Can the Oriental Selection App, which has launched cultural and tourism products, become a "catfish" in the industry?

Recently, the Oriental Selection App launched cultural tourism products and started a cultural tourism live broadcast event. So, how do you think about Oriental Selection's layout of cultural tourism business? What are the advantages and disadvantages of Oriental Selection's cultural tourism business? In this article, the author interprets and analyzes it. Let's take a look.

Oriental Selection has taken another step forward in its layout of cultural tourism business.

On December 10, the Oriental Selection App launched its first cultural tourism products and launched a live broadcast of cultural tourism in Hainan, Yunnan and Jilin. The live broadcast was conducted simultaneously on the Douyin account @东方选看世界 and the Oriental Selection App, and the relevant cultural tourism products could only be purchased in the Oriental Selection App. The Douyin live broadcast room only had an App download link.

Why does Dongfang Zhenxuan want to vigorously develop its cultural tourism business? How far has the cultural tourism business developed? What are the advantages and disadvantages of Dongfang Zhenxuan in cultural tourism?

1. From the Douyin live broadcast room to the own app, how are the results of the first battle?

On December 10, in the Douyin live broadcast room of @东方选看世界, anchors Dun Dun and Bei Bei appeared in Sanya, Hainan, and experienced special projects such as sea surfing, diving, and beach writing. The live broadcast room also showed Jilin's "ice and snow tourism" and Yunnan's live singing.

This live broadcast in three locations attracted many users to watch. According to heat wave data, the first day of the live broadcast in Douyin's live broadcast room lasted 13 and a half hours, with 2.209 million viewers and a peak popularity of 16,000.

Unlike ordinary live broadcasts selling goods, this live broadcast did not have the shared yellow car, but only a pop-up window to download the Oriental Selection App. In addition to experiencing many entertainment projects, the anchor kept reminding users to download the App and used A4 paper to show users "Download the App and start your journey."

For this outdoor live broadcast, the Oriental Selection App has laid out a lot of resources for the cultural tourism business. On the banner of the homepage, the recommended pictures of cultural tourism products are played in a loop, and there are also 5 simultaneous live broadcast rooms. In the "Oriental Selection See the World" live broadcast room in the Oriental Selection App, nearly 1,000 people watched, and 190 cultural tourism products were listed in the small yellow car.

Among them, the "6-day, 5-night group tour to Dubai and Abu Dhabi without air tickets" priced at 3,899 yuan was very popular. Within three hours of the broadcast, the sales of this overseas tour package had reached 350, and the total sales on the day reached more than 1,300. It is understood that the sales of cultural and tourism products on the day of the live broadcast exceeded 16 million yuan.

Oriental Selection has also launched a travel and vacation section in the App, including 9 major categories of products such as domestic and overseas destinations, world-renowned products, million-selling products, travel routes, hotel packages, tickets and entertainment, giving consumers more choices.

2. Why does Oriental Selection want to vigorously develop cultural tourism?

When talking about the reasons for developing cultural tourism, Yu Minhong once said: "I do cultural tourism because I want to have fun and like traveling. Maybe cultural tourism will be accomplished in the process of having fun."

In July last year, Oriental Selection entered the cultural tourism track with the model of "on-location live broadcast". It not only sold local agricultural products and specialties, but also promoted local cultural tourism through "short essays" and "promotional films". This special cultural tourism live broadcast is very popular in the market.

In December last year, Dongfang Zhenxuan opened the @东方甄選看世界 TikTok account to further explore cultural tourism live broadcasting. Public information shows that the Zhangjiajie location special sold more than 25,000 orders, with a total of more than 7.28 million viewers and a total sales of more than 31.9 million yuan; the Yunnan location special had a total of more than 8.8 million viewers and a total sales of over 100 million yuan; the Shanxi location special live broadcast room had more than 24 million viewers, a total sales of over 130 million yuan, and short video related playbacks of more than 300 million times.

Regarding the Shanxi trip, Yu Minhong revealed on his official account, "@东方选看世界 had only about one million fans before the Shanxi trip, but since the first broadcast of the Yungang Grottoes, the number of viewers has reached more than 100,000, and the average number of viewers in the following five days has been more than 80,000 to 100,000. In two days, the @东方选看世界 account gained 300,000 fans."

It is not difficult to see from the continuously increasing number of viewers and sales that Oriental Selection’s cultural tourism business is developing steadily. The growth of fans of “Shanxi Trip” has brought greater room for imagination, and cultural tourism is expected to become its next growth point.

Based on this, Oriental Selection further expanded its cultural tourism territory. After the "Shanxi trip", Oriental Selection launched the "Gansu trip" for the first time, trying to develop cultural tourism business on its own app. On October 16, Oriental Selection established "Oriental Selection (Zhuhai) Tourism Culture Co., Ltd." in Zhuhai, officially focusing on the cultural tourism track. In the recent live broadcast of the three-city linkage, related cultural tourism products can only be purchased in the App, and the Douyin live broadcast room has become a diversion channel, further reflecting Oriental Selection's determination to deepen its cultural tourism business.

