On March 12, Beijing time, Mushroom Street (NYSE: MOGU) released the unaudited financial report for the third quarter of fiscal year 2020 (October 1, 2019-December 31, 2019). The financial report shows that during the three-month period ended December 31, 2019, Mushroom Street GMV (total merchandise turnover) was 6.299 billion yuan, an increase of 8.0% year-on-year. Among them, the live broadcast business GMV reached 3.352 billion yuan, a year-on-year increase of 99.5%; the live broadcast business GMV accounted for more than half of the platform ’s total GMV for the first time, reaching 53.2%, more than double the same period last year, and an increase of 14.3 percentage points from the previous quarter.
In the past year, due to the continuous expansion of the anchor talent pool, the upgrade of live broadcast gameplay, the expansion of live broadcast categories, and the innovation of live broadcast content presentation, the core indicators such as the number of Mushroom Street anchors, the length of live content available for viewing, the number of live broadcast active users, the number of live broadcast active buyers and other core indicators Has increased. During the reporting period, Mushroom Street added about 5,000 anchors, and the daily live content can be watched for more than 3,800 hours, an increase of 11.8% over the previous quarter; the MAU (average mobile monthly active users) of the live broadcast business increased by 132.7% year-on-year. In addition, the active buyers from the live broadcast business of the Mushroom Street platform increased by 32.4% year-on-year to 3.2 million. This also means that the live broadcast business of Mushroom Street is gradually becoming more attractive to users, and the commercialization of the live broadcast business is quietly accelerating.
Live broadcast business maintains exponential growth P2K2C mode release efficiency
As the earliest Internet platform for live broadcast e-commerce, Mushroom Street has evolved from incubating and empowering anchors, supply chain upgrades, to online and offline linkages to enhance matching of people and goods, upgrade platform malls, and comprehensively enhance the core competitiveness of live broadcast business. At present, the live broadcast business has become the core driving force for the growth of Mushroom Street, and has maintained exponential growth for more than ten consecutive quarters.
In the double promotion of Double 11 and Double 12 in 2019, the live broadcast also showed a strong ability to bring goods. Double 11 "Live Broadcast Carnival", Mushroom Street's full-category live GMV increased by 155% year-on-year, beauty, home and other categories rose more than 200%, medical beauty health category rose by more than 1000%; "12.10 Live Shopping Festival", Mushroom Street all The live broadcast GMV increased by 120% year-on-year, and the core female consumer categories such as women's clothing and beauty continued to maintain high growth. Among them, the special jewelry sales of 16 million, and the special contact sales of 2.51 million even broke the respective industry records.
Behind the digital growth is the P2K2C model created by Mushroom Street around the innovation of live broadcast services, which is releasing its effectiveness. Mushroom Street CEO Chen Qi introduced that in the P2K2C model, "K" stands for KOL (Opinion Leader), TAs are the anchors on the Mushroom Street platform, are lovers of fashion and leading lifestyles, with understanding, guidance and gathering consumers Demand ability is the absolute central role in this model; "P" stands for Mushroom Street, as a provider of integrated open resources, output supply chain capabilities, live broadcast e-commerce infrastructure and talent empowerment system; "C" stands for Consumers, Mushroom Street creates a unique consumer experience for consumers by cooperating with suppliers and deeply empowering anchors.
For a long time, Mushroom Street insists on taking people as the core operation object, focusing on the incubation, empowerment, training and operation of anchors. During the reporting period, Mushroom Street increased the size of the anchor talent pool, adding about 5,000 anchors. Relying on the platform's new promotion mechanism, anchor recruiting "Double Hundred Plan", one-to-one service of brokers, and "Migrant Bird Plan" that calls anchors to follow the goods, new anchors and rising anchors have been significantly improved The fastest new anchor has completed a breakthrough of 1.6 million sales in a single game within 40 days, and is expected to become an important driving force for the growth of Mushroom Street in the future.
In addition to helping to improve the professional capabilities of anchors, Mushroom Street also promotes the upgrade of the efficiency of matching people and goods through diversified forms such as offline product selection meetings, ordering meetings, establishment of supply chain pools, and overseas brand traceability.
During the reporting period, Mushroom Street added approximately 2,000 live broadcast commodity suppliers in various industrial belts across the country. In addition to core categories such as clothing and beauty, Mushroom Street has included jewelry, household items, lifestyle products and other fashion-related categories into the live broadcast category, and actively expanded related brand businesses to provide efficient selection of products for the anchor and rich SKUs. Protection. According to the relevant person in charge of Mushroom Street, the number of new high-quality supply chains on the Mushroom Street platform increased by 140% year-on-year in 2018, and the number of million-level supply chains increased by 247% year-on-year in 2018.
