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CNBC AI News, August 25th – Social commerce platform Xiaohongshu (also known as Red or Little Red Book) is reportedly making a significant push into the local lifestyle services market. Sources indicate that the platform’s internal beta test for its “Xiaohong Card” program is expected to culminate in a full-scale launch by the end of September.
Initially, the “Xiaohong Card” initiative is targeting businesses in the food and beverage, leisure activities, and events/entertainment sectors. The initial rollout will focus on pilot cities including Hangzhou, Shanghai, and Guangzhou.
Xiaohongshu previously soft-launched the “Xiaohong Card,” a local lifestyle consumer benefits program, selecting Youzan as its exclusive service provider. The model mirrors membership programs like Alibaba’s 88VIP and JD.com’s PLUS, aiming to bridge the gap between users’ online discovery and offline transactions through exclusive discounts and privileges, thereby creating a complete consumer loop.
Youzan, as the collaborating service provider, launched a comprehensive local lifestyle solution with Xiaohongshu in May, encompassing group buying and take-out services. This solution is strategically designed to connect Xiaohongshu’s extensive public domain traffic with merchants’ operational systems, facilitating efficient traffic conversion into sales.
According to reporting from Jiemian News, users of the “Xiaohong Card” can expect to receive discounts of at least 10% at participating merchant locations. Merchants have the autonomy to define the precise discount percentages offered. Many Hangzhou-based “exploration” bloggers (key opinion consumers focused on local discovery) have already participated in internal testing and have begun publishing reviews of their experiences.
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