Focusing to get rich: maternal and infant flash power purchase Zulily of prosperity (below)

cloud network hunting note: Zulily, flash sales website of one of America’s main maternal and infant products. This is a silent and no one once, but billions of dollars worth of start-ups. Unlike most other flash sales model, the personalized sales model, breaking the traditional contempt of the success of the business philosophy of investors who think it will not endure?

click here to view the “. last tells the story of Zulily’s origin, and the two founders as “husband and wife” were shown business relations of cooperation, in addition to the above two points, Zulily in specific flash sales merchandise category selection, the user retained degrees aspects what exclusive secret?

: the secret of “high heads” choose FMCG

this entrepreneurial start-ups before Zulily and Blue Nile have very different in our business: selling point of the former is the use of high prices, high quality products to attract men who are faint noise, but they were up to buy one or two times in my life (wedding ring). While the latter is the purpose of selling cheap against women, consumer goods, often only need them to move to the new mothers have to do is to press the buy button. As a starting point, they established some core principles, to guide their decisions:

1. They need from the beginning to establish a reliable cost structure;

2. Cavens is going to be a CEO, but Vadon to change roles, from daily management to the company’s future development planning;

3. They need to build to quickly distinguish Zulily and amazon’s business model.

“and article 3 of the article is also one of the most important. In their view, online retail is like a “game”, but the amazon is the rules of the game makers, also is the winner.” Vadon explains. “When you’re ready to create a company, and the company involved is an online retail. At this moment I think you should ask yourself: ‘a piece of business amazon really do best? ‘if they are done very well, continue to move forward.” Cavens added. “Amazon compete with rival traditional ways in the field of electronic commerce is the core of the company has to sell the other products sell on amazon.” He said. Think about amazon sell money-losing pampers for America’s biggest baby care products online web site,, until its parent company acquired by amazon. “We are in the position of the more specific, people may use any other way to find what they need, so we need to constantly change. More what the customer is not every day have a purchase intention, also won’t every day to look for a specific project. We have to do is constantly innovation, update the sales and development of products in every day.” So he felt for the help Zulily compete directly with amazon is operable.

Cavens and Vadon originally sold was originally intended to focus on like a pram, car seats, and other hard goods. But this decision will prove to be a wrong choice, and correct the error is one of the key personnel hired an important: in November 2009, they persuaded Eddie Bauer old lieutenant Twomey to lead the sales. Twomey not only proved that she was Zulily products sales leader, she also help Zulily unlocked the secret of the user “high heads”.

Twomey know a personal sales model of the company and want to establish a long-term, sustainable business model, you must choose to sell cheap and fine products make a tired parents don’t need to spend a large part of the salary to buy these products. Clearly, makes the “high to lead” the secret, is that the choice of products, the high frequency rate of products, such as diapers, shoes, t-shirts, etc. “According to your income, you need to decide what to buy, or whether practical”, Twomey said. As an avid marathon enthusiasts, Twomey at 4:30 in the morning to get up every day, every morning to insist on an hour’s run with my friends. “The child’s life, smart you may only need to buy one or two children’s cart. But you have to grow up as a child, and from time to time to buy new clothes.”

on January 27, 2010, at the beginning of its establishment Zulily focused on selling children’s clothes. Thanks to word of mouth marketing, moms blog also promoted the development of the Zulily, make be more familiar with mother. “Zulily is amazing! Such evaluation often appear in Zulily who focus on maternal and infant’s blog content. The startup, according to the founder’s vision, it will become an automatic machine of money, not surprisingly, Zulily will be in a profit in the fourth quarter of the year.

in December 2010, Twomey for Zulily increase women FMCG elements. This let Zulily this speed up rocket, took to the established track. Overworked mother, long time don’t have to spend to buy maternal and infant products. In addition to providing an accurate recommend purchase experience, it also for the female buyers, provides a discount of 50%. The adoption of zero inventory, Zulily once flash sales is coming to an end, it will send a purchase order for product manufacturers in the supply chain. The manufacturer will then order the products sent to Zulily fulfillment centers. Within 24 hours, these projects are repackaged again to the customer in the waiting. This is why customers often have to wait several weeks to receive their orders. Unless it is in the case of defective goods, or all the goods once sent have herald the end of the service.

anyway. “Mothers has reached fever pitch.” Vadon said. “Women’s clothing is the core of the enterprise. They like this way of shopping, will eventually buy all kinds of things.” Zulily revenue was $143 million, 2011 increased by 674% compared with 2010.

in Cavens and Vadon leadership Zulily was born, rapid rise and rapid development, the global media for the company is almost “nothing”. “In the early stage, especially when all going very smoothly, excessive seeking media exposure is a very foolish thing.” Vadon said. “it’s like you’re playing well, when you meet a gusher, do you want to is a person quietly to complete the mining process. If you make five other people know about it, and they began to dig Wells near you, then you are bad.” When it comes to your own business at the beginning of the low PR behavior, the founders put it all comes down to their own introversion, and other employees think they are not shy personality.

