After a year of focusing on e-commerce, Xiaohongshu has finally clarified one key question: how to achieve differentiation.

The answer lies in establishing a "lifestyle e-commerce" model. This is evident from COO Conan's statements on July 22nd and the subsequent Xiaohongshu Link E-commerce Partner Conference two days later.

To differentiate from traditional e-commerce platforms, content-driven e-commerce platforms often incorporate the core of their business model into their self-definition. For example, Kuaishou's "Trust E-commerce" emphasizes social relationships, while Douyin's "Omni-interest E-commerce" focuses on product-to-consumer matching. Xiaohongshu's initial "Buyer E-commerce" concept, introduced when it first ventured into e-commerce last year, was somewhat abstract as the essence of "buyers" lies in the channel rather than the core of a business model. In contrast, membership-based warehouse clubs like Sam's Club and Costco also employ a buying model, but their core business revolves around paid memberships.

Hence, the concept of "lifestyle e-commerce" better aligns with Xiaohongshu's e-commerce core and the public perception of the platform.

With a clear definition, the operational path and focus become evident. Judging from the agenda of the Xiaohongshu Link E-commerce Partner Conference, the platform has two primary needs: to recruit more curators and encourage more buyers to start live streaming.

The former is crucial for monetizing the "lifestyle" concept. Curators, who correspond to merchants and brands on other platforms, are influencers with supply chain capabilities and a unique lifestyle perspective on Xiaohongshu. They help reinforce the platform's "lifestyle" identity through their products and consumption scenarios.

In short, curators are responsible for providing distinctive, differentiated product offerings. For instance, ENO, the curator of the Wenwan brand "Yinuobennuo," reported an average order value of 800 yuan on other e-commerce platforms but achieved 4,000 yuan on Xiaohongshu, with original designs fetching up to 20,000 to 30,000 yuan.

Different pricing strategies correspond to different product offerings. Zhou Qi, the curator of the clothing brand CHOWKI, observed that low prices did not sell well in their live streams. She explained that if the overall product range is of high quality, and the audience's consumption level, awareness, and spending power match, they are unlikely to be swayed by low prices.

Behind this phenomenon lies what sets Xiaohongshu apart and envied by other e-commerce platforms: over 80% of its 300+ million monthly active users are young people aged 16 to 34, with higher spending power. Reflecting this, the average order value in Xiaohongshu's live streams exceeds 500 yuan, surpassing the industry average.

Furthermore, Xiaohongshu fosters a more amicable transaction atmosphere. The curator of the original furniture brand OKENSHO shared a detail: when a customer requested a refund for a 20,000-yuan cowhide sofa without returning it, he spent over ten days gathering evidence and communicating with the customer. Xiaohongshu eventually ruled in his favor. In contrast, on another e-commerce platform, a suspected copycat order from a furniture factory directly led to a refund request, which was immediately approved. "This is why we continue to do business on Xiaohongshu," he said.

As the e-commerce industry grapples with the low-price race, "lifestyle" provides a protective shield for Xiaohongshu's e-commerce, offering a fertile ground for low-cost growth to new entrants and established merchants seeking multi-channel expansion.

Conversely, Xiaohongshu's e-commerce expansion and GMV growth rely heavily on the success of its curators. To support their growth, Xiaohongshu launched the "Treasure Curator Program," committing billions of views to help curators thrive. It also upgraded its Dandelion, Qianfan, and Chengfeng platforms to facilitate efficient growth for more curators.

Yin Shi, head of Xiaohongshu's live streaming business, pointed out that to succeed in lifestyle e-commerce, curators must master three key paths: establishing trust through live streams and creating an online store within the Xiaohongshu community; integrating live streaming with image-text and video content to build a robust presence beyond live streams; and nurturing private domain users through group chats to ensure long-term business stability.

(Yin Shi, Head of Xiaohongshu E-commerce Operations)

Regarding buyers, the head of Xiaohongshu's e-commerce buyer operations noted that compared to early last year, the number of buyers has increased 6.7 times, the number of users placing orders in buyer live streams has grown 9.8 times, and the number of brands collaborating with buyers has doubled to 5.2 times.

(Leon, Head of Xiaohongshu E-commerce Products)

The faster growth in buyer numbers and order placement compared to collaborating brands implies that product offerings are Xiaohongshu's current priority.

Perhaps this explains why the theme of this year's Link Conference is "Hello, Curators."

However, challenges coexist, primarily in three areas: Firstly, the growth rate of Xiaohongshu's e-commerce ecosystem sets the upper limit for all merchants. Rapid expansion is crucial, especially as Taobao, JD.com, Douyin, and Kuaishou are momentarily distracted by Pinduoduo's low-price model. Once these giants realize the differences between Pinduoduo's and their own low-price strategies, they may turn their attention to Xiaohongshu.

Secondly, curators must transition from being tied to their personal IP to being associated with product brands. Brands facilitate more stable and long-term operations than individual IPs, which is also beneficial for the platform. While "lifestyle e-commerce" initially revolves around individuals, it may later shift to product brands and buyers. Other e-commerce platforms have seen numerous cautionary tales.

Thirdly, will consumers' pursuit of a "lifestyle" lead to a desensitization to cost-effectiveness? This requires longer-term observation.

From a merchant perspective, within an increasingly expensive traffic landscape, Xiaohongshu's e-commerce platform offers a cost-effective growth opportunity worth considering. According to Xiaohongshu's official data, over the past year, the number of merchants with monthly sales exceeding 5 million yuan has grown 3.5 times, the number of purchasing users has increased 4.3 times, and search queries with purchase intent account for 25% of all searches.

Another appealing factor is Xiaohongshu's continuous growth in monthly active users and user engagement. In the current environment, few words are more invigorating than "growth."