Precision Marketing Based On Big Data | Xiaohongshu

Social media is inseparable from people’s daily lives in China. In the past decade, social e-commerce has emerged as a powerful convergence of social media and e-commerce transactions, and Xiaohongshu also known as Little Red Book and RED, is one of China’s most popular social and community e-commerce platforms.

Xiaohongshu: What is it?

Xiaohongshu, founded in 2013, is frequently described as a combination of Instagram, Pinterest, and Amazon. With a focus on lifestyle and beauty products, it captivates users seeking inspiration and shopping opportunities.

Xiaohongshu is a user-generated content (UGC) community. Xiaohongshu app comes with three main functions: creating content, browsing communities, and domestic and cross-border shopping.

Xiaohongshu encourages users to create posts about products, brands, and experiences. The posts usually take the form of a diary entry or recommendation from a friend. Key Opinion Consumers (KOCs) as well as Key Opinion Leaders (KOLs) are the key forces of content creation. Other users can comment and share the posts on other popular social media platforms in China, extending the influence, engagement, and interactivity. At its core, sales conversion on Xiaohongshu relies on user reviews and word-of-mouth.

Xiaohongshu facilitates seamless shopping experiences through its user-friendly e-commerce function, enabling both users to shop and brands to sell effortlessly. Additionally, the platform integrates shopping links within engaging content created by Key Opinion Leaders (KOLs), amplifying the potential for consumer engagement. Livestream shopping sessions further enhance the interactive shopping experience, while paid advertisements offer brands valuable promotional opportunities. Xiaohongshu's diverse range of features ensures a comprehensive and dynamic shopping ecosystem for both users and brands alike.

Examples of Xiaohongshu interfaces:

A Distinct User Profiles

Xiaohongshu stands out with a well-defined audience profile, which is essential for precision marketing. It has 200 million monthly active users (MAUs), of whom:

Xiaohongshu has six major user groups. These groups include Gen Zs, urban trendsetters, exquisite moms, emerging white-collar workers, high-income singles, and pleasure seekers.1

Precision marketing for seeding and conversion on Xiaohongshu

Seeding (種草), a Chinese internet slang and online marketing tactic, means creating and distributing content across social media to nurture target customers’ desires to buy.

Xiaohongshu is a recognized seeding community for its valuable big data mined from its highly segmented, like-minded audience. It has accumulated a phenomenal amount of social and consumption data on Chinese urban young females who are willing and resourced to spend on luxury and high-end fashion and beauty products and services, along with experiences that enrich their daily lives.

Topic modeling and clustering the user-generated content allow marketers to spot themes emerging from a large dataset. Xiaohongshu is therefore an ideal platform to leverage the advantages of precision marketing, which is data-driven and provides actionable insights into consumer behavior and preferences.

Precision marketing helps marketers reach the right consumers with the right message at the right time. E-commerce precision marketing based on big data can help businesses lower promotion costs, and understand customer needs more accurately, leading to product and service upgrades.

Moreover, AI (artificial intelligence) algorithms enhance the effects of precision marketing by conducting content analysis. AI assists precision marketing in many ways, for example, by identifying the implied aspects of content, sketching the characteristics of content, simplifying unstructured content, and determining the psychological or emotional state of any group of users, among others.

iClick Xiaohongshu Marketing Solution

As Xiaohongshu's official overseas advertising partner and award-winning marketing agency, iClick Interactive provides a wide range of comprehensive, data-driven, and AI-powered Xiaohongshu marketing solutions. Our all-rounded services encompass advertising placement service, content creation, account operation and management, and KOL/KOC advertising strategies, allowing brands to efficiently and effectively target and acquire the right customers. We have a proven track record of assisting numerous global brands in successfully tapping into the Chinese market through Xiaohongshu, unlocking its full potential for remarkable success. Reach out to us now to explore how our comprehensive solutions can elevate your marketing strategies.

About Us

Founded in 2009, iClick Interactive Asia Group Limited (NASDAQ: ICLK) is a leading enterprise and marketing cloud platform in China, operating in over 11 countries, including the United Kingdom (UK), Australia, and Singapore. With its leading proprietary technologies, iClick's full suite of data-driven solutions helps brands drive significant business growth and profitability throughout the full consumer lifecycle and engage with their target audience through leading Chinese media channels and China’s internet giants. Over the years, iClick has won immense trust from our 3000+ direct marketers and agency clients and was listed on NASDAQ in 2017.

References & Source

1 (September 5, 2022). “2022 Active User Portrait Trend Report (Xiaohongshu Platform)”. https://guoji.pro/Home/MarketingInfo?marketingId=28

https://www.clootrack.com/knowledge_base/what-is-content-analysis

https://globalmedia.mit.edu/2019/12/01/2058/

https://www.clootrack.com/blogs/the-big-reset-marketers-use-precision-marketing-to-drive-the-data-driven-customer-experience

https://medium.com/marketing-in-the-age-of-digital/how-artificial-intelligence-big-data-equals-precision-marketing-2f8e099f365b