Most people have cognitive biases about Xiaohongshu e-commerce...

The real opportunity of Xiaohongshu e-commerce - planting grass is not only about spending, but also about the results. This article analyzes the characteristics of Xiaohongshu e-commerce and points out that brands should focus on user needs and improving the quality of life, rather than simply high gross profit. It is suitable for brands considering entering Xiaohongshu e-commerce and provides a new perspective: it cannot be simply regarded as a high-gross-profit channel, but it is necessary to dig deep into user needs to solve core problems and improve the quality of life. Recommended for students who are interested in Xiaohongshu e-commerce.

Yesterday I was chatting with a few brand members and we talked about the opportunities of Xiaohongshu e-commerce. I was surprised to find that everyone had different understandings of Xiaohongshu e-commerce.

Most brands that have achieved results on Douyin will transfer their understanding of Xiaohongshu e-commerce to Douyin’s interest e-commerce, because Xiaohongshu is essentially an interest e-commerce. Everyone is so busy on Douyin, and suddenly seeing the scarcity of diversified products on Xiaohongshu e-commerce, they will naturally feel like a wolf seeing its prey. There is a shortage of products, but they can sell at a premium. Is Xiaohongshu a paradise? Everyone wants to rush in as soon as possible.

But in fact, Xiaohongshu is not just a platform suitable for high customer spending, it is a platform brand with the core mindset of promoting products. Xiaohongshu influencers such as Gigi Leung, Dong Jie, or other vertical influencers also have the effect of bringing goods, but you will find that the product selection logic of Xiaohongshu is completely different from that of Douyin.

If your brand live broadcast is not the noisy one talking about your own interests, discounts and gift offers, but can be calm and focused, or even the brand founder can stand up and talk to everyone about why he wants to incubate this brand.

What kind of story and opportunity led to such an inspiration? What is the difference between this product and previous products during the research and development stage? What kind of unmet needs of competing products does it fill? What problems does it help everyone solve, etc. When talking about these contents, it is more suitable for the new urban white-collar workers in first-tier and new first-tier cities on Xiaohongshu, or some high-net-worth customers want to see the content. Xiaohongshu users hope that brands can talk about some basic things, and these users have more rational judgment ability.

Although Xiaohongshu is a platform for planting grass, having a lot of grass-planting notes is useless. Planting grass is just information provision. Users have their own judgment on the grass-planting information. Whether consumers believe in the grass you plant or not is up to the consumers to decide.

Therefore, under such long-term influence and infection, these users have developed the habit of thinking about a brand logically. They analyze the ingredients, formula, and distribution channels of the brand, and then make sure whether their skin type matches the product, etc. Therefore, they have a very strong individualism.

If a brand wants to sell products well on Xiaohongshu, or promote its products, it must not be one that thinks that Xiaohongshu users are all leeks with strong payment ability and can pay a premium. On the contrary, Xiaohongshu users are all highly educated women with independent thinking ability.

Therefore, those merchants who can calm down and tell their brand stories, brand concepts, and even brand selling points, and those who can tell their brand stories in a more leisurely and leisurely manner, will have more opportunities. On the contrary, those merchants who use low prices, promotions, gifts, and discounts as selling points are not suitable for the natural soil of Xiaohongshu.

When doing e-commerce on Xiaohongshu, what you sell is not just products, but also cognition, lifestyle and brand stories.

Author: Vic's Marketing Thoughts

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