/PRZWT/HANGZHOU, May 27, 2024 - On May 23, NetEase released its 2024 Quarter 1 earnings report. The results showed that NetEase Q1 revenue was 26.90 billion yuan. Of this, NetEase's innovation segment revenue was 2 billion yuan.
As an important part of the innovative business, NetEase Yanxuan celebrated its 8th anniversary in April. In the first quarter, Yanxuan continued to focus on branding strategies, and categories such as pets and household cleaners maintained double-digit growth and continued to hold the top. NetEase Yanxuan uses AI technology to iterate products, helping ergonomic chairs and other popular products to stay at the forefront of multi-channel sales. In addition, NetEase Yanxuan successfully held the 2023 Annual Supplier Conference, focusing on cutting-edge trends such as AI technology and green sustainable supply chain, collaborating with suppliers for win-win results, accelerating physical manufacturing upgrades, and developing new quality productivity.
Explosive products welcome a "good start" in 2024, and continue to hold the head
In the first quarter, NetEase strictly selected and continued to implement the policy of focusing on categories, driving explosive products, and bringing brands with products. With its excellent explosive product building ability, it maintained double-digit high growth in pet, home cleaning and other categories, and continued to occupy the head. In the office, food, home, clothing and other tracks, explosive products appeared frequently, and continued to top the chart's multi-channel sales list to welcome the "good start" in 2024. It is worth mentioning that on the occasion of its 8th anniversary, NetEase Yanxuan released the anniversary video of the "NetEase Yanxuan AI" Heart "Machine Launch Conference", showcasing a variety of products generated by AI technology, demonstrating the continuous innovation and pursuit of excellence of Yanxuan explosive products, and conveying the concept of "strictly selected good things, unlimited upgrades".
In the first quarter, pet category sales increased by 29% year-on-year, ranking among the top three in Amoy, JD.com and other channels. During the Douyin Big Brand Surprise Day event, it also won the first place in the Douyin pet category explosive list, brand list, store list, and account list. NetEase Tiancheng jointly launched the "I have it on the street corner" public welfare action, attracting more than 10 million people to participate in the response to the scientific rescue concept of "rescue does not stop feeding".
Sales of the Jiaqing category increased by 38.7% year-on-year, and air cleaning products topped the chart in multiple channels such as Tmall, Douyin, and Pinduoduo. Explosive Bathroom Fragrance combined with the New Year's node to launch the "New Chinese Porcelain Qi" series inspired by Chinese porcelain aesthetics. Sales exceeded 10 million, stabilizing the mind of the "fragrance deodorization" category, and it was applauded and popular. The new car deodorant fragrance "sold out as soon as it was launched", ranking first on the Douyin car fragrance explosion list.
In addition, the office furniture category continued to explode, with women's ergonomic chairs and small waist engineering chairs performing well, with sales increasing by 112% and 181% year-on-year. The home category Xia Liang series was launched with a heavy launch, and sales increased by 148% year-on-year. The food category also saw frequent explosions. Black pork fried sausage ranked third in JD.com meat products, and the new red bean paste and mung bean paste ranked second in the Amoy instant food porridge hot-selling list. The sales of T-shirt products in the clothing category exceeded 10 million, and it occupied the TOP list of T-shirts in various channels.
Jushi AI builds a smart supply chain and helps physical manufacturing upgrade
In the first quarter, NetEase Yanxuan 2023 Annual Supplier Conference was successfully held in Hangzhou, bringing together more than 100 high-quality suppliers from all over the country. The conference focused on cutting-edge trends in the industry such as AI technology and green sustainable supply chain. NetEase Yanxuan also upgraded and launched the "Same Boat Plan 2.0", which will cooperate with suppliers for win-win through supporting policies such as "Thrive Growth", "Collaborative Supply" and "Brilliant Win-Win".
In the current wave of technological development, the application of AI and other technologies has penetrated into all walks of life. According to the relevant report of Renmin University of China, more than 60% of enterprises have promoted AI strategies to varying degrees. Some people even point out that artificial intelligence is the "nose" of new productivity.
It is reported that the conference said that Yanxuan will continue to embrace the digital upgrade of the supply chain, invest in the upgrade of supply chain management "soft power" and the construction of industrial "hard power", and build a high-quality, efficient, green lean, and win-win supply chain ecosystem with supplier partners. NetEase Yanxuan will increase the application of AI technology in demand forecasting, intelligent scheduling, cargo tracking, and warehousing management, while investing more resources in key aspects of the supply chain such as product innovation and research, specialized production lines, green production, and logistics.
In fact, NetEase Yanxuan has introduced AI and other technologies for Product Research & Development and iteration for many years, such as the ergonomic chair, which has undergone six iterations based on the AI motion capture system and the database analysis of the "Thousand People and Thousand Chairs" real sedentary model to better adapt to human needs. It is reported that NetEase Yanxuan has upgraded and iterated 11,844 products and eliminated 5020 products in the past 8 years.
As a domestic brand with both advanced manufacturing and Internet genes, NetEase Yanxuan has always been committed to product innovation. With its unique explosive products to create logic and strong supply chain capabilities, it has created one explosive product after another. It not only satisfies people's pursuit of high-quality life, wins the love and trust of consumers, but also injects new momentum into the development of China's physical manufacturing industry and new quality productivity.
