Source | BohuFN

This year's "618" grand promotion was less boisterous than in the past.

If two words were used to describe it, they would be "weakness" and "regression." In this mid-year e-commerce promotional event, we observed a shift: Major e-commerce platforms have abandoned complicated pre-sale models, discarded endless full-price discounts, and no longer indulged in releasing exciting sales battle reports. Instead, they have pursued simple, direct low prices and refocused on user experience and brand value.

Against this backdrop, some say that this year's 618 has become a watershed, distinguishing between merchants obsessed with traffic tactics and those focused on brand management. Traffic tactics may bring short-term sales surges, but in the long run, enhancing brand value and building word-of-mouth reputations and user trust are the correct paths for brand marketing to continue growing amidst the chaos of grand promotions.

In the promotional fervor of 618, the word "weakness" serves as a mirror, reflecting the fatigue of traditional e-commerce promotional models. Brand merchants are mired in the quagmire of low-price competition, and consumers have become disinterested in the gimmick of "lowest price on the entire network." People are beginning to reexamine the meaning of consumption, where price is no longer the only consideration, and product quality and after-sales service have gradually become factors of greater concern to consumers.

01 The E-commerce Value of Xiaohongshu

Amid the current inability of e-commerce promotions to generate excitement, brands have begun seeking new marketing strategies. Xiaohongshu, a social platform primarily focused on content sharing, is gradually becoming a new battleground for brands to reshape their values and establish deep connections with users.

Faced with the weakness of e-commerce promotions like 618 and Double 11, brands have discovered that a simple low-price strategy is no longer a panacea. Users are gradually losing interest in the marketing tactic of "lowest price on the entire network," and consumption decisions are increasingly focused on product quality and after-sales service. In this context, Xiaohongshu, with its unique content ecosystem, provides brands with a new avenue to establish emotional connections with users.

Xiaohongshu's success stems from its tight integration of content and e-commerce. Here, users can not only discover various interesting "seed planting" notes but also directly purchase their desired products. This seamless experience from seed planting to purchase is a microcosm of the e-commerce industry's transformation from a price war to a value war. By publishing high-quality seed planting notes and brand stories on Xiaohongshu, brands establish emotional communication with users without mentioning money, returning to the original intention of value marketing.

Taking the home furnishing brand Zhiwu Home as an example, they successfully attracted the attention of a large number of users by sharing real-life usage experiences, brand stories, and life tips on Xiaohongshu. During the 618 premiere on May 22, Zhiwu Home's live sales on Xiaohongshu exceeded 1.3 million yuan, achieving nearly a 9-fold increase compared to the highest single-session live sales of 150,000 yuan during last year's Double 11. This achievement fully demonstrates the enormous potential of Xiaohongshu as a content marketing platform.

In addition to reshaping brand values, Xiaohongshu has also achieved remarkable results in live streaming sales. During the 618 period, the number of live streaming orders and purchasing users on Xiaohongshu both increased significantly. Live streaming sales, as a new trend in e-commerce, provide brands and consumers with a more direct interaction mode. By optimizing live streaming functions and providing policy support, Xiaohongshu has successfully attracted a large number of users and merchants, achieving rapid growth.

In the field of live streaming sales, Xiaohongshu has also emerged with a group of outstanding bloggers and merchants. For example, home furnishing blogger @一颗KK achieved a single-session live streaming transaction volume exceeding 30 million yuan during the 618 period, driving multiple home furnishing brands to become million-yuan brands. In her live streams, she not only introduces products and matching suggestions but also shares life philosophies and advice to avoid pitfalls, which is deeply loved by users. This model is similar to Xiaohongshu's top influencers Zhang Xiaohui and Dong Jie, and it can be said that this "lazy" and "leisurely" sharing and conversational mode has become the "traffic password" for Xiaohongshu's product endorsements.

Xiaohongshu's success is not accidental; it reflects consumers' current desire for authentic and valuable content. In this era of information explosion, brands need to pay more attention to the quality and value of content to win the trust and affection of consumers.

