For the platform and merchants

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Xiaohongshu's group buying not only shortens the path from user seeding to consumption, but also leverages the platform's content advantages, achieving a positive cycle from content seeding to marketing and then to consumption. In addition, the continued pressure on its core advertising business is also one of the realistic factors that forced Xiaohongshu to make changes. According to media reports such as 36Kr , Xiaohongshu 's advertising business in 2020 will contribute up to 80% of its total revenue . Among Xiaohongshu 's advertisers, cosmetics and skin care brands account for more than 70% . At this point a question arises, once the cosmetics track.


If the performance is not good, the budget may be reduced, so it is particularly important to find new commercialization paths. Therefore, Xiaohongshu 's offline group buying business is not only to create a hong kong whatsapp number data closed transaction loop of " planting grass + consumption " for the platform , but also, to a certain extent, an important transformation to cope with the pressure on the advertising business and open up a second growth curve. From an external perspective, when we turn our perspective to the external dimension to explore the reasons why Xiaohongshu entered the local life, the local life track itself seems to contain the answer. As we all know, after years of hard work.


Meituan was once the most heavyweight player in the local life field, but the Douyin platform has also sat at the table after a fierce attack in recent years with its traffic advantage. Xiaohongshu's entry into local life amidst the battle between the two giants was described by some media as " stealing food from the tiger 's mouth " . Some people believe that it is not a good choice for Xiaohongshu to enter a new field and compete with the giants. However, the challenge of competing with giants also provides a convincing reason for Xiaohongshu's behavior: since leading platforms such as Douyin are all focusing on local life.