An optimized Netease employee said: "According to incomplete statistics, Netease YEATION will lay off 500 people, Hangzhou Research Institute will lay off 500 people, Netease Cloud Music will lay off 300 people, and other departments may lay off some people. It is estimated that 1500 to 2000 people will be laid off. "
The biggest controversy caused by the optimization of Netease YEATION is that the original year-end bonus of 20 wages was not paid when the layoffs were notified years ago, and it became N+ 1 compensation.
At the financial report meeting of Netease 20 17, Ding Lei set a small goal for Netease: the total platform sales in 20 18 will be 20 billion. At that time, Netease YEATION looked high-spirited and full of confidence. At that time, Ding Lei set a small goal according to the dazzling data of Netease YEATION. On April 20 16, Netease YEATION was established. In the second half of the year, YEATION gained 30 million users in only half a year, with an average monthly traffic of 60 million. In the financial statements released in August of 20 17, the income brought by Netease's e-mail and e-commerce business was 3.35 billion yuan, an increase of 68% compared with that in 20 16.
YEATION's business logic: rubbing big-name hotspots, copying big-name designs, odm letting go of OEM, focusing on marketing, and making use of platform advantages and information gaps to make huge profits.
As for the same factory in marketing, the same technology, the same materials, the same technology ... can only say that the industry has a threshold and business has competition. No one can take it all. YEATION has no ability or strength to fully fulfill its promise. True or false, can only rely on users to practice.
The goods in YEATION always give people a sense of deja vu, even the same, and the perception of Muji with unique style and high recognition is more direct. But behind this deja vu, there are two completely opposite and completely opposite product concepts.
Muji's product concept: define a commodity, comprehensively consider factors such as function, aesthetics, material, technology and cost, weigh the pros and cons, balance all parties, and produce product forms. In other words, product form is only the external natural expression of product value.
Netease YEATION's product concept: It is the core value to maintain a high degree of consistency with the external form of the same product of MUJI, and factors such as function, aesthetics, material, technology and cost can be compromised. In other words, the product form can exceed the product value.
Because of this congenital defect, many goods in YEATION always look beautiful, and there is always a feeling of falling off the chain when used.
Some personal experiences of actually using fermented commodities;
Solid wood soap box: solid wood texture, Japanese style, simple and generous. Due to design defects, the newly used cleansing soap with water will slide out and fall to the ground directly when placed in the soap box.
Space aluminium clothes rack: MUJI has the same model, and the space aluminum tube is integrally formed. Due to process defects, the cut-off part of aluminum metal was not polished, and it stuck to the hand once and punctured the clothes several times; I bought several groups at the time of purchase, and delivered ten groups. Each separate shelf has a separate plastic bag box.
YEATION cashmere sweater: pure cashmere texture, basically versatile, basically sea blue. The version doesn't pass, it doesn't fit, and it swings after wearing it; The fabric is too thin and sparse to achieve the basic insulation effect.
Thermos cup: stylish accompanying cup design, external Japanese printing, large capacity. The printing process is unqualified. Not directly printed on the stainless steel cup, but covered with a patterned film, the butt joint is seriously misplaced, revealing a strong cottage flavor. The joint process is unqualified and the heat preservation effect is very poor.
Things are not easy to use, or even have quality problems, which will reduce the quality of life and endanger personal safety; Either buy it again or use it alive, which is another emotional cost and money cost.
We want to get a better life at a less expensive price, but YEATION got a less beautiful life at a less expensive price.
How to achieve a total turnover of 20 billion? Netease YEATION did two things. First, he explored new areas. Netease YEATION is constantly exploring new fields and trying to launch new categories on the platform, instead of focusing on the effect, it is trying. Second, to continue to expand the classification of different attributes of existing products on Netease YEATION platform, a package should have as many colors and sizes as possible to meet the needs of different users, thus attracting more customers.
Many years ago, the tragedy of vancl is repeating itself. sku is expanding wildly, categories are expanding rapidly, supply chain management and control are lacking (or it is too late to copy, the original painting tiger is not an anti-dog, but now it is a bug), quality control is out of control, quality collapses, word of mouth collapses, user complaints increase, and unsalable goods become a heavy inventory burden.
When Netease started selling wireless vacuum cleaners like Dyson, smart toilet seats like toto, and B&; O's Bluetooth speaker, I knew it was completely crooked.
1. Ignore the growth of users
This society is a society of constant change and iterative optimization, and users demand to maintain quality. In fact, the subtext is that you must at least ensure micro-optimization in order to basically meet his bottom line.
2. Ignore the customer experience
Without telephone customer service, online customer service will always line up 100 people.
Step 3 Search for competitive products
When Netease YEATION bdm's business model was proved to be successful for the first time, bdm manufacturers' own brands, such as Beijing-Tokyo, Suning-Machinery, Taobao-Xinxin and major platforms, which were unwilling to drink soup, made moves and hunted everywhere. Moreover, in business, the Eight Immortals have crossed the ocean, showing their magical powers, or price wars, or bundled sales, or joint designers, forming differentiated competition with YEATION.
4. The chaotic price system
The original price in YEATION is not cheap, and there is an extremely complicated and chaotic price system.
From users: user price, internal employee price, business partner price, etc. From the perspective of channels: there are self-owned channel prices, third-party e-commerce platform prices, bank app platform prices, third-party financial platform prices, and so on; From coupons: there are external coupons, employee coupons, and so on.
Users who buy at high prices are humiliated; Users who buy at low prices rack their brains to pursue lower prices.
Yan Xuan advocates a simple, efficient and high-quality quality of life; But its chaotic price system runs counter to this.