Under The Small Red Book Under The Line Store Entity Will Be Hit?

How much glory may there be? The little red book, which has been regarded by many girls as "grass machine", is no exception. Since its foundation in 2013, Xiao Hong has gradually developed from overseas shopping information sharing platform to cross-border electricity supplier and social business provider. It has received large investments from Tencent and Alibaba, valued at over 3 billion US dollars.

During the period, advertisements flooded, false propaganda, write down doors, tobacco doors and other events, and let Xiaohong Book criticism. This time, Xiao Hong's book is directly under the shelves of major application stores, and the situation is even more serious.

In response to this, Xiao Hong Shu issued a statement on the issue of App in the major application markets in August 1st, saying that it had launched a comprehensive investigation and rectification of the contents of the station, and thoroughly investigated and corrected itself, and actively cooperated with relevant departments to promote the optimization and upgrading of the Internet environment. However, the statement did not mention the main causes and the on-line time.

It is noteworthy that the book is not limited to online operation, but like other content platforms, joined the tide of opening a physical store. Statistics show that since 2018, Xiao Hong has set up a physical store in Jingan, Shanghai, Shanghai, Jiading, CITIC Pacific, Wanda Plaza, Jiangsu Changzhou wyue Plaza and Ningbo Yinzhou Wanda Plaza, with the advantage of online social networking.

Now, will the small red book shelf affect the offline stores? Next, how does little red book plan for offline stores? In response to these problems, the media tried to contact Xiao Hong book, but by the end of the press release, Xiao Hong did not reply.

　　 Small red book home RED home re experience light selling

The creation of Xiao Hong's book originated from the growth draught of consumption outside China. The development benefited from the boom of cross-border electricity providers, and then returned to the community after experiencing the low tide of industry, and continued to sell traffic.

In 2018, the online business transformation became a new trend. Tmall international, NetEase koala, one, solar eclipse and so on set up shop entities.

In June of this year, the first online experience shop of Xiaohong book, RED home of Xiaohong's book, was located in Jingan, Shanghai. For the location of the store, Xiao Hong has responded to the external response, saying that Xiao Hong is never a cross border electricity supplier, but a community. At the same time, the small red book shop does not aim at selling cross border goods, but provides a offline experience space for users, which is the extension of online shopping in communities.

Based on this, the store has set up 6 main areas: home area, beauty dressing area, clothing area, Star area, window area and water bar area, so as to create diversified immersive scenes and add a lot of black technology. As long as commodities are close to the interactive screen, they can query relevant information, and can also see the massive word of mouth notes in the little red book APP. This is exactly the offline mapping of the little red book community.

However, RED home, a small red book house, did not perform well at the early stage of its opening. Insiders told the media that the sales of Xiaohong book RED home Jingan Joy City were not ideal after opening the first year to October 2018. After that, it was not clear whether the operation team had been replaced and whether the business has improved.

The media also found in the field shop recently that the customers of RED home Jingan Joy City store were mostly photographing and punching cards, but not paying much.

According to people familiar with the matter, the monthly sales volume of Xiaohong book house RED home Jingan Joy City store can reach 50 - 600 thousand yuan. However, according to industry insiders, it is a good level to achieve a flat effect of 3000 yuan / month, like RED home, a small red book house.

For example, the 400 square meter small red book house RED home Jingan Joy City store calculated according to the monthly sales amount of 600 thousand, Ping efficiency is only 1500 yuan / month, obviously not ideal enough. Wanda said that the business of small red book house RED home in CITIC Pacific square in Jiading is good.

　　 Online or offline operation advantage or inequality

　 The advantage of Xiao Hong's online is beyond doubt.

According to the 6th anniversary letter of the June 6, 2019 Xiao Hong book, its founder's internal letter shows that the number of monthly active users (MAU) of Xiaohong book has exceeded 85 million, and the total number of users is more than 250 million. More data, at present, Xiaohong book daily community notes exposure times more than 3 billion times, 70% of the exposure is UGC content.

In terms of sales volume, the online business of Xiao Hong's electricity supplier "welfare agency" has been on-line for half a year. Sales volume exceeded 200 million yuan on the premise of zero advertising. In September 2015, since the official operation of Zhengzhou warehouse in March, the sales volume of Xiaohong book was 700 million yuan in half a year, and in 2018, when the users of Xiaohong Book broke through 50 million, the monthly sales volume had exceeded 1 billion yuan.

However, it is not enough to move online communities to offline shopping centers. It is not enough to make light experience. After all, the rental and operation management costs are very high. Take Xiaohong book house RED home Jingan Joy City store as an example. The beauty shop products in this store account for a relatively high proportion. The collection stores such as Watsons, and so on are invisible. But many beauty brands are not common in stores.

"Compared with other e-commerce entities, the most obvious feature of Xiao Hong's book is cosmetics, but the disadvantage is also the same, and there is not much advantage compared with the cosmetics stores like silk and blue." People in the industry like to evaluate Xiaohong book shop.

The Tmall wisdom store, also located in Jingan's Joy City, is a clothing based concept hall for the whole category of life. It is also a network red shop where the content operation integrates the retail system. The store has a lot of similarities with the little red book house in scene creation, intelligent technology and sales products, and even many products choose the same type, virtually putting pressure on the little red book house RED home.

The media also noted that the distribution of Xiaohong book shop was scattered, and gradually subsided to new front-line cities and second tier cities. However, according to the user data of Xiao Hong's book, 18% of the new users come from the north, the upper, the deep and the deep, and 40% come from the new line and the second tier cities. The remaining 40% come from the three line and the cities below. Perhaps this is the main reason why Xiao Hong chose to shop in Ningbo and Jiangsu Changzhou.

Offline stores are not optimistic.

"The greater value of offline stores is the accuracy of customers, and the lower cost of getting passengers than online". It is also a content platform, and a continuously open shop is not just for displaying experience, but for selecting the content under the line, which is conducive to further sales.

It is in view of the potential of online traffic and the publicity effect on brands, many online platforms have set foot in the entity stores under the line, such as Tmall international, NetEase koala, Taobao's heart election, eclipse and so on. On the other hand, the collection stores gather many brands and categories, which can reduce the rental cost of the shops, provide more choices for consumers, and present a thriving trend in shopping centers.

However, the speed of expansion of some stores is not as fast as expected. Take NetEase koala and an example as an example. Since last year, the first entity store has opened, so far, the NetEase koala has opened 9 stores offline (including NetEase koala factory store), and a public number shows that there are 10 stores in Shanghai, Beijing, Hangzhou, Nanjing and Ji'nan.

In view of the rapid development of brand collection shops, the survival situation is not optimistic. Recently, N, ME, Shanghai's first stores, Beijing, Shenzhen, Chongqing and other places have gradually closed stores, which is a typical case.

A founder Xu Husheng once said that no matter how innovative, in the final analysis, there must be a clear business model and profit model. If we want to develop better, we must have a steady business model and enough gross margin space. For a collection store similar to Xiaohong book, assembling multiple products and creating immersive scenes can attract consumers, but it is still uncertain whether they can bring real benefits.

Today, Xiao Hong book online application once again encountered "disaster", is to stimulate more people to shop offline card buying, or the operation of the line has a strong impact, waiting for time to verify.