Chen, the CEO of Mushroom Street: the future of social electric business

April 2013 24-25th, the eighth annual Iris Summit opened in Beijing National Convention Center. Under the theme of "Technological innovation for the future", this summit will bring together the leading company innovation leaders from the Internet, the New Economy (310358, the Fund bar), the science and technology related industry, with the insight of science and technology innovation, discuss the industry hot topic together, ponder the industry development foreground, discuss the future road with the consensus scholar, Together to promote the industry's change and development.

The following is a transcript of a speech by CEO Chen of Mushroom Street on the theme of "The future of Social electric quotient":

(Pictured: Mushroom Street CEO Chen)

Chen: Thank you, I am the CEO of Mushroom Street Chen, very happy to have the opportunity to communicate with you. Today, mainly on the traditional enterprises to do the issue of electricity, introduce the background, we are to do a female shopping site, is basically 18 years old to 28 years old women, they are fashion consumers, we do some recommendations and share some of the content. We currently have about 45 million registered members. Today, including the two speeches just heard earlier, more from the point of view of business, electrical quotient, because my daily work is actually with more than 40 million of the girls, so I will tell you from my side to experience some changes in the consumer, or they for the electricity quotient, Especially now the socialization of these developments has some impact on them.

We do is called social Shopping guide, so first of all to tell you about my understanding of the social shopping guide. Shopping Guide is very simple, I do not sell things, I will have consumer desire to distribute the consumer to the appropriate business that go. The so-called social meaning is more, we generally divided into three levels, the first social, second community, the third is called socialization, why say so? is not the same as people. All the management in our women's fashion consumer products recommended in the role is very weak, two girls girl a recommended b This dress is very good-looking, B said very good-looking, but will not buy, because will hit the shirt, so this role is not. Community is a person post, two people reprint, 100 people to see the post this in our model is not the most important. The most important thing for me is socialization, for consumers, he likes to just collect, I like this thing so we collect, but this data is very important to us, we through the daily collection of customer's favorite, and each user like the weight of different, predict which products will be popular in the next time, there will be sales , which is the most critical factor in our current 7%-8% conversion rate.

What is the most important thing in our algorithm? First, how many people express their love for a particular product in a time period the second is to give the likes of the user is a different weight, for example, he gave the likes often in the weeks is often liked, which means that the person's aesthetic level is stronger, he likes the weight will be relatively high. If a person likes to sell in the future, this person's aesthetic level is problematic, or small, so we will be based on these social behavior to predict which products in the next better performance, this is what we do.

We've been on this site for two years, and then I'll introduce some of the changes that I've found to consumers. I found that consumer habits in the change, the first is the preferred style, now for customers to choose the product when the most important factor of the ranking is this, the first is the style, the second is the price, the third is the quality and service, the fourth is the brand. Might have something to do with the younger girls I'm dealing with. More than 40 million 18-28-Year-old girls, we have an analysis of this, and her growth experience, they are in junior high school, high schools, is already the depth of the Internet users, their horizons have been relatively high, they know what kind of good, what brand good , how the stars wear them, they already know, so they have the ability to discriminate, but they do not have the money. This reason everybody knows, everybody knows the CPI growth, the salary growth rate is far behind the CPI growth, also has like the House, the communication, the traffic proportion increase will be very obvious, therefore puts in the clothing this aspect actual expenditure is increasing, but in the consumption proportion inside is stagnant even a bit drops.

Third, I often joke that their parents are very rich, they grow up in the process, I face this group of 80, the three, their parents are more rich, so they have a good life conditions, these conditions are constrained to ask very simple, is that I hope that the paragraph is a big money, but the price is cheap, good quality, So the last three conditions, the style is good, the price is cheap, the quality is good, therefore this part in our daily more than 10 million transaction inside is satisfies these three conditions. Style first, my view is that the style is very important, whether you are building brand or a variety of marketing methods, it is marketing means, but the style is now very important for young consumers.

Second, also from the style, we will find that with just the first speech is also Chen, he talked about the setup of our enterprise, etc. this ability and foreign than there is a certain gap, so we often see the same paragraph has a lot of people are selling, so we now provide the same paragraph comparison, according to some resources, we combine the same paragraph, We do this screenshot to see that the same paragraph has more than 1000 businesses in the sale, but we will tell us what products are recommended? Originally this parity only occurs in the digital products, is the mobile phone, television, is the standard product. Now will find that the same product sales price more and more, including Taobao sellers, Pat Sellers, now have the same paragraph comparison of demand, this is the second.

Third, these girls bought the show this, there is psychological approval or said I bought the right, a lot of people agree with me. Because now the whole social network development is more and more extensive, if you do some social marketing, do not ignore this aspect of the psychological needs, shopping from the selection to buy the final display is a very complete psychological process.