It is worth mentioning that, in order to help brand merchants affected by the new crown epidemic to boost sales and overcome difficulties, Mushroom Street also launched the first of unlimited categories for all major brand merchants on February 3 this year. Seven preferential support measures for live broadcasts and other live goods. It is based on the fact that Mushroom Street has always been committed to developing and nurturing the three-sided network relationship between consumers, talents and suppliers, so that Mushroom Street can join hands with more than 200 head anchors on the platform in a short period of time, helping more than 400 fashion The brand successfully cleared inventory through live broadcast. In a recent live broadcast, the Mushroom Street anchor enters the store to bring in goods and completes one month's sales of 5 women's shoes stores on Saturday in 5 hours.
Mushroom Street CEO Chen Qi said that the above measures not only facilitated the cooperation between the platform and a large number of brands that were hit during the epidemic, helped them increase sales and ease inventory pressure through live broadcasting, but also further enriched the platform's product line and brand library. At the same time, taking this opportunity, the company is also actively optimizing the operational efficiency of itself, as well as empowering brand merchants and talent anchors.
Establish a live broadcast standardization system to promote the continuous leapfrog development of live broadcast business
Mushroom Street CFO said, "The live broadcast business continues to maintain strong growth, driving commission revenue to increase in the proportion of total revenue. We expect that the live broadcast business will maintain strong growth in the foreseeable future and help promote the optimization of the platform merchant structure. Although the company will encounter various challenges in its future development, such as the impact of the new crown epidemic, which may bring uncertainty to our business, we will continue to promote the live broadcast strategy, and the live broadcast business will occupy a more important role Share. "
However, under the influence of the epidemic, the era of universal live broadcast is accelerating. How can live broadcast e-commerce platforms such as Mushroom Street strengthen their moat in the increasingly fierce competition and continue to promote the leap-forward development of live broadcast business? In this regard, the answer given by Mushroom Street is to establish a live broadcast standardization system.
In his previous speech, Luo Yi, senior vice president of Mushroom Street, said that for Mushroom Street in 2020, it will be an important year for establishing a live broadcast standardization system. As the division of labor in the industrialization of live broadcast e-commerce becomes more and more detailed, the industry increasingly needs to coordinate the division of labor and connection between industrial roles by formulating unified standards to improve the overall operational efficiency and quality. If the e-commerce live broadcast is split into different capabilities, the front and back ends of the industrial chain can be divided into four major capabilities: anchor capability, live operation capability for live broadcast, product selection and grouping capability, and supply chain richness. Ability is critical.
In terms of the recruitment and operation of anchors, Mushroom Street has explored a standardized set of incubation and cultivation paths. In 2020, Mushroom Street will implement its corresponding SOP incubation standard and commercial system according to the three stages of newcomer anchor, ascending anchor and head anchor. The platform will provide training and product support for newcomers, provide training, incubation projects and pallet planning for ascending anchors, carry out exclusive operations for head anchors, red person shop service providers and personal brand planning to help them realize their personal IP.
At present, Mushroom Street has launched a live broadcast "Star Qi Program", began to recruit high-quality red star anchors to the outside world, and in 2020 will dig out 1,000 KOLs with all-round capabilities from the industry, with the industry's most incubating The operating system helps them grow quickly and monetize, incubate to build their own brands, and build the best anchors in the live broadcast industry, the Heavenly Team. At the same time, for high-quality e-commerce organizations that meet the platform standards, Mushroom Street also recently launched the "Chunhui Support Policy" to provide resources such as traffic support.
At the same time, rich categories and brand expansion are also the focus of Mushroom Street this year. In order to encourage the anchors to increase the richness of the products in the live broadcast room and help them efficiently connect with supply chain merchants and brands, Mushroom Street will also launch a "Baijia Plan" that promotes the cooperation between anchors and brands, helping anchors and brands to match and deep bind Realize the win-win situation of anchor sales and brand growth.
Under the impact of the new crown epidemic, more and more brand merchants joined the live broadcast camp in the form of self-broadcasting and on-demand broadcasting to boost sales. Mushroom Street will also provide a one-stop output training and base construction by building a broadcast service provider system to support merchant self-broadcasting. At the same time, for the needs of merchants in the later stage of self-broadcasting, Mushroom Street will be equipped with a mature star anchor incubation system, and by building an industrial belt supply chain base, it will help merchants achieve the goal of expanding live broadcast categories.
Mushroom Street CEO Chen Qi said that in the future, the company will continue to strengthen the community construction in the form of short videos, encourage anchors to share more fashion and lifestyle content, strengthen interaction with fans, increase the activity outside the live broadcast room, and improve fan marketing effectiveness. I believe that more excellent anchors will continue to produce synergies and bring a positive cycle of performance through the combination of diversified live broadcast forms and more excellent suppliers.
Source of this article: American Stock Research Institute, please indicate the copyright
