To maintain a stronghold in China, you must be on top of new trends and popular platforms. Chinese social e-commerce platform Yunji is a fairly new platform that has been rapidly gaining popularity among Chinese consumers since its launch. However, it remains relatively unknown to Westerners.
For foreign marketers and international brands looking to do business in the world’s biggest market, Yunji is a platform they cannot afford to miss. While many marketers have heard of Yunji before, they are still not familiar with how it works. This article will provide insights into what the Yunji platform has to offer.
What exactly is the Chinese E-commerce platform Yunji?
Yunji is a growing social e-commerce platform that has developed a pretty unique membership-based model to make use of its user’s social interactions for shopping purposes. The company provides trendy products that are affordably priced and appeal to Chinese consumers’ needs daily.
It’s an interesting business model in China’s e-commerce market and the company is succeeding in becoming one of the most known social e-commerce companies in China.
Yunji was launched in 2015 as an e-commerce platform for Chinese consumers. Since then it has managed to grow its user base massively and today Yunji has a significantly large network of users. By 2021, the platform has managed to add approximately 18 million consumers to its member base.
On April 23, 2018, Yunji announced they had completed their Series B financing of USD 120 million. Just over a year later on May 3, 2019- Yunji was officially listed on the Nasdaq Stock Exchange after becoming the first successful Chinese membership-based eCommerce firm to list on a US stock exchange.
How does the platform work?
Yunji has a membership-based e-commerce business model. This means to become member users have to pay a membership fee. By doing so they are granted access to purchase products at a discounted price, similar to wholesale prices.
It is not just about buying of course. Besides making use of purchasing possibilities through the platform, users have the option to open up their online selling social network.
Yunji also has an invitation policy allowing present users to invite others to join the platform. And when they do, Yunji grants them discount coupons to be used on products and services within the platform.
With YUNJI, members can get 80% of their daily necessities at a wholesale price. They can also earn money by sharing links to commodity sales with their friends.
What types of products does Yunji sell?
- Beauty & Personal Care & Baby
- Food & Fruits and fresh produce
- Household Products & Home Textiles
- 3C Digitals & Home Appliances
- Garment & Light Luxury
But we can expect the platform to become one of those giant online marketplaces, as the company is widening its offer constantly.
Does Yunji work with foreign brands?
The answer is yes! In 2018, Yunji finally released its product to the public after 3 years of development. They have since then signed agreements with multiple top brands, both domestic and foreign such as L’Oreal, Yili, Johnson & Johnson, Danone, Fiyta, Deerma, Tomato Pie, HI-tomorrow, and more.
What is the secret to Yunji’s success?
Yunji success lies in carefully curating products, sourcing merchandise centrally, and managing its supply chain smartly. As a result of these efforts, Yunji offers members exclusive benefits like discounted prices on high-quality items.
Utilizing massive amounts of data and AI, Yunji uses top technologies to optimize the user experience to succeed in leveling up the platform. Furthermore, this allows users to share products with their social contacts easily and seamlessly.
Another strategic move from Yunji is its themed campaigns. For instance, Yunji ran several themed campaigns in 2021, especially during the Lunar New Year period. Chinese people living under lockdown and travel restrictions showed a massive interest in these campaigns to gift their loved ones whom they were unable to visit. Breaking its records, Yunji had some products that sold millions in a single day.
Expertise on delivery
By partnering with China Post, Yunji ensures the successful delivery of products to any location in China. In addition, depending on the region, members are also offered more delivery options.
What sets Yunji apart from its famous competitor Pinduoduo?
Social media plays a vital role in Yunji’s business model. Users are encouraged to promote the platform, in a way marketing the platform and receiving discounts in return. This e-commerce model is also used by Yunjis biggest competitor Pinduoduo which was founded and developed the same year as Yunji.
Even though both Yunji and Pinduoduo are built and developed around the same model, there are a few differences between them.
Pinduoduo is a much more extensive platform only its produce section creates billions each year. Pinduoduo is also more focused on fresh food and grocery items compared to Yunji. The latest statistics also mention that Pinduoduo was less profitable than Yunji in past years.
Are you looking for a local partner to start selling in China?
Are you interested in Chinese e-commerce platforms to sell your products in China? We can help! With Yunji and other leading social media as well as e-commerce platforms, you can get access to millions of customers and reach out to potential buyers in the Chinese market.
Our team has experience with e-commerce platforms in China and can assist you with setting up your store, using marketing tools, and promoting your products.
Contact us today for more information or leave us a comment, so we can schedule a free call where one of our experts will present you with solutions suitable for your brand.