Xiaohongshu bets on private domain traffic

Xiaohongshu bets on private domain traffic

In 2021, Xiaohongshu has been very active. Not only has it made many changes to its algorithms like in previous years, but new functions and new product architectures have also emerged in an endless stream.

When some bloggers returned to Xiaohongshu after a month-long hiatus, they were surprised to find that everything they were familiar with had changed. In addition to their misunderstanding of the product functions, even the positioning of Xiaohongshu began to become blurred.

In the past, everyone knew that Xiaohongshu was a platform for promoting products or recording life.

What is the reason why Xiaohongshu updates faster?

What is the future development strategy of the Xiaohongshu platform?

Today I will help you understand the development strategy of the entire platform.

0 1. Double pressure, the real test for Xiaohongshu

Back to the beginning of this year, that is, the beginning of 2021, the news that Xiaohongshu was preparing to go public spread quickly, but going public was undoubtedly a huge test for Xiaohongshu.

Although Xiaohongshu has been developing for many years, its business model has been questioned by investors. When it comes to listing, these doubts seem to have finally come to a big test. Is it a mule or a horse?

I believe everyone should have some understanding of corporate listing. In addition to publishing the company's financial performance, the company's business data must also be published, including the number of users, activity, etc. Therefore , the company's performance before listing is a tough battle, because it determines the company's future market value performance.

Therefore, I guess this is also an important reason why Xiaohongshu has been so active this year.

However, due to policy reasons, it is becoming increasingly difficult for Chinese companies to go public in the United States. Therefore, in mid-July, some media reported that Xiaohongshu had suspended its listing in the United States.

Xiaohongshu has not made any official response to this, but sometimes no response is the best response.

Although the listing has been suspended, it does not mean that Xiaohongshu’s hard battle has also stopped, because no matter when, the problems that need to be solved must be solved, and the doubts of investors that need to be responded to must still be responded to.

And going public only accelerated all this.

What problems are Xiaohongshu facing? There are two points in my opinion.

First, user growth;

The second is the business model.

02. User growth test

According to Xiaohongshu’s official website, in October 2018, after five years of accumulation, the number of users of Xiaohongshu exceeded 150 million.

But this was definitely not the end. After that, Xiaohongshu made rapid progress in less than a year, and the number of users exceeded 300 million in just 9 months.

What does it mean to grow by 150 million in 9 months? This means that Xiaohongshu’s growth level in 9 months has reached the total accumulated in the previous 5 years! It's really amazing!

At that time, Xiaohongshu had almost become a must-have app for young women , and it spread among the female population at a viral speed. How could one keep up with fashion trends without Xiaohongshu? How would you know where to shop if not using Xiaohongshu? For a time, Xiaohongshu was extremely popular.

Even a steely man like me had to download Xiaohongshu at that time.

However, in the same month that Xiaohongshu announced its user base, that is, in July 2019, Xiaohongshu was taken off the shelves for rectification overnight. Although the reason for the rectification is still unknown, the crazy growth trend seemed to have been paused.

After that, Xiaohongshu never officially announced the number of users on the platform, nor the number of monthly active users.

However, according to the data indicators released by the industry's third-party data monitoring platform "Analysys Data":

As of February 2021, Xiaohongshu's monthly active users reached 138 million . It has been nearly a year and a half since July 2019, but the monthly active users seem to have only increased by 30% in this year and a half . Compared with the exponential growth in 2019, the current growth rate has undoubtedly slowed down, and it has slowed down a lot.

No matter what kind of Internet product it is, the number of users is the cornerstone of everything . Without users and traffic, there is no imagination.

Therefore, the slowdown in user growth is a problem that Xiaohongshu must solve thoroughly. There are multiple versions of solutions for acquiring users, but time waits for no one. It is impossible to try every path, so we can only pick the most likely one first.

What was Xiaohongshu’s user growth strategy in the past? It is through content-driven user growth that high-quality content is used to attract relevant people to register and retain them. This is also the core method for the success of all Internet communities. Even the cost of acquiring users is much lower than that of other types of platforms. This is also a huge advantage of community products.

Content-driven growth is the core strategy of the community, but the target audience has always been women and fashionable people. However, after 300 million users registered, this strategy is obviously not enough.

Because most of the fashionable women who should register have already registered,

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