Chinese private tutoring institution New Oriental Education is trying to build its own supply chain for its “Oriental Selection” live-streaming channel which has recently gained popularity through bilingual introduction, local media outlet The Paper reported on Friday, citing people familiar with the matter.
According to the above sources, considering the self-built supply chain is mainly to ensure after-sales services and product quality, as well as reduce costs. The company’s goal is to make Oriental Selection a brand, the sources added.
On December 28, 2021, New Oriental Education launched its Oriental Selection live-streaming platform through which the company mainly sells agricultural products. Michael Yu, founder of New Oriental Education, said on Thursday that the new channel has grown far faster than he expected. On June 10, the number of followers of Oriental Selection’s account increased by over 470,000 while the number of followers exceeded 6 million on June 15 and now is more than 13 million.
The characteristics of Oriental Selection’s livestreamers are bilingual teaching, talking about life and history, telling stories behind every agricultural product, and sharing their own experiences.
However, at present, Oriental Selection does not have its own supply chain which means that the brands it is cooperating are mostly responsible for delivery and after-sales services. In fact, recently, consumers have found that they had purchased poor quality products through the live-streaming channel. Storage and transportation have also greatly influenced the quality of agricultural products.
As a rookie in the field of live-streaming, New Oriental Education has a low commission ratio and a small number of samples required, which are all advantageous strategies to quickly find partners and attract brands in the initial stage. A self-built supply chain would better ensure the quality of agricultural products it is selling through its channel.