Thoughts on the people, goods and market of Xiaohongshu’s buyer e-commerce

This article is the author's thoughts on Xiaohongshu's buyer e-commerce. It describes the development, model and opportunities of buyer e-commerce. Taking Gigi Leung as an example, it helps everyone better understand the buyer model, that is, the "if you think it is right, you can buy it" model, and gives consumers enough information and persuasiveness to encourage them to buy. It is recommended for people who want to understand the Xiaohongshu e-commerce group.

Regarding the word "buyer e-commerce", I suggest that you look at it separately, namely buyer and e-commerce.

First of all, the word "buyer" matches the tone of the community very well. In the past, everyone may have different understandings of Xiaohongshu, but now Xiaohongshu has put forward the concept of "buyer", which has unified the tone of the community.

1. Buyers are established, but lack a good timing

I have to say that the concept of “buyer” is very good, but it seems to be lacking a good timing.

In the post-mask era, consumption downgrade and the return of the middle class to poverty are objective realities. The overall consumption environment has become more pragmatic and rational. Everyone needs to be reserved in order to face the uncontrollable risks in life.

Some time ago, I posted a message on WeChat Moments, saying that JD.com's strategy this year is a low-price strategy. Many people are puzzled by this, wondering why JD.com, as a high-quality platform, should emphasize low prices? I can understand that in the current era, if prices are high and only high quality is emphasized, the largest number of mass users may be lost, and the platform's incremental goals cannot be achieved.

Xiaohongshu is facing the same situation. Look at Zhang Xiaohui and Dong Jie. Their products rarely cost less than 1,000 yuan. First, the average order value is very high. Second, the brand power is very strong. There are innovations but the premium is generally very high. There is a lack of relatively affordable, small and beautiful products.

If Xiaohongshu had proposed buyers in the context of consumption upgrading before the mask era, perhaps the results would have been much better than today.

2. Celebrities are not buyers, but Gigi Leung is

The only buyer’s live broadcast room with revenue exceeding 100 million is Veronica Yip’s.

Why is it that Zhang Xiaohui, who is not a celebrity, has much higher sales than first-tier stars like Dong Jie?

Comparing the sales models of Dong Jie and Zhang Xiaohui, we can find that Dong Jie actually follows the logic of branded goods, while Zhang Xiaohui follows the logic of typical buyer's goods. The goods and sales models of the two are completely different.

We can take two super anchors on Douyin as examples to illustrate this point. For example, Dongfangzhenxuan and Make Friends on Douyin

Make friends: The logic of a typical branded product tray. Selling well-known star brands such as Xiaomi, Panasonic, and Three Squirrels, and earning profits through good mechanisms and commissions.

Dongfang Selection: Supply chain logic. The goods mainly come from self-service agricultural channels, and after being purchased, processed, packaged, and then OEMed, the company has the pricing power. The benefits are much higher than making friends.

We can almost parallel our understanding of Douyin’s two super-head business models to Xiaohongshu.

Dong Jie: It is the same as making friends, the logic of branded goods. Her live broadcast goods are also promoting some well-known brand products.

Zhang Xiaohui: 40% to 50% of the products are exclusive. For example, we discover high-quality goods when traveling abroad, and then introduce these products to China for sale, and we have the right to set prices.

In addition, she classified the collected products according to different scenarios, such as hair care, skin care, etc., and combined them into different boxes for sale. His product selection and combination logic successfully convinced Xiaohongshu users, so the entire sales volume exceeded 100 million yuan.

Veronica Yip is the most typical “buyer” on the Xiaohongshu platform.

3. There are still two models with opportunities in buyer e-commerce

From the perspective of e-commerce, I personally think that Xiaohongshu will not have a big growth. The official may need to spend 1-2 years to subdivide some categories and provide traffic support before seeing good results at the e-commerce level. The platform cannot only pursue high-premium and brand-strong products, but also needs to embrace those small and beautiful stores with reasonable pricing.

From my perspective, there are two models, and there are relatively large opportunities in buyer e-commerce.

The first is the front-shop-back-factory model. There are some small and medium-sized factories or supply chains that may not have their own brands well, but they are very mobile and can capture consumer demand very quickly. They combine high aesthetics to continuously iterate new products and combine with Xiaohongshu's buyer e-commerce. This is feasible and has great opportunities.

The second type is expertization. The goods list in the buyer’s live broadcast room is not determined by a mechanism, but is composed of different solutions for different groups of people. It is more determined by the different needs of the audience in the live broadcast room.

Taking the maternal and infant track as an example, part of the goods in the buyer’s live broadcast room may be products for regulating the gastrointestinal tract of babies with poor gastrointestinal function, and another part may be products with relatively high nutritional content to enhance the baby’s self-protection ability, or products that promote the baby’s brain development.

According to different needs, buyers can use their professional qualities to help consumers find the root cause of the problem and match products that can solve the problem. When consumers buy each product, they are given enough information and persuasive reasons. Only then will the audience in the live broadcast room gradually change from "buying brands following advertisements" to "buying products following people", and adopt a model of "if you think it is right, you can buy it".

If you think you are suitable for this model, remember to watch more of Gigi Lai's live broadcast room.

above.

Author: Vic

Source: WeChat official account: "Vic's Marketing Thinking (ID: Viccps0227)"