"Yu is indeed a little far from the so-called top entrepreneurs, and this distance does not seem to be shortened. Yu is actually a very good businessman, but I am afraid that it will be a little difficult when the enterprise is large to a certain extent. ”
Duan Yongping, July 20, 2012.
In July 2012, New Oriental was suffering an unexpected catastrophe: New Oriental was attacked by Muddy Waters. It accuses New Oriental of falsifying financial data, teaching districts, and student numbers, ......As soon as the news came out, New Oriental's stock price fell from more than $20 per share to more than $9 in two days, that is, New Oriental's market value decreased by 60%.
In this environment, Duan Yongping made the above comment on Xueqiu.
In the past week, Dongfang Selection has experienced a similar thing again: the market value has evaporated tens of billions of Hong Kong dollars, lost millions of fans, and more importantly, the coat of cultural people has been torn off.
So what the hell is going on?What will be the future of Dong Yuhui?Are Dongfang Xuan and his chairman still trustworthy?We'll talk about it briefly in this article.
1. The ins and outs of the "small composition" incident
Abridged version:
Whose credit is Dong Yuhui's super big IP?How to distribute the interests of the top anchor and the team behind it?
If it is the team, then he has already taken enough, the CEO of the company and the entire team should take more, and the shareholders should take more.
If Dong Yuhui's is counted, then who is the next Dong Yuhui?The CEO should find the next Dong Yuhui for the major shareholder, so that he can make greater profits and share risks.
Detailed version:
From December 6th to 9th, Dongfang Selection released a warm-up of Jilin on Douyin**, in which Dong Yuhui introduced the beautiful Jilin to the audience with a beautiful little composition. And so it all began:
1) Fans and disputes: Dongfang Selection repeatedly explained in the comment area that these beautiful promotional copywriting are the product of the company's teamwork, and not all of them are from Dong Yuhui alone, and this comment is also at the top. This caused dissatisfaction among Dong Yuhui's fans, who thought that Dongfang Selection was backstabbing Dong Yuhui, and issued a comment of "I only look at Dong Yuhui, the tuba has been taken off".
2) CEO Sun Dongxu joined the discussion: Sun Dongxu and another anchor Pan Pan replied that the promotional copy was co-created by Dong Yuhui and the team, saying that the extreme views of fans were killing and trampling.
3) Dong Yuhui appeased: Dong Yuhui responded to the incident in a joking way during the live broadcast. claimed that those were "Hu replied" in the comment area, and after the incident, he complained to Yu Minhong, Yu Minhong asked him to communicate with Sun Dongxu, and he and Sun Dongxu also communicated, and drank several pots of liquor together.
4) Angry fans again: In the comment area, he denied Dong Yuhui's statement of "Hu reply", saying that he was already very aggrieved, and the copywriting of Jilin Xing was completed independently by copywriting partners, and asked fans not to cyber violence.
On December 10, Dong Yuhui was absent from the live broadcast that day.
On December 11th, Gaotu Jiapin's live broadcast room was swiped by Dong Yuhui's fans, shouting "You have to catch the wealth sent by Dongfang Selection", and at the same time suggested that Gaotu dig Dong Yuhui over.
On December 12, CEO Sun Dongxu responded to the incident in a live broadcast, but was considered by netizens to be "aggressively educating consumers", and Sun Dongxu also disclosed that Dong Yuhui's annual salary reached 10 million.
On December 13, Dong Yuhui posted a long post on his Douyin account: I believe that this is not the original intention of the company, nor is it the original intention of fans, and review his naivety and lack of experience.
On December 14, Yu Minhong responded, believing that Sun Dongxu's way of mentioning Dong Yuhui's income was inappropriate, and he was not mellow enough, and he was responsible for management, and apologized to Dong Yuhui. Sun Dongxu also apologized to netizens and Dong Yuhui.
On December 15, Dongfang Selection anchor Tianquan was suspected of provoking fans in the live broadcast, saying that "people who brush the expiration date can't afford to buy egg yolk crisp today's salary", which caused controversy. That night, Dongfang selected 700,000 fans.
