Mushroom Street also become "Demon stock" the game of burning money will not burst bubble?

Last year, only 10 billion U.S. dollars after the sale of the magnificent reverse, the female social vertical electric goods brand Mushroom Street began to pick up, according to the Wall Street Journal, the recent news that Mushroom Street is preparing a new round of financing, may be raised to 300 million U.S. dollars and a 2 billion dollar valuation. You know, in the last June, Mushroom Street received a C round of financing, the amount of more than 200 million U.S. dollars, Magnolia officinalis Investment, Zhi-Xin capital and other common lead, the valuation is 1 billion U.S. dollars, three quarters past, Mushroom Street, the amount of money again to refresh the imagination of the industry, valuations doubled. After the only product will, Mushroom Street can also be called another "demon stock".

Chen's Mushroom Street location, founded in 2010, is a new type of female buyer community that combines shopping with community, electric and social networking, and at the moment it is growing at an alarming rate, a model that has gained value in the capital markets. From the public data, the current Mushroom Street has 85 million registered users, 35 million-month active users, the average monthly transaction volume of about 300 million yuan.

Mushroom Street, Beautiful said in the social electric business area each other as the biggest opponent, the two sides in the positioning, function and style, the main vision, UI design is quite similar, dark war and constantly have the same fate experience. Mushroom Street, Beauty is said to rely on Taobao soil to do shopping guide to share a start, the profit model is based on Taobao commission and Business advertising, once the beauty of Mushroom Street is said to rely on this model to live very well, such as Mushroom Street has reached the daily UV400, daily from Taobao get Commission 500,000 of the flow distribution platform. But for the shopping model, relying on Taobao soil growth is inherently insecure, because the right to speak in the hands of Ali platform. For example, from 2012 onwards, Taobao began to prohibit the outside link, the ban on Mushroom street Alipay payment and can not link to Taobao merchants. 2013 both were to Alibaba blocked, must not have to the female vertical electric business platform transformation. Development to the present, both in the shadow of the Giants gradually sit big, 2014, beautiful said the turnover of goods for 5.6 billion yuan, Mushroom street turnover of nearly 3.6 billion yuan. At present, outside of Mushroom Street, the beautiful said also in the outgoing IPO.

In addition, Mushroom Street at present also with Ping An bank, Peng Hua fund to launch the expected annual yield of 12% of wealth management products "mushroom Street financing." Can be seen, in the face of Alibaba after the ban, Mushroom Street also began to low-key impact Ali's core hinterland, although Mushroom Street said "Mushroom Street Financing" is not an independent internet financial products, but in the release of the user's online purchasing power.

Sitting in a Dajian business model in a niche that the Giants can't cover

How does Mushroom street sit big in the shadow of a giant? Mushroom Street from the original shopping guide to share a continuous transformation into a vertical female social power provider, with insight into consumer demand and grasp the future of the subdivision area trend-related, the combination of electricity quotient and social, the main "fashion to buy First Street" concept will be shopping for people into Mushroom street, through the interaction of fans, The formation of personal brand community, this and beautiful said, only the goods will, Poly-Mei excellent products, such as vertical electric business model formed a difference. On the other hand, Mushroom Street has been a "few less" minority routes, to avoid the all-inclusive of the electric business platform, you can effectively avoid the day cat, such as the giants of the positive competition and brand ambiguity. By positioning B2C+C2C's social electric quotient, grasping the specific merchant and the source, grasping the minority female user to enhance the user stickiness.

