Yue Xuqiang, a former employee of the e-commerce giant Taobao, co-founded a Pinterest-like social shopping platform to fulfill consumer demand for the latest fashions.
The website, Mogujie, is becoming a formidable competitor to Taobao, which currently occupies 95 percent of China’s customer-to-customer Internet market, for China’s fashionistas.
Mogujie specializes in fashion, and provides a space for registered users to post and comment on favorite shoes, apparel, and accessories. In October, the site expanded into online shopping, allowing e-retailers to utilize the platform. As of March, Mogujie hosted 3,000 online shops, a number the website hopes to keep consistent throughout 2014. However, the company aims to regulate the number of e-retailers it hosts so that each can make a decent profit.
“Our business philosophy is different from that of Taobao’s,” Yue explained in an interview with China Daily. “Taobao wanted a huge number of e-retailers because they aimed to build a big marketplace to attract online shoppers.”
Yue says the website is unique because it advises consumers on potential purchases.
“They want to know what color is ‘in’ for this season, or how to dress for any occasion,” Yue said. “They need fashion advice, but Taobao, primarily a marketplace, is not good at providing advice.”
The site’s appeal to trendy women is driving consumer traffic. Mogujie had 75 million registered users as of March, and up to 6.3 million visitors log in each day.
Yue believes that the website’s success lies in its ability to satisfy consumer needs not met by Taobao.
“People are becoming more demanding. It is impossible for one platform to satisfy all,” Yue said.
image credit: mogujie