Do you still remember Xiaohongshu, the cross-border e-commerce internet celebrity company that has been mentioned many times by Premier Li? In just half a year, sales reached 700 million yuan. Because of "Produce 101", Xiaohongshu has once again attracted people's attention. After one year, the number of users now exceeds 70 million. Xiaohongshu has completed multiple transformations from a shopping guide to a community to an e-commerce platform. It can be said to be a runaway entrepreneurial survival textbook. Let's take a look. 1. Product IntroductionFounded in 2013, Xiaohongshu is a shopping sharing community that has deeply cultivated UGC (user-generated content). In less than five years, it has grown into the world's largest consumer word-of-mouth database and community e-commerce platform, and has become a must-have "shopping artifact" for more than 70 million young consumers in more than 200 countries and regions. When you open the Xiaohongshu app, what catches your eye is a full screen of beautiful pictures of girls with beautiful text descriptions. If this is your first time using Xiaohongshu, believe me, you will think you have walked into the wrong place and downloaded a photo social software. Xiaohongshu started out as a social shopping sharing community. It is essentially a UGC community, and more than 90% of the posts on its homepage are made up of beauties. In 2013, my country surpassed Germany and the United States to become the world's largest overseas consumer country. However, due to information asymmetry caused by language and cultural barriers, how to do shopping homework before arriving at the destination has always been a major problem for self-guided shoppers. Xiaohongshu was created for this purpose. Xiaohongshu's users can be generally divided into two categories. One category is avant-garde buyers who share their shopping experiences and usage experiences in the community after shopping. This type of people has strong purchasing power and is willing to share. The other category is ladies who have a certain purchasing power but lack experience in going abroad. They face shopping difficulties such as where to go, what to buy, and how to buy abroad. Of course, as a community, once there is traffic, there will naturally be no shortage of personal shopping guides and corporate marketers who are trying to take advantage of the situation. Xiaohongshu has been suppressing this group, so we will not analyze them as the main group. By experiencing the early Xiaohongshu APP, we can find that Xiaohongshu has provided its own solution:
As a shopping UGC community, initially, users focused on sharing overseas shopping experiences in the community. Later, the boundaries of this sharing were continuously expanded, touching all aspects of consumer experience and lifestyle. Today, the community has become Xiaohongshu’s barrier, and it is also something that other platforms cannot replicate. So, let’s take a look at how Xiaohongshu completed community construction step by step and successfully took over e-commerce overseas shopping. The following are major historical events that we collected through the Internet and official Weibo:
This article attempts to answer this question - how did Xiaohongshu get started, what key nodes did it go through, from the earliest shopping guide to the community, and then to e-commerce, and in each leap, what aspects of the product and operation are worth our thinking and learning. Note: The content of this article focuses on Xiaohongshu's product iteration, Xiaohongshu's operation strategy , function design, user growth and user evaluation. The relevant data in this article, including APP download volume, App store ranking changes, App store user comments, etc., are all from third-party data monitoring platforms such as Kuchuan, Qimai Data, Appannie, and Penguin News. 2. Product Development Analysis2.1 Analysis of overall product development trendAs of May 17, Xiaohongshu has released nearly 90 versions, with an average of one version every 13 days. How does the Xiaohongshu team arrange feature priorities and control the release rhythm? What important stages have they gone through? Let’s take a look. In order to more intuitively see the entire development trajectory and speed of Xiaohongshu APP, we sorted out the changing trends of Xiaohongshu's Android downloads and iOS rankings in the overall list (free) and sub-sectors, as follows.
