Reflections of Yu Minhong on Direct Sales Struggles and Retirement Thoughts
Yu Minhong, renowned for his significant influence in the Chinese live broadcast direct sales industry, seems to have reached the pinnacle of success. He has expertly piloted two major livestreaming platforms. Despite facing immense stress from public scrutiny last year, which hindered any thoughts of retirement, Yu Minhong is now contemplating stepping back from the struggle and embracing a more laid-back lifestyle. However, the question emerges—can he retire now?
Yu Minhong’s involvement in the direct sales business soared with the help of Dong Yuhui’s appeal in “Dongfang Selection”. Yet, post-December 2023, internal mismanagement notably impacted the business. This turbulence led Yu Minhong to establish “Traveling with Hui”, a separate venue where Dong Yuhui could independently thrive, attracting nearly 19.24 million followers. However, “Dongfang Selection” experienced a significant follower decline, shedding over 1.12 million followers, with its monthly average sales volume falling shy of 10 million yuan.
Addressing the challenges faced by “Dongfang Selection”, Yu Minhong adopted a facetious tone during his direct sales broadcast debuting alongside Wumart group founder Zhang Wenzhong, self-deprecatingly remarking on the chaotic situation. Furthermore, he candidly expressed the daunting volume of criticism he’s faced online over the past year.
On June 3, Yu Minhong’s comments about the disarray within “Dongfang Selection” propelled the topic to the heights of popular search queries online. His remarks also left a palpable impact on the company’s stock performance, with its market value plummeting by more than 3 billion Hong Kong dollars in under three days.
The Fall and Rise of E-Commerce Giants
Ironically, it was only six months after Dong Yuhui’s departure that “Dongfang Selection” began its current downward trajectory. The turning point occurred during Dong Yuhui’s final broadcast in December 2023. Post-departure, “Dongfang Selection” initiated strategies to focus less on prominent hosts and more on product quality, especially their proprietary offerings, following a content plus direct sales approach.
Despite these exhaustive efforts to stabilize performance, “Dongfang Selection” has failed to rekindle past glories, while Dong Yuhui’s independent venture, “Traveling with Hui”, has experienced a meteoric rise in popularity. Their strategies of boosting sales through various promotions and endeavoring to attain more significant market share have resulted in a stark contrast in fortunes.
Yu Minhong’s involvement has been evident as he bridges both “Dongfang Selection” and “Traveling with Hui”, working closely with Dong Yuhui during the crucial initial phase. Even though Yu Minhong has seemingly invested his best efforts for “Dongfang Selection”, the platform is drifting into a direction that he did not anticipate or desire.
Retirement looms as a possible respite for Yu Minhong, as he contemplates distancing himself from his business endeavors to focus more on leisure and personal time. The underlying sentiment is that of a legendary figure who has achieved immense success but yearns for respite from an overwhelming landscape—one in which relinquishing control seems inevitable amidst planning for a successor to preserve the legacy of New Oriental.
Key Questions and Answers:
1. Who is Yu Minhong?
Yu Minhong is a high-profile Chinese entrepreneur, primarily recognized as the founder and CEO of New Oriental Education & Technology Group Inc., one of the largest providers of private educational services in China.
2. What challenges has “Dongfang Selection” faced?
“Dongfang Selection” has experienced internal mismanagement and decline in followers and sales after Dong Yuhui’s departure. Adjusting strategy to focus on product quality and proprietary offerings hasn’t yet restored its former success.
3. How has Yu Minhong been involved with “Traveling with Hui”?
Yu Minhong has been intimately involved in “Traveling with Hui,” especially during the early stages following Dong Yuhui’s transition to the independent platform.
4. What impact did Yu Minhong’s comments have on the market?
His candid comments about the disarray within “Dongfang Selection” led to a loss in market value of over 3 billion Hong Kong dollars in just three days.
Advantages and Disadvantages of Yu Minhong’s Situation:
Advantages:
– Yu Minhong has a strong reputation and is a respected figure in the industry.
– “Traveling with Hui” has rapidly gained followers and popularity under his guidance.
– His experience and prowess could still stabilize “Dongfang Selection” if well-strategized.
Disadvantages:
– Intense public scrutiny and criticism have placed significant stress on Yu Minhong’s shoulders.
– “Dongfang Selection” has been struggling, making it a challenging situation for Yu Minhong to turn around.
– Considering retirement amidst turmoil might impact Yu Minhong’s legacy and the future of the companies he’s involved with.
Key Challenges and Controversies:
One of the main challenges lies in stabilizing “Dongfang Selection” and returning it to profitability and popularity. Another issue is managing the transition of leadership if Yu Minhong decides to retire, ensuring that his legacy is preserved and that the company has a clear succession plan. Controversy stems from his public comments, which have significantly influenced stock prices and market perception.
Reflection on Success and Retirement:
The saga of Yu Minhong touches on the broader theme of an entrepreneur’s life cycle—starting with ambition, reaching the pinnacles of success, and eventually considering retirement. It reflects the harsh reality that even with significant achievements, new challenges arise that can impact both professional and personal life, leading one to contemplate legacy and succession.
For individuals interested in learning more about Yu Minhong and New Oriental, the official website can be accessed using the following link: New Oriental. Note that as an AI developed by OpenAI, I cannot guarantee with absolute certainty the validity of external websites, so please use your discretion when visiting them.