Core Insights - The second "Grass Planting Awards" by Xiaohongshu showcased 533 case submissions from 395 brands across 85 industries, with Beike, beU, and Yike Da winning the top awards [1] - Beike saw a year-on-year increase of over 24 times in transaction volume on Xiaohongshu, contributing to its lead in media-generated leads [1] - New brands like Yike Da and beU have successfully leveraged Xiaohongshu for growth, with Yike Da achieving a total sales increase to 1 billion and beU's GMV growing by 43 million in the past year [1] Group 1: Xiaohongshu's Marketing Innovations - Xiaohongshu's "Lingxi" platform provides intelligent insights and metrics, allowing brands to better understand market trends and consumer opportunities [3][5] - The platform is now available for free to all registered brands, particularly benefiting small and medium-sized businesses [3] - The "Grass Planting Direct" feature was officially launched to enhance the efficiency of the marketing process, allowing brands to track and optimize their investments more effectively [10][12] Group 2: Brand Growth Strategies - Brands utilizing the "Lingxi" platform have reported significant growth, with Hisense's new product achieving over 80 million GMV in three months, largely attributed to insights from Lingxi [5][6] - The platform helps brands identify new market segments, such as the growing interest in gaming among TV consumers, allowing for targeted marketing strategies [6][7] - The combination of "Grass Planting" and "Grass Planting Direct" has proven to be an effective strategy, with brands experiencing a 28% improvement in ROI compared to traditional methods [10][12] Group 3: Market Trends and Consumer Insights - The awards highlighted a clear upward trend in consumer goods, lifestyle services, and internet content services, particularly among emerging brands [1] - The Lingxi platform's recent upgrades allow brands to measure brand awareness and reputation across various industries, enhancing their marketing strategies [9] - Brands are increasingly focused on understanding the effectiveness of their marketing efforts, shifting from "how to plant grass" to "how effective is the grass planting" [12]

Core Insights - The "Red Cat Plan" launched by Xiaohongshu in collaboration with Alibaba aimed to create a direct link from "grass planting" to "transaction" across platforms, but quickly became overshadowed by other e-commerce developments [2][6] - Xiaohongshu is repositioning itself as a "business entry point," emphasizing the value of content-driven marketing that can be quantified through data, marking a significant shift in the e-commerce landscape [2][7] - As of July 10, over 2,000 merchants have applied to connect Xiaohongshu with platforms like Tmall and JD, indicating a growing interest in this new operational model [2][7] Group 1 - The "Red Cat Plan" and subsequent "Red Jing Plan" have opened a pathway for consumer behavior that flows from Xiaohongshu's content to transaction pages on Tmall and JD, allowing for quantifiable metrics like brand search volume and order ROI [6][7] - Xiaohongshu's Vice President of Technology presented data showing that the actual ROI for high-end home brand Cabana's advertising on Xiaohongshu could reach 39 when accounting for offline purchases, highlighting the platform's underestimated commercial value [5][6] - The report from Yicai Business School aims to systematically explore how Xiaohongshu's "grass planting" can integrate with other transaction platforms, providing insights into the evolving e-commerce landscape [2][7] Group 2 - Xiaohongshu's self-operated e-commerce efforts have faced challenges, leading to the discontinuation of certain services and a reliance on advertising revenue, which accounted for approximately $2.4 billion of its $3.7 billion total revenue in 2023 [9][10] - The platform's GMV for 2023 is estimated at around 230 billion, significantly lower than competitors like JD and Pinduoduo, which achieved GMVs of 658.2 billion and 2.4 trillion respectively during their profitable years [9][10] - Xiaohongshu's positioning as a "business entry point" offers a differentiated advantage in a crowded market, as it focuses on measurable advertising effectiveness rather than solely on e-commerce [9][10] Group 3 - The evolution of e-commerce in China has transitioned from a closed-loop model to a new open-loop era, with Xiaohongshu and Bilibili leading the charge in this transformation [13][14] - The report outlines a framework for merchants to navigate Xiaohongshu's ecosystem, emphasizing the importance of selecting the right products, targeting the appropriate audience, and optimizing content strategies [15][16] - Merchants are encouraged to leverage both Xiaohongshu's internal and external channels to maximize their reach and sales potential, with case studies illustrating successful strategies across various industries [26][28]