In our many analyses, although the growth rate of Xiaohongshu APP users is not the fastest, its growth still presents a nearly perfect curve. By analyzing the product download growth curve and product category ranking changes, we can divide the development of Xiaohongshu into three stages: Phase 1: December 2013 to November 2014 - Product polishing period (market exploration) Although Xiaohongshu was exploring the market during this stage, as a UGC product, the community atmosphere itself was very healthy. It had accumulated a large number of high-quality overseas shopping and global product sharing notes, and centered around travel and shopping sharing. Gradually, the boundaries of the community have expanded to all aspects of life, laying a good foundation for the next step of expanding into the fields of life and e-commerce. Phase 2: December 2014 to October 2016 — First wave of growth (commercial exploration) This stage is the most critical step for Xiaohongshu. With the advent of the domestic overseas shopping trend, Xiaohongshu entered the overseas shopping e-commerce market by relying on the accumulated overseas shopping sharing notes and user experience. During this stage, the Xiaohongshu team was even at the top of the wave with its excellent execution and decision-making capabilities. The third stage: October 2016 to present - rapid development period (maximization of user value) After the second phase of development, Xiaohongshu has found its own positioning more clearly. As a player that entered the Internet industry in the first half and persisted in the second half, it has ushered in its own spring. As a company whose business model is to sell goods, it must carefully care for community users and maintain the community atmosphere, while at the same time maximizing user value as much as possible. Can it have its cake and eat it too? Let us wait and see how they will make decisions. In the following analysis, we will interpret these stages in detail. 2.2 Product Phase Iteration Analysis2.2.1 Product polishing period (December 2013-November 2014)The Xiaohongshu team was the first to position itself in the tourism track. Whether it is the OTA giant Ctrip, or Mafengwo, which started out as a travel blog, as well as the companies that have conquered various market segments, such as Qunar, BreadTravel, On the Road, Chanyouji, TouchChina, LoveTravel, WorldBang, Lonely Planet, Lailaihui, and special tickets for scenic spots... the entire tourism track can be said to be extremely crowded. Of course, on this crowded track, the founding team of Xiaohongshu, with its excellent background, successfully won tens of millions of dollars in A/B rounds of financing within a year in 2014. This money successfully helped Xiaohongshu survive the 15-year capital winter. The founder of Xiaohongshu defined Xiaohongshu in the early days as more like a guidebook for overseas travel shopping. The main user groups at this stage are female users who are interested in overseas travel and shopping. Core user needs at this stage: what is worth buying and where to buy it. Xiaohongshu’s business needs at this stage: attract shopping experts to share their shopping notes and achieve a cold start for the product. Product main iteration version & iteration logic analysis: The main versions covered in this phase are V1.0.0-V2.3.1. Xiaohongshu APP started with an overseas shopping guide. After one year, it completed the cold start of users and tried to build an overseas shopping closed loop within the product and launched the "Welfare Club".
Due to the product login restrictions of Xiaohongshu APP, we are unable to obtain early product screenshots, so we will only analyze it from the perspective of iterative introduction. The issue of "forced login, otherwise the product cannot be used" can be said to be a classic problem in the mobile Internet. The early version of Xiaohongshu was open for casual browsing, but it was closed soon after. Until today, the latest version still forces login. Why does Xiaohongshu force you to log in before using the APP? Forced login means forced registration. It is not difficult to understand that as a shopping guide, its greatest value is the shopping notes accumulated within the community. Without providing a closed shopping loop, there is no strong reason to stimulate ordinary users to register and use the product. As a startup team, user growth is the indicator, not how many people have read my guide. Therefore, guiding users to register before use is also a solution. The iterative logic during this period mainly revolved around: social interaction, encouraging note sharing, and recommending good things. In version V1.5.0, we added functions such as @ reminders, ## topics, and linking Sina Weibo friends. As a UGC community, it itself has social attributes, and through common communication reminders, it further stimulates users' social and sharing behaviors. In order to encourage users to share more, the product has made many improvements around the beautification of pictures, such as adding filters, stickers, homemade sweet potato emoticons, and improving clarity. In the later stage of this phase, as the number of users reached hundreds of thousands, pure shopping sharing could not meet the purchasing needs of users. Xiaohongshu launched the "Welfare Club" section and began to try to build an e-commerce system to complete the internal closed loop of the product. This move can be said to be a key to determining the future fate of Xiaohongshu.
