Recent data shows that Oriental Selection, the once-booming live-streaming e-commerce company, is experiencing declining average viewership and monthly sales on Douyin (China's TikTok), sounding alarm bells for the company that previously thrived with its "knowledge-infused sales" model. The company now faces growth bottlenecks, with the risks of single-platform dependency becoming increasingly apparent.
Declining Traffic and Sales Pressure: Growth Pains?
Detailed metrics reveal Oriental Selection's average live-stream viewership dropped from nearly 24 million in July to just over 16 million in August. Concurrently, its monthly sales have shown a downward trend over three consecutive months, decreasing from 708 million yuan in June to 600 million yuan in August. While maintaining monthly sales above 600 million yuan remains impressive, the consistent decline warrants attention.
Multi-Platform Strategy: Risk Diversification or Resource Drain?
Facing these challenges, Oriental Selection has actively explored multi-platform expansion to reduce reliance on Douyin. Earlier market rumors suggested preparations for Taobao Live, though officially denied. The company's multi-platform strategy began in April with the launch of its standalone "Oriental Selection Mall" app, aiming to build direct user channels. However, the app underperformed due to premium pricing and weak market competitiveness.
The company has since established presences on JD.com, Kuaishou, WeChat, Weibo, and Xiaohongshu, attempting to distribute traffic sources across multiple channels. This "don't put all eggs in one basket" approach reflects strategic concerns about platform dependency.
Strategic Crossroads: Deepen Douyin Roots or Embrace Diversification?
Yu Minhong, founder of Oriental Selection's parent company New Oriental, has publicly acknowledged the fragility of business models built on external platforms, hinting at concerns about single-platform reliance. The company now faces two strategic paths: intensifying Douyin operations through content optimization and innovative formats to boost engagement, or accelerating multi-platform expansion to discover new growth avenues.
Douyin-focused strategies benefit from existing user bases and operational expertise but face intensifying competition and rising customer acquisition costs. Multi-platform expansion offers risk diversification and new market opportunities but requires significant resources to adapt to different platform ecosystems and user behaviors.
Future Outlook: Navigating Challenges to Find New Growth Engines
Regardless of strategic direction, Oriental Selection must strengthen core competencies through content innovation, supply chain optimization, and user experience enhancement. Adapting swiftly to market changes will be crucial for maintaining competitiveness in China's increasingly saturated live-streaming e-commerce sector. The road ahead presents both challenges and opportunities as the company seeks sustainable growth models beyond its initial success.