In the early morning of December 16, Dongfang Selection announced that it would temporarily stop broadcasting that day, and thought about it behind closed doors.
At noon on December 16, Dongfang Selection announced the personnel appointment and dismissal notice, and Chairman Yu Minhong concurrently served as the CEO of Dongfang Selection, removing Sun Dongxu from the position of CEO.
On the afternoon of the 12th and 16th, Yu Minhong issued a letter of apology, apologizing to the netizens and friends who had been blocked recently, and announced that the anchor Tianquan would be suspended for three months.
On the evening of December 16, Yu Minhong and Dong Yuhui had a live heart-to-heart conversation on Yu Minhong's own Douyin account. The main contents include:
1) Dong Yuhui never said that he was going to leave Dongfang Selection;
2) There is no such thing as Dong Yuhui and Xiao Sun choosing one or the other, and Sun Dongxu's dismissal has nothing to do with Dong Yuhui;
3) Dong Yuhui never asked Yu Minhong for his position and salary;
4) Although Sun Dongxu was dismissed, he is still Yu Minhong's little brother and will still be engaged in management in the future (Sun Dongxu stepped down as CEO and executive director, but he is still a non-executive director).
Second, the core causes of the conflict
In the eyes of some fans, Dongfang Selection can stand out among many live broadcast teams, and it is absolutely inseparable from Dong Yuhui, who has a unique charm, and now the company's CEO and openly erased Dong Yuhui's credit, going to the house to draw ladders, unloading mills and killing donkeys, which is unacceptable to his fans.
In the eyes of CEO Sun Dongxu, the uncalm behavior of this part of the fans is a typical "fan circle culture", and he also directly pointed out "resolutely say no to the fan circle behavior" in the live broadcast on the 12th. Moreover, it is impossible for a listed company to allow the head anchor to get out of control, which will make the company's earnings unavoidable. As a CEO, I am responsible for the interests of large shares and remove the instability of the company.
This also reflects the battle for the route of the live streaming industry
Do consumers place orders for the anchor or for cost-effective products?
1. If the core of a live streaming company is products, then the core of the company's business is to find higher-quality products.
For example, Dongfang selected to do a national parade, Li Guoqing went to Yunnan to find tea and Guizhou to find liquor ......
Obviously, this idea is not the core. Otherwise, why does Dong Yuhui's GMV alone account for half of the entire company?
2. If the core of the live streaming company is the anchor, then it is really difficult for him to be the CEO.
Because in this case, the company is too easy to be led by the nose by the anchor. The company's sales are heavily dependent on the performance of the anchors, rather than the company's capabilities. Once the anchor has strong commercial value, he will either choose to fly solo or ask for higher remuneration. Although in the short term, the anchor and the company will have a honeymoon period, but in the long run, human nature cannot stand the test. Unless the anchor is the boss himself (Simba), or has a lot of dividend rights (Li Jiaqi), or is the object of the boss (Wei Ya), sooner or later he will jump out and go it alone. In short, it is willing to share the money.
If the major shareholders are willing to share the money and power, then the CEO is the best person to carry the explosives bag and fight with the head anchor. If something happens in the process of drying the rack:
Major shareholders and CEOs, one sings red face and the other white face.
The majority shareholder is mainly responsible for cleaning himself up. Say you have a responsibility first, then remove the CEO, and explain three things to the public:
1) This matter is a management issue and has nothing to do with Dong Yuhui;
2) Self-management belongs to the decentralization type, and respects the management too much;
3) I have no problem with Dong Yuhui himself, if something happens, it is all the management, and it has nothing to do with me, because I don't care about things.
3. What will be the future of Dong Yuhui
According to rumors, after this turmoil, Yu Minhong finally gave Dong Yuhui 05% of the shares and promoted to "Senior Partner". According to the current market value of more than 26 billion Hong Kong dollars selected by Dongfang, Dong Yuhui's ** is worth about 1200 million RMB.
