XiaoHongShu is a mobile app that emerged a few months ago in the Chinese digital landscape.
Intended for women, rather urban ones, aged between 25 and 40 years old, it proposes deals and offers especially on foreign luxury brands.
Chinese people used Daigou for a long time in order to obtain luxury products at reasonable prices and to ensure their authenticity. Daigou are people in charge of bringing back foreign luxury products directly in their luggage during their trip to Western countries in order to sell them back in China with a comfortable margin.
The trend of Daigou has been decreasing since the Chinese government has been lowering import taxes on luxury goods, adjusting prices on the Chinese market for certain brands and tightening controls on Daigou. Haitao, the cross-border trade has been emerging as the new trend for luxury products in China.
Haitao being supported favorably by the Chinese government laws, its popularity is booming and it allows the middle class to obtain Western products at reasonable prices (customs duties are advantageous) therefore always ensuring the authenticity of these products.
Little Red Book has been able to surf on this spread of HaiTao and are presented nowadays as one of the main applications of cross-border trade. It has distinguished itself by a very strong community aspect in particular: it combines products reviews forum, where the authenticity of opinions is guaranteed, with an online commerce platform.
Today, the success is such that XiaoHongShu has opened a physical store in Shanghai. Our teams on site has visited it as you can see in some of the pictures attached.
The items sold in the shop are only the top-ranked products on the application.
The community aspect of the application has been integrated into the customer experience with a totally transparent way during the purchasing process.
Instead of taking out his phone and using a search engine in order to find online reviews, customers can see reviews from other consumers directly on the product page of the application, where he can leave his own opinion.
Add a little bit of post-checkout gamification (a part offered for any purchase on a rapier machine, similar to that of fairgrounds), and despite the only few products offered for the moment, you will then get a truly innovative customer experience of which only Chinese people have the secret !