Yu Minhong also learns from Sam? Dongfang Zhenxuan's paid membership is priced at 199 yuan/year, which is more expensive than JD Taobao

Tech 2023-10-15 06:16:16 Source: Network

After the operation of independent apps got on track, Dongfang Selection has introduced a paid membership system.On October 13th, Pengpai News reported, citing sources familiar with the matter, that Dongfang Zhenxuan will fully launch the self operated APP paid membership system within this month

After the operation of independent apps got on track, Dongfang Selection has introduced a paid membership system.

On October 13th, Pengpai News reported, citing sources familiar with the matter, that Dongfang Zhenxuan will fully launch the self operated APP paid membership system within this month. Previously, on October 11th, Dongfang Zhenxuan sent an email to all employees within the company, announcing the launch of internal testing for paid members of the app, which was open to employees, and continued to iterate and optimize based on feedback content.

Times Finance has noticed that Apple's mobile app has been launched to select members, priced at 199 yuan per year. The page shows that users who subscribe to membership can receive exclusive benefits, including a 88% discount on 100 self operated products, 12 membership coupons with a discount of 12 yuan for over 100 yuan per year, and a limited time coupon package with a membership gift of 66 yuan. The maximum savings for a year are 12000 yuan.

However, the Android client has not yet been launched to select members. Dongfang Zhenxuan told Times Finance: "The official information about the members will not be disclosed for the time being, and it will be announced at a suitable time this month

In fact, Tiktok Live Studio has been preparing to become an independent e-commerce platform since its debut in the summer of 2022. In June 2022, Dong Yuhui, the anchor of Dongfang Zhenxuan, became popular. Two months later, Dongfang Zhenxuan launched independent apps in major app stores and began laying the "Doudou" route early on.

From July 5 to 9 this year, Orient Select broadcast the five-day "Gansu Trip" in Tiktok and APP simultaneously, which was also regarded as the symbol of Orient Select's "dithering". Yu Minhong said: "Dongfang Selection and Tiktok are mutually successful. Creating their own platform is a normal behavior for the company to forge ahead."

On July 12th, Dongfang Zhenxuan APP launched its first independent live broadcast, with a maximum of 26000 simultaneous online viewers. In a live broadcast on July 19th, Sun Dongxu, CEO of Dongfang Selection, revealed the positioning and development direction of the app, including establishing a membership service system.

After expanding and operating independent apps, Eastern Selection needs to maintain stable old users and ensure their repurchase rate; On the other hand, it is to acquire more new users.

In order to obtain new users, Dongfang Zhenxuan has launched Taobao live streaming. On August 29th, Dongfang Zhenxuan premiered on Taobao, with over ten million viewers and sales exceeding 175 million yuan.

At this point, how to maintain the stability of old users has become an important issue for Eastern Selection. Introducing selection members can help increase user stickiness and increase purchase frequency.

Yang Le became a frequent guest of the Eastern Selection live broadcast room last summer and has since downloaded the app and recharged the selection members. She said, "Selecting members is very cost-effective for old fans who often purchase self operated products, but occasional users may not need to open a membership and should consume rationally." Some netizens also pointed out that compared to members on e-commerce platforms such as Taobao and JD.com, Dongfang Zhen's pricing is too high, and it is surpassing that of offline paying members such as Hema and Sam.

Times Finance has learned that the 88 member prices on Taobao are 88 yuan/year and 168 yuan/year, and the Taobao account's Taobao value must be greater than or equal to 1000 yuan/year; The price for JD PLUS annual cards purchased by members with a value of 1000+in Beijing is 99 yuan/year; Sam's regular membership is 260 yuan per year.

The reason why offline supermarkets such as Sam and Hema are able to attract consumers to pay for their paid membership system is because the former has supply chain advantages, the ability to create their own brands, provide differentiated products for members, and have competitive prices. Among them, Hema has over a thousand self owned brands.

According to media statistics, there are currently over 155 self operated products on sale in the official store of Oriental Selection, covering multiple categories such as seasonal fruits and vegetables, meat, poultry and egg products, leisure snacks, seafood and aquatic products, household daily necessities, and personal beauty products. At the end of November 2022, this quantity was only 65 models.

According to the annual report of Dongfang Zhenxuan for the fiscal year 2023 (June 2022 May 2023), the company's revenue was 4.51 billion yuan, a year-on-year increase of 401.91%; The profit for the year was 971 million yuan, compared to a loss of 70.994 million yuan in the same period last year, turning the loss into a profit year-on-year. This huge growth is largely attributed to the strong development of self operated products and live streaming e-commerce business.

Among them, the total revenue of Dongfang Zhenxuan's self operated products exceeded 2.6 billion yuan. As of May 31, 2023, the overall self operated product and live streaming team of Dongfang Selection has reached 1103 people, of which the supply chain and product teams have reached 346 people.

Zhuang Shuai, an expert in the retail e-commerce industry and founder of Bailian Consulting, believes that strictly speaking, paid members on e-commerce platforms are not in the form of member stores, but they are also paid to become members, forming a competitive relationship with member stores.

In September, Alibaba's 1688 Yan Xuan also launched a PLUS membership store, introducing source manufacturers to settle in, including well-known brand factories and industrial belt brands. Many of the products were directly labeled as "Sam Ping Ti".

Zhuang Shuai's analysis of Times Finance shows that Dongfang Zhen's direction towards membership is not wrong, but its success depends on whether it can break through the limitations of e-commerce membership.

He said that the difficulty of making e-commerce membership is very high, On the one hand, the user's stickiness is not enough, and the disadvantage of e-commerce platforms is that they cannot experience the product on-site. They also have a much weaker perception of user requirements for products than offline member stores. On the other hand, membership e-commerce has the convenience of online shopping and door-to-door delivery, but the products are mostly small specifications, small packaging, and low unit price, which are more suitable for individual users to purchase and use, while offline member stores are large specifications for household and enterprise users Large packaging results in higher gross profit

In addition, although the GMV selected by Dongfang reached 10 billion yuan in fiscal year 2023, the GMV from Tiktok accounted for the vast majority of its GMV. In order to turn the traffic of Tiktok into the private domain of Oriental Selection APP and stabilize the traffic of private domain through membership, Oriental Selection still has a long way to go.

The launch of paid members this time is a test of Dongfang Selection's user stickiness and product service capabilities.

Source: Pengpai News

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