Yunji Inc. (YJ): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of how Yunji Inc. (YJ) is executing its sharp pivot toward the organic health and wellness sector, and honestly, understanding the nuts and bolts of their Business Model Canvas is where the real story is. As a former head analyst, I see a membership-based social e-commerce engine that's leaning heavily on curated, high-margin goods, evidenced by their 71.0% repeat purchase rate over the last 12 months ended H1 2025. We need to see how their RMB217.1 million in cash and equivalents as of June 30, 2025, fuels this strategy across key activities like platform enhancement and community leader empowerment, so let's break down the nine blocks below to see if the structure supports the ambition.

Yunji Inc. (YJ) - Canvas Business Model: Key Partnerships

You're looking at how Yunji Inc. (YJ) structures its external relationships to drive sales, especially given the strategic shift toward organic living and high-margin categories. The partnerships are central to both sourcing and distribution.

Strategic suppliers and merchants for curated, high-margin products.

Yunji Inc. is actively refining its selection of suppliers and merchants as part of its H1 2025 strategy, which impacted top-line revenue, which stood at $22.1 million for the first half of 2025, down from $233.8 million in the same period last year. The company is focusing on high-retention categories, like its Jianxin Tea Therapy business, which is in the incubation phase. This focus is clearly supported by member behavior; in H1 2025, over 90% of the tea therapy users purchased main products, directly supporting sales of other health products.

Top influencers for live streaming sales and public domain channel expansion.

The push into public domain channels involves direct collaboration with key opinion leaders. Yunji Inc. is establishing partnerships with top influencers for live streaming sales. This channel development is showing traction; currently, the WeChat channel transaction volume ranks higher than 92% of its peers. This influencer and public domain strategy is part of the Sales and Marketing expenses, which totaled $7.0 million in H1 2025, an increase of 5.5% from H1 2024.

Community group leaders for retail market penetration and distribution.

The community structure remains a key distribution layer, though it faces new dynamics. Community group leaders are reportedly more inclined to embrace private domain e-commerce and connect directly with store suppliers. The tea therapy program, which leverages this community, shows a solid frequent user participation rate of 50%. Furthermore, channel members booking through this program account for nearly 15% of often all participants, creating a clear path for deeper penetration.

Logistics and fulfillment providers for efficient supply chain management.

Efficient supply chain management is visible in the cost structure adjustments. Fulfillment expenses, which cover warehousing and logistics, saw a significant reduction in H1 2025, dropping to $2.9 million, a decrease of 51.7% compared to RMB 42.6 million (approximately $5.9 million based on the H1 2024 revenue exchange rate implied by the H1 2025 figures, or using the H1 2024 fulfillment expense of $5.9 million from snippet) in the same period of 2024. This reduction was primarily driven by lower warehousing and logistics costs tied to reduced merchandise sales. The company's liquid assets, including cash and short-term investments, stood at $217.1 million as of January 30, 2025, which provides adequate coverage for payable obligations, suggesting a manageable working capital position to support these operational partnerships.

Here's a quick math look at the key operational expenses tied to these external relationships for the first half of 2025:

The repeat purchase rate remained strong at 71.0% for the twelve months ended June 30, 2025, which is a direct indicator of the stickiness Yunji Inc. achieves through its curated product offerings and community engagement, both heavily reliant on these partnerships. The marketplace business generated $3.4 million in revenue during H1 2025.

The company's continued focus on optimizing its cost structure while supporting market expansion initiatives is reflected in the Sales and Marketing expense increase, which was primarily due to higher member management fees from growing the membership base. Finance: draft 13-week cash view by Friday.

Yunji Inc. (YJ) - Canvas Business Model: Key Activities

You're looking at the core engine driving Yunji Inc.'s operations as of late 2025. This is where the work happens to keep the membership-based social e-commerce platform running.

