On Apr. 3, Ruhnn, an Alibaba-backed Chinese influencer startup went listed on NASDAQ, with a ticker symbol of “RUHN” and issuing price of $12.5. The total financing is expected to reach $1,250 million. However, up until today, the share price has dropped by 37 percent.
Insiders say that over half of the platform’s revenue comes from one single influencer Zhang Dayi, and the total sales under her personal IP has amounted to nearly 200 million in 2018. Her personal Weibo account has garnered altogether 10 million fans.
It is estimated that the drop of the share price has something to do with low acceptance of influencer economy in the U.S. market.
Feng Min, founder and chairman of Ruhnn Holdings, said during the listing speech, “We are very happy to be listed on such an innovative trading market like Nasdaq. We are proud to be among the listed companies of Nasdaq. The companies listed here are all the world’s most important Internet and tech companies.”
“We have more than 10 years of e-commerce operation experience. With China’s influencer ecosystem, we have become China’s leading influencer incubator and an ideal partner for retail brands. It is a milestone for us today.”
According to Chris Fengchun Jin, Chief partner of SAIF Partners, “I believe that with the post-95 Z-generation people becoming the major Internet consumers, Key Opinion Leaders are making ever greater impact on their consumption decisions. Ruhnn will continue to lead the dynamic changes of the e-commerce landscape.”
Founded in 2001, Ruhnn was originally an e-commerce fashion retail company called LiBeilin. LiBeilin grew to become one of the top 10 women’s fashion brands on Taobao.com, reaching approximately $29 million in sales in 2014. After 2014, the company diverted its focus to acquire more streams with influencers, granting customized services for clothing brands.
Featured photo credit to Nasdaq