Zulily: Mom's Flash Buying Business Has Been Greatly Exposed.

< p > Zulily is a very "anti user experience" company. Although the distribution time is long, compulsory shipping charges are not allowed, and no comments are allowed, the development of Zulily is very fast. So, why did Zulily get the favor of the market? < /p >
< p > < strong > > a > Zulily < /a >, an American flash shopping website for mothers. < /strong > < /p >.
Unlike P and most flash shopping modes, Zulily looks very personal. First of all, its delivery time is very long, usually consumers from the order to receive at least 15 days waiting. On the premise that logistics is so slow, Zulily has to charge 5.95 US dollars for distribution fees. Not only that, Zulily also does not allow exchange, nor does it allow users to comment. < /p >
< p > this shows that Zulily is a very "anti user experience" company. However, the development of Zulily is very fast. In January 2010, Zulily was formally launched. In 2013, Zulily's sales amounted to $696 million. In 2014, Zulily expects the highest revenue to reach $1 billion 200 million. < /p >
< p > November 20, 2013, Zulily was listed on NASDAQ in the US. The company's biggest market value exceeded $9 billion, equivalent to vip.com, a domestic flash purchase website. < /p >
< p > < strong >, then, why do Zulily get the favor of the market? < /strong > /p >
< p > < strong > > a > deep ploughing > /a > "mother market" docking small brands < /strong > /p >
< p > women have always been the main force of consumption, and the business model of Zulily is centered around young mothers. According to statistics, in the United States, women hold 73% of household consumption expenditure. Moreover, in the field of online shopping, the proportion of female users is 40.8%, but their consumption accounts for 61.1%. < /p >
< p > on the other hand, young mothers are a very large group. According to the US Census Bureau, there are 38 million families in the United States with children under the age of 18, who have a total population of 121 million. Mom has huge market space. < /p >
< p > although maternal and child business is the same, it focuses on the mother group, but the main category of Zulily is children's wear, and children's clothing accounts for about half of the SKU of Zulily. Around the core category of children's clothing and the user group of young mothers, Zulily has gradually expanded its category to women's clothing, toys, pram, kitchen, household goods and other industries. In 2013, Zulily's SKU increased to 57%. < /p >
< p > > at the other end of < a > industrial chain < /a >, Zulily connects thousands of small and medium-sized brands, but the brand concentration of children's wear and women's wear industry is very low. Take GAP as an example, sales of GAP in the US region in 2013 amounted to $3 billion 800 million. But we reckon that the scale of children's wear is only about 1000000000 dollars. < /p >
< p > small and medium-sized brands are restricted by scale, and their sales channels are often limited. They have very strong demand for emerging channels. On the Zulily platform, the large chain brand is only a supplement. The main suppliers of Zulily are small and medium-sized brands and agents. Up to now, Zulily has collaborated with more than 13 thousand brands. Zulily has become a platform connecting small and medium-sized brands and consumers. < /p >
< p > precisely because of the small and medium-sized brands, Zulily can win better sales conditions. The gross profit margin of Zulily has been maintained at around 45%. Huge profit margins enable Zulily to effectively cover various operating costs. By the end of 2013, the cumulative sale of Zulily was US $1 billion 190 million, but its accumulated loss was only US $45 million. Zulily has never seen a huge loss, and the company has been developing steadily and healthily. "Flash buying mode" helps growth < /p >
< p > in terms of business mode, Zulily chose to use the mode of "limited time rush to buy" to match the upstream and downstream brands of small and medium-sized mothers. < /p >
Products with < p > Zulily will be on the shelves at 6 a.m. every morning, and new product information will be sent to registered users by mail or APP. There are more than 1000 items on the shelves every day, and the price is usually more than 50% lower than the tag price. The online time of each commodity is only 72 hours, with a limited time limit. < /p >
The P buying mode has stimulated women's shopping demand in many dimensions. First, deep discounts cater to consumers' demand for cheap money. The scarcity of time limited creation can stimulate users' impulse consumption. In addition, the new and regular elimination mechanism has greatly enriched the supply of commodities everyday, and has also been able to effectively improve user stickiness while meeting consumers' demand for "shopping". < /p >
< p > at present, the active users of Zulily are spending 4.5 times a year, 2.4 times more than those in 2010. The increase in user stickiness has led to a rise in the price per passenger. On average, the amount of consumption per active household per year on Zulily reaches US $244, which is nearly doubled on the basis of 2010. < /p >
P, not only that, but the active users of Zulily are growing every year. In 2013, Zulily's active users in North America exceeded 3 million, and there were about 150 thousand active users in the UK. At the same time, the traffic of Zulily 77% comes from free channels such as EDM, APP or direct access. Zulily's user management has worked well. < /p >
< p > Zulily uses flash buying mode to gather large number of young mother consumers downstream. The upstream reaches a large number of small and medium-sized brands, and has achieved rapid development in the short span of four years, and has begun to take shape. < /p >