According to rumors, the valuation of Dong Yuhui's IP on the market is $1 billion. If all this is true, then Dong Yuhui only needs to share 10% of the equity with his face, and he will raise about 700 million yuan, and he will earn more than 1 by working alone with a team200 million yuan is much more, and it can be earned back in a few months.
If not as rumored, Oriental Selection's net profit in fiscal year 2023 will be 97.1 billion yuan, and the annual GMV reached 10 billion yuan. Luo Yonghao next door believes that it is only fair that Dong Yuhui has to take at least half of the proceeds. Why half the gains?Because Lao Luo does live broadcast and brings goods, he knows**. According to Lao Luo's words, Dong Yuhui took 500 million yuan, which is less, and now this 1200 million is definitely not much.
In short, what Dong Yuhui got was far less than what he should have gotten.
However, is money something Dong Yuhui really wants?
First of all, although the money selected by Dongfang to Dong Yuhui is definitely far from enough compared with his contribution to the company. But this 1200 million cannot be said to be a complete humiliation of people, for a person who is not strong in material desires, this must be regarded as wealth freedom. It's better than the one next door who sells air conditioners, and it's much, much.
Secondly, Dong Yuhui said that he does not want to become a sales anchor, but prefers to talk about books and introduce culture, and he will focus more on cultural tourism promotion in the future. He got a lot of sky-high offers last year, but he didn't go, he has been thinking about the value and meaning of work. In addition, if a confidant dies, Yu Minhong must be his Bole.
Finally, if Dong Yuhui wants to jump out of the Oriental selection and accept investment from those venture capital companies that are about to move, then he must live broadcast with high intensity in the coming days. Although he can get back what he "lost", he is too tired, is it really worth it?
To sum up, President Dong Yuhui will stay in the East for selection, but he will gradually move from the front of the stage to behind the scenes, from commercial live streaming to public welfare cultural tourism promotion, from not hidden to semi-hidden to fully hidden. Dongfang Selection will emphasize the layout of multiple anchors, the quality of products and the stability of the first chain, and gradually erase Dong Yuhui's position in the hearts of consumers. For Dong Yuhui, this is a decent exit;For Dongfang Selection, it is also very worthy of shareholders and the board of directors.
IV. Epilogue
Yu Minhong said: "Finding opportunities from the crisis is the ability that an entrepreneur should have. Indeed, this man who has been robbed twice by the same gang of gangsters can survive when he encounters such a desperate situation as being shorted by Muddy Waters Company and the ** education industry being collectively rectified. This time, none of us should doubt that this man will fall. Moreover, for him, this is definitely not a desperate situation.
But New Oriental's infighting again and again has also allowed the public to gradually figure out the boss's routine and the company's upper limit. After all, it is understandable that there has been such a thing as infighting once or twice, but what about the third and fourth times?
So, should you invest in Oriental Selection?
Duan Yongping once said that he would not touch any company that said how much money it would do in terms of market value, revenue, and profit. So for such a boss who absolutely does not admit defeat and does not bow his head, such a company that cares about the market value more than the product and brand, and the stock price is killed in the short term, now is a good time to invest in the wind, but long-term holding may have to think twice.
This article does not constitute any investment advice, please remember to do so).
ps: Dong Yuhui's small essay incident further indicates:In the live streaming industry chain, brands and anchors are both hard business, and the biggest winner is Douyin.
PPS: Duan Yongping: I haven't paid much attention to Luo Yonghao, but after reading the link to the interview that everyone put up, I feel that as an entrepreneur, the gap between him and Yu Minhong is still quite big, but he is indeed a very straight person. （2012-07-20）
Duan Yongping: (Luo Yonghao) lacks the basic qualities of some entrepreneurs. （2023-01-14）
Lao Luo said that he would only be doing live broadcast and bringing goods for another half a year, in order to clear the remaining debts, and then he would focus on his VR company. We can look forward to Lao Luo's performance and see if Duan Yongping's prediction comes true again.
Oriental Selection