Operational strategy:As an overseas shopping guide UGC community, community rule-making and enhancing community style through content operations became the core tasks in the early days. In addition to the routine blocking and banning of accounts due to violations, we increase the traffic of real shared notes through product recommendations, and gradually eliminate soft articles, marketing accounts, etc. In terms of user growth, the early Xiaohongshu team mainly relied on maintaining real sharing in the community and driving natural user growth through word of mouth from old users, and basically completed the accumulation of seed users from 0 to 100,000. After the Android version was launched, we cooperated with third-party application markets such as Xiaomi, App Store, Baidu Assistant, and Wandoujia to hold red envelopes for downloads, raffles, and gift giving away.
On the whole, no unconventional operating strategies were adopted, but rather a conventional approach was adopted, seeking progress in a stable manner. Summary: For small and medium-sized enterprises, the most difficult time is the cold start. When the capital winter came in 2015, Xiaohongshu had stockpiled enough food and supplies. During this period, it did not excessively pursue high user growth, and did not even spend a penny on advertising. It focused on cultivating the community, building its own barriers, and doing everything it could to keep itself alive. 2.2.2 The first wave of growth (December 2014-October 2016)2014 can be said to be the first year of cross-border e-commerce, and the exact time point is after July in the second half of the year. The General Administration of Customs' "Announcement on the Supervision of Cross-border E-commerce Import and Export Goods and Articles" and "Announcement on the Addition of Customs Supervision Method Codes", also known as "No. 56" and "No. 57" documents in the industry, were successively issued. They recognized cross-border e-commerce at the policy level and also recognized the bonded model commonly used in the industry. This move was considered by the outside world to have clarified the regulatory framework for cross-border e-commerce. With the rise of cross-border e-commerce, which is regarded as a new business growth point, various e-commerce giants have entered the market, including Tmall Global, JD Overseas Shopping, Mogujie, Jumei Duty Free Shop, Vipshop, No.1 Store, NetEase Kaola, etc. Relying on the overseas shopping notes sharing accumulated in the first phase, Xiaohongshu has naturally built an overseas brand education base. The users it has acquired are very accurate, and the users have high stickiness and strong purchasing power. Xiaohongshu has ushered in its own trend. The main user group in this stage: female overseas shopping users. The core user needs at this stage are: buy, buy, buy, buy with confidence. Xiaohongshu’s business needs at this stage: selling overseas cosmetics and daily necessities, and completing the creation of an overseas shopping e-commerce brand. Product main iteration version & iteration logic analysis: The product versions covered in this stage are V2.4.1-V4.11.0. The overall logic of the iteration is more efficient information flow display, faster search, more convenient note sharing and more timely information interaction. The product is mainly iterated around homepage discovery, attempting to use smarter information recommendations to increase user retention and usage time. It is worth mentioning that in version V3.3, the product side has increased the weight of the welfare club, making it an independent page, supporting quick browsing of all products on sale and products that are about to open. At the same time, the original note publishing button has been transplanted to the upper right corner of the homepage.