02 How to Have Both Fish and Bear's Paw?

Xiaohongshu's success is first attributed to its unique community atmosphere. Here, users share real-life experiences and shopping tips, forming a rich seed planting culture. This culture not only attracts a large number of young, consumer-savvy users but also provides a platform for brands to establish emotional connections with users. During the 618 grand promotion, Xiaohongshu encouraged store live streaming through a series of policies, transforming the promotional path from the traditional "low price-traffic attraction" to "seed planting content-user resonance," thereby achieving significant sales growth.

However, as Xiaohongshu grows rapidly, it also faces increasing competition. Other e-commerce platforms have begun to try the "content seed planting + live streaming sales" model, attempting to seize market share. Additionally, as user needs continue to change, Xiaohongshu must continuously adjust and optimize its strategies to maintain its leading position.

Xiaohongshu faces two major challenges: First, how to achieve commercial monetization while maintaining the community atmosphere? This is a question that requires careful consideration. Excessive commercial content may damage the community atmosphere, leading to user loss, while too little commercial content may affect the platform's profitability. To address this issue, Xiaohongshu needs to continuously optimize its content algorithms and recommendation mechanisms to ensure that users can enjoy high-quality content while also being exposed to commercial information that meets their needs.

Second, with the continuous increase in transaction volume, Xiaohongshu needs to improve operational efficiency and optimize e-commerce infrastructure. This includes enhancing the platform's transaction processing capabilities, strengthening the construction of logistics and delivery systems, and improving after-sales service. Only through these measures can users enjoy convenient and efficient shopping experiences on Xiaohongshu.

Faced with these challenges, Xiaohongshu has begun to make strategic adjustments. For example, during this year's 618 grand promotion, Xiaohongshu launched the "Three Upgrades, Hundred Million Subsidies" policy, aimed at encouraging store live streaming and obtaining exclusive incentives. This policy not only boosted merchant enthusiasm but also brought more discounts and benefits to users. In addition, Xiaohongshu has strengthened its cooperation with brands, reestablishing emotional connections with users through high-quality seed planting notes and brand stories.

It is worth mentioning that Xiaohongshu also places great emphasis on cultivating its own anchors and influencers. By signing and nurturing influential anchors and influencers, Xiaohongshu can not only attract more user attention and interaction but also provide more exposure opportunities for brands. This cooperation model not only benefits Xiaohongshu's commercialization process but also brings a more diverse content experience to users.

However, strategic adjustments are not a one-time process. Xiaohongshu needs to find a balance between maintaining the community atmosphere and commercial monetization while continuously optimizing operational efficiency and e-commerce infrastructure to accommodate growing transaction volumes.

03 Final Thoughts

As a company known for its "slow" pace, Xiaohongshu's commercialization suddenly accelerated last year.

From self-operation to live streaming sales, note-based sales, to the introduction of "buyers" and this year's 618 brand store broadcasts, Xiaohongshu has tried to find its suitable commercialization path at the fastest speed.

This is also reflected in the company's internal organizational changes.

Earlier this year, Xiaohongshu recruited Wu Yingbing, the former head of supply and demand strategy at Didi, and Zhang Rui, the former head of Didi's Hitchhiking business. Wu Yingbing is in charge of Xiaohongshu's e-commerce business, while Zhang Rui joined the commercialization team. In March, Ye Heng, the former head of e-commerce products at Kuaishou, was also recruited to serve as the head of Xiaohongshu's e-commerce C-end products; the second-tier e-commerce department is led by Yin Shi, the former head of Xiaohongshu's live streaming business, who reports directly to Conan, Xiaohongshu's Chief Operating Officer (COO).

At present, it seems that Xiaohongshu is not accustomed to this sudden acceleration. According to Ifeng Tech, Xiaohongshu has recently initiated a new round of layoffs, and the e-commerce operation department of the second-tier e-commerce department has also adjusted its organizational structure, transforming into a management model with multiple leaders. In the past year of 2023, at least 10 R6 and above-level employees left Xiaohongshu.

However, the results of this 618 have proven the unique value of Xiaohongshu as a content community, which Xiaohongshu must maintain at all costs.

*The cover image and accompanying images belong to the respective copyright owners. If the copyright owners believe that their works are not suitable for public browsing or should not be used free of charge, please contact us promptly, and this platform will immediately make corrections.