What needs to be done right for Xiaohongshu store to sell 5 million goods?

You wouldn't have thought that Xiaohongshu can not only "plant grass" but also "sell goods". Why do e-commerce companies focus on Xiaohongshu? Let's take a look!

 Xiaohongshu can not only promote products, but also sell goods .

Some people have increased their sales by 40% using Xiaohongshu stores, while others have seen the opposite effect.

A few days ago, I had a conference call with community members from the Content Villa Club CEO circle.

One word: "worry" . The 618 performance was not ideal. He has never experienced failure since he started his business, and everything has been relatively smooth. When he first used Xiaohongshu to sell goods in a segmented track, his sales exceeded 20 million. After the 618 performance came out, it fell 40%.

I joked, you are worried and I am worried too, and two negatives add up to a positive, so I got the motivation to create content.

This year, Xiaohongshu has officially allocated a lot of traffic to support e-commerce, including product notes, live broadcasts, shopping malls, searches and other fields. This is also a clear signal that Xiaohongshu is sending to merchants and brands: keep up with Xiaohongshu's pace.

A store on Xiaohongshu sells fans, with sales of over 230,000;

A store on Xiaohongshu sells health tea, with sales of over 3 million;

A store on Xiaohongshu sells office chairs, with sales of more than 710,000 items;

…

What did they do right?

1. Why do companies open stores on Xiaohongshu?

In my offline classes, I ask all my students to open shops and sell goods.

Why?

Xiaohongshu store is one of the trends of Xiaohongshu this year. In addition, Xiaohongshu officially promotes the opening of "account, store and group" at the same time. Xiaohongshu's integrated marketing layout can enable merchants to complete the opening of professional account + Xiaohongshu store + private domain group + promotion through four steps.

Make full use of Xiaohongshu marketing to efficiently achieve goals in different dimensions, such as strengthening brand building, closed-loop business conversion, rapid cold start efficiency improvement, and precise placement and promotion.

According to the data report, Xiaohongshu 618 store

Xiaohongshu has 300 million monthly active users, and this number continues to grow. Xiaohongshu is a fashion trend platform for young people today.

Most young people make their consumption decisions on Xiaohongshu. The thriving community content and high-potential consumer groups have prompted Xiaohongshu to move towards commercialization. Therefore, to differentiate itself from other platforms, Xiaohongshu has launched new selling methods such as "buyer e-commerce" and "store self-broadcasting".

CEO member of Content Villa Club, Sujiliangpin brand, Xiaohongshu store sells more than 30 million products, and single product sales exceed 1.2 million.

From traffic to mind, how did Sujiliangpin seize the "technological underwear" track?

By gaining insights into the discussions among Xiaohongshu users about underwear selection, Sujiliangpin discovered that the "comfort and breathability" functions have become standard in the underwear market, and the "matchability" demand has been met by multiple brands.

However, there is still a lot of room for growth in the high-end demand that can meet basic needs while taking into account "fabric technology". Therefore, underwear "black technology" has become an important breakthrough for the differentiation of plain skin quality products.

Sujiliangpin's influence on Xiaohongshu has also been enhanced, topping the underwear category at the 3.8th node of the e-commerce platform, with sales increasing 3.5 times year-on-year, achieving both product quality and sales results.

Of course, this is a success story.

A former colleague of mine used Xiaohongshu to open a store and start a business in the cute pet industry. He updated less than 8 notes every month, and the Xiaohongshu store only had a dozen orders in 3 months. As a result, he couldn't withdraw any sales money, and now the store is closed.

There are many such examples.

So the question is, what should enterprises do to achieve a closed loop within the site?

Can you make money while lying at home? Let’s read on

2. Three-step method for selling products on Xiaohongshu

Many merchants have tasted the sweetness of selling goods in Xiaohongshu stores. Home furnishings, clothing, cute pets, food, etc. are being promoted crazily on Xiaohongshu, realizing closed-loop transactions within the site. This also means that more merchants will settle in Xiaohongshu stores, and competition will become increasingly fierce.

There are higher requirements for content and business capabilities, which requires merchants to strengthen their ability to sell goods on Xiaohongshu. I have summarized three points:

1. Clarify the target group and understand user needs

On the Xiaohongshu platform, it is very important to identify the target audience. Based on the target group and their search habits, you can understand the pain points and needs of the target users and highlight the value of the product.

Take jewelry as an example. There are various different products on the market. We need to find selling points that are different from our competitors, meet the needs of the target group, and carry out marketing promotions based on different selling points so that we can stand out from the competition.

Therefore, the first step in selling products on Xiaohongshu is to determine who the target audience is .