The reason why Oriental Selection has vigorously developed its cultural and tourism business is, on the one hand, that the prospects for cultural and tourism are promising and creating diversified businesses can enhance the company's ability to resist risks; on the other hand, it can increase its own imagination space in the capital market.

Since February this year, the share price of Oriental Selection has been in a dynamic decline. It has fallen from HK$75.55 per share on February 3 to HK$28.2 per share on July 7 (closing price). Although the decline in the share price of Oriental Selection is related to the overall coldness of Hong Kong stocks and the reduction of holdings by senior executives to cash out, the fragility of a single business is obvious, which also affects the share price to a certain extent.

The support of the cultural and tourism business has indeed had a positive impact on the share price of Oriental Selection. On December 5, the news of the live broadcast of the three cities came out, and the share price of Oriental Selection (01797.HK) rose sharply during the trading session. Wind market data showed that the highest intraday increase of Oriental Selection exceeded 15%. As of the close, it rose 8.63% to HK$32.1, with a market value of HK$32.6 billion.

However, the impact of the cultural and tourism business on the stock price is currently limited. As we all know, Oriental Selection currently relies mainly on live streaming to sell physical goods. As a popular anchor, Dong Yuhui's dynamics are more likely to cause stock price fluctuations.

Since the Dong Yuhui "small essay incident" fermented on December 11, the share price of Oriental Selection in the Hong Kong stock market has continued to fall. As of the close of December 15, it fell by nearly 22%, hitting a new low in nearly 5 months. In the five days before the opening of the market on December 18, the total market value of Oriental Selection had evaporated by more than HK$8 billion. Therefore, if Oriental Selection wants to increase the trust of the capital market and enhance its influence on the stock price through cultural and tourism business, it needs to accelerate the investment in cultural and tourism resources and increase the proportion of revenue.

3. Delving deeper into the cultural and tourism industry, what is Oriental Selection’s breakthrough point?

The upstream and downstream businesses of the tourism industry chain involve various links such as route design, accommodation, transportation ticketing, scenic spot tickets, business travel management services, etc. In addition to route design being scattered among travel agencies in various places, resources such as accommodation reservations, transportation ticketing, travel vacations and business travel management services are mainly controlled by major OTA companies such as Ctrip, Qunar, Tongcheng, and Fliggy.

Some industry insiders said that for OTA players, transportation ticketing accounts for a relatively high proportion of revenue, but due to the strong bargaining power of the upstream ticketing system (airlines, railway administration, etc.), the profit margin of this business is relatively low, and OTA's core profits mainly come from the hotel business.

The current situation in the tourism industry is that Ctrip's accumulation of resources in high-star hotels is far beyond the reach of other players, while Meituan and Fliggy are fighting fiercely in low-star hotels. Some local travel agencies are also able to control some hotel resources through their own channels, and it is obviously difficult for latecomers to compete with existing players for market share.

Dongfangxuan has achieved certain results with its traffic advantage, but it plays the role of a "middleman". Currently, the cultural and tourism products listed on the Dongfangxuan APP are basically in cooperation with third-party suppliers.

For example, the most popular product sold in the live broadcast room is "6 days and 5 nights pure play group tour in Dubai and Abu Dhabi without air tickets", which is provided by Wanmei Holidays (Shenzhen) Co., Ltd. The hotel package section is "Sanya Bay Mangrove Resort Hotel", which is provided by Suzhou Tongcheng Jiacheng International Travel Service Co., Ltd. Beijing Branch.

According to relevant media reports, more than 100 companies have finalized their cooperation intentions and are about to move in. Their products include travel packages, attraction tickets, hotel packages, etc. However, the three-party cooperation model is not a long-term solution, and Oriental Selection needs to find a breakthrough.

Route design is the advantage of Oriental Selection. Taking advantage of its own cultural characteristics, designing some tourist routes with cultural attributes or origin characteristics is the key point for Oriental Selection to break the current involution of the tourism industry. An industry insider said, "Oriental Selection has formed a stable traffic pool. After mastering several key tourist routes, it has no problem getting negotiated prices from hotels along the route."

Yu Minhong also seems to be interested in developing in this direction. In July this year, Yu Minhong invested 1 billion yuan to establish Beijing New Oriental Culture and Tourism Co., Ltd. The official microblog revealed that New Oriental Culture and Tourism has established branches in Shaanxi, Gansu, Zhejiang, Xinjiang and other places, and released travel routes. For example, Zhejiang New Oriental has launched the "Ten Lines of Great Beauty of Chinese Culture", including "Dongpo Spiritual Origin Journey", "Zhedong Tang Poetry Journey", "East China Sea Heart Observation Journey" and so on.

However, the cultural and tourism products of the Oriental Selection App do not include New Oriental Cultural and Tourism products, and the two have no business connection for the time being. Will there be any linkage between the two in the future? How will Oriental Selection Cultural and Tourism develop? We will have to wait and see.

Author: Aries

WeChat public account: TopKlout (ID: TopKlout), a self-media ecological observation account that combines good-looking and informative content