Xiaohongshu: E-Commerce Challenges and Strategies

<div style="font-size: 0.95em; line-height: 1.4;"><p align="justify">Founded in 2013, Xiaohongshu had evolved from an online shopping guide into a major app. By August 2023, the platform had introduced the “buyer era,” marking a pivotal shift in its business strategy. Xiaohongshu integrated influencer and merchant operations into a unified department to enhance efficiency and strengthen the link between content creation and e-commerce. It needed to determine whether a commission-based buyer model could transition the platform from influencer-driven live e-commerce to a model where professional buyers would curate and present products directly to consumers. This strategic move required careful evaluation to ensure alignment with the platform’s core strengths.

<div style="font-size: 0.95em; line-height: 1.4;"><p align="justify">This case is suitable for both undergraduate and graduate courses in strategic management, brand management, marketing, e-commerce, operations management, and supply chain management, especially in sections that focus on differentiated strategies within e-commerce. It explores Xiaohongshu’s e-commerce strategies, which set it apart from competitors by creating a distinctive shopping experience that combined live interactions with professional expertise.<br><br>After working through the case and assignment questions, students will be able to do the following:<br><br><ul><li>Understand strategic differentiation in e-commerce by analyzing how Xiaohongshu’s integration of social media content, influencer marketing, and e-commerce created a competitive advantage in the market.</li><li>Examine the role of live interactions and influencers to understand how live interactions and influencers’ recommendations influenced consumer behaviour and enhanced sales within Xiaohongshu’s e-commerce ecosystem.</li><li>Discuss the impact of restructuring influencer and merchant operations and how Xiaohongshu’s decision to integrate these functions could enhance operational efficiency and align with the platform’s core strengths and long-term objectives.</li><li>Evaluate alternative business models and implementation challenges by assessing the potential benefits and challenges of various business models Xiaohongshu could explore.</li></ul>

• social commerce strategy
• Xiaohongshu evolution
• buyer era
• influencer commerce
• professional buyers
• e-commerce strategy
• content-commerce integration
• strategic differentiation
• live interactions
• consumer behavior
• influencer marketing
• operational efficiency
• merchant operations
• competitive advantage
• commission-based model
• platform restructuring
• brand management
• e-commerce ecosystem
• supply chain management
• product curation.