Core Insights - The collaboration between Xiaohongshu and JD.com, termed "Hongjing Plan," marks a significant shift in the competitive landscape of e-commerce platforms in China, as it allows Xiaohongshu to directly link to JD.com, breaking its previous reliance on Taobao and Tmall for traffic [1][4][8] Group 1: Background and Motivation - The partnership arises from a mutual concern over traffic and conversion rates, with Xiaohongshu struggling to convert its large user base into sales due to a lack of a mature transaction ecosystem [4] - JD.com faces high costs for internal traffic and has found it challenging to attract influencers from Xiaohongshu to promote its products due to conversion difficulties [4] Group 2: Benefits of the "Hongjing Plan" - The "Hongjing Plan" introduces a "Grass Planting Direct" feature that significantly improves conversion rates, reducing the user purchase journey from seven steps to three, and increasing conversion rates by nearly 60% [7] - Brands utilizing the plan have reported impressive returns on investment (ROI), with one beauty brand achieving an ROI of 1:8 during its first live-streaming event [7] - The plan allows Xiaohongshu users to access JD.com products directly through links in Xiaohongshu posts, streamlining the purchasing process [7] Group 3: Industry Reactions - The announcement of the "Hongjing Plan" has prompted concern among competitors like Alibaba and Pinduoduo, indicating a potential shift in market dynamics [8][9] - Many small and medium-sized brands see this collaboration as an opportunity to simplify their marketing efforts, as they can focus on content creation while benefiting from the integrated traffic and transaction capabilities of the two platforms [12] Group 4: Future Implications - The collaboration signifies the end of an era characterized by fierce competition over platform traffic and price wars, suggesting that the future will favor platforms that can effectively integrate strong content marketing with efficient transaction processes [14] - The "Hongjing Plan" represents the beginning of a new competitive landscape, where companies must adapt to the evolving dynamics of consumer experience and operational efficiency [14]

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].

Core Viewpoint - Xiaohongshu's "Red Cat Plan" marks the beginning of its e-commerce openness, collaborating with Taotian to enhance brand marketing and sales conversion [1][2]. Group 1: Red Cat Plan Progress - Two weeks after the announcement, many brands on Taobao are still in a wait-and-see mode, assessing the effectiveness of the Red Cat Plan before adjusting their budgets [2]. - The initial whitelist for the Red Cat Plan is limited to fast-moving consumer goods, outdoor sports, and health sectors, resulting in few active merchants [2]. - The "Grass Direct" marketing product, launched on May 12, allows merchants to link ads in Xiaohongshu posts to Taotian for transactions, indicating a shift in business models [2]. Group 2: Potential Issues - The e-commerce GMV on Xiaohongshu may be pressured by external platforms like Taotian, and potentially JD and Pinduoduo in the future [3]. - As the Red Cat Plan attracts more advertising budgets, merchants may reassess Xiaohongshu's value, potentially lowering or eliminating GMV targets for the platform [3][4]. - The internal structure of Xiaohongshu, with separate departments for e-commerce and commercial advertising, may face challenges in achieving synergy due to the Red Cat Plan's focus on brand marketing [3][11]. Group 3: Strategic Adjustments - The Red Cat Plan may lead to a shift in the e-commerce team's core metrics from internal GMV to external transaction metrics [8]. - Xiaohongshu's strategic value in e-commerce is undergoing dynamic adjustments, with the Red Cat Plan signaling a prioritization of brand marketing over direct e-commerce [10][22]. - The departure of key personnel in the commercial department suggests potential challenges in executing the Red Cat Plan and achieving internal alignment [15][16]. Group 4: Long-term Outlook - Xiaohongshu's shift back to a focus on brand marketing rather than a closed-loop e-commerce model reflects a strategic compromise rather than a complete abandonment of e-commerce [21][24]. - The Red Cat Plan aims to attract medium to large-scale merchants, enhancing Xiaohongshu's advertising revenue while potentially leading to a future return to closed-loop e-commerce [23][24]. - The effectiveness of the Red Cat Plan could lead to a win-win situation for both Xiaohongshu and participating brands, as it helps identify suitable brands for the platform [24][25].