Second, we find that we are doing the beauty of women's consumption, and we find these changes in organization and form. These are the traditional magazines that we look at, half of which is advertising, the rest can be divided into three parts, some beautiful models, the second part of the beautiful single product, the third part is very soft article, this is the composition of the magazine. From the consumer side, I can not buy. Many of my users say I watch a lot of Mushroom street and then read the magazine often think about something like, but the magazine does not have this button. Magazines, or a magazine based on these traditional women's portals or the organization of their content, because the relative is the preparation of the content of the organization, so relatively fixed, for now women consumers they have a strong demand for a certain gap, I will say how we do. This is our earliest practice, we will introduce some people, they will put the good of these goods they will put them a set of clothes to show others. This from the consumer point of view in the purchase of fashion consumer goods is a key link, before the selection of a single product their appeal is good-looking, cheap, good quality. Then another plea is matched. Because I bought a dress, but I probably don't know how to make a dress or a boot. Traditionally, for a magazine, you'd see a magazine match, after all, there is capacity limit, one months out of a magazine, of which there are 30 to 50 sets of collocation, only three sets to five sets for their own, capacity is small, but we now launch daily volume can catch up with the market on the total of one months. Now either a brand is putting up my own brand, Taobao can find a lot of sellers to put up their products, this is a store, so on the one hand, we can achieve the problem of quantity, the second can cross the brand and across the shop with products, this to our consumer's point of view, from the point of view of consumer demand is more appropriate.

From our own perspective, we took a little time to introduce some of the stars, fashion bloggers, reds and their things, these people are mainstream in fashion, but the same problem is not buy, or inappropriate. So now we take a few steps, the first one to introduce a large number of Star magazine, the second we through the technical means to classify it very fine, and then the above each collocation will have a corresponding label, will describe it in detail, or the subsequent purchase of the goods will be more relevant. So from our actual product point of view, will find this product is very useful, especially useful is now mushroom Street You can choose I want to see long hair, tall, European and American stars how they match, why this election? From a collocation point of view, a very detailed selection of attributes can be selected to the most similar to their own collocation, which is very important in terms of collocation. Our product online is very stimulating for our entire sales. One more word, and this is a huge demand. I personally feel that our ordinary consumers are related to our education and so on, they do not have a strong sense of self-awareness, from the female point of view do not know how to wear, although I know this star to wear good-looking, that star wear good-looking, but I do not know how to wear, So they finally copied others, how others wear, how I wear. So before there are a lot of things very fire, including like little chili and so on these very fire, each time out with a bunch of people to buy, and finally will find for example in Shanghai, Beijing, such as Metropolitan Subway will hit the shirt, in China very wonderful people are very few, so many many people will go to learn them, so there is the reason for the hit shirt. We are now working very hard to increase the reach of the group of people, add the traditional star, the Reds then the fashion blogger's information comes in, but will be better with our content to combine, the content to be fragmented, detailed attributes marked up, and then to filter again, this now looks very valuable to the customer purchase.

The third change we will find some very interesting phenomena, which are still in the bud. We have recently heard nouns including C2B, and we find that some businesses on our platform have put C2B to the level of very grounded gas. We just talked about the star match, the star match is to have his fan, then the fan will discover the new Street to take the picture to upload. You will find that the most of the comments are seeking links, the so-called link is I see a good, but do not know where to buy, we have the opportunity to go to Mushroom Street to see our matching channel, our star this piece is most of the link. We have a part of the business is very smart, he nest in our community every day to see which fashion elements have more links, when there are more for the link after, basically prove that this paragraph if you can sell, you will sell very well. I last looked for such a businessman, visit him, he said that from the spring Festival to now he has made a total of 10, he also has a set of software analysis Taobao sales, made 10, 8 made, the least of the paragraph sold 5 million, from the spring Festival to now. Now everyone says that the C2B is human customization, consumer single expression said what I want, then by the enterprise to provide, and then a lot of cases I think C2B C is a group of people, if you find a group of people early than others, then you can quickly follow, I think the effect is very good, At least on my platform now more and more see this situation. So businesses and consumers will be more and more in touch with these changes. On Mushroom Street There will be such a center, the next thing we will do is to do what the merchant did, we will systematize it. In the future, you want to know which clothes are the most linked, just login to our platform can know, do not need to get a set of software in our digging data here, so we will have such a special marketing center to target these, especially to do women's clothing business you can see on my platform which clothes recently like a lot, Rising quickly, there are no clothes to sell now, but a lot of the link. So please pay attention to us, there are many better things to play in the future, thank you.