Under the circumstances at the time, this decision was unquestionable strategically, but from a purely product perspective it was a major accident. Xiaohongshu’s slogan is “Good things from all over the world”, which can be interpreted as discovering good things from all over the world and buying good things from all over the world. Relying on the cross-border e-commerce boom, quickly entering the e-commerce field, increasing the proportion of shopping malls from a business model perspective, stimulating GMV growth, and telling a good story to capital are the pressures that Xiaohongshu must face after its transformation into e-commerce. At the same time, GMV is also an important indicator for investors to evaluate the value of Xiaohongshu. Looking back, as a small entrepreneurial team, Xiaohongshu has been able to gain a foothold in the cross-border e-commerce market worth hundreds of billions of yuan, mainly relying on the accumulation of shopping notes within the community, thereby driving shopping demand, and users then output shopping notes after purchase, forming a positive cycle. After the publish note button was moved to the upper right corner of the homepage, many users reported that they did not know how to publish shopping notes. This inevitably dampened users' enthusiasm for sharing and further weakened the social capabilities within the community. It will not have an impact on the community's ecology in the short term, but the number of user notes shared after the upgrade will show a small cliff-like decline. In the subsequent iterations, the Xiaohongshu team put the publish button back to its original location. At the same time, the welfare club was moved to the second tab position at the bottom. This was a small episode during the product exploration period and also a short journey for the Xiaohongshu team to recognize itself.
From the transformation of a shopping guide to a community, and then to the transformation of a community to a shopping mall, the frequency has increased from low to high. As of now, Xiaohongshu has completed the construction of a closed-loop internal product ecosystem, and user feedback has been very positive.
On the other hand, as a startup team of only a hundred people, facing the cross-border e-commerce market with a scale of hundreds of billions and a complex and lengthy supply chain, although the Xiaohongshu team adopts steady implementation measures such as direct sales and self-built bonded warehouses, there are still unsatisfactory aspects in product management and after-sales service.
Operational strategy:(1) Official organization of the #GlobalAwards# event. At the end of 2014, Xiaohongshu held a voting activity for "2014 Xiaohongshu Global Awards" on both WeChat and the APP. In less than 20 days, 1.87 million people participated in the voting, thus forming the Xiaohongshu list. Due to the credibility of the platform, the results of the "2014 Xiaohongshu Global Awards" were used by major shopping malls and manufacturers to endorse their brands.
Due to the very positive market feedback on the event, this official event was continued in 2015 and 2016. (2) 66th Anniversary Celebration in 2015 On June 4, 2015, the official launched the "Young and Handsome Delivering Express" event to warm up for the anniversary celebration. By recruiting more than a dozen foreign male (meng) models (nan), they delivered products to real purchasing users in the community, and used special packaging boxes for the event, which was very eye-catching and full of topics. During the event, Xiaohongshu added nearly 3 million new users and jumped to fourth place in the overall iOS free ranking. Driven by this round of activities, Xiaohongshu's sales on its anniversary day on June 6 were equivalent to the sales for the entire month of May. Its sales in the first five months had reached more than 200 million yuan. It is roughly estimated that Xiaohongshu's sales on its anniversary day reached about 50 million yuan.
Although the event ended up exceeding the budget a little, the cost of the entire event marketing was still in the hundreds of thousands. (3) Hu Ge and Xiaohongshu: Three Days and Three Nights in 2016 In April 2016, Xiaohongshu was about to celebrate its third anniversary, and a series of activities titled "Three Days and Three Nights with Hu Ge and Xiaohongshu" were planned. Xiaohongshu has created a very real and clear usage scenario by making Hu Ge an "ordinary user" who follows Xiaohongshu's notes to find good things, giving the user a strong sense of immersion. With his solid acting skills and good reputation in the entertainment industry, plus "The Disguiser" and "Nirvana in Fire" in 2015, the 30-year-old Hu Ge has successfully distanced himself from a group of young idols and become a "hot item" that various brands are vying for endorsements. Xiaohongshu does not simply use a set of print ads or use celebrities to shoot rigid video ads. The biggest difference is that based on the tone of the product and the portrait of the audience, it plans the audience's daily stories to restore real life, so that everyone can feel it personally.
