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    Two Months Fined 6 Times Of Word Of Mouth Crisis.

    2019/4/30 16:03:00 10965

    Quotations From Chairman Mao Zedong

    Since the commercialization of the content community Xiaohong book, which originated from word of mouth marketing, it has been constantly questioned by users and plunged into various crises.

    In the 1-2 month of this year, the small red book violated the advertising law and the consumer protection law several times. It was punished by the Jiading District regulatory bureau of Shanghai for 6 times, including 2 warnings and 4 fines, totaling 140 thousand yuan.

    With the development and growth of Xiao Hong's book, grayish black industry chain, such as grass notes, counterfeit writing, falsification, water force and brush volume, is gradually emerging.

    At the same time, on the major complaints platform, there are also a few cases of complaints about Xiao Hong in the near future.

    "Before using Xiaohong book as a guide to consumption, buying beauty cosmetics or other daily necessities will refer to Xiao Hong book.

    Now we are watching the full screen red screen, the star recommendation and the water force brush quantity party. We can not feel the truth now. It looks like everything is advertising.

    Xiao Hong book user Wang Xin (a pseudonym) told blue whale correspondents.

    It is undeniable that the rapid development of the little red book has become the content community unicorn, but in the face of the outbreak of various crises, it seems to have not yet prepared to deal with, the road of commercialization is long and blocked.

    Xiao Hong's book of reputation is facing a word of mouth crisis.

    StephanWilmet, L'OREAL's chief user officer, has commented on Xiao Hong's book. "In Xiao Hong's book, he can directly listen to the real voice of consumers.

    Real word of mouth is the most solid link between brand and consumer.

    Nowadays, the bond of Xiao Hong is no longer solid, and users are full of doubts.

    From the history of the red book, the real word of mouth promoted the rise of the little red book.

    Xiao Hong's original location is to provide consumers with exit strategy, and has launched a PDF "Xiao Hong Book exit shopping strategy", which has been downloaded for more than 500 thousand times in 3 months.

    According to Mao Wenchao, founder of Xiaohong book, by the end of 2013, "Xiao Hong book shopping guide in Hongkong" was on the line of App store. Many people who went shopping in Hongkong would go to appstore to search for the application of shopping in Hongkong.

    At that time, hundreds of users were harvested every day. This group of people became the seed users of Xiaohong book, and Xiaohong book also welcomed the opportunity to pform UGC community.

    Although it was originally called Xiaohong book shopping guide in Hongkong, users will gradually send some shopping experiences in Korea and Japan and discuss it spontaneously.

    Through sharing the real experience of users with overseas shopping experience, telling everyone what is worth buying, and taking the pain point of information asymmetry of Hai Tao to cut in, the content community of Xiaohong book has attracted a large number of users who have overseas shopping needs. This has gradually become a paradise for sea consumers to explore their experience.

    When the content community traffic settles down, with a large number of browsing, point praise and collection of the underlying data generated, the realization of the electricity supplier has become a natural thing.

    But where there is traffic, where is the paradise for harvesting benefits of grey and black products.

    A few yuan, a good reputation, rely on the brush to create false sales volume, network brush quantity "gray black production" this industry cancer, finally eyed the little red book.

    The Internet is flooded with many small red book brushes, and there are also industrial chains such as running KOL and writing grass notes.

    Reporters on the QQ search "Xiao Hong Shu", found that there are a lot of brush volume, promotion group.

    Reporters immediately joined one of the group, the group mainly for small red books to promote businesses and advertising companies to do basic notes, keyword placement and other brush volume operations.

    Responding to Xiao Hong's book, it said that the zero tolerance of community brush quantity and brush powder will attack the black industry in the end. It has reported to the public security organ on such incidents, and actively cooperate with the public security investigation and treatment. It also indicated that dozens of anti cheating teams have been set up, and the amount of brush screening has been screened through machine learning.

    The amount of brush can still be monitored, but how does the little red book, which is written in the wind and the content is suspected of false propaganda?

    Two months were fined 6 times, users questioned Xiao Hong Book false propaganda, fake more

    According to the eye check, up to the end of 2016, there have been up to 17 administrative penalties for Xiao Hong's books, most of which involve false propaganda, user complaints and rights and interests.

    In the first two months of this year, Xiao Hong received 2 warnings and 4 fines.

