China has over 800 million internet users nowadays and it is one of the most digitalized society in the world. This is offering tremendous development opportunities and Little Red Book (Xiaohongshu in mandarin) is taking part in this trend. Chinese consumers are more willing to purchase online because of the convenience and the greater range of available items on e-commerce platforms. Unlike the other hot e-commerce platforms (Tmall, JD in China), Little red book’s advantage doesn’t only remain in product selling.
This article will introduce how Little Red book is effective for businesses in China (or to target Chinese consumers).
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Success story of xiaohongshu (or little red book)
This Chinese start-up was created in 2013 by Charwlin MAO and it has been in a fast pace of development. The brand was established for only 4 years and its valuation exceed 1 billion today. Little red book became a veritable “unicorn company”.
What is it ?
Xiaohongshu is an online community, also a cross-border e-commerce platform. It is mainly known to be a place for sharing where users can publish but also get useful tips.
We can find on Little red book different categories: fashion, foods, wedding stuff, pet, travel. The content is also diversified with products feedbacks, shopping tips, new trends, promotional offers. Anyway, it is a place where Chinese consumers are spending a lot of time.
Over 70 million users after 3 years of operations
100,000 new contents are added every day, with a total of 780 million product contents on its platform. Even it is also a cross-border e-commerce platform, it often let people to think of it most as a sharing platform.
Main users are women consumers with an average age of 18 to 35, with over 70% of post-90 users. Users are also bloggers. They have their own profile page, can create posts and be followed by other users. This creates a community of trust sharing the same ideas, opinions, bargains and recommendations.
The app aims to foster this group cohesion by reinforcing this feeling of belonging to a community once registered on the app. To achieve that, Xiaohongshu use the power of its data base to generate customized content to users, according to their tastes and expectations.
A platform to send useful information
As the founder of Xiaohongshu, Miranda Qu (Qu Fang) said : “Little red book is an entrance for new way of life” and thinks that doing only cross-border e-commerce or vertical e-business is more risked. She also noticed the huge consumers’ need for shopping information. That why she is working to guarantee the frame of Xiaohongshu, which consist to be useful.
Chinese people are very connected between them. They have no problem to share contents among their social network even more if it is fun or if they think this information could be benefit for someone else. A lot of companies promote their brand online and interact with their target consumers in that way, by providing contents that could attract consumers’ interest.
What’s the strategy of xiaohongshu?
At the beginning, the content of the Little red book was mainly related to outbound travel. The first post about the United States tourism was written by Qu Fang herself. For a long time, the start-up had only one content write, no celebrities or influencers.
Advertising and e-commerce are the most common ways to gain traffic. However only e-commerce can improve a give a real user experience. According to little red book’s founder, the division of labor is that “the E-commerce part is responsible for making money, while the content section is responsible for being lovely”.
Promotion via celebrities
Xiaohongshu collaborated with a very hot Chinese variety show “Idol producer” to promote its brand. This attracted one more time a lot of discussions, boosted its visibility and generated new users on its platform.
Xiaohongshu also search to let celebrities use its platform as its collaboration with the famous Chinese actress Fan Bingbing was a real success. She has an important fame in China even over the world and has been called a global fashion icon due to her frequent appearances on the red carpet, movie premieres, and fashion shows. Almost all her sharings on Xiaohongshu made buzz. We can find on Chinese e-commerce platforms products description like “Bingbing tongkuan” which means “the same product as bingbing has used” and an explosion in those product’s demand, often sold out.
Kol and celebrities are playing important role in marketing to china.
A focus on cosmetics and beauty products
We can find a lot of contents on Xiaohongshu about make-up tips and cosmetics sharing. It has taken an important part of the start-up’s concern. The reason of why beauty was used as an entry point, Yu Fang thinks it is a question of time. “Like Jingdong started from 3c, and then opened its platform for all the categories of product in 2013, Xiaohongshu was facing about the raising trend of skin care product.”
The app already formed partnership with several foreign brands originating in the US, Japan and Korean to market them on the Chinese territory. For more information about e-commerce in China, click here.
Need a help for little red book in China?
GMA is an agency specialized in the digital marketing in Chine. Our team offers a complete range of service for e-commerce entrepreneurs from the consulting to operations. We have developed several successful e-commerce projects because we know how to effectively promote your e-commerce business in China by using the latest digital tools, including Little red book. The success in nowadays Chinese market is linked with your visibility and reputation online.
To develop in China, you also have to follow trends and have a good knowledge of chinese consumer’s habits. Want to get in the huge Chinese market ? Feel free to contact us for more information.
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