Financial Services Association | New Consumer Daily, April 10 (Researcher Liang Youyun) Recently, Oriental Selection made another move, announced a cooperation with JD Logistics, formally established an “hourly delivery” business, and continued to experiment with new businesses and new development strategies.

According to data, as early as the beginning of this year, Oriental Selection tried to launch an “hourly delivery” delivery service in Beijing's Shilihe area. The area is close to JD grocery shopping stores and warehouses, which can guarantee that consumers will receive products within 2 hours.

This time, Oriental Select's “hourly delivery” business will cover 80% of the area within Beijing's 5th Ring Road on the basis of the original one, and rely on the 17 front warehouses owned by JD Grocery Shopping to complete delivery.

Oriental Selection has carried out a number of targeted operation and marketing strategies for this emerging business. Among them, the anchor of Oriental Selection was invited to take turns to experience rider delivery work, and give consumers certain benefits and interact with them after delivery to their homes. At the same time, Oriental Selection has also launched activities such as full shipping reduction and first order discounts for live broadcast room users. According to the anchor, all products ordered before 22:00 p.m. on the same day can be delivered on the same day, and after 22:00 they will be delivered the next morning.

Although it is currently only distributed and sold to the Beijing region, the lively outdoor live broadcast has attracted many loyal consumers selected by Oriental.

On the night of the second day after the launch of Oriental Choice Hour Channel, the number of fans on the account surpassed 100,000. As of the April 10 press release, the number of fans on the Oriental Select Hour Account has reached 106,000, and a total of 53 products can be delivered in the store, all of which are products operated by food, daily use, snack companies, etc.

The New Consumer Daily also observed that due to differences in the scale of demand in the surrounding area, the number of products sold on each site ranged from 60 to 170 in less than three days after launch. There was also a shortage of capacity at some stations during the dinner period. According to statistics from the third-party platform Chan Mama, the first live broadcast of “Oriental Selection Hour Delivery” sold 750 to 1,000 units, with cumulative sales of 50,000 yuan to 75,000 yuan.

In terms of the speed of growth in popularity and the scale of sales, the potential of Beijing consumers is not small. However, since hourly delivery can only place orders from the “Oriental Select Hour Delivery” Douyin store, how to break the circle further faces a problem.

Many industry observers believe that the cooperation between Oriental Selection and JD clearly leverages their respective strengths. Among them, Dongfang selects its own traffic and loyal users, while JD's front warehouse requires a stable and considerable order volume to cover daily operating costs. There are reports that in late 2023, Dongfang Selection had a number of jobs related to the front warehouse, and plans for the new business have been in place for a long time.

According to some other opinions, Oriental Select launched the hourly delivery business in order to expand more sales channels and reach more consumers other than Douyin and its own apps.

According to Oriental Selection's latest financial report, as of the end of November 2023, the company's e-commerce live broadcast had covered Douyin, Taobao, WeChat and its own apps. In addition, Oriental Select's own product stores have also launched on mainstream e-commerce platforms such as JD, Douyin, and Tmall.

It is worth noting that at the beginning of November 2023, Dongfang Selected's self-operated store quietly went on sale on Xiaohongshu. In less than half a year, the store's cumulative sales volume of popular white shrimp and shrimp reached 30,000 to 20,000 pieces, and there were steady additional purchases every day. At the beginning of 2024, Oriental Select's own store also entered Pinduoduo for the first time. Currently, the total sales volume of the store has exceeded 16,000 units.

According to financial data, Dongfang Select's proprietary products achieved revenue of about 1.9 billion yuan within half a year, which is the main driving force for the company's revenue and growth. In comparison, Dongfang Select's e-commerce delivery commission service revenue during the same period was 510 million yuan.

Recently, Oriental Selection further announced the latest results of its proprietary products since they were launched two years ago. According to the data, since April 2022, Dongfang Select's proprietary product Douyin has sold nearly 100 million orders, and the total number of products has exceeded 400.

In addition to the Douyin platform, Taobao and Oriental Selection apps all had outstanding sales performance. Among them, in the Oriental Selection Taobao store, sales of white shrimp, sausage, moisturizing soft tissues, etc. all showed 100,000+ sales; the sales volume brought by the Oriental Selection App was quite high, with sales of popular products such as sausage and white shrimp all exceeding 500,000 orders; Oriental Selection continued to be the leading sales store on the Xiaohongshu platform.

According to data from the Huawei App Market, as of April 10, the Oriental Choice App had been installed 1.09 million times. According to comprehensive estimates, the cumulative number of downloads of the app on various platforms is close to 20 million, making it an important source of revenue for Oriental Selection after Douyin and Taobao.

As it became more difficult to make new breakthroughs in live streaming traffic, especially after Dong Yuhui's IP became independent, Dongfang selected leading anchors who were no longer able to have influence. Continuously developing channels, getting rid of the Douyin single channel, developing e-commerce independently of live streaming, and allowing self-operated products to reach more users has become an important strategy for Oriental Selection to explore additional revenue.

Whether it is actively promoting the launch of the hourly delivery business, trying to go overseas, or further speeding up the pace of self-operated product development, it is a key move by Oriental Selection to consolidate the growth momentum of the e-commerce business.

However, active efforts at the Oriental Selection business level have yet to reverse the stock price decline.

After it was revealed that 315 had sold prepared dishes containing “bad meat,” the downward trend in Hong Kong stock selection prices continued for more than half a month.

At the opening of the market on April 10, Dongfang selected Hong Kong stocks to open higher but then fell quickly. At one point, the intraday decline reached 6.55%. By the close of the day, the company's downward trend had eased somewhat, and finally closed down 4.44% in a single day. At present, the total market value of Oriental Selection has dropped to HK$16.83 billion.