Compared with Taobao and JD.com, why is the little red book（Xiaohongshu）so hot?
Pictures from Google Blog Website
Xiaohongshu is an online shopping platform that gives users discounts for purchasing in groups. Founded by former Google employee Colin Huang, it's been China's third most popular shopping app since July 2017.Taobao and JD.com have dominated online shopping in China for years. But now there's a new kid on the block -- and Xiaohongshu is nothing like its rivals.Compared with Taobao and JD.com, why is the little red book（Xiaohongshu）so hot?Detailed analysis of Xiaohongshu's social e-commerce product operation model.
Xiaohongshu official website promotional pictures
1. Industry Overview
With the continuous development of the domestic economy, the economic conditions of the new generation of middle-class people who have gradually expanded have reached new heights. At the same time, they have grown up in a new culture and market environment, and they have a new appeal to lifestyles that transcends traditional cognition, resulting in higher consumer demand. As far as the current domestic enterprises' product production concepts and capabilities are concerned, it is difficult to meet the high-level needs of the middle and high-end consumer groups. Therefore, this group of people will target the more mature overseas markets, making overseas shopping more and more hot.
1.2 Market Status
On June 11, 2015, Accenture released a report predicting that the global B2C e-commerce market will maintain an average annual growth rate of 15% in the next few years . In 2020, global cross-border e-commerce transactions will reach US$994 billion. China is expected to become the world's largest cross-border. B2C consumer market. According to data from the China Foreign Exchange Administration, overseas shopping in 2014 increased to $165 billion. Due to the incomplete opening of domestic and international markets and the existence of tariffs and other restrictions, the current sales of overseas products will bring extremely high sales and profit margins. And the new middle class with certain economic strength will send out greater willingness to consume in order to meet their own needs for high-quality life. Therefore, major e-commerce shopping websites such as Taobao, Amazon, etc. have launched sub-sections of overseas shopping to quickly seize the market. However, due to information asymmetry, domestic users cannot fully understand the shopping information when purchasing overseas products, that is, the user does not know what to buy, where to buy, how much, and because of the domestic closure of overseas information, a large amount of information redundancy also makes Domestic users do not have the ability to identify after they have obtained the information, so that the risk of overseas shopping is greatly increased and the purchase is far more worrying than domestic shopping. Xiaohongshu used this as a starting point to successfully open up its own market.
2. User needs
2.1 User Analysis
2.2 Demand Analysis
The needs of the user group with obvious characteristics of Xiaohongshu are also outstanding. Prioritize the needs of its users: Basic requirements include high-quality products that can be found globally, and easy access to information about products, especially physical pictures, brands, prices, origins, etc., to share their feelings of getting quality products and Shopping experience; expectation level needs include the purchase channel from which you can get quality goods, get the purchase guarantee of genuine goods, get the envy and approval of others' quality products, and the excitement level needs to be cheaper. Obtain recognized high-quality goods, and share the vanity mentality of self-identification from the identity of others while sharing.
3. Product analysis
3.1 Product Overview
At present, Xiaohongshu has transformed from the strategy of “Little Red Book Outbound Shopping Guide” to the “Little Red Book Shopping Notes” of the community nature. After the “Fuxin Society” section is launched, Xiaohongshu has been upgraded from community to community-type e-commerce. The 85- and 90-90 users who are committed to helping the domestic quality of life have found what they want.
3.2 Product Positioning
The slogan of Xiaohongshu is “find good things abroad”, focusing on how to improve the quality of life of users. Its current positioning is relatively clear, that is, as a community, through the form of UGC, users who want to buy foreign goods provide real-time shopping information and experience, and then use the data precipitation since the launch to select unique products for cross-border The identity of the community e-commerce is sold online. In short, Xiaohongshu currently positions itself as a community e-commerce in a new era.