It can be argued that the Mushroom street model effectively avoids the challenge of competitors or giants, to avoid the core business of the Giants quietly deep vertical market, its strategy in fact, and only the product will have similarities, only the product will essentially be a affixed with the quality of the special sale of the label, run the inventory of the electric business Platform, At that time, Taobao Cat and other electric giants have not yet entered the flash market, wait until the product will already lead the famous discount market, the introduction of "Brand Special" channel is too late, whether it is Mushroom street or the only product will be through the choice of niche segments and relatively effective business model insight into user needs, And this strategy largely protects itself. For Mushroom street, from the Electric dealer search tool to a consumer community consumer-to-consumer to the vertical electric dealer, from the to the customer. The advantage of this approach is that through continuous transformation to find its own positioning and modulation, in order to quickly hit, through the constant adjustment of the electric business model and positioning, you can avoid being the Giants and peers stare, low-key sitting large, the formation of differentiated competition, but the general direction of social and electrical business integration, and improve the trading closed-loop ecology, the transformation of its own electric business platform, build their own buildings.

The essence of the socially-oriented electric quotient model is to ensure the stickiness between the user and the brand by the fan economy

In the founder Chen View, for young women from clothing to home all the current items Consumer-to-consumer social shopping platform, although the audience is facing the 16~30 range of trends and white-collar female users, but the market plate is large enough, "there are more than 200 billion yuan market space." "The success of the transformation of Mushroom Street lies in Stoding, in Chen's view, Mushroom Street to the central consumer perspective, focus on what users want to buy, how to sell, how to share the problem, abandoned Taobao that a set of prices, sales, reputation and so on to order the commodity standards, but mainly subjective recommendation, to the user's browsing, Click to assign weights, fine judgment of user preferences and price range positioning, that is, for users, Mushroom Street is customized, to the center, that is, each user's Mushroom street is based on personal preferences and positioning. The consumer-view referral process has always been a feature of its platform, as it should be with jobs: "Sometimes people don't know what they need until you show up." "The aim is to form a user purchase, sun, sharing, drainage closed loop, the essence is the fan economy, Mushroom Street with Taobao, micro-credit, micro-bo, and even Instagram and other mainstream electric and social platform features, that is, through the precipitation of personal brands, forming talent and opinion leaders, gathered fans, And to create the interaction between the buyer and the brand and fans, the formation of social and electrical power quotient of the power to share the mechanism and ecology, this mechanism to ensure the user and personal brand two sides of the stickiness.

Deep digging vertical niche market potential cultivate shopping habits to form new entrance value

Mushroom Street Main 16~28 This group of female users market, from the mushroom street to Beautiful said, Poly-Mei excellent products to the only product will be this positioning, the common denominator is vertical, subdivision, precision, small, in their respective subdivision areas Jinshan for the king, each find the positioning, pattern and market segments, digging deep vertical market potential. On the other hand, mushroom Street through the user sun, special buying mode, building a personal brand community, this model provides the value of the advertising portal, the essence of this set of electric business model is to create a vertical subdivision of the user buying habits, and then because of the value of the import of the display of attracting new merchants to attract the settled, Form the electric quotient platform of female socialization vertical class. And then through the formation of user buying habits, and then become the new entrance of the electrical business. At the same time, shopping guide site because the value of this entry can also attract merchants to enter, and then form a characteristic of the vertical type of electric business platform.

How to create a unique brand of electrical goods

But Mushroom Street This model is also faced with hidden dangers, through the user to bask in a single, special buying mode can form the power of opinion leaders, but it is difficult to allow user behavior to form a closed loop and the user information precipitation. Chen from Taobao has its own electric quotient and retail genes, familiar with the interaction and operation of the user, so the Mushroom street to walk the social electric business is the case, but this social-sharing of the electric trader is a small group of women, once the merchants settled in increased, sharing the overflow, price, service, quality of all aspects can not be ensured, A variety of inferior imitation version often came into being, and then led to the electronic business ecological uncontrollable.