    In addition to the administrative penalties of the regulatory authorities, the reporter found that complaints from the black cat were not unusual among the complaints from the black cat.

    Among them, "false propaganda", "fake", "cheating" and other words are very high.

    In August 2014, Xiao Hong's online "welfare agency", in the business mode, Xiaohong chose the whole self run platform. The platform not only handled the selected products, procurement, customs and customer service, but also took two days to handle hundreds of thousands of single bonded warehouses and two overseas warehouses.

    However, due to the late start, there are short boards in the supply chain, channels, logistics and so on. Its own electricity supplier operation capability can not support the current user volume, and the control of all links in the electricity supplier is slightly weaker.

    The final result of these problems is that the platform has been repeatedly complained by users about fakes, slow returns and poor after-sale.

    "I usually use the little red book to read the community recommendation and use it as Baidu.

    Buy things but buy less, not go to Kola buying or buying, because the price will be cheaper. "

    User Zhang Meng (alias) said, at the same time, she said, "worry about having a fake."

    It's also one of the worries that she doesn't often shop on Xiaohong book.

    Xiao Hong started from the content community. The first impression of users is shopping strategy. The cognition of its business is still not strong enough.

    "I basically watch word of mouth in Xiao Hong book and then go to Tmall international and NetEase koala."

    Zhang Meng said.

    It is a long process to cultivate users' shopping habits.

    At the same time, Xiao Hong's shopping experience was also affected by user Tucao.

    "When I first bought things on Xiaohong book, I couldn't find my order."

    Zhang Meng said helplessly.

    The entrance of some electronic business functions is very deep, which adds a lot of unnecessary trouble to users.

    "Xiao Hong's trading side profit model is currently a content business, its content business development, the biggest challenge in the future depends on the stickiness of its community users and whether it continues to grow, and whether the electricity traders can meet the needs of the community users."

    Cao Lei, director of China Electronic Commerce Research Center, said.

    Good word-of-mouth and e-commerce environment are important factors to maintain user stickiness and continuous growth.

    But for Xiao Hong's book, the frequently criticized goods and shopping experience are gradually eroding the reputation of the platform.

    The road of electric business is blocked and long.

    In August 2018, it was reported that Xiao Hong was reorganizing its organization, and the staff of 1/2 in the electricity sector will be abolished in the next 3 months, which will be reduced from about 500 to more than 200.

    The news shows that the small red book business department according to the commodity category will be reduced to more than 10 groups of single digits, the relevant electricity sector staff can choose to pfer or leave.

    Although Xiao Hong has denied layoffs, its business development and commercialization has been widely questioned.

    In February 21, 2019, Xiao Hong carried out a large-scale restructuring of the organization, mainly involving advertising marketing and e-commerce business.

    The original community electric business department upgraded to "brand number" department, marketing and trading around the brand, upgrading the "welfare agency" department, integrating the whole process function of commodity acquisition, warehousing, logistics and customer service.

    At the same time, the brand number department will focus on the core product of "brand number", integrate the resources from the community marketing to the closed loop paction, and provide the whole chain service for the brand side to help them continuously enhance their commercial value.

    "The online brand of Xiaohong book has made a good hub for the community to open up pactions, so that more brands can participate in the ecology of Xiao Hong's book, and do the whole chain marketing from content to paction.

    From the point of view of the problem, the biggest challenge in the paction level of Xiao Hong book is whether the trading end can match the needs brought by the high growth of the community users.

    Cao Lei said.

    According to "finance and economics" report, although the small red book self employed electricity supplier commission rate is several times that of Taobao, but its self operated electricity supplier in 2018 10 billion yuan GMV goal has not been completed, and has not realized the profit.

    It ranked second in the overseas vertical electricity supplier sector, accounting for 13.4% of the shares, and still has a big gap from the 74% share of the first NetEase koala.

    Cao Lei pointed out, "as far as I know, the GMV of Xiao Hong's book is growing constantly, and there is no clear financial data indicating whether it is losing money.

    Even if there is a loss, it is a common phenomenon of almost all platform based e-commerce providers in the initial stage of development, all for the "horse race enclosure", and to enhance competition barriers, which is a common strategic loss of the electricity supplier industry.

    Source: blue whale Finance

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