Little Red Book is finally going live, but it says it's not about cashing out

The definition of the little red book may have to change every year. Soon, it could also be called a live streaming platform.

According to the self media "short video workshop" news, small red book has been in the test live function, and directed to invite some people to participate in the experience. Later, Xiaohongshu replied that the live broadcast is still in the testing period. In Taobao live, jittery live, fast hand live for the platform to contribute to the new revenue growth point today, MAU (monthly active users) exceeded 85 million small red book is no longer faced with the problem of do not do live. The new question is how will Little Red Book do live? Or, for the little red book now, live play more is the traffic entrance, or cash tool?

Jitterbugs close the loop on live streaming

After the game and show live hit the ceiling, the live e-commerce represented by Taobao live in 2018 surged, showing the industry another possibility for the live form to live. According to the "2019 Taobao live broadcast ecological development trend report", Taobao live broadcast platform brought more than 100 billion yuan in 2018, with a year-on-year growth rate of nearly 400%.During the 2018 Double Eleven, the all-day live broadcast sales of the anchor, Viya, exceeded 300 million yuan.

The internal logic of the success of Taobao live is to break through the traditional relationship between consumers and the purchase and sale of goods, to establish a closed loop between the live blogger, goods, consumers, to bring consumers offline shopping style user experience. In such a closed loop, live bloggers can provide consumers with one-stop services such as product display, shopping advice, social interaction and even after-sales service, creating an "immersive" shopping scenario for consumers, and reaching a deal through the interaction between live bloggers and consumers. Good user experience also brings better user stickiness, more consumers are willing to "pay" for their favorite anchor.

QuestMobile's sinking market insight report released in May this year shows that the scale of sinking users exceeds 600 million, and the per capita use of mobile Internet is longer than that of non-sinking users, and the attraction of live e-commerce for the sinking market is an upgraded version of the TV guide. In the sinking market, the sinking users behave as acquaintance consumption, price sensitivity, and pass the time, and live e-commerce can somehow meet their psychological needs.

Therefore, jittery fast hand and other short video platforms have entered the e-commerce, and the live broadcast as a "bridge".In February 2018, jittery began to recruit anchors, and in May, jittery and on-line store entrance, the user can directly jump to the jittery voice of the personal store, on December 11 of the same year, jittery shopping cart function on line, and in the double On December 11 of the same year, the shopping cart function of Jittery Voice was launched, and contributed to more than 1.2 million orders on the day of the double twelfth, and the turnover of the top 50 accounts exceeded 100 million. Short video powder, live broadcast + e-commerce cash, and gradually formed a "short video + live broadcast + e-commerce" closed loop transactions.

The case of Racer is slightly different, although it started with the same short video as Jittery, but in the field of live broadcasting, Racer has gone farther than Jittery, and the e-commerce revenue is roughly equivalent to the advertising revenue of Jittery. Racer went live with its live streaming feature back in 2016 and grew rapidly, with more than 100 million MAUs, and last year, Racer's live streaming revenues were about $20 billion. At present, there are 10% users in the MAU of fast hands who pay for live broadcasting, and the gross margin is as high as 30%.

Closest traffic to money

However, according to Short Video Workshop, quoting the relevant person in charge of a Xiaohongshu certified MCN organization, "At present, Xiaohongshu live streaming does not do commercial cash," "insists on social sharing," and "does not want to take the route of Taobao live streaming ".

The small red book itself also said that the core content of the small red book live is "lifestyle sharing", and provide users with valuable interaction. Since sharing and interaction is the purpose of Xiaohongshu live, it is obvious that Xiaohongshu prefers live to become a traffic tool to obtain new customers and improve user stickiness and length of use.

In fact, this is more like Taobao's content-based strategy. When the commercial operation ability overflows, the thirst for traffic will be stronger. In the history of the development of the small red book venture, traffic and commercialization is like the two ends of a see-saw, the previous stage if the cash is more difficult, the next stage will be the problem of stagnant user growth, which is actually a genetic defect of the small red book born.

Looking at the road of commercialization of Xiaohongshu, in fact, it is not smooth. As early as 2014, small red book on the line "welfare society", complete the closed loop from the grass community to the transaction of e-commerce, but due to inherent defects, in the cross-border e-commerce market competition in 2014, lost to Tmall International, NetEase Kaola and other giants, only cross-border e-commerce accounted for less than 4% of the market share. What's even more frightening is that Xiaohongshu actually often "for others to do the graft", looks flawless closed loop in fact, always can not be fully connected, a considerable number of real users in Xiaohongshu grass, but went to Tmall International, NetEase koala pull grass.

Returning to community positioning and earning money through marketing is the result of adjusting the strategy of Xiaohongshu.At the end of 2017, a large number of stars were invited to Xiaohongshu, and the sponsorship of the network variety show "Idol Practitioner" and "Creation 101" introduced a group of fan-based users with high user stickiness and loyalty to Xiaohongshu, which led to a rapid growth in new users and monthly activity.In May 2018, Xiaohongshu, with a valuation of 3 billion US dollars Introducing Alibaba-led Series D financing, the latter is also interested in its high-quality traffic in the vertical field.

The latest data released by Xiaohongshu shows that as of June, its monthly activity exceeded 85 million. In addition to continuous investment in TV advertising, variety sponsorship on the outside to buy traffic, with the help of live tools to enhance user stickiness is a good new approach. Sitting on a large number of kol, da Ren Xiaohongshu can even save the work of recruiting anchors from zero, but from the existing da Ren pool screening. As for the subsequent realization, whether reward or e-commerce, are also proven, water to the path.