New Oriental Only sold 4.54 million yuan, and Yu said there was no turning back, with 1 million yuan going into integrated circuits

2022-05-11 0 By

It has been nearly four months since education and training company New Oriental announced a shift to selling goods.Public data on February 18 this year show that New Oriental from the establishment of livestreaming with goods company, cumulative sales of 4.54 million yuan.What does this data mean for the former education and training giant New Oriental?01 New Oriental only take goods 4.54 million yuan the answer is too little.In 2019, New Oriental earned 3.096 billion US dollars, or 19.5 billion yuan, from education and training.Although the transformation has just begun, with the resources of New Oriental and the influence of Yu Minhong, as well as the year-end deadline, the sales result is still only 4.54 million yuan, which should not be the strength of New Oriental anyway.It is reported that New Oriental first launched on December 28, and by the day of data release, the company has sold a total of 81,400 products.Many people may say that new Oriental sales is not much, why the hand of money is not much?First of all, Yu Minhong locked his product range in the field of agricultural products at the beginning of taking goods.According to Yu minhong, as a child from the countryside, he has a special affection for farmers and agricultural products.So most of new Oriental’s live broadcasts are about fruits, grains and other products.Friends who know about agricultural products must know that the profit margin of these things is actually very small, compared with some science and technology products or drinks products, the profit gap is very large.Second is now live with goods platform is relatively high.Some take the goods team, one breath take up to 50% of the commission.And that’s not even counting the cost of supplies and personnel for the broadcast.Therefore, the choice to withdraw from the messy education and training industry, to start a new business, even such a giant company as New Oriental seems to be in a bit of a mess.Yu Minhong has publicly responded to such achievements.In his social media account, Yu minhong said, “Now New Oriental has to start from scratch, and has a new goal. The company has no way back.”Indeed, on January 21 this year, New Oriental announced a set of data about New Oriental.The company from the last financial reporting period, until the end of January, the cumulative loss is expected to be up to 5 billion yuan.On top of that, the company has laid off 60,000 workers since the industry shake-up in 2021.It is understood that new Oriental closed most of its schools when it was in the most difficult period, and the few remaining schools could only offer the minimum salary to their teachers.At that time, the average salary new Oriental could afford was only 1,400 yuan, and even if every teacher was paid in full, the monthly income was only about 2,000 yuan.For this reason, many teachers chose to resign.Yu Minhong also frankly admitted that “the company has failed teachers and employees.”Fortunately, although Yu Minhong has passed the age of 60, he still has a bold and ambitious dream in his heart. Facing the “double reduction” management method widely promoted in China, Yu Minhong began to seriously think about the way to change in the future.In addition to the live broadcast now with goods, Yu Minhong will focus on a more high-end field.On February 17 this year, a taiyuan company named Layout Future Technology was officially registered.The company, with a registered capital of 1 million yuan, is involved in areas including but not limited to integrated circuit design and sales, as well as 5G communication technology services.The holding group behind the company is a Beijing-based private tutoring company, which is a wholly owned subsidiary of New Oriental, according to equity information.That is to say, this time Yu Minhong determined to enter the integrated circuit and other technical fields of development.At the beginning, Yu minhong entered the live broadcasting industry considering the influence of New Oriental and himself, so it was relatively easy to enter the game.As it turns out, although the initial revenue was not so ideal, New Oriental has successfully stepped into the education industry, which proves that there are many opportunities for New revenue channels in the future.However, in view of the different attitudes towards New Oriental Live Broadcasting, Yu Minhong will again take steps from the live broadcasting industry and choose to enter the integrated circuit industry.But put aside the technical difficulty of this industry, just the competition within the industry has reached an unprecedented fierce state.The head enterprises are huawei, ZTE and other established giants, in addition, unigroup Zhanrui, Hao Wei technology and other enterprises are also growing in strength.If it can’t grab customers and orders from these enterprises, the transformation of New Oriental will be very difficult.But Mr Yu does not seem worried.On February 1, Yu Minhong said that In the future, New Oriental will start with both software and hardware to create an intelligent indoor and outdoor teaching system.To put it simply, Yu minhong’s ultimate goal is to resume his old career and break new ground in the field of education and teaching with the help of integrated circuit and communication technology.Compared with live broadcasting, what Yu minhong longs for most is to go back to the teaching field he is good at.Now it is impossible to return directly, but to fund the research and development of higher-end teaching products through livestreaming.Although the 1 million yuan that New Oriental has been instructed to spend at present cannot establish much competitive advantage, with its strength and current development trend, new Oriental may also gradually create a new industry technology.Therefore, yu minhong’s plan to shift to a more high-end development model in the future is still worth looking forward to.