Mogujie.Com Has Been Banned For 5 Years.

In the US Eastern time of December 6, 2018, mogujie.com, once a very popular business platform, was listed on the New York stock exchange successfully.

This is the dawn of victory that mogujie.com has waited for eight years before it seems to be reborn.

But in the long 8 years, mogujie.com has made a frustrate business life.

Taobao was banned and mogujie.com entered a long ice age.

Founded in 2011, mogujie.com was founded by June, a graduate of Zhejiang University, and his classmate Wei Yi Po.

Mogujie.com was originally a consumer sharing community. In 2012, it evolved into a shopping guide platform, earning commission through the help of e-commerce providers.

From 2013 to 2014, mogujie.com was in its prime.

However, just as mogujie.com's business is booming, Taobao has banned all kinds of shopping platforms. Mogujie.com, one of the leading platforms in the industry, is not immune.

Taobao is the main object of mogujie.com's shopping guide docking, and the blocked mogujie.com can only be forced to pform.

After being banned for half a month, mogujie.com began to enter the electricity supplier industry and become a vertical e-commerce provider specially designed for female consumers.

The surprise is that in just two months of pformation, mogujie.com has completed its remarkable performance of 120 million yuan a month.

Despite the good omen, the subsequent development of mogujie.com was not as easy as expected, and various efforts were made to "live".

In order to keep up with the pace of the times, mogujie.com first merged with beauty in January 2016, explored the financial field launched the product "Bai Fu Mei", then introduced the net red live mode, and launched the WeChat small program in 2017.

Small program launched in just 2 months, attracted 3 million of the new customers, and turnover is gratifying, conversion rate is two times the app end.

From these data, mogujie.com seems to have succeeded in finding a way out, but the outcome is still sob. Mogujie.com's life is still getting worse.

The prospectus shows that mogujie.com has been in a state of deficit over the past few years, with a deficit of up to 400 million yuan a year.

Facts have proved that Taobao's "ban" has given mogujie.com a fatal blow.

According to the relevant data, the retention rate of mogujie.com has been plummeted after being banned. Even though it has undergone many adjustment and pformation, its development trend has not improved significantly.

Since being banned, mogujie.com has gone through 5 years of wasted time, but if it does not erupt in silence, it can only perish in silence.

Behind mogujie.com's failure to turn over

Nowadays, the electricity supplier industry is surging and surging, and competition is fierce. Mogujie.com has failed to win in the war. Naturally, there are reasons for it.

First, the user group of mogujie.com is mainly a young woman aged 15-30.

On the one hand, they are young and fashionable, diversify, and can not be loyal to a certain platform. On the other hand, the age range is small and the frequency of individual iteration is high. For example, a series of users trained in 2013, 5 years later, due to the great changes in demand, the platform may no longer be applicable.

Therefore, compared with other platforms, mogujie.com is more difficult to ensure user retention rate.

The two is the high overlap rate between the commodity and the strong competitors, and no competitive advantage, especially for the comprehensive electronic business platform, which is more extensive than those of the audience.

At that time, Ali and Jingdong split up a large number of market segments.

Compared to these integrated e-commerce platforms, mogujie.com's SKU is limited, and there are obvious repeat layding in its self categorization commodity modules. Some users say they always see similar or even identical products when they brush goods.

Mogujie.com, which has limited competitiveness, can only rely on cheaper price and more sophisticated product display forms to grab smaller part of customer resources and find hope in cracks.

Three, there is no strong point of dominance. The long board is not long enough to form the advantage of differentiation.

As a low-end e-commerce platform, mogujie.com's product category, brand awareness and commodity price advantage are not as good as many; as a community platform, its audience size, user interaction activity, content breadth and depth, and cargo carrying capacity are far less than Xiaohong book.

In general, mogujie.com has yet to find its own distinctive development mode.

Four, fame has not yet been opened, and good word of mouth has not been formed.

It may be constrained by the lack of funds in successive years, and mogujie.com has not carried out large-scale marketing promotion.

On the one hand, mogujie.com has long been working with the famous red net, and has rarely invited celebrities to speak. Even if the stars are invited, it is only a short time homepage advertisement, which can not set off a strong star effect and enhance the brand image.

On the other hand, mogujie.com's daily promotional activities are primitive, single, and the activity is not attractive, and even in the big promotion period of the fierce competition, there is no special performance.

For example, in the period of 2018 pairs of eleven, mogujie.com launched a voucher campaign through watching live and doing tasks, but most of the activities were less than 10 percent off, and the strong activity was limited.

Indeed, mogujie.com's customer volume is low and its price fluctuation is small. However, from the comparison of figures, "10 percent off" is particularly competitive. How can mogujie.com compete with those platforms that are pushing up the market?

Although mogujie.com burns a lot of money every year, consumers will see it only if they burn the right place and bring benefits or convenience to consumers.

Listed in the United States, but the storm continues.

