Core Insights - The company is transitioning from an online-focused strategy to a physical retail model, driven by the saturation of online growth and internal challenges [2][9] - The company's gross merchandise value (GMV) from all sales channels dropped from 14.3 billion to 8.7 billion yuan in the 2025 fiscal year, with a significant decline in orders from Douyin [2][9] - The new flagship store in Beijing will feature a hybrid model combining retail and dining, aiming to enhance customer experience and brand recognition [3][10] Sales Performance - The company's GMV decreased from 143 billion yuan to 87 billion yuan year-on-year [2][9] - Orders from Douyin fell from 180 million to 91.6 million [2][9] - The company has launched 732 self-operated products, a 50% increase year-on-year, with self-operated products now accounting for 43.8% of GMV [2][9] Strategic Shift - The shift to physical stores is seen as a response to intense competition in online streaming and a need for new growth avenues [2][9] - The flagship store will not only sell groceries and daily necessities but also include a dining area, reflecting a new retail model [3][10] - The company aims to leverage its existing educational centers to create a membership system that converts foot traffic into loyal customers [11] Membership and Customer Engagement - As of the end of the 2025 fiscal year, the company had 264,300 paid members, a 33% increase [11] - The membership fee is set at 199 yuan, with a refund policy that aligns with consumer behavior in China [11] - The company has organized member events to enhance customer loyalty, including dinner gatherings [11] Competitive Landscape - The company faces significant competition from established players like Fudi, Hema, and Sam's Club in the physical retail space [12] - The shift to offline retail requires a different skill set, as consumer behavior in physical stores is more rational compared to impulsive online purchases [12] - Other live-streaming companies are also entering the offline market, indicating a broader industry trend [13] Industry Context - The company's move to physical retail aligns with a larger trend of integrating digital and physical commerce [14] - Instant retail GMV is growing at 19.5%, outpacing the overall online retail growth rate [14] - The rise of store broadcasting on platforms like Douyin is reshaping the retail landscape, with a significant increase in brand participation [14]
东方甄选线下开店：直播巨头的零售突围与未知挑战