Mogu’s KOL platform is struggling with an increasingly competitive market

Mogu, a fashion platform focused on key customer insights, reported a double-digit revenue decline in the second half of fiscal 2024 due to intensifying competition in China.

Total revenue for the six months ended March 31 fell 34.3% to $10.7 million. Gross merchandise value (GMV) fell 6.3% to $420.5 million.

President Fan Yiming said competition in China’s e-commerce industry continued to be fierce in the first half of the year.

“The live streaming e-commerce industry, now in its seventh year, is experiencing a new life cycle for key opinion leaders (KOLs), with major platforms driving the growth and development of new KOLs while experienced KOLs are losing ground,” he explained.

As a result, the company reported an operating loss of $3.8 million and an adjusted net loss of $3.1 million.

Despite improving its cost structure and increasing its operational efficiency, the company did not achieve its expected operating results due to the rising costs of acquiring new customers and declining revenues, Yiming added.

For the full year, Mogu’s total revenue fell 30.9% to $22.2 million, and its adjusted net loss was $7.6 million.