Mogujie.Com: Growth Of Or Stagnant Growth?

After 8 years of creation, mogujie.com is no longer the mogujie.com you used to be.

As an old vertical e-commerce platform, mogujie.com's annual performance report shows that the MAU in 2018 was 32 million 800 thousand, and the growth of monthly Buyers was almost stagnant compared with last year. Paradoxically, mogujie.com's live broadcast business has maintained three digit growth for several consecutive quarters. In the whole fiscal year of 2019, the GMV of mogujie.com's live broadcast business grew by 138.1% over the same period last year, while the 618 live broadcast grew 600% over the previous 618 years, and the GMV of the mogujie.com platform in fiscal year 2019 also increased 18.7% over the same period.

A focus on fashion business platform, how can the industry face the bottleneck of the current flow, to achieve sustained growth? What is the choice between "quantity growth" and "quality level growth"?

　 The truth of the growth of mogujie.com GMV and MAU

In China's Internet business platform, does traffic growth really represent growth?

For a long time in the Internet era, traffic thinking has become the standard of inertia for people to judge a company. Shelf like electricity providers such as Taobao, the large volume of traffic has attracted a large number of businesses and brands. The huge SKU has labeled Taobao with "omnipotent" labels, and the competition among businesses has also brought more low quality products to consumers, which in turn has attracted more users to enter. This has formed a healthy and recyclable business flywheel.

But not all traffic thinking is a permanent solution. For the platform focused on the vertical field, not everyone needs to compete with Taobao and Jingdong giants in order to survive. Taking mogujie.com and Xiaohong book as an example, it is two different ways to dig deeper into business or expand business breadth. In the variety advertisement, the "frequent guest" Xiaohong book has made the business wider and wider. It has become a sharing platform for lifestyle. The massive investment in traffic needs time to digest internally, and commercialization has become an urgent topic facing Xiaohong book. Mogujie.com, with its precision traffic, has gone through an early stage of new craziness. How to increase the value of traffic and achieve quality growth is the key to mogujie.com's sustained growth in a stable MAU environment.

As a platform for focusing on fashion for 8 years, mogujie.com is trying to provide users with useful and fashionable fashion content and products through various forms. Around the fashion community operation, buyer team formation, MOGU STUDIO scene building, brand home page building, mogujie.com has launched a series of business actions to build supporting facilities for its own fashion ecology, so that users can get inspiration from mogujie.com and enjoy pick content, providing users with deep fashion value. Then through the supply chain construction, anchors incubation, through direct seeding to achieve business growth and traffic transformation, complete from "grass to buy" fashion link. Compared to the growth of MAU, mogujie.com is obviously more concerned about converting platform traffic to live streaming to buy users, so that more users can enjoy more interactive fashion shopping experience.

What does the live broadcast bring to mogujie.com?

In fact, in order to enhance users' immersive sense of participation, on-site sense and visualization, mogujie.com began to explore the development of fashion providers' live broadcasting in 2016. For example, in order to match the characteristics of multi mode, small inventory and large elasticity of demand, mogujie.com started the live broadcast supply chain from 2017, and created a brand new supply system specially for live broadcast. Mogujie.com can help businesses clearly display the details of the goods for the host selection, and the anchor can see at any time through the progress of the direct selling of clothes, and quickly make up the goods. Even they can quickly match the anchors for their brand products according to the actual situation of the clothes.

The effect is remarkable. Since mogujie.com launched the live broadcast business in 2016, the scale of its transactions has doubled every year: one anchor sells tens of thousands of products in one minute, and a live broadcast of foreign beauty directly leads to the sale of brand masks. During the 618 year of this year, mogujie.com's live broadcast business grew explosively. The live GMV (Sales) grew by 600% over the 618 period in 2018, and the cosmetic category only sold 3 million pieces of a single product.

This shows that this "content + live + business" mode allows mogujie.com to be more three-dimensional after transformation, and more and more high-quality businesses stand out from the live broadcast, leaving the quagmire of traditional electricity bidding advertising. This active adjustment has also changed mogujie.com's revenue structure, which has been gradually transformed into the mode of commission revenue from the early electricity marketing service revenue mode, which has greatly enhanced its long-term profitability.

The quality growth of MAU has promoted the growth of mogujie.com platform GMV.

On the premise of keeping the MAU data stable, mogujie.com enhanced the repurchase rate through live broadcast and realized the growth of GMV. According to the Internet trend report released by the Internet queen Mary Mikel, the number of repeat users of mogujie.com was increased by 4 times, and the live broadcast GMV accounted for 24% of mogujie.com's total GMV.

According to mogujie.com's 2018 prospectus, in the case of mogujie.com's repeat purchase rate, mogujie.com's purchase rate reached 84.3% in 30 days.

If the direct broadcast business is the core means of mogujie.com growth, mogujie.com's fashion infrastructure is also an important support for mogujie.com to realize the "depth" of fashion.

