In 2021, online education stepped on the brakes and suffered an unprecedented "cold winter".
In the evening of January 8th, Yu Minhong, founder of New Oriental, wrote a document on his official account. He reviewed the work of New Oriental in 2021 and prospected the direction of future transformation.
"At the beginning of the year, it is the time to summarize the past and plan for the future."
Yu Minhong wrote in the article that in 2021, New Oriental encountered too many changes. The market value of fell by 90%, the operating revenue decreased by 80%, 60000 employees were dismissed, and the cash expenses such as tuition, employee dismissal n + 1 and teaching point rent were nearly 20 billion.
"New Oriental has decided to completely stop the ground and online training of K9, break the arm of heroes and do more projects to provide services for the all-round growth of students." Yu Minhong said.
60000 employees dismissed
nearly 20 billion yuan for tuition refund
"In 2021, New Oriental encountered too many changes. Due to policies, epidemic situations, international relations and other reasons, many businesses are in uncertainty." Yu Minhong said in the article.
It is revealed that in 2021, New Oriental decided to completely stop the ground and online training of K9 disciplines, in that year, the market value of New Oriental fell by 90%, the revenue decreased by 80%, 60000 employees were dismissed, and nearly 20 billion yuan of cash expenses such as tuition, n + 1 (compensation) for employee dismissal and rent cancellation of teaching points.
Yu Minhong said that the New Oriental needs to practise frugal economy and choose ordinary restaurants. "To make everyone eat well, I arrange to go to the market to buy some seafood, so that the restaurant can process and wine is changed from the good wine to ordinary Baijiu and red wine."
On October 25 and November 15 last year, New Oriental online and New Oriental successively issued announcements to close the company's K9 discipline training business. It is reported that this part of business accounts for about 60% of New Oriental's revenue. According to the revenue data of the latest fiscal year, New Oriental's revenue will decrease by $2.566 billion.
"in the past six months, New Oriental has managed to survive and preserved some strength." Yu Minhong said.
transformation quality, literacy, research and learning, camp education
Yu Minhong said that New Oriental decided to completely stop the ground and online training of K9, break the arm of heroes, and do more projects to provide services for the comprehensive growth of students, such as quality, literacy, research and camp education. At the same time, it decided to increase investment in the college student market and overseas Chinese market.
Yu Minhong said: facing the future, my requirement for you is still to "do certain things in uncertainty". the so-called uncertainty means that the situation and policies are still changing. We should adapt to the changes of the situation and policies and look for development opportunities in line with the major policies; The so-called doing certain things is always doing things that are valuable, help others and help social progress, which is what I call "cultivating yourself and benefiting others".
Yu Minhong starts live selling
Yu Minhong also revealed that New Oriental online, with Hong Kong listed companies as the main body, has established an e-commerce platform for Oriental selection and transformation into Shenzhen Agricultural Products Group Co.Ltd(000061) screening and sales, providing product value-added services for farmers across the country.
on December 28, 2021, Yu Minhong, founder of New Oriental, officially opened the special live broadcast of agricultural assistance. meanwhile, sun Dongxu, CEO of New Oriental online, started broadcasting at the same time with the live studio of "Oriental selection".
Oriental selection is the large-scale agricultural platform previously introduced by Yu Minhong, operated by New Oriental online, which is an important transformation direction of this online education platform.
However, the debut was not perfect.
According to the statistics of a number of third-party institutions, Yu Minhong's live delivery performance of more than three hours was about 4.8 million yuan, ranking 16th in the anchor list of delivery that night.
The difficult transformation has just begun. Although it is already the Red Sea, the live broadcast and large agricultural industry market has a huge scale. "I am relatively satisfied with this performance. Oriental selection has just set foot in the live broadcasting industry of agricultural products, and we still need to learn and run in for a long time," a relevant person of New Oriental online told the 21st Century Business Herald.
He also introduced that at present, more than 100 New Oriental teachers have established an anchor association to create a vertical account with goods.
why did you choose live delivery Shenzhen Agricultural Products Group Co.Ltd(000061) ?
New Oriental once introduced it for two reasons:
First, Yu Minhong himself likes agriculture. Yu Minhong once said that he likes agriculture. He grew up in rural areas from the age of 1 to 18. All Shenzhen Agricultural Products Group Co.Ltd(000061) can be planted in his hometown. Since he was a child, he liked to watch crops, such as wheat seedlings, emerge from the ground, slowly become green, flourish after frost and winter, and finally bear a golden ear of wheat. That feeling brought him incomparable happiness.
