Experience Is Hard To Do. Little Red Book Will Close All Offline Stores.

The winning business website learned that Xiaohong book closed down its RED home, which is offline shop in Shanghai.

Earlier, Xiao Hong set up two outlets in Shanghai, one located in Jingan, Shanghai, and another in Shanghai's CITIC Pacific Wanda Plaza. At present, both stores have been withdrawn. In response to the issue of Shanghai customs store, Xiao Hong replied to the media that the majority of the offline stores have already made profits, but the number of shops and the scale of their profits are not the purpose of Xiao Hong's exploration of new retail businesses themselves, so the strategy will be constantly adjusted.

It is understood that Xiao Hong's third line experience shop is located at Changzhou Yuyue Plaza. The winning business network was informed by people familiar with the matter. At present, the store has not yet been closed, but Xiaohong book is a strategic adjustment, and the whole country will close its stores uniformly.

Xiao Hong, founded in 2013, has developed from overseas shopping information sharing platform to cross-border e-commerce and social business, and has received large investments from Tencent and Alibaba, valued at over $3 billion.

The little red book counted the bonus of the flow. 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, Xiao Hong book daily community notes exposure times more than 3 billion times, 70% of the exposure is UGC content, in terms of sales, the small red book electricity supplier plate "welfare agency" on-line half year, in the premise of zero advertising, sales exceeded 200 million yuan; in September 2015, from the Zhengzhou warehouse in March, the official operation of the small red book half year sales amounted to 700 million yuan; 2018 Xiaohong book user breakthrough 50 million, month sales has exceeded 1 billion yuan.

However, the brand has not been plain sailing. Since its establishment, there have been many negative incidents such as advertising flooding and false propaganda. Last August, the small red book APP under the major application markets, said it had launched a comprehensive investigation and rectification of the contents of the station, in-depth self-examination and self correction, actively cooperate with relevant departments, and promote the optimization and upgrading of the Internet environment, but did not disclose the reasons for the specific shelves.

Xiaohong book went online from 2018 to offline, and opened the first offline experience shop in Jingan, Shanghai, RED home. The store has set up 6 areas: home area, beauty area, clothing area, Star area, window area and water bar area, and has joined many black technologies to create a diversified immersive scene. After that, Xiao Hong book opened a physical store in Shanghai Jiading CITIC Pacific Wanda Plaza, Jiangsu Changzhou Yue Yue square and Ningbo Yinzhou Wanda Plaza.

However, according to people familiar with the matter, the business situation of Xiaohong book house RED home Jingan Joy City store is not very satisfactory, and the operation team has also made many changes. The store's monthly sales can reach 50 - 600 thousand yuan, according to the area of 400 square meters, Ping efficiency is not high.

Insiders say it is not enough to move online communities to offline shopping centers, and it is hard to keep profits if they do not generate profits. The online grass planting community moved to line, Xiao Hong book is a typical case. Xiao Hong's offline stores mainly run Cosmetics, which is in line with the huge demand of young users. However, the disadvantages of this model are also obvious.

Entering the shopping mall will mean more fierce competition. Similar to Watsons, silk lotus and other brand collection shop, will cause diverting to the little red book. At the same time, the high cost of rentals and manpower has led to a lot of pressure on Xiao Hong book.

This shows that the realization of online traffic is not easy, and the road to the Internet is also tortuous. In the future, how online traffic can be effectively transformed into offline passenger flow, and how to achieve deep interaction between online and offline needs further consideration by the brand side.