Specialist
Former Department Head at Zhejiang Jishang Network Technology Co Ltd (Yunji Weidian)
Agenda
- Yunji vs Global Scanner vs Beidian and development trends in the social e-commerce market
- Yunji’s business model, stock keeping units (SKU), members’ GMV contribution, customer base and repurchase rates
- Co-operation model between merchants and platforms, merchants’ channel cost and preferences for different platforms
- Compliance measures, impact on the business and regulation update
Questions
1.
Yunji was successfully listed in the US on 3 May. Its GMV reached RMB 1.8bn, RMB 9.6bn and RMB 22.7bn in 2016-18, according to its prospectus. Among them, the year-on-year growth rate of GMV in 2018 was as high as 136.5%, with total orders of 13.5 million, 75.8 million and 150 million, respectively. Its fulfillment cost was RMB 758m per order in 2018, and the number of standard product units (SPUs) increased from 837 to 6,613. What’s Yunji’s growth trajectory over the past few years? How has it changed in terms of management style and development strategies?
2.
Beidian and Global Scanner have been growing rapidly, with GMV doubling every year and reached RMB 10bn last year. The added volume of both platforms basically equals to that of Yunji. There have also emerged similar players such as Beike Youpin, Xiaomi Youpin and NetEase Yanxuan. What do you think of Yunji’s current competitive position? Does it have an absolute advantage? Given the growth of the others, do you think there will be a second Yunji in the future?
3.
Will there be less regulatory pressure on unlisted platforms? If they offer a better distribution strategy, will they attract more merchants from Yunji?
4.
Yunji had 7.4 million paying members in 2018, but only 900,000 in 2016. Can you predict the approximate number of its paying members in 2019?
5.
Is there a ceiling to the number of buyers through WeChat? Can Yunji actually reach its goal of 10 million paying users in 2019? Will it be stuck on that level in the next 2-3 years and find it hard to gain further growth?
6.
In 2016-18, Yunji’s total revenue rose from about RMB 1.3bn to RMB 6.4bn and RMB 13bn, most of which came from sales revenue. In 2018, the sales revenue accounted for 88% of the total revenue, and its membership revenue was about RMB 1.6bn, an increase of 20.4% over the same period last year. The membership revenue accounted for 11.9% of its total, an improvement compared with 2017. What do you think of its future growth in sales revenue and membership revenue? Which source do you think will be the main growth driver?
7.
What are the respective proportions of sales revenue of Yunji members and non-members, including repurchase?
8.
According to Yunji’s financial report, it is still losing money now, but the loss has narrowed. In 2018, it lost RMB 563.26bn. What do you think is the main reason why Yunji hasn't made a profit yet? What should it do to achieve profit? What is its biggest cost?
9.
What are the core products of Yunji? What is their contribution to its GMV? What are their respective growth trends?
10.
What is the growth trend of GMV in each category? Can you compare its core products with those of Beidian, Global Scanner and other players? What are the differences in their assortment strategies?
11.
What is the future direction of category expansion of Yunji?
12.
How does it work with merchants? How does it manage the supply chain and logistics of different categories such as mother and infant products?
13.
What do you think of the shopping experience Yunji offers? How many days does it need to get the product? Is the return process complicated? Is there a dedicated team offering such services?
14.
What is the payback period of Yunji to product manufacturers? Is it shorter than that of other social e- commerce platforms?
15.
Why does Yunji outperform other platforms such as Beidian, Global Scanner and Daling Family in managing its payment period?
16.
How has Yunji’s distribution and community systems improved in 2015-18, especially after being convicted? Has it already eliminated the legal risks? Can you talk about its current system?
17.
Can you tell us more about the sharing commissions with examples? How much can a level 1 member, a level 2 member and a regular merchant get when they sell an RMB 200 product? How much money can the platform make?
18.
Can you compare the membership system and discounts of Yunji and that of Beidian and Global Scanner?
19.
Yunji has already launched its IPO. Does it mean that it is exempt from all legal risks? Will there be one day when the authority suddenly comes to impose fines or order it to modify the mode?
20.
How does Beidian manage the stickiness of its KA customers and level 3 members? Can you talk about the management system of the company?
21.
As you said, if some emerging platforms offer better rebate systems, Yunji may lose some of its senior members. What is its rate of membership churn? What is the growth rate of its level 3 members?
22.
Are you optimistic about the development of social e-commerce and Yunji?
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