Social platform in China with a real buy button…
Shen Wu (Head of Strategy) and Ting Li (Head of Business Development) of Little Red Book (or Xiaohongshu ), an online shopping site and lifestyle platform which connects overseas merchants with local buyers, joins Pavan Bahl, Rob Sanchez, and Marc Raco on location at the 2016 Fashion Tech Forum.
Wu and Li discuss the objective to close the biggest gap for middle class in everyday brands, particularly brands without real marketing budgets in China, why the initial idea was developed, where initial density of activity and content sharing was, and whether the shopping or the social aspect came first?
A flatter world, big revenue, and global experiences
Why “the world is flatter” with brand loyal customers already in China on the platform, accessing next generation of Chinese commerce, technology integration so Chinese customers will mirror US customers, international logistics, giving business direction in China to brands, how Little Red Book is a big ecommerce store with $50-60 million in revenue monthly primarily in cosmetics and personal care, their fully owned warehouse and logistics, and how they launched brands on the platform. The surprisingly low ticket size, predicting purchasing vs. holding inventory, the “end goal”, and the target of brands emerging to China.
Possibility of providing data as well as moving volume, genesis of the name associated with a dream of global experiences, freedom and degree of censorship of marketing content on a Chinese social platform, and Rueben sandwiches and bagels.