New Oriental's strategic direction is clearer and supports long-term development

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China Merchants Securities Hong Kong believes that the Oriental Selection will continue to focus on:

1) Private brand strategy improves product quality. At present, there are 18 self operated products (such as steak, pasta, books, etc.) in Oriental Selection. The GMV of self operated products accounts for about 17% (about 5% in June). In addition, the chairman of the company said that he would continue to develop his own brand and expand sales channels in the future.

2) Category expansion. The new TikTok live account Oriental Selection beautiful life was launched in early July, focusing on beauty makeup, home appliances and other categories. According to the data, the average daily GMV in the past 30 days reached about 1.3 million yuan (about 6% of the average daily GMV in July).

3) Content differentiation. Oriental Selection opened two outdoor live broadcasts in Beijing and Heilongjiang in July. The average daily GMV of the live broadcast in Heilongjiang on July 26 reached 40 million yuan, which was the recent peak.