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2019 Spring AD741 C1 Apr 6 2019 Team 5
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Mark my life
XIAOHONGSHU
(Little Red Book)
Background
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Sharing & Shopping Platform
(UGC community & Ecommerce platform)
Series D funding round in May,2018 valuing the app at $3 billion
Over 200 million registered users by Jan,2019.
Target customers are young female who care about fashion and shopping
Buy
The most popular products
from the world
Search
Reliable product reviews from 200 million users
Connect
With the most interesting community
Discover
Personalized lifestyle content based on your interests
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Reaction
Special social E-commerce platform
-xiaohongshu vs.traditional
Chinese consumer trend
-90% buy products based on reputation
-turn to social media for recommendation
Accurate audience positioning
-18 to 35 year old Chinese urban female
- 85% users are female, 84% under age 30
Thriving online community
One biggest problem/concern is “shanzhai” product
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“Every time I want to try a new product, I will go to Xiaohongshu for reviews and recommendations.
“During my spare time, I like to browse Xiaohongshu to look for beauty goods to buy.
Analysis - Business Model
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“Read-Like-Buy” cycle
Little Red Book
Users
Merchants
Read&Write Notes
Purchasing
Communicate & Goods
Membership
Transaction fee
Superior service
Membership fee
Customers & Ads
DICEE Analysis
Deep -- Its sharing communities involve many different fields, covering travel, cooking, make-up, learning, just to name a few.
Indulging -- A “Read-Like-Buy” cycle.
Complete -- Aparting from sharing and marking life with others, users can find the product link to e-commerce store, Red Store, which allows users to buy products directly after reading reviews.
Elegant -- With red and white colors, the application is concise. Its functions are easy to use and beginner-friendly, which attracts new users to share in the community.
Evocative -- More and more people are willing to share their daily life in the Xiaohongshu community.
Analysis - Applied Concepts
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Partnership
Partnership with social media -- Wechat, Weibo.
Partnership with KOLs -- invites KOLs share their life in Xiaohongshu, attracting more people to use the application.
Shifting basis of competition
discovery-driven
Past -- User-generated content (UGC) community
The content is the product
Present -- UGC-oriented e-commerce platform
Competency: from Functionality to Functionality & Reliability & Convenience
Analysis - Competitors
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| Online E-commerce Platform | ✔ | ✔ | ✔ | ✔ | ✔ |
| Virtual Merchandise | ✔ | ||||
| Cross - Border Products | ✔ | ✔ | |||
| Target Customer is Female | ✔ | ✔ | |||
| UGC(User Generated Content) | ✔ |
Mogu street is A fashion sharing platform, introducing and selling fashionable goods to their audiences. The shopping guide of Mogu Street's goods sharing has a strong purpose, and merchants have the intention to sell goods. The Xiaohongshu focuses on improving the quality of user content sharing, which is higher than Mogu street in user engagement and content quality.
JD is A professional online shopping platform which mainly focus on electronic devices and high-tech products, also improve a platform to share and exchange review. But JD's multi-model is equivalent to a large supermarket, where the product channels are guaranteed and unified management services. In contrast, the number of goods types of Xiaohongshu is not complete compared to JD.
KAOLA is One of the biggest cross- border e-commerce platform, whose goal is that similar to Xiaohongshu sell high quality oversea products and share review, including many categories, such as cosmetics and electronic devices. Koala's self-operated model products are directly sourced from the origin, and this model is better able to control quality. Compared with Xiaohongshu, the price of the goods is higher, but the quality is guaranteed.
Taobao is One of the biggest online shopping website in China, covering millions of products.
Most of the goods are not self-operated on Taobao, users will focus on a specific item evaluation, while Xiaohongshu focuses on the life styles and sharing, Taobao pays attention to consumption. Some users will refer to the sharing on Xiaohongshu, and finally buy the goods in Taobao. Because Taobao has thousand choices for one item.
Act like curators: test popular products by professional users before promotion to earn customers’ trust and loyalty.
Reduce “Shan zhai” products:Get products directly from the brands instead of local dealers; improve the reality of posts and comments.
Cooperate with larger and more well-known e-commerce platforms such as Taobao, inserting direct link of Xiaohongshu’s sharing notes into the product page of Taobao.
Recommendation
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Strategic improvement
Create albums of users’ wish lists by tags, thereby enabling others to search and collect.
Introduce group-sales and customized service for high-quality users.
Design some bundles of popular products to increase sales.
Recommendation
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Functional improvement
Reference
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http://www.sohu.com/a/239782888_465382
https://walkthechat.com/cross-border-e-commerce-china-whats-trend-2017/
https://www.jianshu.com/p/892ebe65a4c9
https://www.dragonsocial.net/blog/xiaohongshu-marketing-for-business/
https://walkthechat.com/xiaohongshu-little-red-book-fostering-e-commerce-via-word-mouth/
https://media1-production.mightynetworks.com/asset/3726499/Xiaohongshu_RED_Guide.pdf
http://www.isynergi.com.au/services/xiaohongshu-chinese-ecommerce-social/
https://www.dragonsocial.net/blog/xiaohongshu-marketing-for-business/
https://technode.com/2018/06/13/xiaohongshu/
https://www.linkfluence.com/blog/chinese-social-media-coverage