Core Insights - Xiaohongshu is launching a new local lifestyle product called "Xiaohong Card," aimed at enhancing user experience and community engagement rather than focusing solely on GMV [1][3][26] - The product was introduced during the "Street Life Festival," which has expanded to three cities: Shanghai, Hangzhou, and Guangzhou [1][6] - The company aims to differentiate itself from competitors by emphasizing quality and user experience over price competition [12][26] Group 1: Product Launch and Strategy - Xiaohong Card is positioned as a "selected dining and entertainment membership card," offering discounts at selected merchants while focusing on quality rather than just price [4][12] - The internal goal for the local lifestyle business is to gather more local content creators and enhance the quality of local lifestyle content within the community [1][3] - The company has previously explored various local lifestyle business models, including group buying and listing features, but is now focusing on a more integrated approach with community content [4][26] Group 2: Market Context and Competitive Landscape - The launch of Xiaohong Card comes amid a competitive landscape where multiple internet platforms are vying for market share in local lifestyle services, leading to aggressive subsidy wars [1][12] - Xiaohongshu's approach is to avoid price wars and instead leverage its content community to attract merchants and users [12][26] - The company is looking to validate the Xiaohong Card model through user engagement during the Street Life Festival, rather than focusing on immediate scale [6][26] Group 3: User Engagement and Content Creation - The platform encourages users to share their experiences and content related to their local lifestyle activities, which is seen as a way to drive authentic engagement and community growth [5][12] - Xiaohongshu aims to create a community-driven model where real transactions lead to genuine content creation, enhancing the overall user experience [5][12] - The company plans to refine its merchant selection process over time, moving from manual curation to a more data-driven approach as the model matures [5][12]