Youya’s 2021 Reflections
Youzan’s Bai Ya reflected on the year 2021:
1. Over‑specialization led to more headcount, rising collaboration costs, and no significant lift in per‑capita output—averaging just 400,000 yuan per person last year.
2. During the pandemic, live‑streaming delivered solid incremental gains; at its peak, Youzan accounted for over half of Kuaishou’s total gross merchandise volume.
3. That sudden online surge drove inflated targets, triggering aggressive hiring and a push toward building a middle platform, with an ambition to grow tenfold in five years. Mistaking an anomaly for a new normal, we were overly optimistic—until Kuaishou closed its ecosystem, causing many partners to cancel renewals (some even went out of business).
In short, beyond the tough macro environment, over‑reliance on third‑party‑driven growth and an overestimation of sustained momentum led to poor decisions—such as blindly expanding the team.
The key takeaways:
1. Trace the source of sudden growth. If that channel isn’t a stable, long‑term partnership, the data you see after it closes reflects your true steady‑state performance. Don’t be fooled by one‑off spikes.
2. Evaluate team structure for rationality. High per‑capita output is essential; cutting costs and boosting efficiency should always be a priority. For SaaS, personnel costs are the biggest expense, so focusing on per‑person productivity—and continuously refining organization—is just as critical as investing in the product itself.
