LV Settled In, "Washed" KOL Xiaohong Book Began To Change?

With the growing cake of social business, Xiao Hong book, which has a valuation of $3 billion, is striving to meet its expectations.

Recently, luxury brand LV officially entered Xiaohong's official account and became the first luxury brand to enter Xiao Hong's book.

At the same time, Xiao Hong also released the "brand cooperation platform upgrade instructions", which made higher demands on the amount of fans and the amount of monthly exposure. KOL, the key opinion leader, or Internet blogger, will be eliminated from the brand partners.

In the eyes of the outside world, a series of actions of Xiao Hong's book are undoubtedly raising the threshold of audit, saving the trust crisis of enterprises, and speeding up the commercialization process.

Can the commercialization of Xiaohong book go smoothly?

As a "new species" in the post electricity supplier era, the electricity generation mode based on social interaction has quietly risen, relying on the low-cost fission opportunities provided by WeChat ecology, breaking the bottleneck that traditional electricity providers can not break through, and becoming the most prosperous Internet economy "new draught" in recent years.

Since 2013, Xiaohong book has been upgraded several times.

From Hai Tao to the establishment of the "community content + business" mode label, and now the location of lifestyle sharing platform emphasized by Xiaohong book, its current user scale is gradually expanding, and its contents are more and more extensive.

Driven by three factors, high viscosity, high activity and female users, Xiao Hong tried to tilt to the electricity supplier and launched the first self operated cross-border e-commerce business "welfare agency" in the second years of its establishment.

But in the face of the accelerated layout of Alibaba, NetEase koala and Wei pin international electric giants in the field of Hai Tao, the self operated e-commerce business of Xiao Hong's books is in a weak position in supply chain, suppliers, logistics and so on, it is very difficult to retain users from grass communities.

At the same time, small red book platform selling and after-sale services are not timely and other issues have also been criticized.

According to Analysys data, as of the fourth quarter of 2018, Xiao Hong ranked sixth in the cross-border import retail business market, accounting for only 3.7%.

In 2018, Xiao Hong's own business set up GMV100 billion target, but it didn't come true at last.

Aware of the fact that the electricity providers are not strong enough to compete with the giants, Xiao Hong suddenly refocused on the content and community plates last year, not only increasing the short video function but also attracting a large number of 95 young consumers by inviting Ouyang, Nana, Fan Bingbing and other stars to set up accounts and sponsorship of the "puppet trainee" and "create 101" and so on. The bloggers who grew together with Xiao Hong book such as ritawang, Chen Baiyang and so on also welcomed the peak of commercialization.

But in the process of seeking content realisation, it is difficult to find a balance between quality and commercialization.

Earlier, because of the "grass notes" fraud, there are a lot of soft Wen, and induce consumers to irrational consumption, Xiaohong book was once again pushed to the cusp.

Recently, Xiao Hong published the "brand cooperation platform upgrade instructions", making higher demands for fans and monthly exposure.

KOL, which requires less than 5000 fans and less than 10000 of the average exposure, will be eliminated from the brand partners. No more advertising will be allowed. The previous standard is more than 1000 fans, with an average exposure of more than 1000.

After the release of the news, the number of the latest brand partners in Xiaohong Book reduced from 17 thousand to about 5500 instantly, almost filtering out 70% of KOL, most of which were star and head KOL.

Xiao Hong said in a statement that the upgrading of the brand cooperation platform is aimed at establishing a more high-quality, efficient, pparent and fair brand cooperation body system, so as to improve efficiency and standardize the business market while establishing a good community ecology.

In order to make the platform more convincing, luxury brand LV officially entered Xiaohong's official account and became the first luxury brand of Xiaohong book.

At present, LV has released four videos and six pictures on the official account of Xiao Hong, which has attracted 16 thousand fans and won 27 thousand compliment.

According to the latest report of Guotai Junan, the scale of Chinese women's consumption market has reached 670 billion US dollars.

Over the past five years, the total expenditure of Chinese female consumers has increased by 81%, of which 55% comes from online, far more than that of online shopping.

In terms of specific purchase decisions, the report shows that 80 and 90% are more dependent on the comments on the e-commerce platform. 54% of respondents said they would refer to buyers' comments, and only 1/3 would do so after 65 and 70.

The real word of mouth of over 200 million users accumulated in Xiaohong Book community is undoubtedly an important reason for brand entry.

Thus, there will be more famous brands entering Xiaohong book.

Even if a big brand like LV has settled in and cut off a number of KOL, Xiao Hong still faces some old problems.

From the commercial value of KOL, its high-quality notes can satisfy users of value, stimulate users' emotional resonance, and help brands achieve the effect of planting grass through KOL recommendation notes.

It can be said that KOL is the foundation of Xiao Hong's book. After that, how do we get rid of the bloggers and how to open up and drain the small red books? As a sharing platform for life style, how can we form a better closed loop between the electricity providers and the content? These problems will be the next thing to think about.