Deliberate product curation, focusing on organic health and wellness

Yunji Inc. centers its activity on selecting products that align with its organic health strategy. This curation effort is noted as a driver for sustained customer loyalty. In 2024, the company maintained a robust user repurchase rate of 71.9%, reflecting trust in this selection process. Specific high-margin product performance shows this focus in action: private-label product Pro by Audis Bonus generated nearly RMB 5 million in Q4 2024 and over RMB 6 million in Q1 2025. Furthermore, the Jianxin Tea Therapy Program, an 80-minute wellness experience, saw a 91% repeat rate in trials. The overall gross margin for 2024 improved to 49.4%, which the company links to this effective product curation trait emphasizing high margin.

Centralized merchandise sourcing and supply chain optimization

The company actively manages its supply chain to support its curated offerings. This activity involves cost reduction efforts, particularly in logistics. Fulfillment expenses for the first half of 2025 were RMB 20.6 million, a significant decrease from RMB 42.6 million a year prior. This reduction was primarily driven by lower warehousing and logistics costs resulting from reduced merchandise sales. The strategic refinement of product selection and supplier optimization was cited as a reason for the revenue decline in the first half of 2025, where total revenues hit RMB158.3 million.

Expanding user acquisition via online and offline channels

Yunji Inc. is focused on growing its user base through various platforms. The company is expanding public domain channels, upgrading its Tmall infrastructure, and establishing partnerships for live streaming sales. Its WeChat channel transaction volume currently ranks higher than 92% of its peers. Despite this focus, total revenues for the first half of 2025 declined to RMB158.3 million from RMB233.8 million in the same period of 2024, attributed partly to soft consumer confidence. The revenue for the quarter ending June 30, 2025, was 79.17M CNY, a decrease of -25.30%.

Platform development using big data and AI to enhance user experience

Technology investment supports the platform's functionality and user interaction. Technology and content expenses for the first half of 2025 were RMB 15.3 million, down from RMB 25.5 million a year ago, due to a reduction in personnel costs from staffing structure optimization. The company uses advanced technologies, including big data and artificial intelligence, to incentivize members to promote the platform. On the balance sheet as of January 30, 2025, Yunji Inc. held RMB 217.1 million in cash and cash equivalents.

Here's a quick look at the scale of operating expenses during the H1 2025 strategic shift:

The resulting loss from operations for the first half of 2025 was RMB 100.4 million, compared to a loss of RMB 32.4 million a year ago. Finance: draft 13-week cash view by Friday.

Yunji Inc. (YJ) - Canvas Business Model: Key Resources

You're looking to map out the core assets Yunji Inc. (YJ) relies on to run its business as of late 2025. These are the things they own or control that are essential to delivering value to their members.

The foundation of Yunji Inc. (YJ) is its membership-based social e-commerce platform technology. This technology is what allows them to operate as a leading social e-commerce platform in China, leveraging social interactions for sales. The platform offers high-quality products across various categories catering to the day-to-day needs of Chinese consumers.

Next up, the intellectual property: proprietary big data and artificial intelligence (AI) capabilities. Yunji Inc. (YJ) uses these advanced technologies specifically to optimize the user experience. Also, these capabilities help incentivize members to promote the platform and share products with their social contacts.

The product side is driven by deliberate curation. This involves maintaining a curated portfolio of high-margin, high-retention products. This curation process is paired with centralized merchandise sourcing and efficient supply chain management, which helps establish Yunji Inc. (YJ) as a trustworthy platform offering exclusive membership benefits, like discounted prices.

Financially, a key resource is the company's liquidity position. As of June 30, 2025, the reported figure for liquid assets was RMB217.1 million in cash and equivalents. This provides operational flexibility.

Here's a quick look at how these resources support the platform's structure:

• Membership-based social e-commerce platform technology.
• Proprietary big data and artificial intelligence (AI) capabilities.
• Curated portfolio of high-margin, high-retention products.
• Liquid assets of RMB217.1 million in cash and equivalents as of June 30, 2025.

