KOL platform Mogu struggles in increasingly competitive market

(Source: Mogu)

KOL-driven online fashion platform Mogu has posted a double-digit decline in revenue for the second half of FY24 amid intensifying competition in China.

Total revenues for the six months ended March 31 fell 34.3 per cent to US$10.7 million. Gross merchandise value (GMV) decreased 6.3 per cent to $420.5 million.

CEO Fan Yiming said competition in China’s online retail industry continued to intensify during the half.

“Having entered its seventh year, the live streaming e-commerce industry is experiencing a new lifecycle of key opinion leaders (KOLs). Major platforms are overseeing the rise and cultivation of new KOLs, while veteran KOLs are cycling out of mainstream prominence,” he explained.

On the bottom line, the company reported a loss from operations of $3.8 million and an adjusted net loss of $3.1 million.

Despite the improved cost structure and operational efficiency, the firm failed to achieve targeted operational results due to the rising cost of acquiring new customers and a decline in revenue, added Yiming.

For the full year, Mogu’s total revenues dropped 30.9 per cent to $22.2 million, with an adjusted net loss of $7.6 million.

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