3.3 Product function analysis
The early little red book provided the purchase strategy. The founder team writes and produces PDF documents by finding local shoppers. Users can download offline reading through the PC and iOS platforms, which can be carried by mobile phones and iPads, and can also be printed. The Raiders include tax rebate information for different countries, brand featured product recommendations, shopping venues, map indexing and local practical information. Such a strategy is similar to a reference book, which can satisfy the needs of light users such as men who do not have a strong desire to shop. The information on the instrumental nature of the book is static, which is not conducive to sharing and updating of real-time information. They believe that a way must be found to make up for the lack of information flow in the strategy.After that, "Little Red Book Shopping Notes" was launched in the Apple App Store. It is a vertical community where users are mainly women with overseas shopping habits. As the most important core function of Xiaohongshu??Community function, shopping notes encourage users to share the shopping experience with money. For this reason, there are shopping list in the community, each person will have a similar crown, medal, etc. Representing a virtual title at the level of a person, users who contribute to the content will receive points rewards. For users who have not yet arrived at the destination, it has a "Wishlist" with a collection function, which makes it easy for users to shop as they travel next time. In some important festivals, Xiaohongshu also considers revealing his wishlist to his friends and relatives to help them complete a shopping wish. Xiaohongshu uses the UGC community form to provide real-time shopping information and experience for users who want to buy foreign goods. User sharing consists of a picture and three labels that answer three key questions in overseas shopping: what to buy, where to buy, how much to make, and to create high quality sharing. At the same time, Xiaohongshu provides users with multi-dimensional shopping reference information based on destination, brand and category by structuring a large amount of data. Therefore, some people have commented that Xiaohongshu knows about Haitao.With the launch of the “Fushun Society” section, Xiaohongshu has been upgraded from a community to a community e-commerce, and new shopping functions have been developed. The team of Xiaohongshu said that the launch of the Welfare Society is the first step to solve the problem of “seeing but not being able to buy” users. The goods are among the best in the community. After selecting a certain product, Xiaohong directly contacts the foreign brand or the first-level supplier for purchase. However, this is a trial process. At present, there are fewer commodity categories, there are problems in procurement and logistics, and there is still much room for improvement.
3.4 Product Experience
AnalysisIn view of the fact that Xiaohongshu is a short-term product, its extended function is limited, so it is relatively easy to use in product use. Opening the APP application requires a few seconds of waiting time. Compared to the general application opening time in the market, it is within the normal range. During the period, the logo, slogan and self-positioning are displayed, and the page is relatively simple.After opening, the default is to enter the homepage discovery section. The top is the product promotion slider combined with the current hotspot. The middle is the hot label. After the drop-down, the users share the notes one by one. At the top of the note is the sharer, including ID, location, you can add attention to the right button, the middle is a clear product physical map, below the picture is the sharer's shopping experience, the bottom is the note label, comments, likes and Favorites button. Overall, the application interface is simple and clear, there is no other irrelevant information, but because the note picture is large and the overall picture is many, it requires a certain load time, which destroys the consistency of use and visual effects. In general, the application is simple and clear, and the functions of attention, collection, and praise basically meet the basic requirements of a mature community.At the bottom, there are other sections such as search, welfare agency, user's own information, etc. Clicking to switch requires waiting time, and the application response speed needs to be improved. The search interface has a series of boot options and maps, but the map has a small effect on the effect, and the search interface fonts are simply arranged, which is black and black, and lacks aesthetics. Welfare is a self-operated limited-time hot product sales. Each product is composed of official recommended pictures, advertising slogans, time limits, etc., and there is basically no difference between other mobile e-commerce similar sections. The self-information page after the user logs in is relatively simple, and is composed of the user's avatar, ID, and the buttons of the attention, the shopping cart, the wish list, and the potato coupon, that is, the coupons inside the small red book, which are simple and clear.In combination with the various situations, the UI design and interaction design of Xiaohongshu application adopts a simple style. The advertisement combines the current hot spot with its official cartoon characters and fits its main consumer groups. The use is simple and clear, and the interference information is better. The user can Face the content you want. At the same time, due to its short online time and fewer company team members, the products are still lacking in response speed, image loading and other technologies, and the e-commerce sector Welfare Society has a poor shopping experience for users, and there are few product categories. There is no perfect after-sales service system, and there is no mechanism to effectively solve the problems of return, refund, reissue after wrong.
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