The second is to do the right thing. Yu Minhong once talked with farmers about Shenzhen Agricultural Products Group Co.Ltd(000061) sales. A few years ago, he passed by farmland in Shandong and talked with local farmers. The main crop for local farmers to generate income is garlic. Because the price of garlic was very good the previous year, many local people changed to garlic this year. Finally, the supply exceeded the demand. The original garlic of 10 yuan / kg can only be sold for 2 yuan / kg, which is equivalent to that the farmers worked hard for a year, but they did it in vain. So Yu Minhong sprouted the idea of building a platform to help farmers sell.
Shenzhen Agricultural Products Group Co.Ltd(000061) live debut
Yu Minhong: "we only sell 5 million "
Many netizens' biggest impression of Yu Minhong's live debut of helping farmers is expensive.
A box of 15 apples costs 128 yuan, a box of quinoa in Sunan, Gansu Province costs 199 yuan, and an 8-kg box of high calcium rice is 268 yuan. A nearly 10kg organic flour gift box is priced at 960 yuan, even Yu Minhong himself said: "everyone should be prepared. One kind of flour is super expensive, which surprised me."
During the live broadcast, Yu Minhong has been explaining the reasons for "expensive":
"We want to be the cheapest of similar products of the same brand. For example, Wuchang rice is already few and expensive. We can be the cheapest among Wuchang rice. Of course, we can\'t compare with other rice."
(Yu Minhong parachuted into the Oriental selection studio and brought the goods with sun Dongxu, CEO of New Oriental online. Source: Official wechat of New Oriental online)
According to the data of cicada mother, a total of 31 commodities were launched in the "Oriental selection" live broadcasting room that night, including fruits, vegetables, fresh meat, grain and oil and other agricultural and sideline products. The total sales volume was 53000 pieces, the sales volume was 4.588 million, the customer unit price was about 86 yuan, and the conversion rate of goods was 2.85%.
According to the data of grey dolphin, Yu Minhong's sound wave income (reward) of this Shenzhen Agricultural Products Group Co.Ltd(000061) live broadcast is between 100000 yuan and 500000 yuan.
In contrast, in the same period, in Luo Yonghao's live broadcasting room, although Luo Yonghao did not show up, the live broadcasting sales reached 920000 and the sales exceeded 20 million yuan. Luo Yonghao's tiktok live show was up to 110 million yuan, and more than 48 million people entered the studio.
Even Yu Minhong sighed at the end of the live broadcast: "the sales of other people's live broadcast can easily exceed 100 million, we only sell 5 million. It seems that the unit price of Shenzhen Agricultural Products Group Co.Ltd(000061) is too low."
there is no Yu Minhong's live studio
less than 900000 goods a week
The road to transformation is not easy. With high prices and few choices, Oriental selection faces many tests in the field of live e-commerce.
Take the live delivery of New Oriental as an example. According to the data of feigua, a third-party data platform, on the day of its premiere on December 28, the sales of Yu Minhong's live studio reached 4.932 million and the number of viewers reached 1.869 million. The live broadcast increased 44000 fans to the account.
But since then, without Yu Minhong's personal appearance, the popularity of live broadcasting of New Oriental has decreased significantly.
From the live broadcast data, the broadcast has been intensively launched since December 28, and the Oriental selection basically maintains the live broadcast duration of 3 to 4 hours a day. However, the results of live broadcasting are not brilliant. The number of visitors is basically only 100000, and the sales are around 200000.
According to feigua data, the total sales of seven live broadcasts from December 29 to January 4 were less than 900000.
(Figure source: Flying melon data)
invest in Xinwei film company to shoot inspirational films
Yu Minhong also mentioned in the "year-end summary" that Xinwei film company invested by New Oriental made an inspirational film last year, the prototype of which is a Yi youth basketball team in Daliangshan area.
This is a very inspirational story. Yu Minhong said that since last year, New Oriental has participated in investment and made the story into a film. Recently, the first film has been cut into. On the afternoon of the 6th, I took some people from New Oriental to see the film at the magic shadow international cinema in Delta Center and put forward some suggestions for revising the content. The plot basically follows the real story, and the whole is a very moving film.
"at first, the film was intended to be made into an online film, but now it wants to be promoted into a cinema film. In terms of inspirational films, New Oriental may further invest in the future."
"Work hard, study hard and look for new directions. These should be my three themes in 2022." Yu Minhong said.
Source: 21st Century Business Herald (jjbd21; Wang Feng), Lao Yu's idle talk, securities times, 36 krypton · future consumption
(source: 21st Century Business Herald)
