Xiaohongshu announces: "Welfare Society" will officially close on November 16th!, Vigorously developing the ecosystem of third-party e-commerce
Following the recent announcement of the closure of the self operated e-commerce platform "Little Oasis", on September 15th, Xiaohongshu announced that it would close its self operated store "Welfare Society". From now on, all self operated e-commerce platforms on Xiaohongshu will be closed.
Xiaohongshu Welfare Society officially closed on November 16th
On September 15th, Xiaohongshu Welfare Society released a letter to users titled "Farewell, Start", stating that in order to better meet the rapidly growing user demand, Xiaohongshu will concentrate resources and efforts to serve more buyers, managers, merchants, and brands in the development of e-commerce. The welfare society will stop selling goods on October 16th and officially close its stores on November 16th.
The letter mentioned that over the past year, with the integration of e-commerce into the community, more diverse purchasing scenarios have emerged on Xiaohongshu, and diverse user purchasing needs have also emerged. "This is not only a farewell, but also a new beginning. Sincerely welcome everyone to join us in the increasingly rich Xiaohongshu e-commerce."
Public information shows that Xiaohongshu's "Welfare Society" was established in December 2014 and is Xiaohongshu's self operated store. At that time, Xiaohongshu, which focused on outbound tourism and shopping strategies and had been established for more than a year, constantly saw users asking "how to directly buy Xiaohongshu after it was planted." In order to meet the needs of users and bring benefits to them, Xiaohongshu decided to establish a "welfare society". As of now, the Xiaohongshu account of the welfare society has a fan base of 16.696 million.
Many users of Xiaohongshu have expressed that it is "too regrettable" and "a bit unacceptable".
Xiaohongshu E-commerce Enters the "Buyer Era"
Li Yongjian, Deputy Director of the Platform Economy Research Center at the University of Chinese Academy of Social Sciences, believes that with the integration of Xiaohongshu's e-commerce and community, transaction links have been opened, and the number of purchasing users and merchants on Xiaohongshu has shown rapid growth. At present, the closure of welfare societies can focus human and material resources to undertake the rapidly expanding e-commerce ecosystem. "Focusing on developing a tripartite e-commerce ecosystem can be seen as another signal that Xiaohongshu will vigorously invest in the development of e-commerce, following the establishment of the trading department and the holding of the e-commerce partners' week."
At the recent Xiaohongshu e-commerce conference, Xiaohongshu shouted the slogan "The era of buyers is coming". Data shows that in the past year and a half, the scale of buyers and managers of Xiaohongshu e-commerce has increased by 27 times, the number of mobile sellers has increased by 10 times, and the number of purchasing users has increased by 12 times.
Xiaohongshu COO Conan stated that individuals such as Xiaohongshu buyers and managers have become key players in Xiaohongshu e-commerce, serving as connectors between products and users. Conan said that among the daily active users of Xiaohongshu, there are nearly 40 million users with purchasing intentions every day. There is still a large number of users whose purchasing needs have not been met.
Yin Shi, the live streaming manager of Xiaohongshu, and Mai Kun, the head of e-commerce merchants, stated that they will invest 50 billion in traffic to support the growth of more Xiaohongshu buyers, while also investing 50 billion in traffic to support merchants and help them better operate on Xiaohongshu.