so, as you know, until Zulily first IPO in November 2013, Canvens and Vadon established companies to enter the public’s view. “If you look at the time of initial public offering (ipo) of the conference, you must know the net raised about $92 million.” Cavens told me. “When we have an IPO, Zulily lying on the bank account of $130 million. So we listed, not because of the development of the company have no money.” When at the beginning of the Zulily listed, has 2.6 million active users, the mobile terminal users accounted for 45%; Total annual revenue of $331 million, year-on-year growth of 132%, 2012 shares jumped nearly 90% in the first day.

keep secret: for “flies experiment”

Zulily all employees make everyone for their daily activities is a businessman. But technology is the core of the company. And Cavens is an excellent representative of the tech company. “He has a very large, hardcore technical background, for Zulily this yes one of the great things.” Vadon said. “When you are run by technicians of product oriented company, every employee of the company will respect him very much. He is always thinking from the perspective of technology about all the problems for the development of the company.”

studio remember those two floors of the product display chart? Once these pictures arrived here, Cavens technical team began to play a role. Zulily another core competitiveness is its ZuStudio content management system, A design with the purpose of testing, namely A/B testing, or more precisely, A/B/C/D/E/F/G… The test. Any pictures of products, from the image from location to the point of view, to elaborate design.

Zulily users may not realize this: in fact, every consumer recommended basic features are one-on-one personalized, has powerful algorithm support behind it. For example, if you have an eight year old boy, when you need to buy him clothes, then Zulily will not show you for 3 year old girl’s skirt. Zulily bring you experience, it’s just like shopping stores. This one-on-one personalized is constantly improving: according to your browsing history, Zulily can infer your child’s age and gender, or what kind of pet do you have, is what size do you wear clothes again, even infer whether you hate protein powder.

the difference variable is not large, each person every month the difference between the range between 0.2% and 0.4%. However, but add up all these differences between variables, it is a very large algorithm recommendation system. Especially considering the Zulily large number of “original” every day, but it can still keep like snowflakes, fluency, is not easy.

it is estimated that Zulily tested millions of orders of magnitude of every day, and this is precisely one of its core advantage, Zulily recommend them for mothers close growing children changes needed items every day. But now Zulily’s largest sales category are no longer children’s clothing, but women’s clothing. If it weren’t for Zulily, in the great vaults of buyers data of such a huge incremental change is unlikely. Cavens in the interview talked about one of his experience: “once a week, I have been communication with a scientific research personnel about their research and development cycle, why they tested with flies. Scientists told me, this is because they reproduce quickly, short life cycle, they can do a lot of testing.

he would apply the same concept to Zulily. “Every day we launch a new e-commerce site, now we have been able to launch hundreds of different versions of the site. Imagine that some people launched a quarterly, they only four times a year to test, and they succeeded in this adjustment. We have 365 days a year to do the test, through such rapid test iteration, we learned the secret of how to extend the enterprise vitality “.

Flash for

is very fast, but it really can make the user feel Cool? ?

Zulily must keep this kind of “rocket strain velocity”, because in the vagaries of the market, investors and analysts to electricity enterprise’s requirements are always changing. A snail’s delivery speed for customers, have already become they complain about Zulily’s number one. Amazon’s members to provide users with two days to free shipping express service, but often require the user to Zulily on 2-3 weeks, and still is not free. Two co-founder admits that the long delivery time is really depressing shopping experience. But they think, want to keep the product variety and low prices will have to compromise. Cavens and Vadon claimed that it was forced to customers in lower prices or to make a choice between a faster delivery time. And the development of Zulily, is that the user will eventually choose after weighing the “cost of buying and selling”.

although Zulily has been growing, but the user still hate it delivery speed. “Good express delivery need a long long long time,” when I asked my friend Brooke Tawanna, he by sending email to Zulily complain about two years old children to buy clothes for her delivery speed slow. “When I got to buy clothes on Zulily, she has.” They have their own concerns to the manufacturer. “Our inventory in Pakistan, when we have the goods sent to Zulily, sometimes distance customers receive their orders for two to three weeks before.” Adnan k. Mehmood children’s clothing company Jelly the relation and cooperation with Zulily 2011 from an unknown, only a few hundred pieces of small company sales become well-known enterprise business trading at $4.5 million. “We are concerned that, if such delivery speed for a long time, will eventually run out the user’s patience”.

the sceptical analysts and investors continue to sing empty Zulily’s shares, down from $73.5 to February 5, 2015, $18.7, below the price of $20 for the first time public release. nullnullnullnullnullnullnullnullnullnullnullnullnullnullnullnullnull