In addition, a special column for Hu Ge was set up on the official WeChat account of Xiaohongshu, which included videos of the event, Hu Ge’s voice replies, and photos. The entire event was more vivid and humane, maximizing the celebrity’s influence and continuing the impact. In addition to the above major events, Xiaohongshu also launched a series of activities "Red Friday" and "Red Bus" on the eve of Christmas in 2015, making full preparations for Christmas promotions. These activities are fun, interesting, good-looking, bold and unconventional, scene-based, and visually strong. Summary: In the second phase, the number of Xiaohongshu users grew from hundreds of thousands to 24 million, a feat achieved in less than two years. To achieve this result, the Xiaohongshu team has played an indispensable role in catching up with the cross-border e-commerce trend and transforming into e-commerce. They have successfully survived three years of life and death crisis, and a better era is waiting for them. 2.2.3 Rapid Development Period (October 2016 to Present)As the bonus period of the overseas shopping market gradually closes, the competition in the overseas shopping market has become more intense, and the growth of users has become difficult. At the same time, various merchants have made certain improvements to their respective shortcomings in the past two years. It can be found that the essence of overseas shopping and domestic e-commerce has not changed. Users are still concerned about the authenticity of the goods, the quality of after-sales service and the user reputation of each product. For Xiaohongshu, the goals of this stage are to improve product user experience, maintain the atmosphere of its own community, and continuously enhance the capabilities of its own back-end supply chain. The main user groups at this stage: new generation girls born in the 1990s and 1995s. The core user needs of this stage: When purchasing overseas items, have a more comprehensive understanding of the product and its usage effects. Xiaohongshu’s business needs at this stage: expand product SUV, open platform, and maximize user value. Product main iteration version & iteration logic analysis: This stage covers versions V4.12-V5.16.2. The most important iteration in this stage is that notes support the publishing of 60s short videos, and multiple iterations are carried out around short videos, including support for background music, filters, stickers, etc. In version V4.13, Xiaohongshu grayscale released the video note function, which some users can use first. Video is a more intuitive and direct way of display, whether it is sharing good things or showing your own dynamics. With the reduction of data traffic charges, the threshold for outdoor video playback has been greatly lowered. It is only natural for Xiaohongshu to launch video notes at the end of 2016. In versions V5.0 and V5.10, Xiaohongshu changed its product name on the App Store. In V5.0, the name was changed from "Xiaohongshu - Good Things from All Over the World" to "Xiaohongshu - Good Life from All Over the World". Four months later, in V5.10, it was changed again to "Xiaohongshu - Mark My Life". It can be seen that the Xiaohongshu team has been trying to find a more precise positioning for Xiaohongshu, and they are not willing to regard Xiaohongshu as a shopping product, but rather prefer to position it as a social sharing product.
Operational strategy:(1) Co-sponsorship of "Idol Producer" On January 19, 2018, "Idol Producer", China's first idol competition and development reality show co-sponsored by Xiaohongshu, premiered on the entire network. With the hot launch of the show, as a co-title sponsor, Xiaohongshu, in addition to the usual inserts, logos, oral announcements, and patches in the program, also invited idol trainees to post updates on Xiaohongshu, and at the same time, opened an official voting channel for fans to cheer for their favorite trainees. This marketing strategy of collaborating with program organizers to spread the marketing effect to the periphery of the program and deeply linking it with its own products, although it cannot be considered innovative, will surely appear frequently in many subsequent programs.
