How Does Xiao Hong Book The "Degree" Between Commercialization And Disposition

According to the world clothing and shoe net, in recent months, restructuring and restructuring has become the norm in the Internet industry.

The famous red chicken in the field is no exception.

However, the adjustment of Xiao Hong's book seems to have a sense of urgency.

Recently, it is reported that Xiao Hong published an open letter announcing the restructuring of the company: the original community electric business unit upgraded to the "brand number" department; upgraded the "welfare agency" department to integrate the whole process function of commodity acquisition, warehousing, logistics and customer service; at the technical end, the technical team of all the business lines of the company was aggregated; the platform of the service department was set up.

Marketing, brand public relations, government affairs, compliance, administration and other functional departments; newly established CEO office, to assist in the formulation of company strategy and the organization of key projects.

In this regard,

In response, the internal letter did exist, but it was not "structural adjustment" but "structural upgrading", and its own brand "bright" was not abolished.

However, whether adjustment or upgrading, the change of its electricity business is still most concerned by the industry.

The adjustment of the community electricity business division is also seen by the outside world as a matter of fact. Xiao Hong book will formally abandon the original goal of commercialization with a single electricity supplier.

Looking back carefully, it can be found that this is not the first time that Xiao Hong has "started" to the electronic business department.

As early as last August, after Xiaohong completed more than 300 million dollars D round of financing, there were media reports that the small red book abolished half of the electricity suppliers.

Only half a year later, once again adjusting the electricity business, it can be seen that it has not gone smoothly in this business line.

Community electricity providers, community and electricity providers which is important?

The small red book, the main community electricity supplier, has been a small step in cross-border e-commerce.

In 2013, after the small red book was launched, cross-border electricity business was launched in less than a year.

In the same year, Tmall international, NetEase koala and other famous cross-border e-commerce platform has just entered.

But in the past 5 years, why did little red book fail to get the preemptive advantage expected?

According to the data released by China Industrial and Commercial Research Institute, as of the third quarter of 2018, Xiao Hong ranked sixth in the domestic cross-border electricity supplier market, with a market share of only 3.9%.

The first and second Tmall international and NetEase koala accounted for 30.2% and 23.2% of the market share respectively.

By 2018, the "small and beautiful" of cross-border e-commerce market was no longer attracting attention.

Obviously, in the face of the industry giants such as Ali and NetEase, although Xiao Hong has an advantage in starting time, the gap between capital and traffic is not a single star.

To do cross-border electricity business, from channel, procurement to the establishment of bonded warehouses, customer service teams and so on, all need a lot of capital investment.

Therefore, when the little red book fails to form a barrier, the entry of Ali and NetEase is tantamount to announces the outcome of the cross-border business of Xiaohong book, and it is the only way to return to the giants.

It can be seen that the reason why Xiao Hong's book business is lonely is that there is not enough physical capacity. SKU is relatively thin.

In the early years, Xiaohong book was successful in the form of community-based, from "planting grass" to creating explosive funds.

However, due to the limitation of physical volume, the SKU business can only meet the needs of some users.

Under such circumstances, even users appear in the little red book community to "grow grass" and then go to other platforms to compare prices and purchase commodities.

Based on good thinking, Xiao Hong also chose to open up platform resources to third party businesses.

But at the same time of expanding SKU, the lack of control will inevitably bring about fake goods and trust.

In this regard, a senior electricity supplier industry experts told the author: "the biggest weakness of the little red book in the self operated electricity supplier lies in its short supply in the supply chain and logistics.

In addition, due to the size of its own body, Xiao Hong's appeal to upstream suppliers is relatively weak.

Under such circumstances, although excellent community operation can bring relatively good traffic, the weakness of sales level can not support its flow.

Taobao holdings, how community efforts to cash in

Behind this structural adjustment, more is the new pursuit of Xiaohong's commercialization, and this pursuit stems from its growing users in the community.

Thanks to the successful operation of the content community, the users of Xiao Hong Book ushered in a rapid growth last year.

According to the data of QuestMobile, from the beginning of 2018 to the end of June, the DAU of Xiaohong increased from about 3000000 to 8 million 406 thousand in the half year, and exceeded ten million in August.

According to its latest internal information, during the Spring Festival of 2019, the number of active users of Xiaohong Book exceeded 300% in the same period last year.

The effects of word of mouth and the fission of community users have led to the outbreak of the red book. Therefore, seeking further commercialization seems to be reasonable.

Chibe Shinya, a small red book, emphasized that 2019 is the key year for its user growth and commercialization.

Prior to the weakness of the electricity supplier business, Xiao Hong's book was somewhat cautious in the choice of commercial realisation.

After completing the $300 million financing of Ali investment in late May 2018, Xiao Hong chose to hug Taobao's thighs while reducing the proportion of its own business.

In December 2018, Taobao Mobile's internal test showed that its merchandise had been able to get through with the contents of Xiaohong book, and merchants could decorate "red book content" related to the current commodity in the background of decoration, but did not have the right to decide on the content.

Choosing to open up content and information flow with Taobao mobile means that the channel of Xiao Hong's book will rely more on Taobao.

Now the little red book is betting on the commercial focus in the content community, aiming to further enhance the DAU through information flow.

At this stage, under the premise that the electricity supplier business can not get greater breakthroughs, focusing on the better development of the content community is not only the best choice, but also the frustration.

Through the development of content community, and then through the information flow advertising profit example, in the domestic Internet industry is not uncommon, such as jitter, micro-blog, know almost all the same.

When the book is going to further enhance the coverage and number of users in the community, it is likely that users will encounter the old problems faced by other content communities - the public and the objective of the content.

In this regard, the relevant electricity industry experts told the author: "in terms of community traffic, what most businesses are most concerned about is the value of the online red fan culture brought by Xiao Hong book to marketing.

With the continuous expansion of the scale of the community, businesses are likely to pay the invitation to distribute the sales content on the platform, which is commonly known as the commercial soft language.

And consumers are not aware of this. Once the content of this part of advertising is too much, it will have a great impact on the tonality and healthy development of the community.

This situation is also a common problem of many content + community platforms, knowing that the quality of the whole content community has been declined due to rapid expansion and over commercialization.

In 2019, whether Xiaohong book could go smoothly on the road of content community, or even made a community electric version of "shaking voice", is still difficult to judge.

But for Xiao Hong's book, to speed up the search for commercialization, strengthening the screening of content information is a top priority. We can not lose the tone of the platform due to over commercialization, thereby harming the user experience.

Content full but commercialized bone, this is the pain of community electricity supplier, but also the biggest threshold for Xiao Hong to go.

How to grasp the "degree" between commercialization and tonality, every step of Xiao Hong's book has demonstrative significance to the industry.

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