Core Viewpoint - The company, Xiaohongshu, is redefining its business model from a content community or new e-commerce platform to a cross-platform content distribution hub, aiming to enhance its bargaining power in precision marketing and attract capital investment [1][5]. Group 1: Strategic Partnerships - Xiaohongshu has formed a strategic alliance with JD.com ahead of the "6·18" shopping festival, focusing on selling traffic rather than products [2]. - The partnership is aimed at leveraging Xiaohongshu's content ecosystem and user data to help traditional e-commerce platforms like Taobao and JD.com overcome user growth challenges [2][3]. Group 2: User Engagement and Data - As of the end of 2024, Xiaohongshu is projected to have 300 million monthly active users, with significant user engagement metrics such as 120 million daily screenshot actions and over 6 million requests for links in comments [2]. - Despite high user engagement, Xiaohongshu's self-operated e-commerce GMV is only in the hundreds of billions, significantly lower than competitors like Douyin and Kuaishou [2]. Group 3: E-commerce Challenges - Xiaohongshu faces challenges in converting user engagement into sales, as users tend to engage in "grass planting" rather than immediate purchases, leading to longer conversion paths [3]. - The platform struggles with building and integrating a supply chain, particularly for non-standard products that require strong buyer selection capabilities [3]. Group 4: Business Model Adaptation - The "Red Cat Plan" is a strategic move to drive short-term sales by redirecting transactions to established e-commerce platforms while allowing Xiaohongshu to develop its own e-commerce capabilities over time [3][5]. - By connecting to a vast product pool from Taobao, Xiaohongshu aims to enhance its product offering and reduce user requests for purchase links [4]. Group 5: Market Positioning - Xiaohongshu is focusing on categories with longer ROI cycles, such as fast-moving consumer goods and health products, while retaining control over impulsive purchase categories like clothing and snacks [5]. - The company must balance content and transactions, closed and open systems, and community values with commercial efficiency to maintain its core data assets [5].

Group 1 - The core viewpoint of the article is that Xiaohongshu's partnership with JD.com aims to enhance its e-commerce capabilities by leveraging JD's supply chain and user data, while also addressing its own challenges in converting traffic into sales [1][2][4] - Xiaohongshu is focusing on selling traffic rather than directly competing in the e-commerce space, targeting B-end merchants to increase advertising value through effective bidding [1][2] - The collaboration with JD.com and Taobao is seen as a strategic move to overcome user growth bottlenecks faced by traditional e-commerce platforms, while Xiaohongshu seeks to enhance its own e-commerce performance [1][3] Group 2 - Xiaohongshu's current GMV is significantly lower than competitors like Douyin and Kuaishou, with a reported GMV of only in the hundreds of billions, compared to Douyin's 3.5 trillion and Kuaishou's 1.39 trillion [1][2] - The platform's "Red Cat Plan" is a strategy to quickly boost transaction volume by redirecting sales to established e-commerce platforms, allowing Xiaohongshu to buy time to develop its own e-commerce capabilities [2][4] - The integration with Taobao's extensive product pool is expected to enhance Xiaohongshu's SKU diversity, reducing user requests for purchase links in comments [3][4] Group 3 - Xiaohongshu is strategically focusing on categories with longer ROI cycles, such as fast-moving consumer goods and health products, while retaining control over impulsive purchase categories like clothing and food [3][4] - The platform aims to position itself as a cross-platform content distribution hub, enhancing its bargaining power in the e-commerce landscape [4][5] - Balancing content and commerce, as well as maintaining its community ethos while improving commercial efficiency, presents ongoing challenges for Xiaohongshu [4][5]