Recently, Mushroom Street was exposed to large-scale layoffs.
After the news appeared on Weibo hot search,
Many netizens sighed
"I haven't heard of this APP for a long time, and I'm still there."
In the early years, Mushroom Street was very popular,
It can be said that it is the first generation of "belt goods" Internet celebrity website.
In July 2019,
Mushroom Street announced a "full embrace of the live streaming business".
The fiscal 2022 financial report shows
Live Streaming Service GMV (Total Transaction Amount)
The contribution to the total GMV of the platform has exceeded 90%,
But the overall loss is still lost.
About 30% of the layoffs in Mushroom Street were due to business adjustments
On December 23, an employee working in Mushroom Street told reporters that the news of the layoffs was true, and Mushroom Street had begun to lay off employees, and the overall layoff rate was about 30%. Among them, the technical department has the highest proportion of layoffs, about 80%, and after the layoffs, the technical department has changed from more than 140 people to more than 30 people.
The employee revealed that the layoffs of Mushroom Street did not cause major disputes, and the company will give certain compensation to the laid-off employees and help the laid-off employees find new jobs. According to the employee, some of the laid-off employees of Mushroom Street have begun a round of interviews for new jobs, "new and old employees have helped to find (jobs), or departing employees to help push inwards." Other companies can't do this, and all employees recognize it."
As for the reason for the layoffs, the employee said that it was due to business adjustments, resulting in personnel changes, and "there will be innovations in the direction of the business side", but the specific content of the business adjustments is not convenient to disclose. The employee also revealed that the layoffs will not have a greater impact on Mushroom Street, and the existing technology sector can meet business needs.
The reporter noted that Mushroom Street has also had large-scale layoffs before. In April 2020, Mushroom Street issued an internal letter announcing the layoffs, and about 140 employees were affected by the layoffs, accounting for about 14% of all employees. Mushroom Street said that the layoffs were due to the focus on the live e-commerce industry and the need to optimize some non-strong related businesses.
How effective is the first generation of Internet celebrities riding live e-commerce hitchhiking?
In the early years, Mushroom Street was very popular, initially known as a women's shopping sharing and shopping guide community, and was the first generation of Internet celebrities with goods in the community network. According to reports, in July 2019, Mushroom Street made large-scale optimization adjustments to the business level and announced that it would "fully embrace the live broadcast business".
The reporter found in the application store that the introduction of the Mushroom Street APP mentioned that "Mushroom Street has tens of thousands of fashionistas who are proficient in shopping and dressing, and recommend fashion items worth buying in the live broadcast room every day." In addition, Mushroom Street also focuses on "exclusive discounts in live broadcast rooms" and "see the upper body matching effect through the live broadcast of anchors".
In the view of Mo Daiqing, director of the online retail department and senior analyst of the e-commerce research center of the network economic and social society, in recent years, the rapid rise of live e-commerce, Mushroom Street has comprehensively shifted the focus of live e-commerce, hoping to catch up with the ride. As the live e-commerce industry ushers in a wave of reshuffle, there are still many unknowns in the future, so it is also a big test for Mushroom Street.
How effective has mushroom street business development been in recent years? In December 2018, Mushroom Street landed on the New York Stock Exchange, and as of December 25, 2021, the market value was only $47.18 million. According to the financial report, in the first quarter of fiscal 2022 (as of June 30, 2021), the contribution of the Mushroom Street live broadcasting business GMV (total turnover) to the total GMV of the platform has exceeded 90%. However, according to wind combing, the Yangtze Evening News/Purple Cow News reporter found that Mushroom Street has been in a state of loss for nearly five years, and a quarterly report as of June 30 this year showed a net loss of $15 million.
Image source wind
China's live e-commerce enterprises rose 103.4% in registration volume this year
According to enterprise investigation data, there are currently 16,000 live e-commerce related enterprises in China. Judging from the development status of live e-commerce-related enterprises, the number of enterprise registrations has been growing in recent years, and the industry has ushered in a big outbreak in the past two years. In 2020, 4113 live e-commerce related enterprises were newly registered, an increase of 191.1% year-on-year. Since 2021, a total of 8364 new registrations have been registered, an increase of 103.4% year-on-year.
From the perspective of geographical distribution, enterprise investigation data shows that at present, China's in-industry and existing live e-commerce related enterprises are mainly distributed in Guangdong, Zhejiang, Hainan and other provinces. Among them, the number of enterprises in Guangdong Province ranked first in the country, with 3804. In addition, there are 1208 and 1154 live e-commerce related enterprises in Zhejiang and Hainan, ranking second and third respectively.
From the perspective of the distribution of registered capital, enterprise investigation data shows that 29% of China's live e-commerce related enterprises have registered capital of less than 1 million, 44% of the registered capital is between 1 million and 5 million, and the registered capital of more than 5 million enterprises is the least, accounting for 27%.
Source: Cover News
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