Core view
Xiaohongshu initially created tool products from the needs of users, and then expanded its categories and contents around the core needs of users in an orderly manner, and gradually transformed into a pan life community with tool attributes. Its unique community advantages have become the basis of grass planting and commercialization: from the perspective of content production, by reducing the production threshold of UGC and guiding creators to adapt to community tonality, a large number of high-quality and real UGC contents are precipitated; From the perspective of content distribution, the decentralized flow distribution mode and the mechanism of "emphasizing content and neglecting people" encourage middle waist and tail bloggers to output high-quality content and form a prosperous Koc ecology; From the perspective of content consumption, users focus on young women, and the key users are young user groups.
Core point II
The three elements of grass planting platform are people, scenes and expression forms, and then the sense of trust determines the transformation ability and effectiveness of grass planting. Xiaohongshu has become a grass planting platform for young people's consumption decision-making. From three elements: 1. Xiaohongshu users have a gene of "willing to share" at the grass planting end and advanced consumption consciousness at the grass planted end, thus forming a unique grass planting atmosphere; 2. The grass planting scene takes "lifestyle" as the starting point, and the scene is high-frequency and highly consumer; 3. The expression form is mainly graphic, the content consumption efficiency is high, and the principle of "altruism" has the attribute of tool. At the same time, xiaohongshu's grass planting advantage lies in the "integration of quality and efficiency". It has efficient grass planting efficiency and transformation ability in the short term and strong brand building ability in the long term.
Core point 3
Xiaohongshu's advertising business attracts advertisers to increase investment because of its unique commercialization advantages: 1. Short term content marketing gains customers + long-term user insight driven product power improvement to realize the unity of product and efficiency; 2. The long circulation cycle of platform content leads to the precipitation of content assets; 3. Accurate recommendation traffic + vertical search traffic; The driving factors for the growth of xiaohongshu advertising business include the expansion of the number of users and circles, the growth of user stickiness, the average daily use time and the improvement of adload.
Core point 4
Xiaohongshu creates a closed loop for users from content grass planting to on-site transaction through e-commerce business. In 2021, the new regulation of "number store integration" was launched to optimize content marketing, which can make full use of its own content ecological advantages and balance the community and trading platform.
Core point 5:
Compared with pinterest and instagram, the overseas picture sharing communities, xiaohongshu has great commercial potential. The platform positioning and user portrait of the two are similar to that of xiaohongshu, but from the perspective of product logic, pins focuses on high-quality pictures, INS has stronger social attributes, and xiaohongshu emphasizes the usefulness of note content. In terms of cash realization form, pins only relies on advertising, while ins realizes the organic integration of community + social + e-commerce.
Risk tip: the growth rate of Mau is lower than expected, the category expansion is lower than expected, the advertising idea is willing to be reduced, and the industry policy changes