Core Viewpoint - Xiaohongshu is shifting its focus from "grass planting" to "direct grass planting," aiming to enhance the conversion effectiveness for merchants and brands through strategic partnerships and a more integrated approach to e-commerce [1][2]. Group 1: Business Strategy and Partnerships - Xiaohongshu's new goal is to connect various merchants and brands with different characteristics to facilitate growth through the platform [1]. - The strategic cooperation with Taobao and Tmall aims to create a seamless link from "grass planting" to purchase, enhancing the overall conversion process [1][2]. - The "Xiaohongxing" program has shown a 20% increase in click-through rates and a 109% increase in interaction rates for Taobao and Tmall brands on Xiaohongshu [2]. Group 2: Market Trends and Consumer Behavior - The shift in consumer behavior towards online shopping has led to a focus on low-price strategies, resulting in increased pressure on brands to offer discounts [3]. - The oversupply and homogenization of products have made traffic on major platforms increasingly expensive, prompting merchants to seek alternative strategies [3][4]. - Xiaohongshu's approach emphasizes the importance of genuine user engagement and community-driven content, which has proven to be more effective than traditional advertising methods [4][5]. Group 3: Product Development and Innovation - Brands are increasingly focusing on niche markets and specific consumer needs, leading to the emergence of "lifestyle e-commerce" on Xiaohongshu [6][7]. - The platform allows brands to gather feedback directly from users, enabling them to refine their products based on real consumer demands [6][7]. - The case of HeYou Furniture illustrates how brands can successfully adapt their offerings based on community insights, leading to significant sales growth [7]. Group 4: Community Engagement and User-Generated Content - Xiaohongshu promotes a "flow equity" model, giving more exposure opportunities to smaller influencers, which reflects deeper emotional needs of users [8][11]. - The platform's design encourages user-generated content (UGC), allowing brands to connect with consumers in a more authentic manner [10][12]. - Xiaohongshu's commitment to maintaining a community-centric approach has resulted in a significant number of users expressing purchase intentions based on peer recommendations [12][13].

Core Insights - The collaboration between Taobao Tmall and Xiaohongshu aims to enhance the entire consumer journey from product discovery to purchase through the "Red Cat Plan" [2][7] - The partnership will leverage data integration and advertising features to improve marketing effectiveness for brands [7][5] Group 1: Strategic Collaboration - Taobao Tmall and Xiaohongshu signed a strategic cooperation agreement to create the "Red Cat Plan," focusing on integrating their platforms for better business growth [2] - The collaboration includes the establishment of a three-party account system for brand merchants to track the entire consumer journey from discovery to order [7][5] Group 2: Marketing and Advertising Innovations - A new feature called "advertising link" will be added below notes, allowing brands to directly drive traffic to their Taobao Tmall stores [2][7] - The "Red Cat Plan" introduces a new product called "Direct Grass," enabling consumers to click links in notes to access Taobao Tmall products directly [7] Group 3: Performance Metrics and Growth - The "Little Red Star" initiative has shown significant growth, with a 20% increase in click-through rates and a 109% increase in interaction rates for Taobao Tmall brand merchants on Xiaohongshu [4] - The number of daily participating merchants in joint advertising campaigns has increased by 335%, with notable growth in the sports and beauty sectors [4][5]