To give you a clearer picture of the financial scale related to their assets, here's a comparison of their cash position over recent periods (figures in millions of CNY):

The technology stack also relies on external infrastructure. For instance, Yunji Inc. (YJ) has established partnerships with technology firms for its social e-commerce infrastructure, including services from Tencent Cloud and Huawei.

Finance: review the cash burn rate against the RMB217.1 million resource by end of Q3 2025.

Yunji Inc. (YJ) - Canvas Business Model: Value Propositions

You're looking at the core value Yunji Inc. delivers to its members as of late 2025. The company is actively executing a strategic transformation, positioning itself as a trusted advocate for organic living. This shift is meant to deepen customer engagement and reinforce a focus on higher-margin, more sustainable categories. This focus is evident in new product lines like Yujiang Organic.

The membership structure is central to the value proposition, offering exclusive membership benefits, including discounted prices. This model is designed for high retention; for the twelve months ended June 30, 2025, the repeat purchase rate stood at 71.0%. The value is also tied to cost management, as evidenced by fulfillment expenses decreasing by 51.7% year-over-year to RMB20.6 million (US$2.9 million) in the first half of 2025, partly due to lower merchandise sales.

Yunji Inc. promises high-quality, curated products across multiple categories. They are building an integrated portfolio that combines organic health products, beauty offerings, and immersive wellness experiences. For instance, their tea therapy program, which supports the organic health image, saw over 90% of its users purchase main products in the first half of 2025, effectively supporting sales of other health items. The breadth of offerings is wide, covering:

• Beauty and personal care.
• Healthcare products.
• Household goods.
• Apparel, shoes and bags.
• Beverages, food and fresh produce.
• Computers, electronics and home appliances.
• Childcare products and baby and maternity products.

The financial results from the first half of 2025 show the revenue mix supporting this curated approach. The gross margin remained relatively solid at 47.3% during this period, even as total revenues declined to RMB158.3 million (US$22.1 million) from RMB233.8 million in the first half of 2024, due to soft consumer confidence and product refinement strategy. Here's the quick math on the revenue breakdown for H1 2025:

The social e-commerce model that leverages peer-to-peer sharing is the engine for user acquisition and engagement. Users access the platform mostly through invitation and recommendations from existing members within their social networks. This model is supported by spending, though the company is optimizing costs. Sales and marketing expenses were RMB50.1 million (US$7.0 million), representing 31.6% of total revenues in H1 2025. The platform uses advanced technologies, including big data and artificial intelligence, to incentivize members to promote the platform and share products. Still, the high fixed costs associated with the model are visible in the period's performance; General and administrative expenses jumped to RMB93.4 million (US$13.0 million), or 59.0% of total revenues, contributing to a net loss of RMB100.7 million in H1 2025, compared to a net loss of RMB8.0 million in H1 2024. The company maintains liquidity, reporting total cash and cash equivalents of RMB217.1 million as of January 30, 2025, down from RMB242.8 million on December 31, 2024.

The value proposition hinges on community trust and product quality. Finance: draft 13-week cash view by Friday.

Yunji Inc. (YJ) - Canvas Business Model: Customer Relationships

Yunji Inc. operates on a foundation built around its core membership structure, which is central to how it manages customer relationships.

The relationship starts with a membership-based model, which is a pioneering approach for the social e-commerce platform in China. This model is designed to leverage social interactions by offering members access to high-quality products at attractive prices, which includes exclusive membership benefits like discounted prices.

The company is actively deepening customer engagement by integrating wellness into its offerings, moving toward being a trusted advocate for organic living. This involves building an integrated portfolio that combines organic health products, beauty offerings, and immersive wellness experiences.

The Jianxin Tea Therapy Program is a key example of this engagement strategy. In trials, this 80-minute wellness experience saw a 91% repeat rate. For the first half of 2025, over 90% of the users in the tea therapy program purchased Yunji Inc.'s main products, which supported the sales of other health products. Furthermore, channel members booking through this program accounted for nearly 15% of all participants as of H1 2025.

