"Anti-user Experience" Zulily: Focus on MOM Flash purchase, the market value of more than 9 billion dollars

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Zulily, an American flash-shopping website for moms.

Unlike most flash-shopping models, Zulily appears to be very individualistic. First of all, its delivery time is very long, usually the consumer from the order to receive the goods at least 15 days to wait. In the logistics of such a slow premise, zulily each order also charge 5.95 U.S. dollars in the delivery fee. Not only that, Zulily also does not allow a replacement, nor does it allow users to comment.

This shows that zulily is a very "anti-user experience" of the company. However, the development of zulily is very rapid. January 2010, Zulily officially online, 2013, zulily sales reached 696 million U.S. dollars, 2014, zulily expected to achieve the highest possible revenue of 1.2 billion U.S. dollars.

November 20, 2013, zulily in the United States Nasdaq listing. The company's market value of the highest breakthrough of 9 billion U.S. dollars, and domestic flash purchase site will be comparable.

So, what Zulily get the market favor?

Deep "mother Market" butt small and medium brand

Women have always been the mainstay of consumption, and Zulily's business model revolves around young moms. According to statistics, in the United States, women hold 73% of the household consumer spending. Not only that, in the field of online shopping, female users accounted for 40.8%, but their consumption accounted for up to 61.1%.

On the other hand, young mothers are a very large group. The U.S. Census Bureau data shows that the United States has 18 children under the age of 38 million families, these families covered the total population of up to 121 million people. Mother market space is huge.

Although with maternal and infant electric quotient, focus on the mother group, but Zulily is the main category is children's wear, children's clothing accounted for about half of the SKU zulily. Around this core category of children's wear and young mothers This user group, Zulily will gradually expand the category to women's clothing, toys, baby cars, kitchens, household goods and other industries. 2013, Zulily's non-children's clothing SKU ratio was raised to 57%.

At the other end of the industry chain, Zulily is connected by tens of thousands of small and medium-sized brands, but children's wear and women's industry brand concentration is very low. Gap, for example, in 2013, Gap in the United States region sales of 3.8 billion U.S. dollars. But we calculate that the size of their children is only more than 1 billion dollars.

Small and medium-sized brands are subject to size, their sales channels are often very limited, they have a strong demand for emerging channels. On the Zulily platform, the large chain brand is only a supplement, Zulily's main suppliers are small and medium-sized brands and agents. Up to now, Zulily has been working with over 13,000 brands. Zulily has become a platform for connecting small and medium brands with consumers.

It is precisely because of the face of small and medium-sized brands, so zulily can win better sales conditions. Zulily's gross margin has been maintained at around 45%, the huge profit space makes Zulily can effectively cover various operating costs. By the end of 2013, Zulily's cumulative sales of 1.19 billion U.S. dollars, but its cumulative loss of only 45 million U.S. dollars. Zulily has never seen a huge loss, the company has been healthy and steady development.

"Flash-Buy mode" boosts growth

In the business model, Zulily chose to use the "timed snapping" model to match upstream small and medium-sized brands and downstream of the mother users.

Zulily goods on time every 6 o'clock in the morning on the shelves, new information will be sent through the mail or app synchronous push to the registered users. More than 1000 items per day on the shelves, the price is usually less than 50% lower than the hanging premium. The online time of each item is only 72 hours, limited limit.

The flash-purchase model has stimulated women's shopping needs in many dimensions. Preferred, deep discounts cater to consumers ' demand for cheap bargains. The scarcity of limited-limit construction can stimulate users ' impulse consumption. In addition, every day on the new, regular elimination mechanism greatly enriched the supply of goods, in meeting the consumer "shopping" demand, but also can effectively improve the user's stickiness.

At present, Zulily active users spend 4.5 times a year, compared to 2.4 times in 2010. The increase in user stickiness has led to a rise in customer unit prices, averaging 244 dollars per household each year on zulily, nearly doubling on the basis of 2010.

Not only that, the overall active users of zulily are keeping doubling growth every year. In the 2013, Zulily's active users in North America topped 3 million, and there were about 150,000 active users in the UK area. At the same time, zulily 77% of traffic comes from free channels such as EDM, app, or direct access. Zulily's users operate well.

Zulily use flash Purchase this model, the downstream gathering huge young mother consumers, upstream docking a large number of small and medium-sized brands, in the establishment of a short span of four years has made rapid development, and has begun to take shape.