Entering China’s ferocious daily deals sector – where thouands of sites go out of business every year – seems about as attractive as putting one’s head into a hot grill. But Mogujie, China’s top Pinterest-esque social commerce site, is doing exactly that, launching two new channels for deals on clothes and household items.
All the clothing products on Mogujie.com/tuan are – as with the social side of the site – aimed at women. The other deals channel is the similarly-named Mogujia for discounts on household items.
Actually, Mogujia is a spin-off of the startup’s original social pinboard site (started in May of this year), and the newly-launched daily deals are a part of that, at Mogujia.com/tuan. It has group buy special offers on things like bedsheets, furniture, and flasks. Mogujia says it will update its stock of household items once a week, every Wednesday, and that the goods will change according to the seasons.
In contrast the items pinned by users on Mogujie and Mogujia, which have referal links to external e-commerce sites such as China’s Taobao, the Mogujie and Mogujia deals are organized by the company itself in conjunction with various merchants. Though the two deals portals are so specialist, they’re still up against the nation’s top group buy sites, such as Meituan and Juhuasuan. In a loss-making industry where profit margins are well below 10 percent, it’ll be a struggle to make these new channels pay off. But the startup Pinterest clone has phenomenal traffic from its sizable user-base (it was 9.5 million in March of this year), and so its deals sites are given a huge boost from those numbers.
Beijing-based Mogujie announced that it had secured a major series C funding round at the end of last month, which effectively valued the site at $200 million.
[Source: 36Kr – article in Chinese]