Beauty at present after constantly expanding the number of sellers, has been the million merchants settled in. Relative to the beautiful said, Mushroom Street in the merchant entry threshold is higher, the settled merchant is few, only has more than 3,000. Unique vertical subdivision of the field of buying the hand mode, the flow of liquidity is strong, but the price is no greater flow potential, has been walking small and beautiful path, growth prospects worry. This also reflects from the side of Mushroom Street future profit model predicament, although the main subdivision group, but the new traffic is difficult. So at present Mushroom Street is also at the opening threshold, large-scale introduction of business, in accordance with the design concept of Mushroom Street, businesses include the top brand, to ordinary merchants, to the bottom of the large-scale consumer-to-consumer personal free market, and even, Mushroom street has begun to try many categories of routes, including the introduction of photographic services, door-to-door nail, home decoration, menswear and other categories As a result, can not control the brand of Mushroom street, easy to move to many categories of electric business platform, to become the next Taobao. Whether it is beautiful said, or Mushroom street, its future hidden danger is to control the clear positioning of brand image, to Taobao, to create a unique electrical business of the brand of ecology.

The Shadow of the Giants

On the other hand, the Mushroom Street flagship 16~28岁 female user groups, mentioned above from the Mushroom Street to the beautiful said, Poly-Mei excellent products to the only product will, are this positioning, you can see that the young women market power is relatively saturated, the model is easy to copy. Although they find their own positioning, model, but there is no subversion of the core competitiveness. In addition, beauty said to take refuge in Tencent, access to micro-letter heavyweight interface, Mushroom Street but no thigh to hold. The electric business industry burns money fast, plus the pattern is easy to duplicate, Mushroom Street future will also face Jing Dong, Taobao's positive powerful sniper. For example, when confronted with the reverse attack of the only product, Ali timely vigilance, opened up the days of the cat special Sale channel, Mushroom Street Rise, Ali future how to fight back still is shrouded in the shadow of Mushroom street, and Mushroom Street at present and Ali exist strong attachment relationship, such as Mushroom Street almost all products are pointed to Taobao, Future settled businesses will inevitably come from Taobao sellers, based on the expansion of category, competition for users, maintain high valuations need, will reach the site of Ali, the high dependence on Taobao and competitive relationships become uncontrollable high risk factors. Has now been renewed with Alipay cooperation, behind the reliance on Ali stable electricity to pay the ecological support; from the big environment, Ali is based on the entire category of ecosystems, Mushroom Street can grow under the gap, but it is difficult to break through the shadow of the Giants.

Does the capitalist side disrupt the game of burning money to burst bubbles?

Mushroom Street The success of the continuous transformation stems from the small volume of Mushroom Street, flexible, easy transition. But in the fast-changing electricity market, the communication management cost is low, can quick decision quick response, but this in the company in the initial stage of business success, but may not be suitable for the future can change the big mushroom Street. However, with the continuous expansion of the management level and the flexibility of the operating mechanism once lost, the coordination between the departments, the management of the flow degree and market decision-making market reaction speed is bound to be limited, this may become a mushroom street in front of a difficult problem. For example, in the face of merchant side, Mushroom Street to take the way is to accept merchant margin and sampling, shopkeepers must meet all products are covered with mail, the goods sent to Mushroom Street warehouse for quality inspection. And Mushroom Street currently does not have its own warehouse, lack of credibility evaluation system, warehousing logistics, commodity control problems will enlarge. Mushroom Street needs to expand quality inspection personnel, from the shopkeeper service to quality inspection, to buy the team's expansion, Mushroom Street test will be more and more big. For this kind of in the subdivision vertical field silently work suddenly with "demon stock" the image stands in front of the public vertical electric quotient platform, faced with the follow-up problems, it is inevitable that the capital side of the mess, plus mushroom Street in the future in warehousing logistics, advertising marketing investment, talent resource contention, operating scale costs and other aspects are facing difficulties. And the game of burning money at the beginning, the core advantage of the weak mushroom street price bubbles may be punctured, the face of the crisis will be magnified.

No doubt, from the only products will go to Mushroom Street, their case is telling startups, how in the Giants covered the industry, find the vertical field of differentiation, so how to quickly grow up an important lesson. But at present, Mushroom Street supply chain, warehousing logistics, platform brand advantages do not highlight, with the increase in the number of players, the rules will be established with more players into the market changes in the parties. Mushroom Street through a clever way to develop today, to change, determine the core model of no subversion, this is the problem of Mushroom street, but also the road to guide its future.