Core Insights - The core idea of the article revolves around Xiaohongshu's (Little Red Book) recent initiative to open links to Taobao, aiming to enhance its advertising revenue and attract key account (KA) clients, despite the current low density of such advertisements on the platform [1][4][8]. Group 1: Xiaohongshu's Strategy - Xiaohongshu's primary motivation for opening external links is to further explore the commercial value of KA clients, with the "direct grass planting" feature allowing more opportunities to reach these clients [4][11]. - The platform is cautious in its approach, limiting the types of products available for external linking and avoiding direct dealings with Alibaba's advertising platform, instead opting for direct contracts with advertisers [2][4][11]. - The company aims to maintain a balance between commercial traffic and user experience, keeping commercial traffic under 15% and clearly marking advertisements to distinguish them from community content [11][12]. Group 2: Competitive Landscape - The rise of instant retail has made it increasingly difficult for Xiaohongshu to expand its e-commerce capabilities, as competitors like JD and Taobao are rapidly enhancing their delivery efficiencies [6][7]. - Instant retail has transformed consumer expectations, with over 50% of post-95 consumers wanting same-day delivery, creating a challenging environment for Xiaohongshu to compete for KA clients [6][7]. - Xiaohongshu's strategy of directing traffic to Taobao and JD is seen as a necessary move to remain relevant in the competitive e-commerce landscape, even if it means losing potential direct sales [8][12]. Group 3: Lessons from Mogujie - Xiaohongshu is learning from the mistakes of Mogujie, which heavily relied on Taobao and suffered from over-commercialization, leading to a decline in user value [9][10]. - By diversifying partnerships with multiple platforms and being selective about the categories it engages with, Xiaohongshu aims to mitigate risks associated with dependency on a single platform [11][12]. - The company is also focused on creating a protective barrier for its e-commerce business, ensuring that its existing merchants do not promote competing platforms during customer interactions [12].