How Little Red Book unlocks offline?

       As a company, LRB is finding new products for their clients to present to potential customers. These include upgrading the traditional seeding tactic, rethinking localization for clients, and continue to be a unique space for clients’ users. Later discussed is how to leverage LRB’s online advantages to implement an online to offline (O2O) strategy. For companies that do not consider LRB a one-stop for e-commerce conversion, O2O may be the second option.

Seeding for Success

       LRB made numerous comebacks from their commendable crackdown on cosmetics and medicinal scam promotional contents. For example, the crackdown on trending topic Johnson & Johnson’s “Mortin children’s fever medication used on adults”. The “weeding” of deceptive content proved the platform is safe to establish more refined promotions for these industries [1]. In recent years, LRB crackdown on deceptive recommendations had stretched into travel destinations and whether the spots are potentially dangerous.

       Recently, LRB published the patent for the app to shrink to a user customized anchor point for better interface workflow [2]. This change means the customer stickiness will be fully leveraged to connect to reference apps. Allowing LRB to become a more flexible app in a user’s hands. The result is in development for word-of-mouth creators guide the users to a purchase conversion. In the graph below, seeding is necessary and allowing more channels to open for customer journeys.

LRB localization is not like the WeChat Mini-Program that functions as a one-stop website and shop. Most campaigns offer have the option to or exclusive right to directly purchase from Mini-Program. LRB is localizing by not losing its screentime presence to companies converting. This may reduce the losses in these users maneuvering to another platform for additional information.

       Localization strategy is developing with links to brick-and-mortar stores directly from influencers’ word-of-mouth content. The axillary company (Sichuan Hongmei Intelligent Technology Co., LTD., 2023) created a patent for WeChat and LRB QR-based codes to link into maps. Along with WeChat which grafted its short-form video formats from LRB.

Unique LRB Segments

       One advantage of LRB is its segments. Most companies who have gained from LRB finds their target audience on LRB in one of these niches. Marketers traditionally cannot use literature devices such as satire or exasperation to express value. The “reverse market” with word-of-mouth has done so. For LRB, a look at the newly rich, international students, and high-income earners users is a great collection of groups.

       LRB will directly link to customer relationship value creation offline with more localization strategies. Already, the luxury fashion and home decoration brands require LRB to feature galleries and salons [4]. The in-person value adding service is the end goal for O2O strategy. Especially, reflecting on the research reveals there are younger female clientele on LRB. See our previous post “Life-sharing Platform Xiaohongshu Gaining More Influence among Chinese Youth” to understand this trend.

Insights

For companies to fully utilize their chance to make headway with online to offline channel such as LRB, influence marketing and e-public relations are key. The flexible platform does some of the work. A business must complement their services with the proper digital promotion strategies and regular maintenance of brand virtual communities. The heavy lifting is in the dialogues which spark interest for awareness.

       Many brands targeting female clientele on LRB like Chanel, Dior, YSL, Bobbi Brown, L’Oreal, and luxury cosmetics in the years following relaxed Chinese epidemic measures will face difficulties. For one, female high-income consumers are shifting their impulse luxury investments into handbags and or tourism [5]. Other luxurious beauty products are competing for LRB’s bigger company promotional investments like cosmetic surgeries.

       Even more important now than ever, e-reputation require companies to deal with the issue to control virtual dialogues. Including suppressing online bullying associated with word-of-mouth referrals. The customer has more reasons to enjoy the buyer’s journey in a market environment with less negative feedback. LRB then has the potential to encourage potential consumers to open the channels and go on the trip to realize O2O.

Four Steps to Create Offline Conversions

1. Professional Account can optimize postings, increase followers, topic marketing, and send offline store messages.
2. Dandelion Account is the broadcast platform. For offline store owners, use it to invite average people and mid-level influencers to visit store.
3. Affiliated marketing with native advertisement placements. Depending on the size of your chain-stores brand, use native ads with care. Must know the sensitivity of potential consumers to cost-effective strategies.
4. Marketing conversion is through a specific mission, at a certain time, at a store, or from a certain keyword.

References

[1]Li, PeiQing; Sun, Heng. 2022. Little Red Book Falls into “Seeding” Predicament. http://sd.china.com.cn/a/2022/yaowen_1230/1044101.html

[2]Little Red Book Technologies Limited. (2022). Method of adding an anchor point to a video on a mobile terminal. (Chinese Patent No. CN115396739A). Paytee. https://patyee.com/search/detail?exp=exp1678776123410&type=result&an=CN202110573050.9&pn=CN115396739A&index=6

[3]Sichuan Hongmei Intelligent Technology Co., LTD. (2023). A shopping guide method based on QR code. (Chinese Patent No. CN202211541696.X). Patyee. https://patyee.com/search/detail?exp=exp1678775118960&type=result&an=CN202211541696.X&pn=CN115760140A&index=1

[4]Stone, Marilyn. 2022. How more female executives in the C-suite can spur improved customer orientation and financial performance. https://phys.org/news/2022-09-female-c-suite-spur-customer-financial.html

[5]Yang, XuRan. 2023. The lipstick effect has failed. https://finance.sina.com.cn/tech/roll/2023-03-15/doc-imykxazf4855387.shtml

[6]Yang, YueHan. 2023. WeChat Seeds “Little Red Book”. https://www.bbtnews.com.cn/2023/0303/468270.shtml