Home » Yunji’s first-quarter financial report released the selected strategy of membership-based e-commerce, is it okay? _Total Revenue_Mode_Users

Yunji’s first-quarter financial report released the selected strategy of membership-based e-commerce, is it okay? _Total Revenue_Mode_Users

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Yunji’s first-quarter financial report released the selected strategy of membership-based e-commerce, is it okay? _Total Revenue_Mode_Users

Original title: Yunji’s first-quarter financial report released the selected strategy of membership-based e-commerce, is it okay?

On May 31, the membership-based social e-commerce platform Yunji (NASDAQ: YJ) released its financial report for the first quarter of 2022. The financial report shows that in Q1 2022, Yunji achieved a total revenue of 342.6 million yuan, a year-on-year decrease of 49.28%. The operating profit was 2.4 million yuan, while the operating loss in the same period last year was 19.8 million yuan, turning losses into profits.

In the first quarter of 2022, Yunji’s total revenue was 342.6 million yuan, a year-on-year decrease of 49.28%. In this regard, the financial report explained that the recent decline in sales was mainly due to the negative impact of the new crown virus on the company’s operations in early 2022, as well as the company’s continuous improvement of all categories of products, selection and optimization of suppliers and merchants.

The epidemic has caused temporary shutdowns and delays in the production and operations of the company’s suppliers, third-party merchants, third-party logistics service providers and other business partners to varying degrees, resulting in temporary shortages of certain goods, delays in logistics services, and cooperation with the company’s own There are delays in R&D and new product launch processes related to brand suppliers. Yunji said, “Depending on the development of the new crown virus, this may continue to have a negative impact on the company’s revenue and operations in 2022.”

In addition, Yunji’s net profit attributable to the parent in the first quarter of 2022 was -36.5 million, a year-on-year decrease of 854.64%.

In the first quarter, Yunji’s total cost of revenue was 191.3 million yuan, accounting for 55.8% of total revenue, and the cost in the same period in 2021 was 439.4 million yuan, accounting for 65.1% of total revenue. Total cost of revenue primarily includes costs related to revenue from the sale of merchandise, the decrease was due to lower merchandise sales.

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According to the financial report, the total operating expenses of Yunji in Q1 2022 will be 154.9 million yuan, a year-on-year decrease of 43.2%, and sales and marketing expenses will also decrease by 47.4% to 50.7 million yuan, which will drive the total operating cost to drop by 56.5% to 193.1 million yuan. The total operating cost is in the total revenue. The proportion of them has continued to decline.

2. The falling stock price pattern is controversial

On May 3, 2019, Yunji was officially listed on NASDAQ in the United States, becoming the first Chinese member e-commerce company to enter the international capital market. According to the listing prospectus disclosed at that time, the GMV of Yunji achieved a triple jump from 1.8 billion, 9.6 billion to 22.7 billion in 2016, 2017 and 2018, and the number of paid members also increased from 900,000 in 2016 to 2018. 7.4 million in 2019, and the repurchase rate of users is as high as 93.6%.

It has been three years since Yunji was listed on NASDAQ in the United States. During the IPO, Yunji’s stock price dropped from $11.0 to today’s $1.09. But at the same time, the financial report shows that Yunji will continue to be recognized by users in the first quarter of 2022. As of March 31, the repurchase rate in the past twelve months has reached 80.2%.

(Note from Netease: The picture is collected from Alipay)

According to Netease, the Yunji model is mainly composed of two models. One is the S2b2c model, which integrates the front-end supply chain big S, empowers small B, and spreads it to C through small B. The other is the membership model, and the membership level system and new incentive mechanism in the membership model are controversial.

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Public information shows that in order to expand the market, the newly established Yunji has implemented a radical distribution model beyond the third level, which has also led to its “entry fee”, “pulling head” and “team payment” in its business activities. . Subsequently, Yunji rectified its business model in 2016 and changed it to a compliant secondary distribution. At the same time, it passed the “third-party expert demonstration meeting” in January of the following year, successfully distinguishing it from pyramid schemes. But even so, it is difficult to eliminate the image of “involvement” in the minds of some consumers.

3. Focus on selection to drive word of mouth

With the development of the times, the disadvantages of social e-commerce have become more and more obvious, and its original advantages have been gradually replaced and then diverted. The powerful social e-commerce needs to adjust its strategies in time in the face of changes.

In addition, under the impact of a series of macro events, the overall consumer confidence and willingness of consumers were also temporarily affected. According to data from the National Bureau of Statistics, my country’s total social financing in the first quarter of 2022 increased by 3.3% year-on-year, a temporary drop compared to the same period last year.

Faced with these circumstances, Yunji focused on the ultimate selection strategy, and launched the “Yunji Selection” quality certification while expanding its own brand matrix through the “social selection” mechanism. “Yunji Selection” is mainly for the listed products selected by the “social selection” funnel. Every week, it conducts all-round and comprehensive analysis from five dimensions: best-selling index, food expert recommendation index, repurchase index, quality stability index, and evaluation index. ‘s selection.

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Xiao Shanglue, chairman and CEO of Yunji, pointed out. “The ‘Yunji Selection’ certification passes the certification of high-quality products once a week, so as to achieve the purpose of selecting the best among the best, so that members can buy with confidence.” The platform provides users with professional protection, allowing users to buy with their eyes closed. This is not only a key factor for Yunji’s stable operation in the first quarter of 2022, but also an important factor for Yunji to increase efficiency and reduce costs, driven by word-of-mouth effects. reason.

end

On May 3, 2019, Yunji went public and became the first social e-commerce company in China. In addition to Yunji, membership-based social e-commerce also includes Zebra Member, Miya Plus, Daily Amoy, Global Moment, and Ji Na Youpin, etc.

Today, in the post-epidemic era, under the influence of multiple factors at home and abroad, the trend of rational user consumption is becoming more and more apparent. Whether the boutique membership e-commerce platform Yunji can still retain consumers through the “selected” strategy and unique “S2b2c” business model, and truly help the industry to upgrade its consumption, remains to be verified by time.Return to Sohu, see more

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