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Focusing on a small community, MorningShop generates a 10-million monthly revenue

Can a company generate a monthly revenue of 10 Million NTD just by selling breakfast cereals online? MorningShop did it. Behind the 2000 kilograms of cereals sold every month - approximately 40,000 boxes, whose accumulated height equals to three Taipei 101- are three outstanding students graduating with a science major.

Starting with a Facebook group “Love Health” that targets at consumers who are more and more involved in health maintenance, Zong-Rong Wu, Chia-Hsiang Chen and Che-Ru Tzeng discovered from data analysis a common liking for diet among the fans of “Love Health:” cereals. Most people’s impression of cereals mainly comes from a few brands often seen in large supermarkets.

Wu’s analysis shows that, the market scale of cereals in Taiwan is about 10 Billion NTD, while a specific brand accounts for almost 50% of the share. However, there are in fact many different types of breakfast cereals available in Europe and North America. Considering this, the three founders decided to give it a try, providing a new service for cereal lovers.

In 2015, they officially founded “MorningShop,” built a website and an App, devoted themselves into managing an E-commerce platform, and introduced cereal brands from England, Czech Republic and Canada, as well as new flavors like dried fruits, nuts and yogurt chips, so that cereal-loving consumers have more options.

They’ve gradually expanded the product line, which now includes healthy drinks, jams and instant food packages. Their targeted group has been very clear since the beginning: working females between the age of 25 and 35, who are often the main consumers of cereals. In response, the design of and the texts on the website have also been created targeting this community.

Like many E-commerce startups, the reason for “MorningShop’s” success is the detailed data analyses. The company creates an algorithm model using the concept of growth hacking, precisely analyzes the purchase frequency and items of different products, and decides future strategies of product development and marketing based on the information collected.

By repeating such a process, MorningShop manages to attract consumers to return for more purchases. In an interview with Business Next, Wu emphasized the particular importance of data to a vertical E-commerce platform: “a vertical E-commerce platform has fewer product items and operates on a smaller scale, with a member number significantly lower than larger platforms. Therefore, it has to develop a stronger ability of data analysis, so as to accurately apply its resources and pave its own path in a competitive online retail market.”

Despite of a small consumer community, MorningShop aims to deliver the best service. In 2016, it received seed capital of 20 Million NTD from AppWorks and 91APP, which they would use to recruit talents in software engineering, product development, marketing and customer service, and to move forward in the field of cereals.