Before founding New Oriental, Yu Minhong, fresh from Peking University, began recruiting students through free lectures. His first session was held on a school playground with over a hundred attendees. Without amplification equipment, Yu relied solely on his voice to deliver the trial class.

Reflecting on this, Yu described free lectures as an "extremely low-cost customer acquisition" strategy. Over time, word spread, attracting more students and necessitating larger venues, eventually moving to Peking University’s audio-visual center.

High demand and low costs presented Yu with multiple opportunities for scaling up New Oriental even before its formal inception—provided he secured sufficient space and teachers. While venues were manageable, recruiting qualified instructors proved challenging. Yu emphasized that New Oriental’s core competitiveness lay in its distinct teaching methodology compared to public schools, making teacher selection exceptionally rigorous.

Yu’s dedication to teaching quality was evident early on. In New Oriental’s initial TOEFL training classes, he single-handedly taught listening, speaking, reading, grammar, and writing—embodying the role of a "versatile teacher" long before becoming an entrepreneur.

Today, it’s unclear how much of New Oriental’s legacy is visible in EAST BUY. However, if education is viewed as a product, both ventures clearly share a commitment to product excellence.

In less than four years, EAST BUY has launched over 700 self-operated products—a rarity in the fast-paced, profit-driven live-streaming e-commerce industry. This unconventional approach reaffirms that a company is the truest reflection of its founder. Two decades ago, New Oriental’s teachers excelled across industries, while Yu’s product philosophy remains unchanged.

· · · Philosopher Zhou Guoping once described Yu as having a "youthful idealism"—a trait seldom associated with entrepreneurs. In business, youthful perspectives often erode under pressure, turning many into the very "dragons" they once sought to slay.

At its lowest point, New Oriental’s market value plummeted by nearly 90%. Few entrepreneurs could stomach watching their painstakingly built empire crumble overnight.

Whether by chance or design, EAST BUY emerged as Yu’s bold pivot from education to live-streaming e-commerce—a leap so vast that Yu braced for annual losses of up to 100 million yuan as "tuition fees."

While his courage to reinvent is commendable, the live-streaming industry’s rapid growth also brought chaos and temptations. EAST BUY’s initial challenge wasn’t slow growth or sales hurdles but the industry’s fixation on short-term gains amid fleeting trends.

Faced with the same choice as in his early teaching days, Yu consistently chose long-term value over quick profits. Consumers may not recall that EAST BUY launched its first self-operated product—golden pillow durian—just three months after founding, signaling simultaneous exploration of self-operated goods and company-building.

Defying industry norms, EAST BUY abandoned traditional traffic-driven tactics for a high-risk, asset-heavy model rooted in supply chain integrity—a difficult but correct path.

· · · In live-streaming e-commerce, asset-light models rely on influencers’ credibility to drive sales, often with lax quality control. Asset-heavy models, however, prioritize supply chain transparency—from sourcing to packaging and logistics—ensuring product reliability.

Asset-light strategies often resort to sensationalism to grab attention, exploiting users’ desire for bargains. In contrast, Yu likens business to the "chef effect": a restaurant can’t depend on a single chef, just as a company can’t hinge on one employee.

As platforms decentralize influencer dominance, the risks of over-reliance on individuals become clear. Live-streaming e-commerce is no longer nascent; every industry must mature from chaos to standardization.

This shift will inevitably phase out pure endorsement models, transferring power to store broadcasts and brands. Building self-operated supply chains is no longer optional—a reality validating Yu’s foresight. EAST BUY’s early commitment to this arduous task has set it apart.

Traffic remains vital, but its source and ability to convert into loyal, high-value users matter more. In FY2025, EAST BUY’s app contributed 15.7% of GMV (up from 8.4%), with paid memberships hitting a record 260,000.

These figures show EAST BUY has outgrown mere "account" status. Its new vision? A one-stop lifestyle shopping platform.

As the industry evolves, consumers will prioritize product quality over influencer familiarity. Whether Yu’s philosophy is ahead of its time is debatable, but his focus on product excellence—whether at New Oriental or EAST BUY—transcends trends.

· · · As an entrepreneur, Yu is acutely cost-conscious—from customer acquisition and teacher recruitment at New Oriental to traffic costs at EAST BUY.

By conventional metrics, EAST BUY’s asset-heavy model seems "uneconomical," with hefty investments in R&D, supply chains, quality control, and after-sales. Missteps risk mediocrity.

Reports indicate EAST BUY spends 40 million yuan annually on product testing alone, alongside nationwide warehouses. Yu admits to daily trepidation, weighed down by scrutiny and quality pressures.

Yet, success would cement EAST BUY’s brand in consumer minds—like Sam’s Club or Pang Donglai—where products, not sellers, earn loyalty.

As Charlie Munger noted, winning systems often maximize or minimize variables to extremes. From New Oriental to EAST BUY, Yu’s adherence to fundamental market needs—delivering value beyond expectations—proves timeless.

In live-streaming e-commerce, EAST BUY pioneers a path beyond traffic dependence, proving enduring enterprises and entrepreneurs withstand time’s test.

Ultimately, education and e-commerce are worlds apart. Yet Yu’s unwavering commitment to product excellence remains the unshakable foundation of his ventures.