"Hard To Save" Mushroom Street

The double 11 failed to save mushroom Street's falling stock price. It will take some time for mushroom street to return to the arena.

This year's double 11, live broadcast has become the main battlefield for e-commerce to promote Gmv. Mushroom street, an e-commerce platform focusing on women's fashion, has also delivered a "seemingly good" result.

Mushroom Street previously announced that as of 9:00 p.m. on November 10, its platform anchor "little sweetheart"_ The sales volume of a single live broadcast exceeded 200 million yuan, and she became the first 100 million level anchor besides Taobao, shuoyin and Kuaishou.

However, in fact, the performance of 200 million is only a fraction compared with the head anchors of other e-commerce platforms. According to the data, on the day of pre-sale on October 29, Weiya and Li Jiaqi, the head with goods anchor, achieved 8 billion Gmv.

On the other hand, the live story of mushroom street has not sparked a splash in the capital market. Its share price has fallen from US $5.92/share in July to US $2.7/share today, nearly cutting back. Its total market value is now less than $300 million.

It can be seen that mushroom street, as a pioneer of live e-commerce, is eager to take a share of the live e-commerce, but this road is not easy to go now.

Get up early and catch late

As a matter of fact, mushroom street is the first mainstream e-commerce platform to launch live broadcasting business. As early as March 2016, mushroom Street launched live broadcasting business and achieved good results in the initial stage.

According to historical data, on the first day of the launch of the commodity purchase function live broadcast by mushroom street, Xu Yunxi, a well-known celebrity on its platform, saw a 112.6% increase in the number of shop visits and a 67.3% increase in the turnover compared with the usual day.

However, it did not last long. Due to the small volume and vertical commodity category of mushroom street, its live broadcasting business only activated inactive users to a greater extent, and the drainage effect was not so good, and it soon fell into silence.

Since then, Taobao, Kuaishou and shuoyin have vigorously developed the live e-commerce and formed the head effect. At this time, the mushroom street has been hard to catch up with.

There is a very interesting phenomenon in mushroom street. In the process of development, mushroom street can catch up with the wind repeatedly, but it always "gets up early and catches up late".

Mushroom Street started with Taobao shopping guide. In 2013, Taobao began to block such websites, and mushroom Street began to develop into an e-commerce platform and gradually transformed.

After that, the concept of "mushroom Street" was finally put forward by the end of 2014, but it was the end point of "mushroom Street" which was finally put forward by the end of 2014.

The tuyere mushroom street of Haitao, community-based e-commerce and social e-commerce all "hit accurately", but eventually koala Haigou, xiaohongshu and pinduoduo ran out of their respective tracks, while mushroom Street gradually fell behind.

"In the final analysis, the main business of mushroom street is not clear." A long-term Internet observer told Aotou finance and economics that mushroom street was originally an e-commerce platform focusing on Vertical Women's market. In the process of transformation, the attributes of the brand were constantly changing. The transformation failed to achieve the transformation of new users, and the old users were constantly losing. Another reason is that the volume of mushroom street is still too small. Even though it has repeatedly stepped on the middle of the wind, it is difficult to become a phenomenal platform due to the lack of funds and flow support.

The "Li Zi" and "face" of bet live broadcast

Mogujie's bet on live e-commerce is a typical example of "start first, then arrive". As the "veteran" of live e-commerce, mogujie did not invest in live e-commerce until 2019, but this time, mushroom street seems to have put all his eggs in one basket.

Aotou finance and economics learned that in 2019, mushroom street has put forward plans such as "double hundred plan", "migratory bird plan" and "Baijia plan" to annotate its live broadcasting business.

During this year's double 11, mushroom street also announced "Meili plan 2.0-carp leap" to recruit Taobao anchor, which was also regarded as a "poaching" for Taobao.

The reason behind this is the anxiety of "falling behind" in the live track and the fact that the anchor hatched by its own platform is still not very competitive.

Aotou financial inquiry e-commerce live data analysis platform "Hongren Dianji" found that in the weekly list data from November 9 to 15, the sales of Taobao's top five anchors exceeded 100 million, of which Weiya and Li Jiaqi, the top two, achieved sales of 1382.82 billion and 1.025 billion respectively, while only two anchors in mushroom Street had sales of more than 100 million, among which "little sweetheart" ranked first_ The volume of carrying goods was 389 million.

At the same time, the number of anchor with goods in mushroom street is obvious, and the transaction volume of the fourth anchor with goods is only 14.77 million, which is more than 30 in Taobao weekly list.

The anchor carrying cargo data is undoubtedly the "face" of the platform. In the case of its own anchor fault, mushroom street has to expand its facade by digging corners.

In fact, another reason why mogujie is betting on live broadcasting is that its revenue relies more and more on live broadcasting, and live e-commerce has become the "lining" of mushroom street.

Aotou finance and economics inquired the historical financial report and found that at present, the revenue brought by the live broadcasting business to mushroom Street accounted for more than 60% of the total revenue.

In the fourth quarter of fiscal year 2020, the overall Gmv of mogujie was 2.42 billion yuan, a year-on-year decrease of 33.8%. However, the Gmv of direct broadcast business increased by 54.1% to 1.581 billion yuan, accounting for 65.4% of the total Gmv. In the first quarter of fiscal year 2021, the total revenue of mushroom street was 133 million yuan, of which the commission income from live broadcasting business was 85.3 million yuan, accounting for 64.36% of the total revenue.

However, at present, the rapid development of its live broadcasting business can not cover up the overall revenue decline of mushroom street.

According to the historical financial report, in the fourth quarter of fiscal year 2020, the revenue of mogujie was 119 million yuan, a year-on-year decrease of 45.3%; after adjustment, the net loss was 79.3 million yuan, which was 67.7 million yuan in the same period of last year; in the whole fiscal year of 2020, the revenue of mushroom street was 835.3 million yuan, a year-on-year decrease of 22.2%; after adjustment, the net loss was 412.2 million yuan, and the adjusted net loss was 239.7 million yuan in the same period of last year.

By the first quarter of fiscal year 2021, its declining trend has not stopped. In the first quarter of 2021, the total Gmv of mogujie platform was 3.12 billion yuan, down 25.20% year-on-year; the total revenue was 122 million yuan, a year-on-year decrease of 46.8%.

Although Mushi street, which is betting on live e-commerce, wants to have a good look, but the current live e-commerce track is not what it used to be. Taobao, fast hand and tremor firmly hold the head market. Mushroom street, the "veteran" of live e-commerce, has a long way to go to break through in the increasingly fierce competition in the Red Sea.