Yu Minhong still failed to keep Dong Yuhui

Market Cap Rankings

2024-07-26 09:20Published in Sichuan

Text: Xiang Qing Xiaopeng, Editor: Xu Wei, Producer: Growth Works

It is easy to share hardships and hardships, and it is difficult to share wealth and wealth. Dong Yuhui and Dongfang Selection finally came to the step of "breaking up".

On July 25, Dongfang Selection issued an announcement, officially announcing Dong Yuhui's resignation and Dong Yuhui's wholly-owned acquisition of "Walking with Hui" with 76.5855 million yuan.

Yu Minhong said, "In order to express my gratitude to Yuhui, in addition to the full benefits that have been paid, I have asked the board of directors and the remuneration committee to obtain their consent to reward Yuhui with all the net profits of the company with Yuhui." ”

According to the announcement, from its establishment on December 22, 2023 to June 30, 2024, the net profit was 141.414 million yuan.

In addition, Yu Minhong further explained the information in the announcement, "I arranged the money for Yuhui to buy the company, and the company gave it to Yuhui", "All the income and profits obtained by Walk with Hui since its establishment, Dongfang Selection has not taken a penny".

In other words, Dong Yuhui did not choose to "break up" immediately after the "small composition" incident, and it is really not a loss, or even a "profit", after all, he continued to work in Dongfang Selection for more than 7 months, and he got 100% equity and 140 million yuan with Hui.

Regarding the "breakup", Yu Minhong and Dong Yuhui issued an open letter almost before and after.

Lao Yu said in the letter that the matter had been determined around March this year, and the reason was "the power of public opinion". He said: "The complex public opinion disputes, coupled with the guidance and rumor-mongering of a few forces with ulterior motives, have directly led to the estrangement between Dongfang Selection and Hui's peers. ”

Dong Yuhui's letter is still "poetry and distance", he did not mention too much about the reason for the "breakup", but reviewed the development of walking with Hui and thanked Yu Minhong and Dongfang Selection, and said: "Breaking away from the blessing of the port, walking with Hui from today onwards, I will sail alone to the vast sea." The future is unpredictable, so we have to go all out. ”

After the "breakup", Growth Works observed the live broadcast rooms of Dongfang Selection and Walking with Hui, and almost all of the two live broadcast rooms were "blessings" and "cheers", and it seems that the two fans have been looking forward to this "breakup" for a long time.

First, the rift has been created since last year

It can be seen from the "breakup" response issued by Yu Minhong and Dong Yuhui that there is no gap between Yu Minhong and Dong Yuhui, even if the "separation" has been basically determined as early as March, it will provide support as much as possible, including new office space, decoration, and the docking of government resources and business opportunities.

In the first live broadcast of moving to the new work area with Hui, Dong Yuhui also expressed his gratitude to Yu Minhong, saying that the fact that he was able to start broadcasting quickly in a short period of time was entirely due to Mr. Yu, "He gave us a lot of encouragement and tolerance." ”

Treating Dong Yuhui, a meritorious minister who fought the country, Yu Minhong is kind.

However, in the commercial society, kindness cannot solve the problem, cannot make up for the rift between Dong Yuhui and Dongfang Selection, and it is difficult to maintain the situation of the common development of Dongfang Selection's original business and Hui's peer business, and it cannot eliminate the doubts of the outside world.

In response, Yu Minhong did not shy away from tearing the rift to the biggest catalyst - the small composition incident.

In December last year, a dispute broke out around the golden sign of Dongfang Selection - who wrote the small essay, and fans tried their best to defend Dong Yuhui, thinking that Dongfang Selection was erasing Dong Yuhui's contribution, and after being attacked, Sun Dongxu, the CEO of Dongfang Selection at the time, came out to apologize, and at the same time caused a new round of controversy, including "holding a meeting for fans", "smashing mobile phones" and mentioning "fan circle behavior".

Then, Dong Yuhui issued a thousand-word response, and also emphasized that he opposes the fan circle culture and opposes stigmatizing anyone in the name of "fan circle".

The reason why the dispute is so fierce is that fans believe that Dong Yuhui is becoming less and less valued.

Since November last year, Dong Yuhui's live broadcast time has become less and less, and he has withdrawn from the prime time of 7 o'clock to 10 o'clock in the live broadcast room.

