What kind of product is NetEase Yanxuan?

It must be said that despite the controversy over plagiarism and copycats, NetEase Yanxuan is still popular after all.

In today's Internet industry, the battle for e-commerce has long been settled. A game company dares to take a share of the pie and has achieved good results (as a person whose main income is long-term investment, please Forgive me for only paying attention to the reaction of the stock market, laugh):

On June 30, 2001, NetEase Yanxuan’s business-favorable stocks soared, and its market value exceeded US$25 billion to a new high. Wall Street investors were optimistic about NetEase Yanxuan’s business. Choose this e-commerce dark horse.

NetEase’s 2016 Q3 financial report data shows that net income from mailboxes, e-commerce and other businesses was 2.08 billion yuan (mainly due to the revenue growth of various NetEase e-commerce products, with a gross profit margin of 33.5%). A year-on-year increase of 107.2%, accounting for 22.6% of total Q3 revenue, becoming the second largest revenue driver after NetEase Games.

1. ?NetEase Strictly Selected Product Analysis

Let’s talk about the product advantages first. It is said that Boss Ding is the original planner of NetEase Strictly Selected and the largest product manager (buyer, laugh) ~).

Personally, I feel that NetEase Yanxuan is like making e-commerce products with the heart of a LOFTER. It is full of petty bourgeoisie and more like a home life store.

As regular customers of Tmall, Taobao and JD.com, everyone must have been familiar with this way of opening the interface - complicated pictures, very low advertising slogans, and almost no desire to open it, unless you have a clear idea. , otherwise trying to find a high-quality and low-price product is really like finding a needle in a haystack.

Comparing it with NetEase’s Strict Selection, I have to say – it won when it came to showing off.

When using the App, careful people will find that unlike when we click on a product details page and need to wait for loading, it thoughtfully uses the process as an interactive animation, which is instantly refreshing.

To sum up, although I cannot say whether NetEase Yanxuan will have returns commensurate with its investment in the red ocean of e-commerce as it expands in scale, it has at least achieved one thing: it has a clear positioning. NetEase's carefully selected prices are not high-end (ODM characteristics), and the style of its products is also aimed at young users with a slightly petty bourgeois sentiment.

Let’s talk about shortcomings. The so-called product shortcomings here are not current problems, but problems that will affect product development in the long run - user precipitation.

It is said that NetEase Strict Selection is mainly initiated by NetEase's mailbox department. It is said that most of the traffic currently comes from NetEase's own mailboxes and portals. I used to be a person who shopped on food apps, and I did it many times. Although I occasionally had unpleasant experiences, I have to say that whenever there is an activity, I will pay close attention to it, because I am a user of this app. Whenever the app I tend to pay attention when there are recommended activities.

In other words, it is difficult for an e-commerce without a user base to develop (we will talk more about Kaola overseas shopping and Xiupin later, as the user base does not match), so get rid of it In addition to the quality of the products provided, how to promote and operate it will be the main issue for NetEase's selection.

2. Why NetEase does NetEase Strict Selection

In fact, in addition to Strict Selection, NetEase also has Kaola Overseas Shopping (self-operated direct cross-border procurement) and Xiupin ( Cooperate with brand owners and have buyer teams) two e-commerce platforms.

At first glance, the three e-commerce platforms under the same company may seem redundant, but in fact, it can be seen that NetEase is very dedicated to targeting market segments in the e-commerce field.

Although the categories overlap, Kaola focuses on maternal and infant products, Xiupin focuses more on clothing including luxury goods, and NetEase strictly selects unbranded products, and the price gradient is further downward, that is, we The young people with petty bourgeois sentiments mentioned at the beginning.

3. Is NetEase’s Strict Selection considered plagiarism?

The turmoil when NetEase Yanxuan was launched brought the word ODM into the public eye. Even if it did not violate the law, it was indeed difficult for the public to accept emotionally, so much so that NetEase later issued a public apology letter.

ODM, simply put, means that the manufacturer provides an overall solution to a big-name foreign buyer (including design and manufacturing), and the buyer’s LOGO is printed on the product when sold, but the product appearance, fabrics and other related intellectual property rights are owned by the buyer. It belongs to the manufacturer, so usually there is no infringement and there is no such thing as copycat plagiarism.

But in fact, this cannot completely avoid risks, because there is another possibility - the purchaser clarified the detailed terms when signing the contract, prohibiting the sale of the same product to a third party for OEM. As NetEase carefully selects more and more products in the future, how to review contracts signed by manufacturers and other companies will become more complicated.

At present, many of the products selected by NetEase are similar to international big brands. The premium of big brands is their own brands. If they want to protect their own interests in the future, they will make their contracts with manufacturers clearer and stricter. , where will NetEase go from here?

Without the gimmick of “same style as big brands”, how will it attract the group of petty bourgeoisie users mentioned at the beginning?

Summary: Personally, I still hope to see NetEase Yanxuan be able to accumulate through users, put aside the "big brands with the same style", and carefully select more high-quality domestic manufacturers, while supporting manufacturers, while providing users with Provide more high-quality and low-price products.

E-commerce is not easy to do, but it must be done and cherished (laughing)

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