Social Commerce: Little Red Book new Program Goes Viral on WeChat

Little Red Book launched a social commerce mini program “RED Shop (小红店)” which suddenly became viral on WeChat. Social commerce is booming

Little Red Book, also named XiaoHongShu, just launched a social commerce mini program “RED Shop (小红店)” which suddenly became viral on WeChat.

XiaoHongShu (小红书), literally Little Red Book, founded by Charlwin Mao in 2013, now counts more than 100 million users, 30 million of which are active monthly, and it bases its success on the influence and trust of information shared by the users themselves.  At the moment, Little Red Book ranks first among cross-border shopping apps.

How does Little Red Book new mini program work? You will need to invite at least 50 friends to be your fans before you become a “Shop Owner (红人)”. As a “Shop Owner”, you will get cash rebate when your fans place orders. The cash rebate can be up to 40% of the sales. Currently there are only 10 products listed in the shop. All of the products are already very popular on RED.

RED will also provide training courses to “Shop Owners”. The model is similar to “Alimama” and “淘宝客” which you can share product links on Taobao to your friends and receive cash back when they purchase. Taobao sellers can also join the program and set the commission rate by themselves. For now RED only selects a few sellers to join this new program. Wondering if they will make it open to all sellers in the future.

China today is definitely the forerunner of changing the buyer’s habits towards online shopping. And social-commerce became one of those trends copied by Western hi-tech firms.

Categories: China, Company, ECommerce, Social

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