Can East Buy become China's Sam?

On the eve of the Spring Festival in 2023, with an intraday increase of more than 10%, East Buy's stock price once again hit a new high since its listing. The fulfillment of the new high stems from the results announced by East Buy in the first half of fiscal year 2023 (June 2022 to November 2022), and also from the ups and downs since the transformation for a year.

According to relevant data, Dongfang Selection’s GMV in the first half of fiscal year 2023 exceeded 4.8 billion yuan, and the total number of Douyin orders reached 70.2 million. In the first half of the year, the company achieved continuous total revenue of 2.08 billion yuan, a year-on-year increase of 262.7%.

Among them, Dongfang Selection contributed the most, with operating income reaching 1.765 billion yuan, accounting for 85% of the total revenue, and self-operated product income exceeding 1 billion yuan. From the financial statement, one can get a glimpse of the decisive role played by Dongfang Selection on New Oriental Online.

On January 5, New Oriental Online announced that it would change its name from "New Oriental Online Technology" to "East Buy Holding"

Neither Costco nor Sam makes money by the gross profit rate of commodities. In Sam, commodities with a gross profit rate of more than 14% should be reported to the board of directors.

The part that really makes money is the membership fee. Sam's ordinary membership fee is 260 yuan/year, and the excellent membership fee is 680 yuan/year. By the end of November 2021, Sam's membership renewal rate has reached more than 80%; The membership fee of Costco is 299 yuan/year. In addition, the membership fees of Carrefour and Hema X are 258 yuan/year.

According to this approach, the East Buy does not need to worry about the gross profit rate of the products, but only needs to concentrate on the selection and earn the membership fee in the way of product profit.