Reducing Reliance on Top Streamers and Rebuilding Profits Through Private-Label Brands

📌 Background

In fiscal year 2026, East Buy successfully reduced its reliance on top live streamers through private-label products: financial reports show revenue reached 5.701 billion yuan, a year-on-year increase of 29.8%, while operating profit turned from a loss of 110 million yuan to a profit of 663 million yuan (company reporting caliber). Private-label products accounted for 52.6% of total GMV, breaking the 50% mark for the first time, and the gross profit margin rose from 32.0% to 35.8%. The cost was an increase in selling and marketing expenses to 1.078 billion yuan, while R&D expenses actually decreased by 14.8%, with profit reconstruction accompanied by quality control pressures.

👤 Target Customers

Consumers of East Buy private-label products, proprietary app members, agricultural supply chain partners, and capital market investors focused on the profit inflection point.

💰 Revenue Streams

1) Private-label product sales: Private-label product sales account for over 50%, earning gross profit based on product selling prices (this proportion is from the company's financial report); 2) Live streaming commissions and tips: Earning commissions from third-party product transactions and obtaining live streaming tip revenue; 3) Membership and subscriptions: Collecting membership fees and subscription service fees from paid members; 4) Multi-platform distribution and proprietary brand licensing: (Opportunity item, specific revenue scale has not been publicly disclosed).

🧮 Cost Structure

Private-label product R&D and quality control, supply chain warehousing and logistics, multi-channel platform operations, and compensation for non-top streamers and content teams

🛡️ Moat

Deep integration of private-label brands with the agricultural supply chain, coupled with member private domains and a multi-channel distribution matrix, forming a repurchase flywheel that does not rely on a single streamer.

🔑 Keys to Success

• Continuous increase in the proportion of private-label GMV
• Supply chain quality control and product selection capabilities
• Multi-channel distribution and membership system operations

⚠️ Risks

• Quality or public opinion incidents involving private-label products
• Decline in consumer acceptance of brand premiums
• Slowdown in traffic growth and user acquisition after reducing reliance on streamers

🏢 Cases

• East Buy's net profit exceeded 500 million yuan in fiscal year 2026, with compensation expenses sharply decreasing by 400 million yuan
• East Buy's private-label GMV proportion broke 50% for the first time

📊 SWOT Analysis