Customer loyalty remains a key metric for Yunji Inc., evidenced by the performance over the first half of 2025.

Yunji Inc. is also focused on empowering its network of community leaders for localized retail and sales. The strategy involves expanding community group leader channels by placing organic foods in their stores. This approach aims to empower these leaders while making organic products more convenient for consumers, looking for mutual benefits.

The relationship strategy is supported by technology:

• - Using big data and artificial intelligence to optimize user experience.
• - Incentivizing members to promote the platform and share products with social contacts.
• - Enhancing WeChat channels content, where transaction volume ranks higher than 92% of peers.

Yunji Inc. (YJ) - Canvas Business Model: Channels

You're looking at how Yunji Inc. gets its products in front of members as of late 2025. It's a mix of owned digital real estate and social integration, which is typical for this space, but the numbers tell a specific story about where the focus is right now.

The primary engine remains the Core Yunji mobile application and e-commerce platform. For the first half of 2025, this platform generated total revenues of RMB 158.3 million (US$22.1 million). Breaking that down, revenues from sales of merchandise accounted for RMB 131.7 million, while the marketplace business brought in RMB 24.5 million. The overall gross margin held at a relatively solid 47.3% for that period.

Here's a quick look at the financial context surrounding these channels for the first half of 2025:

The WeChat channels are definitely punching above their weight in terms of influence. As of the H1 2025 update, Yunji Inc.'s transaction volume through its WeChat channel ranks higher than 92% of its peers. That's a strong indicator of effective social commerce integration there.

For user acquisition and deepening engagement, the company is heavily leaning into specific programs that function as specialized channels. The Jianxin Tea Therapy business, for instance, is a key funnel. The frequent users in that program maintained a solid 50% participation rate. Plus, this channel is highly effective at driving core sales; over 90% of tea therapy users purchased the main products during the first half of 2025. The launch of their flagship organic milk product itself generated RMB 5 million in sales, helping shape that brand image.

While specific figures for other channels aren't explicitly broken out, the strategy involves broader reach:

• - Public domain sales expansion is being monitored for cost efficiency, suggesting continued use of platforms like the upgraded Tmall infrastructure.
• - The overall strategy mentions expanding user acquisition through both online and offline channels.
• - The repeat purchase rate across all channels for the twelve months ending June 30, 2025, stood at 71.0%.

The increase in Sales and Marketing expenses to RMB 50.1 million in H1 2025, up from RMB 47.5 million in H1 2024, reflects these expanded initiatives to grow the membership base across these various touchpoints.

You can see the platform is trying to convert high-engagement users from specific programs, like the tea therapy group, into reliable customers, evidenced by the 71.0% repeat purchase rate. Finance: review the Q3 2025 S&M spend against the Q2 2025 revenue run rate by next Tuesday.

Yunji Inc. (YJ) - Canvas Business Model: Customer Segments

You're looking at the core groups Yunji Inc. (YJ) is targeting as of late 2025, focusing on their strategic pivot. Honestly, the numbers from the first half of 2025 tell a clear story about where their focus lies.

The primary segment remains the membership-based consumers in China seeking value and quality. This group is the foundation of their social e-commerce model. We see continued engagement, even with softer consumer confidence impacting top-line results. The repeat purchase rate in the twelve months ended June 30, 2025, stood at 71.0%. Total revenues for that same half-year period were RMB158.3 million (US$22.1 million). Sales and marketing expenses in the first half of 2025 hit RMB50.1 million, largely driven by costs associated with growing that membership base.

Next up are the health-conscious consumers focused on organic living and nutrition. This is the strategic direction the management team is pushing hard toward. They are building an integrated portfolio around this, including organic health products. To give you a concrete example of traction, their flagship product, [Youjiang] Organic Milk, achieved RMB 5 million in sales at launch, which helped cement that health-focused brand awareness.