Within New Oriental, Dong Yuhui's status is not as sought after by the outside world. Previously, at the 30th anniversary celebration of New Oriental, Dong Yuhui was revealed that he couldn't get in without a ticket, and it was Yu Minhong who coordinated to get in.

This is completely different from other live broadcast MCN agencies, Li Jiaqi, Xiao Yangge, and the MCN behind Simba are all around the anchor IP to amplify the network effect, and these super-head anchors also have far greater voice than Dong Yuhui.

The small composition incident finally ended with the establishment of Dong Yuhui with Hui as the sole responsibility.

Second, walking with Hui has full wings

Break up at this moment, and walk with Hui with full fledgling.

On July 21, the premiere of "Walking with Hui" after moving to the new work area took only 10 minutes to reach the first place in the overall list of goods. When Dong Yuhui appeared, the number of people online in the live broadcast room soared to 515,000. Archaeology plus data shows that the sales of this live broadcast are as high as 50 million to 75 million.

In fact, since its premiere on January 9 this year, the ability to carry goods with Hui has been obvious to all.

According to Feigua data, in the first five months of this year, the sales of Hui's peers were 932 million yuan, 411 million yuan, 620 million yuan, 538 million yuan, and 533 million yuan respectively, which has surpassed Dongfang Selection.

In contrast, Oriental Selection has declined. According to Feigua data, in the list of Douyin experts with goods in June, he ranked second with 573 million yuan, while Dongfang Selection's sales were only 210 million yuan, ranking 11th, which is the first time that Dongfang Selection has fallen out of the top ten of the monthly list of goods experts this year.

Not only is the sales data far superior to Oriental Selection, but in terms of the style of bringing goods, Walking with Hui also retains the style of the early Oriental Selection Cultural Live Broadcast Room.

For example, talk about management with Haier founder Zhang Ruimin, Huawei Yu Chengdong and other bigwigs; talked about literature with writers such as Chen Xingjia and Liang Xiaosheng; Chat with Andy Lau, Ning Hao and other stars about movies.

But in these conversations, the goods are sold. Interview with Huawei's Yu Chengdong, sales of up to 100 million+; chatted with Liang Xiaosheng and Cai Chongda about literature, and sold nearly 1 million copies of "People's Literature" magazine in 4 hours; chatted with Andy Lau about movies, and 600,000 movie tickets were gone.

In the past two years, the competition of live broadcast e-commerce has evolved from commodity competition to content competition.

People in the live broadcast industry once analyzed Growth Works, saying that the current live broadcast industry is seriously homogeneous, and there is no significant difference in the goods and prices of each live broadcast room. If you don't differentiate yourself in content, it's hard to stand out. It is precisely because these content-based live broadcast rooms can provide emotional value to users that users are willing to pay.

Walking with Hui retains the characteristics of the previous content-based live broadcast, while Dongfang Selection has changed.

In June of this year, the topic of "After Dong Yuhui left, the painting style of the Dongfang Selection Live Room changed" rushed to the hot search, and the anchor shouted hard about his products, "You are here, buy a single and then go", "321, on the link!" Many netizens were disappointed by this: "How did the most literate live broadcast room on the whole network become like this."

Now, leaving Dongfang Selection, he will completely become an MCN institution, Dong Yuhui's status as a super anchor is like Li Jiaqi is to the United States, Brother Xiao Yang is to the three sheep, and even surpasses, after all, he now holds 100% of the shares.

However, walking with Hui is not without shortcomings.

In the past, we shared the supply chain with Dongfang Selection, but in the future, we will build our own supply chain. But I believe it can be solved soon, after all, in this era where supply exceeds demand, a super IP that can sell goods is the core advantage, and the back-end supply chain capability is a high-quality resource, but not a scarce resource.

In the future, Oriental Selection will face the competition with Hui.

There is a large overlap between the two in the category of live broadcasting, and in the category of goods brought by Hui, food and beverage, smart home, and fresh food are in the top three, and the same is true for Dongfang Selection.

Third, Dongfang Selection is lame

For a long time, Dongfang Selection's stock price has been closely related to Dong Yuhui.

