Core Viewpoint - The emergence of the short video e-commerce platform Yulily has led to significant financial losses for over 200,000 sellers, amounting to 1 billion dollars in just four months, highlighting the risks associated with new platforms in the e-commerce space [2][3][19]. Group 1: Yulily's Business Model and Operations - Yulily's business model, branded as "S2K2C," aimed to create a closed-loop value network involving supply, influencers, and consumers, which initially attracted many sellers [4][5]. - The platform employed a strategy of low entry barriers and high rewards, offering incentives such as a $1.5 registration bonus and claims of 10% returns within 14 days, which lured in many unsuspecting individuals [5][6]. - Yulily falsely claimed to have a legitimate operational structure, including a supposed office in Hangzhou and partnerships with major entities, to build trust among users before implementing its deceptive practices [6][11]. Group 2: Deceptive Practices and User Impact - The platform's operations were characterized by a "three-part scam" approach, where initial attractive offers led users to invest significant amounts, only to later impose withdrawal restrictions and other barriers [9][12]. - Many users, including retirees and stay-at-home parents, invested their life savings or took loans, believing in the promised high returns, only to find themselves unable to withdraw their funds [3][6][15]. - Yulily's operational model was revealed to be a pyramid scheme, relying on new user investments to pay returns to earlier investors, rather than generating actual sales or revenue [12][14]. Group 3: Industry Context and Warnings - The broader context of cross-border e-commerce shows a growth of 6.4% in imports and exports, indicating ongoing opportunities but also attracting fraudulent schemes targeting aspiring entrepreneurs [19][20]. - The article emphasizes that legitimate cross-border e-commerce requires substantial effort, including product selection, data analysis, and understanding logistics, contrasting sharply with the unrealistic promises made by platforms like Yulily [23][24]. - The narrative serves as a cautionary tale, warning potential investors to be wary of platforms promising high returns with little effort, as these are often indicative of scams [26][27].

Industry Overview - The integration of short videos and e-commerce is an irreversible trend in the digital economy, with issues like traffic monopoly, merchant competition, and ecological imbalance becoming increasingly prominent [1][3] - In 2023, short video users accounted for 94.8% of global internet users, and the global short video market is expected to exceed $2.2 trillion by 2035 [2] - Live e-commerce, which started in China in 2016, reached a transaction volume of 3.5 trillion RMB in 2022, contributing 80% of the growth in the e-commerce sector [2] Challenges in the Industry - Three major contradictions are intensifying: 1. Traffic monopoly where top creators and platforms control over 90% of traffic, making it difficult for new creators to succeed [3] 2. Merchant difficulties due to price wars squeezing profits, leading to a decline in product quality and consumer experience [3] 3. Ecological imbalance caused by MCN institutions controlling resources and creating a single monetization channel, resulting in a vicious cycle of "involution" [3] Company Positioning - YULLILY, headquartered in Singapore, positions itself as a "global short video smart e-commerce platform" with the mission of "linking excitement and illuminating life" [4] - The platform aims to redefine the future of short video e-commerce by integrating content creation, product trading, and social interaction into a value-interconnected ecosystem [4] Strategic Directions - YULLILY targets industry pain points with three strategic directions: 1. Fair traffic distribution by implementing a mechanism that allocates 90% of traffic to new creators [5] 2. S2K2C model innovation that connects supply chain (S), key opinion leaders (K), and consumers (C) to reconstruct the supply-communication-consumption loop [5] 3. Technology democratization through AI digital humans and smart algorithms to lower the barriers for entrepreneurship [5] Core Competitiveness - The HERO AI system is YULLILY's core advantage, reconstructing the relationships between people, goods, and venues through four technologies: 1. AI digital human live streaming that supports over 30 languages and operates 24/7, addressing high labor costs and geographical limitations [6] 2. AIGC content engine that automatically generates multimedia content, accelerating brand globalization [6] 3. 4.0 smart algorithms that analyze user behavior for personalized recommendations [6] 4. Multi-modal interaction providing immersive shopping experiences [6] Innovative Business Model - YULLILY's unique S2K2C business model creates a win-win closed loop: 1. Supply side (S): Carefully selected high-quality products from a robust supply chain [7] 2. Creator side (K): Cultivating ordinary individuals into key opinion leaders to earn commissions through short videos and live streaming [7] 3. Consumer side (C): AI matches content with user interests, allowing for shopping during entertainment [7] Global Expansion Strategy - YULLILY employs a phased strategy for global expansion: 1. Southeast Asia as a foundation, leveraging regional price differences [9] 2. Expansion into the Americas by replicating successful models and enhancing logistics efficiency [9] 3. Gradual entry into Western Europe, Australia, and Africa, adapting to local cultures and consumption habits [9] Vision for Inclusivity - YULLILY aims to create a "universal light entrepreneurship platform" focusing on three aspects: 1. Light assets with no inventory risk [10] 2. Light operations through AI-managed live streaming and training [10] 3. Light management with transparent commission structures for creators [10] Future Plans - YULLILY's long-term vision extends beyond business to include ecological and social responsibilities: 1. Expanding into short films and documentaries to build a creator ecosystem [11] 2. Establishing a charity foundation to support education and healthcare projects [11] 3. Aiming to become a global leader in the industry and set standards for the digital economy [11]