NotesAtHKU

Mid-term

30 MC + 15 TF (2 points each, 90 points, 15%)

YOHO is Hong Kong's largest electronic commerce platform for electronic products.

Business presence: OMO, Omnichannel presence (mobile, store, online), brick and click
Customer segments: Local upscale customers (quality & brand concious), premium lifestyle segment (Post acquisition of J-select)
Products and services: Mid to high end consumer electronics, lifestyle products
Revenue model:
- 1P model: Direct sales of products
- 3P model: Comission fees from merchants
- Subscription model / loyalty program: "YOHO first"
Pricing strategy:
- Dynamic pricing through "auto-pricing system"
- "Best price guarantee" for YOHO first members
Value proposition:
- Pioneer & seamless OMO
- Tech: Auto-pricing system, real-time inventory, AI powered shopping experience

Trade-offs: No way to access product quality before purchase, no immediate product availability

Existing competitors
- Existing competitors:
  1. Fortress (similar segment & OMO model)
  2. HKTV Mall (different segment - groceries, similar OMO)
  3. JD.com (product diversity, serves mainly Chinese consumers)
- Competitive advantages of competitors:
  - Fortress: Established offline presence, immediate products, marketing campaigns
  - JD.com: Product diversity, established reputation in China
- Distinguishing factors: Pioneer of OMO in HK, advanced tech (auto-pricing, real-time inventory, AI)
Potential entries
- Entry barriers: High captial investement for operations and development, established competition
- Requirements to enter: Tech infrastructure, logistics, marketing campaigns
Supplier bargaining power: Moderate - Manufacturers and distributors: 1P model gives power to them (reliance), 3P model diversifies supplies (reduce dependency)
Buyers bargaining power: High - Number of options is large, price sensitive customers. Migated by auto-pricing system, loyalty programs
Substitutes threat: Brick&mortor like Broadway - immediate product availability, or global e-com like Amazon / Taobao - product diversty and competitive pricing

Attracting buyers and merchants:
- Offer personalized shopping experiences through YOHO AI Assistant.
- Promote the paid membership program (YOHO First) with exclusive benefits.
- Expand the 3P model to attract third-party merchants and diversify product categories.
- Enhance search engine visibility using generative AI for SEO optimization (e.g., creating product blurbs).
Engaging users:
- Provide tailored product recommendations and 24/7 customer service through AI Assistant.
- Leverage cross-channel promotions (OMO) to encourage online and offline interactions.
- Use data-driven insights to create targeted marketing campaigns.
- Offer interactive features like product comparisons and price matching.
Increasing switching costs:
- Loyalty program
- Exclusive features like real-time inventory
- Personalized shopping experiences

What business analytics can Yoho do with GenAI assistant?

Descriptive analytics
- Understand customer opinions on product characteristics and Yoho services
- Understand customer segments
Explaining analytics
- Identify customer responses to marketing campaigns
Predictive analytics
- Predict customer demand and merchant supply
Generative future
- Customer support for shopping assistance and product descriptions