Xiaohongshu sends out big "red envelopes" to attract anchors

Xiaohongshu launched the "Treasure Manager Program", which provides merchants with up to 60,000 to 200,000 traffic exposure support, aiming to promote merchant growth and community building, and create a new trend of "lifestyle e-commerce". What do you think of this?

After Xiaohongshu offered a "big red envelope" to snatch anchors, many practitioners believed that a new opportunity to enter the market had arrived, especially building a matrix to maximize the benefits of this bonus. This "red envelope" refers to an incentive policy announced by Xiaohongshu at the Xiaohongshu Link e-commerce partner conference on July 24.

The details are: within 30 days of starting broadcasting, merchants can get up to 60,000 traffic exposure live broadcast cold start support, and up to 200,000 traffic exposure live broadcast growth incentive support . The incentive is named "Treasure Manager Plan". It is said that the total amount of support (for merchants who will start broadcasting on Xiaohongshu) is "hundreds of billions of traffic".

Screenshot from the video account of "Xiaohongshu Mall"

1. Four Dimensions

Public information shows that the incentive plan will be implemented from four different dimensions to apply to merchants at different stages and levels, including individual operators and large institutions.

Latitude 1

For merchants, whether new or old, as long as they have not started live streaming in the past month, Xiaohongshu will provide 30 days of incentive support after the start of live streaming, with a maximum of 60,000 traffic exposure live streaming cold start support and a maximum of 200,000 traffic exposure live streaming growth incentive support .

In addition, eligible merchants can enjoy priority access to the platform's commercial rights. At the same time, Xiaohongshu will officially provide 1V1 connection service opportunities to help merchants build people, goods, and venues for live broadcast rooms, allowing merchants to quickly complete the 0 to 1 commercialization of live broadcasts.

In addition, after asking the official customer service, Jianshi learned that the selection criteria for this event include that the Xiaohongshu store has not been broadcast in the past or has not been broadcast in the past 30 days, and also stores on off-site platforms (Douyin, Taobao, Tmall, Video Account) with a monthly payment GMV of more than 1 million.

Screenshot from Xiaohongshu customer service reply text message

Latitude 2

For merchants who have been broadcasting stably (and the broadcast time is more than 30 days), or merchants who have reached different monthly sales milestones for the first time, we will provide live broadcast first transition incentives. The so-called different milestones refer to merchants reaching monthly sales of 10,000, 50,000, 100,000, and 500,000 yuan.

Merchants that broadcast every month will also receive traffic support. Xiaohongshu hopes to help merchants quickly reach a certain scale and alleviate the pressure on inventory and teams through this form.

Latitude Three

Xiaohongshu provides an open cooperation window for service providers and MCN organizations. Industry belt service providers can enjoy tens of millions of cash incentives and growth incentives. In addition, merchants, service providers or MCN organizations that have achieved certain results in the cooperation process can receive up to 100% cash back on technical service fees.

Latitude Four

Xiaohongshu will plan more daily incentive activities, release and publish more daily incentive policies, and the top managers will receive tens of millions of live streaming traffic card incentives. It is difficult to say whether the resources and amount invested in this Xiaohongshu support plan are good or bad.

For example, the merchant incentive plan released by Video Account on June 18 this year included providing merchants with an incentive of up to 10,000 e-commerce growth cards and a technical service fee as low as 1%. It seems that Xiaohongshu's policy is better.

However, the incentives for video accounts are aimed at special events, while Xiaohongshu hopes to drive a new, long-term trend - hoping that those anchors (managers) can do a good job in long-term operation:

First, use the live broadcast room to build a trusted home and create an online store in the Xiaohongshu community; second, integrate the account and broadcast, and make good use of Xiaohongshu's pictures, texts, and videos to make the account three-dimensional and full outside of live broadcasts; finally, through group chats, accumulate private domain users and gain long-term business certainty.

Image from WeChat official

Second, maybe it’s a new opportunity to enter Xiaohongshu

In many industry exchange groups of Jianshi, people have been paying close attention to the developments related to Xiaohongshu. After the release of the treasure manager plan, many people think it is worth considering joining the game at this time:

During the discussion, some industry insiders believed that the overall threshold of Xiaohongshu is still there, and it is difficult for novices to get started. Under the new policy, building a good matrix of small and medium-sized companies may make better use of this support and develop a new model faster.

As early as the Link E-commerce Partner Week in August 2023, Xiaohongshu announced that in the past year and a half, the number of buyers and managers has increased 27 times, and the number of active merchants has increased 10 times.

From July 2023 to July 2024, the number of merchants with monthly sales of 5 million or more on Xiaohongshu increased by 3.5 times , the number of purchasing users increased by 4.3 times, and searches with purchasing intentions accounted for 25%. In Xiaohongshu's live broadcast room, the return rate was only 33%, and the same-store repurchase rate reached 29%.

All these explain why Xiaohongshu issued this "red envelope": In a video conversation between Xiaohongshu COO Conan and economist Xue Zhaofeng on July 22, Xiaohongshu e-commerce was defined as "lifestyle e-commerce."

Under this concept, buyers, managers and merchants are growing and developing naturally based on the platform, and are moving towards a different business model. Or, more life-oriented content and more personalized forms may make merchants and platforms less competitive? What do you think about this? Feel free to chat in the comments section.

Author: See the truth

Source: WeChat public account: "Jianshi (ID: jianshishijie)"