Yunji Inc. (NASDAQ: YJ) is the pioneer of a unique membership-based social e-commerce business, the largest of its kind in China (measured in gross merchandise value). The main drivers behind our success are a highly-engaged user base, superior social shopping experience, and well-curated products offered at attractive prices.
Our flagship app combines social features with a great shopping experience. On the app, users can explore, discover, and purchase a wide range of products that satisfies the various daily needs of our users and their households. We offer mainstream brands, emerging brands, and private labels. In addition, Standard Product Units (SPUs) are strictly controlled to ensure quality, allowing the platform to deliver a large sales volume per SPU which, in turn, helps us optimize our cost structure.
We place a strong emphasis on product curation and big data analysis. We analyze historical data, seasonality, and user feedback to predict and recommend the right products to customers. This helps to increase user stickiness, which is also enhanced by our focus on products that help with users’ daily needs. For example, our online grocery store helps users, many of whom are young mothers, with products to manage their households such as baby food and toiletries.
Our success has come primarily from our commitment to building a uniquely social e-commerce platform. The Yunji shopping experience is driven by its users' social connections and the community. Our app is able to interface with popular social network platforms such as WeChat, QQ, and Weibo, which allows users to share their favorite products via these channels with friends.
We also provide a complete suite of solutions and services that allow our suppliers to benefit from our scale of operations and highly efficient marketing capabilities. These solutions and services not only help mainstream brands to expand their businesses within China but also support emerging brands, private labels, and high quality manufacturers in building recognition and awareness. Importantly, we use big data analytics to understand and interpret customer behavior. This valuable information can be leveraged by suppliers to adjust operations, control inventory, and customize products based on the needs of our users.
Users access the platform mostly through invitation and recommendations by existing members in their social networks. Members enjoy more attractive prices than non-members when shopping on the app, and receive incentives to promote and initiate transactions and enroll new members via their social networks. Many Yunji members are influential opinion leaders within their social networks and even more receive benefits via our social experience. All of these factors contribute to the unique social nature of the Yunji e-commerce platform.