In August 2018, MOGU STUDIO successfully landed and became the first production base of brand new brand. Since then, with the daily attendance of fashion designers, designers and brands, mogujie.com has launched a partnership with all kinds of net red cards and fashion landmarks to expand the brand new first test business, and make the brand, goods better and fashion designers connect. And the "live screening products", which is always held before the big promotion, has also become an important bridge to help the anchor quickly match the fashion products.

On the basis of the fashionable community, mogujie.com also aggregated the information of all kinds of fashion brands in the world to build a brand home page. Now mogujie.com has formed a real-time update of the global fashion brand library. Up to now, the mogujie.com brand library has collected nearly 3000 fashion brands around the world, will further enrich the brand Library in the future, and cooperate with the brands in depth, so that quality brands and people can join the mogujie.com fashion community building.

In addition, mogujie.com also set up a buyer's operation Department, specializing in mogujie.com fashion merchandise selection operation. The deep integration of supply chain will help better fashion products stand out and achieve more efficient docking with front-end channels. All of these deliver the best quality goods to KOL, and KOL delivers better fashion products to consumers.

Mogujie.com's live broadcast and supporting fashion facilities construction, linking people's fashion, "people, goods and markets". This makes mogujie.com's stable MAU data look "sexy". MAU remains stable. The real reason for mogujie.com's rapid growth is mogujie.com's "quality growth" between mogujie.com's "quantity growth" and "quality growth".

In this regard, mogujie.com CFO said: "the increase in commission income is partly due to the growth of mogujie.com GMV, on the other hand, it is driven by the higher commission rate of live broadcast and quality businesses, and their proportion in the platform GMV is higher and higher."

It can be said that 9 years later, mogujie.com is no longer the mogujie.com of the year.

Behind the rise of mogujie.com GMV: China has ushered in the fashion age.

"I have conquered all my rivals, but I have lost to the times".

The founder of Da Yun FA said when he left.

The wheel of history is rolling forward, and it will not stop because of the slowness of any person.

In this regard, people can only actively embrace the changes of the times and follow the trend of the times.

Behind the rise of mogujie.com GMV, we cannot ignore the background of the rise of China's fashion industry.

Public information shows that, after years of development and accumulation of certain wealth, China has become a major consumer of luxury goods and brand products in the world. According to the data of Bain & Company, 32% of the world's luxury purchases in 2017 were taken up by Chinese people.

At the same time, according to the prediction of Goldman Sachs Group, there are about 400 million millennial young people living in China. They were born between the end of the last century and the first 10 years of this century, and the number of workers in 90s is more than that in Europe and the United States. The average annual income of these millennial generation will exceed 13 thousand dollars in 2024. Under such conditions, China's market is of great potential for the world's luxury goods producers.

However, these young people are gradually abandoning their pursuit of foreign brands rather than their domestic producers, unlike their parents' pursuit of fashion luxury goods. According to the Research Report of Credit Suisse AG, more than 90% of Chinese under 29 years old prefer domestic brands of local brands, which also involves many other commodities. (Suisse)

　　 This gives China's local brand and fashion industry opportunities.

In other words, China's fashion industry has just risen, and the scale of the whole market is not less than trillion. There are still a large number of players who do not have "touches" in the upstream and downstream links of this huge incremental market.

Facing the current situation of the fashion industry, it also gives mogujie.com opportunities to link the whole industrial chain. In today's China, even though it has the world's largest fashion market and the most flexible and flexible fashion supply chain, it lacks the local fashion brands that match the market, and lacks the world-famous fashion design and leading fashion communities. Moreover, as we all know, in the past, in fact, many links in the Chinese fashion industry chain are actually relatively traditional and backward. These people do not have the design ability and lack of sales channels. They simply act as the foundries of foreign brands, and from another perspective, they are also a fairly large stock market.

As an e-commerce retailing channel, integrating the supply chain on the basis of traffic and sales, the upstream enterprise level has been implemented to achieve scale and specialization. This theory is in line with logical development. From the practical point of view, in the past two years, through the experience of mogujie.com in the makeup of women, the transformation and integration of the fashion supply chain in China has begun to accelerate.

On the basis of focusing on fashion products, mogujie.com constantly improves the infrastructure of fashion ecology. At the same time, it integrates many links in the upstream and downstream of the fashion chain, strengthens the customer experience of consumers, and enhances the overall quality of Chinese fashion brands. At the same time, mogujie.com also promotes talents in all aspects of fashion retailing through various practical experiences, and jointly promotes the development of China's fashion industry.

When the time comes, the initiative to embrace changes, mogujie.com's series of actions have formed an ecological and system competition in the fashion circle. On the basis of continuously enhancing the ability of selecting products, selecting the money, integrating the supply chain capabilities and communicating with customers, we gradually realize the continuous transformation from the female electricity supplier to the platform and then to the fashion supply chain. "100% vertical electricity providers for fashion", which may be mogujie.com's next 8 years is still insisting on the way to go. Fashion looks like a thankless thing, just like the Jingdong's strong pledge to build its own logistics system.

Whether China's fashion market can give mogujie.com the opportunity is only waiting for time to prove it.