forward with Steadfast Resolve in an Uncertain World."

Viewed in this light, could it be that Yu Minhong has lost interest in livestreaming e-commerce?

During his participation in the 'Air Yabuli' event held in May, Yu Minhong stated that he hadn't even grasped the business logic behind live streaming, so he simply switched to having casual conversations with his friends.

As for the development of Dongfang Zhenxuan, Yu Minhong says he's not in a rush: 'Many big-name livestreaming influencers achieve sales of hundreds of millions—or even several hundred million—within just a few months, but my livestreams aren't generating any sales yet.'

'For example, if Dongfang Zhenxuan aims to achieve 1 billion yuan in sales this year and 2 billion yuan next year, but your foundational work isn't solid, no matter how much you scale up, it won't make a difference.'

He prefers to 'do urgent matters slowly'—the more important the task, the more carefully it should be thought through before being executed with precision.

A New Opportunity for New Oriental?

Although he has once again become active on the front lines of the internet, Yu Minhong appears to have temporarily downplayed the 'New Oriental' label. Nevertheless, Dongfang Zhenxuan remains part of New Oriental, and Yu Minhong still cannot let go of New Oriental.

Under the current restructuring of New Oriental's business, Yu Minhong has shaken off his earlier gloom and now believes that New Oriental is poised to seize 'endless new opportunities for growth.'

'Overall, I believe that since 2022, New Oriental has entered a new phase—a fresh start on the path to renewed glory after more than two decades of success.'

In November 2021, Yu Minhong posted a message on his WeChat Moments: 'The era of after-school tutoring has come to an end,' adding that New Oriental has donated nearly 80,000 sets of brand-new desks and chairs to rural schools.

Yu Minhong's gesture is truly touching; one netizen commented, 'Even while getting drenched in the rain himself, he still remembers to hold an umbrella over others.' In doing so, he has effectively brought New Oriental's first half of its development to a close.

Regarding the next phase of New Oriental's development, Yu Minhong stated in his speech at the 2022 Spring Festival Gala that the company is leaving no stone unturned and racing against time to identify and launch new business initiatives. We have swiftly pinpointed several promising new growth areas.

As is well known, New Oriental has now completely ceased both its in-person K-9 tutoring services and its online K-9 tutoring services. However, in response to the demand for self-study materials and learning systems tailored for K-9 students, New Oriental aims to launch new initiatives—provided they comply with national policies.

Meanwhile, quality education initiatives such as study tours, research-based learning, and camp-based education, along with our established university services, overseas study programs, publishing, and study-abroad consulting, continue to perform steadily.

Despite being in a phase of business restructuring, New Oriental's remaining core businesses continue to exhibit promising prospects. According to the unaudited financial results for the third quarter ended February 28, 2022, during the first nine months of the current fiscal year, revenue from New Oriental's overseas exam preparation and study-abroad consulting services increased by 15% year on year, while revenue from its domestic exam preparation services targeting adults and college students rose by approximately 59% year on year.

As of February 28, 2022, New Oriental's cash and cash equivalents, time deposits, and short-term investments totaled approximately USD 4.4 billion.

Thanks to sound cash-flow management, as Yu Minhong put it, 'New Oriental currently has no financial constraints.'

Active on the front lines of the internet, Yu Minhong may have once again found a new direction.

Author: Li Ying

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