Your Xiaohongshu Playbook: Global Branding & eCommerce Growth from 0 to 1
In recent years, Xiaohongshu (XHS/ Little Red Book) has achieved a significant growth in the e-commerce sector with its unique business model of "Seeding-Conversion-Sharing-Reseeding."
According to 36KR, the number of merchants on XHS with annual transaction volumes exceeding 100 million yuan has increased by 500% compared to 2022, and those exceeding 10 million yuan have increased by 380%. This rapid growth offers new opportunities for overseas brands to expand their market presence in China.
User-Driven Closed Loop: "Seeding-Conversion-Sharing-Reseeding"
The successful business model of XHS is built on a user journey which comprehends the users' behavior paths and fully meets their real needs.
1. Trend Insights: Brands need to stay current with trends to win users' favor.
2. "Listening Culture": From "amateur makeovers" to "travel recommendations," "Listening" has become not only a popular form of mutual aid among users but also a key marketing strategy for brands.
3. Differentiated Value: By providing unique value, even niche markets can unlock their monetization potential.
The Overview of Marketing Methodology
1. Position and differentiate from your competitors.
2. Set up and operate the matrix of accounts, loyalty program, and store.
3. Apply for the selection square.
4. Leverage a matrix of influencers and seasonal campaigns to grab your target audience’s attention, generate buzz, and drive traffic to the private domain for loyalty marketing.
5. With a budget, brands can also use various materials to direct targeted customers to live streams, product notes, or private domains.
A) Expanding Your Brand's Influence with a Strategic Influencer Matrix
Brands can leverage Xiaohongshu analysis tools (such as Lingxi, PGY and Qiangua) to filter and select influencers that suit their products, thus expanding their target user base. Apart from vertical influencers, brands can consider using cross-category influencers to increase cost-effectiveness.
*General order prices are net to influencers, with an additional 10% platform fee for collaborations.
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