Case 1: Bai Lan

As a jewelry brand, it is committed to creating product designs with high quality and practicality. Based on the female perspective, it provides full-scenario jewelry matching solutions for women over 30 with oriental charm. By segmenting the population and accurately targeting user needs, it stands out in the fierce competition on Xiaohongshu. During the 618 period, the number of stores exceeded 1.5 million.

【Bai Lan】Since joining Xiaohongshu, we have gained insight into users' consumption needs, published notes around "30+ women", continued to accurately target the target group, and combined with store self-broadcasting to improve product conversion rates.

At the same time, the frequency of store live broadcasts was maintained, and continuous interaction with users was carried out during the live broadcasts to introduce products and stimulate users' purchasing minds, ranking first on the brand list.

2. When selling products on Xiaohongshu, matrix accounts are very important

Xiaohongshu is entering a new era of marketing. Consumers are not only concerned about brands and products, but also about their own feelings and needs. Therefore, matrix accounts are very important. Facing different target groups, different marketing promotions can be formulated to make it easier to acquire customers.

This is the second step for enterprises to sell products on Xiaohongshu: matrix account . Through matrix thinking, we can discover the core advantages and competitiveness of the brand and stand out in the fierce market competition.

When you are using Xiaohongshu, prepare 3-5 accounts, because one account is not enough, and it is difficult to make it popular by relying on a certain account for operation.

Case 2: Grado

As an original design brand, it has more than 6 matrix accounts on Xiaohongshu, with a cumulative store GMV of nearly 10 million. The number of reservations and viewers for a single self-broadcast has exceeded 50,000+, and it has been invited to participate in the Milan Expo for 8 consecutive times.

"Grado" uses a multi-account matrix, using a main account as the main position of brand content, and then using multiple sub-accounts to carry out refined customer acquisition through multiple channels by cutting into groups, products, and content, thus accumulating customer sources.

At the same time, a Xiaohongshu store was opened to facilitate users to place orders directly in the store after being attracted by the products, completing the closed loop within the site. Combined with the trend of Xiaohongshu live streaming, the self-broadcast room is close to the users at zero distance, allowing users to understand the products more clearly and creating dozens of self-broadcast exclusive products for Xiaohongshu users.

3. When selling products on Xiaohongshu, it is important to run a good store

With the arrival of Xiaohongshu's commercialization, the importance of Xiaohongshu stores has gradually emerged. If you want to get a piece of the pie on Xiaohongshu and achieve high customer acquisition and conversion, Xiaohongshu stores are also indispensable; and for small and medium-sized enterprises, opening a store on Xiaohongshu can further improve the conversion rate after users make consumption decisions.

This shows that opening a store and achieving a closed loop within the site is the third step in selling products on Xiaohongshu.

Case 3: So Acai

It is the first health food brand in China with "superfood" as its core, and its store sales increased by 115% during the 618 period.

There are 51 products in the "So Acai" Xiaohongshu store, with a total sales volume of 179,000. The best-selling product in the store is baked oatmeal breakfast, with an average customer price of 599, sales volume of more than 26,000, and sales revenue of more than 1.5 million. It can be seen from the sales volume that most of the customers are office workers, and the brand user group has a high demand for healthy and fast food.

Almost all notes on Xiaohongshu’s corporate account will come with a “same product link”, and there is basically a live broadcast every day, with each live broadcast bringing 22 selected products, further proving the effectiveness of store + live broadcast in driving sales.

Xiaohongshu's marketing layout is a long-term strategic process. Over-emphasizing product selling points is too blunt. It would be better to focus more on communicating deeply with target customers and establishing connections with them.

This year, Xiaohongshu live streaming is both a trend and an opportunity , and Xiaohongshu’s “buyer era” has further verified this trend.

3. Store self-broadcast or buyer cooperation

Why are merchants and brands recommended to start live streaming on Xiaohongshu?

Xiaohongshu live broadcast is closely linked to the early stage of grass planting. After the early stage of grass planting, trust is established with users in the live broadcast room, so the users of the live broadcast room are more accurate and the conversion rate is naturally higher.

With the help of Xiaohongshu live broadcast and buyer cooperation, merchants and brands have provided an innovative marketing channel and user interaction platform for their products, bringing opportunities and growth potential, strengthening interaction and relationship building with users, and improving brand awareness and sales performance.

Xiaohongshu live broadcast is now mainly divided into store live broadcast and buyer live broadcast.

Next, let’s take a look at the differences between store self-broadcasting and buyer cooperation.

1. Advantages of Xiaohongshu store self-broadcasting

Compared with "buyer live streaming", the store is the main battlefield for merchants to operate independently. It occupies an important position in closed-loop grass-planting, product sales, user conversion, etc., which can maximize user retention and improve conversion rate.

