Yunji, Inc. Q4 FY2023 earnings call

• Focused on curating cost-effective products with low return rates, centered around 'love for food, beauty and health'. Developed private label products, expanded categories, and upgraded medicinal product line using ingredients like collagen and probiotics.
• In marketing, committed to improving customer service through training and having sales managers trace product origins to share material with users. Rolled out new healthcare products in March with a 28-day body image management program, sales surpassing RMB 80 million on launch.
• Integrated AI into customer service, including chatbots and support for service managers, with AI health consultants providing personalized calorie intake advice.

In the fourth quarter of 2023, total revenues were RMB 149 million. Revenues from sales of merchandise were RMB 112 million, contributing approximately 75.17% to total revenue. Revenues from the marketplace business were RMB 34 million, contributing approximately 22.82% to total revenue. The gross margin remained relatively solid at 46.6% due to sustained customer loyalty towards private labels and effective product creation strategy.

Q: I just heard you mention customer service. We have observed that in recent months, major e-commerce platforms have launched a series of policies such as 7-day no user returns, free shipping in remote areas, et cetera. What do you think of these new policies which are biased towards consumers? Will all this strategy have any impact on our performance?

A: This issue evolves the nature of our products and user consumption habits. First of all, we believe that to be a good platform, the selling point of your products cannot be for RMB 9.9 with free shipping. And user's consumption behavior cannot be based on imposed consumption. Yunji, especially -- Yunji's merchandise sales and private label products has always maintained a loose and a customer specific policy. However, our quality refund rate is very low compared to other platforms, which is inseparable from our sufficient user education. We believe that loose sales are important, but what ultimately attracts consumers to repurchase is unique product offering and cost effectiveness. Our average order value is enough to cover our customer management expenses. And we also have many loyal users in remote areas