(2) Co-sponsoring "Produce 101" On April 21, 2018, "Produce 101", China's first girl group youth growth program co-sponsored by Xiaohongshu, premiered on the entire network. After the training of "Idol Producer", the Xiaohongshu team has become more and more proficient in cooperating in such variety shows. They also invited the girls of Produce 101 to join the Xiaohongshu community and set up an official pick list. The two programs are undoubtedly the variety show feast of the first half of the year, which gives us a feast for the eyes and includes both handsome young men and tall legs. For the sponsor Xiaohongshu, the sheer amount of exposure is undoubtedly huge. At least, the motivation for this in-depth analysis was seeing that Xiaohongshu sponsored "Creation 101". This type of sponsorship of variety shows, while rapidly increasing exposure and user numbers, also has a huge impact on the original atmosphere within the community. As for how to effectively reduce the impact and subsequent user loss, I believe Xiaohongshu has gained some experience from "Idol Producer", and I will have the opportunity to elaborate on this later. Summary: 2017 was a relatively quiet year for Xiaohongshu. At the beginning of 2018, Xiaohongshu was full of energy and its desire for user growth and GMV growth was clearly felt. Although it started out as a community, everyone positions Xiaohongshu more like an e-commerce company. As an e-commerce company, business growth is a core indicator that Xiaohongshu must face. In addition to self-operation, Xiaohongshu has also opened up its platform's ability to sell goods and invited high-quality third-party brands to join the platform. In the future, Xiaohongshu will undoubtedly further enrich its product categories to meet the various needs of users. 3. Summary and thoughts on the in-depth analysis of XiaohongshuIn the process of deeply analyzing Xiaohongshu, the biggest feeling I got is that you should start a business around the needs of users, rather than because you have money, background or self-proclaimed ability. In response to user needs, Xiaohongshu actively adjusted its corporate goals and direction and underwent multiple transformations from a shopping guide to a community to e-commerce. In addition, Xiaohongshu also gave us some inspiration in product iteration and operation, such as: 1. When developing community products, you can’t be quick. A healthy community is definitely not maintained by building a large editorial team. As the number of users reaches tens of millions, the key is to achieve user autonomy through rules and tools. Therefore, at the beginning of the establishment of the community, it is necessary to educate early users through various means, gradually form the community tone, and gradually increase the speed of new members flowing into the community to achieve orderly community growth. 2. Operations and products should play their respective roles at different times, supporting and complementing each other without lagging behind. In the early stage when the product is immature, operations plays the role of product support, including guiding users to use the product, analyzing user preferences, managing user emotions, etc.; in the mid-term, products and operations are brothers, collaborating with each other to play complementary roles and working together to achieve growth; in the later stage, the product tone is relatively mature, and business growth is driven by operations. Products keep up with business needs and do not lag behind. Many times, we don’t have the opportunity to build various products ourselves, but I believe that when we understand other competing products, their successful experiences and suggestions are worth learning from. If you observe carefully, you will find knowledge everywhere. IV. Outlook on the future development of XiaohongshuAt present, the number of Xiaohongshu users has exceeded 70 million. In terms of age, Xiaohongshu users are mainly divided into three categories: those born after 1985, 1990 and 1995. More than 70% of the new users are born after 1995, and the company is gradually expanding to younger users. Xiaohongshu excels in the field of overseas high-quality goods. New brands and new products have quickly won the favor of post-95s with their design, quality and stories. I have to sigh that this is a great era. When we were young, our knowledge of various products mainly came from traditional advertisements. If we wanted to learn about a product, we had to call or consult a close person in person about the effects of the product. Now, people who don’t know each other gather together on the Internet to keep each other warm, talk and cheer for things that share the same interests, and argue over things that conflict with their opinions. In January 2018, Xiaohongshu changed its slogan from "Good life all over the world" to "Mark my life". Regardless of the outside world's perception, the Xiaohongshu team has a very clear understanding of itself, and community value can be said to be the foundation of Xiaohongshu's survival. As I said, the first impression given by the homepage is very much like a photo social product, and the shopping attributes can basically be ignored. By continuously enriching the community content coverage and the accumulation of high-quality notes, it will drive product sales. I believe this form will continue for a long time. It can also be said that Xiaohongshu has blazed a "devil's road" for e-commerce through its own exploration and execution. This is a paradise road that is temporarily parallel to the congested e-commerce road, and the road next to it is littered with dead and wounded debris. The above is the end of my analysis of Xiaohongshu. Thank you for reading. The author of this article is @产品大观 and it is compiled and published by (Qinggua Media). Please indicate the author information and source when reprinting! Product promotion services: APP promotion services, advertising platform, Longyou Games |
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