Hot Mushroom Street Shares Soared 200% In Two Days

Although economic growth concerns triggered by the U.S. new crown epidemic and underestimation of unemployment rate led to a 400 point drop in the Dow Jones index, it seems that none of this has much to do with China capital stocks listed in the United States.

Mushroom street, an e-commerce focusing on fashion female consumers, bucked the trend and doubled. The share price rose by more than 200% in two trading days, and the share price was strong, reaching a new high since August 2019.

Live content of veteran players

Mushroom street is an early player of domestic live e-commerce.

In 2016, Taobao's competitors did not have Jingdong live broadcast, no tremolo live broadcast and fast hand live broadcast, only mushroom Street live broadcast. At that time, little red book had not yet become a climate, and mushroom street was a real e-commerce. Live + content is the ecology of mushroom street.

In 2011, as soon as wechat was born, mushroom Street began to try to sell goods in pictures and texts, similar to the current wechat business. Then it began to explore short video and live video with goods. When live e-commerce broke out in 2018, mushroom street had been in the Bureau for three years.

Under the background of hot e-commerce live broadcasting and full release of industry dividends, mushroom street has increased the fine operation of live broadcasting since this year, and continuously innovated the playing methods of live broadcasting e-commerce.

In May, for the "Meili plan" for the recruitment of anchors, institutions and supply chain, mogujie launched six major anchor support policies, including "guaranteed monthly salary", "goods docking", "flow support", "official brokerage", and six supply chain support policies, including "free Commission for one year", "platform underwriting" and "operation service".

In June, the "super popular anchor week" was launched. Five super popular anchors took turns to launch high cost-effective products for fans, and at the same time, they gave out super value welfare in the live broadcasting room. This activity has formed the IP attribute. It is held regularly, and 5 anchors each month compete for the position of "super popular anchor".

Through such activities, mushroom street has helped a large number of middle and low-end anchors to grow rapidly, create the characteristic IP attribute of live broadcasting, and obtain the growth of platform sales.

According to the person in charge of mushroom street, in the "super popular anchor week" in June, five anchors created a total of 9.41 million, a 4-digit increase over daily sales. Mu Mu Bao, the anchor with the best data, has seen a 52 fold increase in sales and a 12.85-fold increase in fans.

Value return, capital is optimistic about performance potential

The head anchor of mushroom Street proves with strength that big traffic is not the only channel for large sales.

In this year's 618 sales promotion war, little sweetheart, the head anchor of mushroom Street_ In the case of only one million fans, during the period, 6.33 million sales were achieved, and 24.415 million yuan of goods were brought in on the night of 616 trump card blockbuster.

Compared with the top anchor of Taobao, Li Jiaqi, Weiya, Sydney and Timor xiaocrazy were the ones with more than 10 million goods on June 16, and Timor xiaocrazy (11.3622 million) had the lowest sales among the four. According to the shaking tone data, there were only three anchors with more than 10 million goods on that night, with star Chen he in the line, and 14.4217 million with goods, ranking the second.

Under the head of Taobao, the anchor of Taobao has been shaking side by side.

In the case of traffic multiples less than Taobao and Shuo Yin, the delivery capacity of mogujie anchor shows the professionalism and delicacy of the platform for IP building, and the fans' stickiness and repurchase frequency are significantly ahead of each other.

The public data of Hongren Dianji, a three-party data platform, also confirms this fact. Compared with xiaohongshu, pinduoduo and station B, mogujie has a better understanding of live IP, refined operation, and data matching between people and goods.

According to the U.S. fiscal year, the fourth quarter of fiscal year 2020 mushroom Street financial report shows that the proportion of live Gmv in the total Gmv has exceeded 65%, and the live Gmv has increased by 91.6% year-on-year. In the whole year, its revenue proportion has reached 46.2%. It can be seen that the business of live broadcasting with goods has become the core driving force of mushroom Street growth in 2019.

In terms of users, the number of active buyers of mushroom Street live broadcast reached 3.6 million in fiscal year 2020, with a year-on-year increase of 44.9%. The average number of days on the shelf is 15%, which is much higher than that in the model of monthly customers. By comprehensive comparison, in the four quarters of 2020, the number of active buyers in mogujie live broadcasting business is significantly higher than that of other traffic channels.

Such a good growth expectation may become the core driving factor of the recent stock price rise of mushroom street.

Although the current live e-commerce competition is fierce and the competitiveness of refined operation is obvious, whether mogujie can take the opportunity to become bigger and stronger in the red sea of e-commerce will become a more concerned issue in the capital market, and it will also become the most critical factor for the subsequent stock price of mushroom street to continue to strengthen.

All of these need to be supported by future financial data. How Mushi Street will do will be tracked continuously.