Xiaohongshu store’s self-broadcasting allows fans or people who have been reached through brand recommendations to get an in-depth understanding of the products up close and personal with the brand in the live broadcast room. The audience for Xiaohongshu store’s self-broadcasting is more precise, and it can communicate more deeply with existing users while also reaching new users.

Store live streaming has become Xiaohongshu's new growth engine during this year's 618. During the 618 period, the GMV of store live streaming increased five times compared to last year, and the number of store live streaming with sales exceeding 100,000 in a single session was four times that of last year.

In order to maximize user retention and improve conversion rates , "Store Self-Broadcasting" starts from product selection to opening live broadcast appointments to welfare settings.

From interacting with users during live broadcasts to enhancing user stickiness, good preparation is needed. It is necessary to start by releasing live broadcast previews to increase the popularity of the live broadcast and enhance user trust.

Case 4: Extremely cute

A home beauty instrument brand that specializes in rapid beauty technology, it achieved monthly sales of 5 million in less than 3 months after its launch.

Since entering Xiaohongshu, searching for "Jimeng" has revealed that there are more than 20,000 notes related to Jimeng on the entire site. By publishing different types of seeding notes in the early stage, we penetrated into the consumption needs of users, and then sold goods through store broadcasts;

The Jimeng Enterprise Account maintains a stable store broadcast frequency, with a live broadcast almost every day. Through live broadcasts, it builds trust with users, introduces products, maintains interaction with users, and stimulates users' purchasing intentions.

Through the core selling point of the product, it stood out in less than 3 months after the broadcast, becoming the "Growth Breakthrough Store Broadcast Merchant" of Xiaohongshu 618. In addition to self-broadcasting, you can also find some well-known KOLs to cooperate with brand specials, use their influence and fan base to expand the exposure and popularity of the brand, and promote the product through breaking the circle of communication, that is, cooperation with buyers.

2. How do companies choose buyers to cooperate with?

In April 2023, Xiaohongshu launched the concept of "buyer e-commerce", opening up new ideas for targeted customer acquisition. Merchants and brands can find high-quality buyers to allow users to learn about products and purchase them more quickly.

Before cooperating with buyers, merchants and companies must first clarify their own positioning and find their target audience.

Finding the right buyer to cooperate with will make the promotion of the company/brand on Xiaohongshu smoother.

Buyers start from the user's perspective and create live broadcast rooms that are interesting and professional to users, which often attracts more users' attention, so the crowd is more accurate. Merchants and brands can choose to cooperate with suitable buyers and obtain more accurate customer information in the book buying live broadcast room.

At the same time, the cost of cooperating with buyers is lower, and finding mid- and low-level influencers and amateurs to carry out advertising also shortens the distance between products and users, achieving a closed loop from seeding to transaction on Xiaohongshu and shortening the conversion path .

With the popularity of buyer live streaming, choosing buyers has also become a pitfall for many businesses and brands.

According to the 618 battle report, buyers sold up to 18 million goods in a single session. Let’s do the math. How many Xiaohongshu content operators would you need to find to achieve this amount in a single session?

So how should we choose?

When merchants seek cooperation with buyers, they need to correct three misconceptions :

"If the data in the buyer's notes is good, the data in the live broadcast will be good" "You must find high-end or even celebrity buyers to sell well" "I will cooperate with whoever sells well, and everything will be sold in the end";

When looking for buyers to cooperate with, it is necessary to select suitable buyers for cooperation based on the brand's product population portrait, combined with the buyer's fan portrait and the buyer's portrait.

You can choose to cooperate with more buyers on the Dandelion platform.

4. Final summary

Many companies/merchants are concerned about whether it is feasible to sell goods in Xiaohongshu stores?

This article analyzes from three aspects to give you a deep understanding of why companies should open stores on Xiaohongshu, what are the benefits of opening stores on Xiaohongshu, and what cases have achieved results in selling goods on Xiaohongshu stores.

Combining 5 cases, we will take you to immersively explore the closed loop of Xiaohongshu store sales site. What actions need to be taken to achieve high conversion?

Companies can sell goods on Xiaohongshu stores in three steps. Start with the crowd, matrix accounts, and choose the appropriate live broadcast method. Marketing strategy is very important when selling goods on Xiaohongshu.

Friends! I hope you are getting better and better

Author: Zhuang Jun

Source: WeChat public account "Zhuang Jun"

This article was originally published by @庄俊 on Operation Party. Any reproduction without permission is prohibited.

The title image is from Unsplash, based on the CC0 agreement