For example, in the three trading days of the fermentation of small compositions, the stock price of Dongfang Selection fell by 19%, and the market value evaporated by nearly 6 billion yuan.

In the eyes of people who appreciate Dong Yuhui, this is recklessness, but Dongfang Selection is a public company and needs to be responsible to public shareholders, Dong Yuhui is both a partner and a core asset, and his remarks have brought great fluctuations to the market value of Dongfang Selection, which is by no means a responsible behavior for investors.

The loss of Dong Yuhui will inevitably bring another impact on the stock price of Dongfang Selection, and the repurchase announcement just released by Dongfang Selection is not unrelated to this.

But at least, Dongfang Selection has the opportunity to embark on a more controllable path, like Qianxun after Wei Ya no longer broadcasts, and like "going to Luo Yonghao" to make friends.

On this road, Dongfang Selection can still have head anchors, mid-waist anchors and small anchors, with clear echelons, but the importance of "head" should be controlled at such a level, that is, after losing him, it will not hurt the muscles and bones, it can only be regarded as a skin injury that heals quickly, and the new anchor can quickly come up.

Dongfang Selection understands better than anyone that eggs cannot be put in the same basket, and understands the importance of risk diversification better than anyone else.

First, Yu Minhong realized early on that "the lively business model established based on external platforms is very fragile", so he launched his own APP as early as when the gap with Douyin was not on the table.

Second, Dongfang Selection has always been a multi-channel layout, with layouts on video accounts and Taobao.

Third, we are not willing to only do traffic business, but also rely on traffic to go upstream, such as agricultural products, such as not only selling tourism products in the business concept of cultural tourism, but also including the business of some offline travel agencies.

Of course, diversifying risk also includes cultivating more streamers.

But Dongfang Selection will also face another important problem - Dongfang Selection is not only a sales channel, it is also a brand.

In addition to the factor of opening the traffic, Dongfang selection is different from making a friend, being humble, and looking at the network from afar.

The proportion of self-operated products in the plate of GMV selected by Dongfang has increased from 20% to about 30%, and the proportion of self-operated products in the plate of income of Dongfang selection is even higher, nearly 7%.

Sun Dongxu also mentioned that the future plan of self-operated products is to account for no more than half of GMV, and there is still some room for improvement.

It is different from selling third-party products to earn commissions, and earning commissions can be promoted by talking about low prices, which does not hurt the interests of the upstream of the supply chain, which is a secondary consideration.

Being a brand is a long-term thing, and whether it can be done well or not depends on several key elements: the product has a sense of differentiation and story. Under the concept of cost-effective consumption, there is also a way to add similar goods, which have a price advantage, but this is not the way for Oriental selection.

The explosive products selected by Dongfang are generally more common categories, such as grilled sausages, and the difference lies in the simple ingredients and solid ingredients. However, more self-operated categories are not like self-built sausage factories, but rely on OEM.

On the one hand, common categories produced in the form of OEM are easier to be imitated, and the sales of self-operated products need the blessing of "brand power". On the other hand, even if the product itself is superior to the same kind, an anchor like "Dong Yuhui" with strong plastic product ability is needed to publicize the differences.

The sense of story and feelings have become the label of Oriental selection.

In other words, in addition to selling goods, the anchors selected by Dongfang also undertake the work of brand building.

Brand building, the negative example, is Li Jiaqi's rhetoric when talking about the rationality of Huaxizi eyebrow pencil selling for 79 yuan, the positive example, is Li Jiaqi's early delivery of lipsticks of different colors to show different beauty, and it is also Dong Yuhui when he was questioned whether the price of corn sold for 6 yuan was too high, and he could use "grain cheapness to hurt farmers" and "time when he was a child" to give corn extra value.

Some people will say that the other anchors selected by Dongfang are not bookish? Can't you make it an export? Can't they take on the responsibility of brand building?

No.

Now, users make consumption decisions not only by the publicity and planting of brands and talents, but also by the experiential sharing and communication between people. Loyal fans of anchors have increasingly become an important part of brand voice communication.

The construction of Dongfang Selection's brand power depends on a product that satisfies consumers, and it also depends on these fans to speed up brand building, so that they can walk fast and stable on two legs.

Losing Dong Yuhui, Dongfang Selection is like a lame leg, and it may take a long time to "recover".

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