Then there's the emerging, high-potential group: users of the Jianxin Tea Therapy business in the incubation phase. This program is designed to drive traffic and reinforce the organic health image. The conversion here is impressive; in the first half of 2025, over 90% of these tea therapy users purchased Yunji Inc.'s main products. Furthermore, internal members participating in this T therapy program accounted for nearly 15% of all participants as of the Q2 2025 call.

Here's a quick look at some of those segment-relevant metrics from the first half of 2025:

You should also note the specific financial activities tied to these customer interactions:

• Revenues from sales of merchandise were RMB131.7 million in H1 2025.
• Fulfillment expenses, tied directly to merchandise sales, decreased by 51.7% to RMB20.6 million in H1 2025.
• Technology and content expenses, which support the platform experience, were RMB15.3 million.
• General and administrative expenses saw a significant jump to RMB93.4 million, partly due to higher allowance for credit losses.

Finance: draft 13-week cash view by Friday.

Yunji Inc. (YJ) - Canvas Business Model: Cost Structure

You're looking at the expense side of Yunji Inc.'s (YJ) operations for the first half of 2025, a period where the company was actively refining its cost structure amid a strategic pivot toward organic living. Honestly, managing costs while transforming the business is never easy, so let's look at the hard numbers from the H1 2025 unaudited results.

The cost components show where Yunji Inc. allocated its capital during this period of strategic refinement. Total cost of revenues, which mainly covers the purchase price of merchandise and related logistics, saw a significant decrease year-over-year, reflecting the optimization of supplier selection and lower sales volume due to soft consumer confidence.

Here's a quick breakdown of the major operating cost categories for the half year ended June 30, 2025:

That table shows a few key shifts you need to watch. While several costs were optimized, General and Administrative expenses spiked considerably. This is a critical area to monitor; the increase to RMB93.4 million was definitely due to higher allowances for credit losses, which is a direct reflection of the challenging economic environment on their receivables.

You can see the cost control efforts in the other areas:

• Cost of revenues decreased by 31.2% to RMB83.5 million.
• Fulfillment expenses were optimized, decreasing by 51.7% to RMB20.6 million.
• Technology and content expenses were reduced by 40.0% to RMB15.3 million.

The reduction in Fulfillment expenses to RMB20.6 million, or 13.0% of total revenues, shows they streamlined logistics and warehousing costs, likely tied to the lower merchandise sales volume. Similarly, Technology and content expenses dropped to RMB15.3 million, largely from staffing structure refinements and reduced server costs. It's clear management is prioritizing financial discipline across the board, except where necessary for risk mitigation, like the credit loss provisions hitting G&A.

Finance: draft 13-week cash view by Friday.

Yunji Inc. (YJ) - Canvas Business Model: Revenue Streams

You're looking at how Yunji Inc. (YJ) is bringing in cash as of late 2025. The revenue picture for the first half of 2025 shows a shift, reflecting the company's strategic refinement, so let's look at the hard numbers from the H1 2025 unaudited financial results.

Overall, total revenues for the half year ended June 30, 2025, came in at RMB158.3 million (US$22.1 million). This is down from RMB233.8 million in the same period last year, which the company attributes to soft consumer confidence and optimizing product selection. The core of the revenue generation remains the direct sale of goods, but the marketplace component is still a factor.

Here's the quick math on how those total revenues broke down for H1 2025:

The focus on organic living is definitely driving some of the product strategy, which impacts the merchandise sales line. For instance, you see specific attention paid to new, curated offerings. The sales figure for flagship products like Qingziyang Organic Milk at its launch was reported at RMB5 million.

The revenue streams, as of late 2025, are clearly segmented, even as the company pushes its transformation:

• Revenues from sales of merchandise: RMB131.7 million in H1 2025.
• Revenues from the marketplace business: RMB24.5 million in H1 2025.
• Other revenues: RMB2.1 million in H1 2025.
• Sales of flagship products like Qingziyang Organic Milk (RMB5 million at launch).

The repeat purchase rate remains a key metric supporting this revenue base, holding at 71.0% in the twelve months ended June 30, 2025. Finance: draft 13-week cash view by Friday.