On May 21, East Buy (01797.HK), the e-commerce spin-off of tutoring giant New Oriental, officially inaugurated its first physical retail space in Beijing’s Zhongguancun district. This 400-square-meter flagship represents more than just a store; it is a calculated retreat from the volatile world of influencer-driven livestreaming toward a traditional retail model. Founder Yu Minhong addressed the crowd, framing the move as a socially conscious endeavor to create jobs and foster community 'liveliness,' even if it yields lower margins than digital sales.
The store's opening follows a turbulent year for the company, marked by the high-profile departures of its most famous livestreaming stars, including Dong Yuhui. This 'de-anchoring' strategy aims to shift the company's core value proposition from individual charisma to product quality and supply chain reliability. By establishing a physical presence near its corporate headquarters, East Buy is testing a 'closed-loop' ecosystem where online marketing drives offline experiences, which in turn fuels recurring digital purchases.
Inside the new venue, the focus is squarely on East Buy’s private-label products, which account for roughly 40% of the 1,000 items on display. From its viral sausages to healthy snacks, the company is leveraging its brand equity to compete in the premium convenience and lifestyle segment. The space also incorporates a cafe and social areas, signaling an attempt to mimic the 'third space' concept popularized by global coffee chains, tailored to the white-collar professionals and students in the Haidian district.
Financially, the pivot appears to be stabilizing the firm’s outlook. East Buy’s mid-2026 fiscal reports show a total revenue of 2.3 billion RMB and a significant swing to a net profit of 239 million RMB, compared to previous losses. This recovery suggests that the market is beginning to value East Buy as a consumer goods brand rather than just a media platform. The company plans to expand this model to dozens, potentially hundreds, of locations across China’s first- and second-tier cities once the initial pilot proves sustainable.