Mogujie.com, who suffered many years of blood loss and needed a big blood loss, finally chose to go public.

If it can be successfully listed, mogujie.com can get a lot of cash flow, and two can enhance the reputation of enterprises, which can be said to be the right remedy.

In the end, mogujie.com, who walked on the edge of the cliff all year round, successfully squeezed into the capital market in December.

Of course, this is due to a series of "compromise" made by mogujie.com, otherwise it will not be able to meet the standards of listing.

However, the newly listed "MOGU" has been in constant turmoil and even pushed to the cusp of public opinion.

First of all, because of its "money" purpose is too obvious, caused a uproar in the industry, followed by the closing price of the stock market that day almost broke.

"MOGU" first opened at $12 below the offering price, and then closed at $14 at the same level as the issue price, of which the largest decline in intraday share price was nearly 15%.

Even more alarming is the subsequent media reports that a number of mogujie.com executives left abruptly, and employees jumped out to reveal that mogujie.com had diluted 25 times the old employees' options.

This means that the old employees who spend years in battle with the company and have a discounted salary and give up better opportunities will lose the value of the final option, even worse than other people's year-end awards. This will undoubtedly make their most intimate employees chill and make the public feel that mogujie.com has no human touch and no temperature.

Even though equity dilution is an inevitable choice for mogujie.com to go public, it still owes a reasonable explanation to employees.

Mogujie.com reinvigorate itself

But in any case, successful listing is bound to be beneficial.

If we can seize this opportunity, it is impossible for mogujie.com to reinvigorate itself.

Just like it was not popular at the beginning, it was seen as a lot of fake products everywhere. After the listing, it gradually completed the self pformation and gradually washed it with its own strength.

A large number of senior executives have said that the success of many spells is not simply a single person or a team struggling, but an unexpected opportunity and seize the opportunity.

What is this opportunity?

Although many of the listed companies have been subjected to other people's eyes, ridicule or even abuse, they have made a lot of public attention because they have been in public opinion for a long time.

Mogujie.com, which is now on the market, is in a great position.

"It is a blessing in disguise". Whether the current situation is an opportunity or a misfortune depends on how mogujie.com steers the helm.

If we can just play the role properly, perhaps mogujie.com can get out of the predicament and really get warmer.

So, what's the next way for mogujie.com to go?

Now that it has been successfully listed, mogujie.com must think about how to use the funds raised after listing reasonably, promote the successful pformation of the platform, and get out a road problem with its own characteristics.

First, mogujie.com needs to define its own position, find its own characteristics, and lay out its development strategy accordingly.

Once, mogujie.com in order to make the pition to the electricity supplier road more smooth and smooth, in 2014, always weaken their community attributes.

Now we see that the small red book, which relies on the popularity of the community, has developed rapidly and wants to go back to business.

If there is no clear, obvious difference and competitive strategic plan, it may only be a drain on ten billion.

So, first of all, mogujie.com needs to be clear about its positioning and make sure its customers are low-end customers or high-end customers.

Up to now, a considerable proportion of mogujie.com's products belong to low-end products. The lower unit price will bring people a low profile impression. Most of the users are students without much income.

But now mogujie.com is positioning itself as an electronic business platform leading the fashion trend. All the modules on the front page are high-end, better quality products, and the unit price is higher.

If users are low end users with low consumption level, what is the significance of mogujie.com's huge home page module?

If you want to pform to the middle and high end, mogujie.com will have to consider how to introduce the corresponding user groups.

Second, we need to build a brand image that is deeply rooted in the hearts of the people.

In the past, mogujie.com spent a lot of money on R & D and platform pformation, ignoring its own image and promoting its reputation.

In the increasingly competitive environment, it is very important to have the traffic and increase the popularity of the platform.

In this regard, mogujie.com can try to invite influential stars to endorse and promote for a long time. It can also imitate Xiao Hong book and invite other famous stars to broadcast live or bring goods.

Although the stars will spend a lot of work, the power of the star effect should not be underestimated. After all, "wine is also afraid of the alley."

At the same time, mogujie.com also needs to find a balance of capital allocation, reduce sunk costs and improve the efficiency of capital utilization.

Third, mogujie.com should continue to enrich its products and product lines.

On the one hand, mogujie.com should adjust the ranking mechanism to reduce excessive explosions and increase the diversity of products.

On the other hand, we need to increase product line pformation.

The product line is too narrow to easily encounter the ceiling, and it is difficult to be bigger and stronger. This is the limitation of vertical electricity suppliers.

By the end of December 26th, in addition to women's clothing and cosmetics, mogujie.com products had added new categories such as boyfriend, home, mother and baby, food and so on.

It can be seen that mogujie.com is no longer confined to "small and beautiful", but to strive for "beauty and integrity".

This road is bound to be long, and mogujie.com must not rush to success.

There is a saying that "money can make a ghost". Can this sentence be fulfilled in mogujie.com?

We will wait and see.

Author: Liu Kuang