How to Sell On Xiaohongshu and What is Little Red Book Ecommerce
While everywhere else in the world the tendency to learn about social networks before going to the act of purchase by consulting posts on Instagram or videos of influencers on Youtube is developing, Chinese people consult: The little Red Book.
Xiaohongshu the new E-Commerce App in China and Hong Kong
Initially designed to exchange opinions on products purchased abroad by the Chinese, the application now has more than 100 million users and is valued at $3 billion, making it the largest one of the most popular and prosperous applications of China.
But how did the application go from a simple recommendation platform to such a successful online shopping platform?
After noticing that the app attracted many repeated visits ranging from 6 to 7 openings per day for 17% of users, the founders Miranda Qu and Charlwin Mao came to understand that it attracted a much larger public: all Chinese people interested or willing to buy foreign luxury products without having a travel project.
In 2014, barely a year after the application was created, the Little Red Book takes a decisive step by launching the commercialization of these products to meet the needs of their users to directly purchase these products online.
Brands are more easily trusted by the customer thanks to the power of word of mouth in China and influencers
Initially user-centric, the application retains its primary function, the same one that attracted the first users to the app: a committed community and detailed and reliable advice on foreign luxury goods. Users continue to do extensive research on products and post detailed comments about their purchases (called “notes” or “biji”). These reviews may also include pictures and videos, thus promoting the consumer experience and immersion with the product before purchase and use.
Xiaohongshu (Little Red Book) and China Social Media Influencer
Thanks to its strong social implication at the origin of its success and its function of connecting the consumers of the same product, the influencers have even more weight than on other social platforms.
Thus Fan Bing Bing, the most popular singer and actress in China, also muse of brands such as Louis Vuitton, L’Oreal or Häagen-Dazs, regularly recommends products that are immediately out of stock on the platform and sometimes in the country of origin.
The social aspect of the application went to the commercial side transparently
The application does not include official brands, advertisements or commercial publications allowed on the platform. Unlike other e-commerce platforms, anonymous revisions, one-click classifications, or high default rankings are not allowed.
There is no sharing or transfer function either although users can add notes to their own personal collections. Only product links where the seller has a store on the platform can be shared, external links are not allowed. This allows both to keep users within the platform and also to give sellers and shared information an image of quality and approval. Qualified brands are allowed to create their own digital stores, for which the application charges technical fees and a commission of up to 5% per transaction.
In order to target its consumers and meet their needs the application uses algorithms to recommend content that might be of interest to users, and the “Featured” and “Editor’s Choice” sections highlight popular notes on the home page.
Why XiaoHongShu is a great Ecommerce in China and Hong Kong
Development of a closed shopping cycle for foreign luxury goods
Thanks to this accumulation of consumer data on these users, the Little Red Book has developed a closed shopping cycle for the cross-border sale of luxury goods.
Little red book has become a must-have marketing platform in China
Xiao Hong Shu has successfully met the expectations of its users towards the platform by combining e-commerce and social features without sacrificing one of them making it one of the most used online shopping platforms in China.
• 70 million users
• a huge user database
• a customer’s trust
• cooperation with KHOL
• a creative customization format