How Xiaohongshu’s New AIPS Model Redefines Grass-Planting Marketing

January 10, 2025

Xiaohongshu 2025 Will Business Summit

At the 2025 WILL Business Conference, Xiaohongshu unveiled a groundbreaking marketing framework: the “AIPS Audience Asset Model.” This innovation aims to transform how brands measure and optimize their grass-planting (content-driven marketing) campaigns on Xiaohongshu. By integrating process measurement and outcome measurement, Xiaohongshu has equipped brands with actionable insights to enhance their marketing efficiency. Here’s a breakdown of the key takeaways and their implications for brands.

Understanding the AIPS Model

The “AIPS Audience Asset Model” divides audience engagement into five categories:

  1. Awareness – General recognition of the brand.
  2. Interest – Initial interest in products or services.
  3. True Interest (TI) – Deep engagement and potential intent to purchase.
  4. Purchase – Conversion into actual sales.
  5. Share – Advocacy through post-purchase sharing and recommendations.

Xiaohongshu's AIPS Audience Asset Model

This segmentation allows brands to evaluate and optimize their strategies at every stage of the consumer journey. The model identifies more immediate and relevant user behaviors compared to traditional conversion metrics, offering brands a comprehensive view of audience engagement.

Measuring Grass-Planting Success

Xiaohongshu’s measurement framework operates on two levels:

1. Process Measurement

The AIPS model focuses on audience behavior within Xiaohongshu’s ecosystem, helping brands understand the nuances of user decision-making. For instance, while low-cost fast-moving consumer goods (FMCG) may require a focus on awareness to drive quick conversions, high-ticket items necessitate a deeper engagement with “Interest” and “True Interest” audiences.

Process Mesurement

2. Outcome Measurement

Outcome measurement is achieved through two primary methods:

  • Grass-Planting Alliance: This initiative integrates Xiaohongshu’s platform data with external e-commerce platforms like Taobao, JD, and VIP.com. Brands can track the direct impact of Xiaohongshu’s campaigns on off-platform conversions. For example, Xilinmen identified a high-converting audience segment (“refined white-collar workers”) and optimized their budget, achieving an ROI of over 15 during the 618 shopping festival.
  • First-Party Data Collaboration: Participating brands can analyze their omnichannel data to gain deeper insights into business performance. Xiaohongshu’s “Lingxi” platform now supports 5,000+ brands, offering accessible tools for data-driven optimization.

Outcome Mesurement

ROI (T+x): A New Way to Measure Success

One of Xiaohongshu’s key insights is the importance of ROI over time (T+x). While traditional ROI focuses on immediate returns, Xiaohongshu advocates for analyzing ROI across the consumer decision-making period. For example:

  • A ¥3,000+ robotic vacuum cleaner required 45-60 days to reach a tipping point in ROI due to the complexity of consumer decisions.
  • A ¥100 body oil, initially estimated to have a 7-day decision cycle, revealed a true cycle of 60-90 days. This discovery helped the brand target high-value audiences like expectant mothers, resulting in a 20% year-on-year GMV growth during Double 11.

ROI (T+x)

Precision and Granularity: The Keys to Success

Xiaohongshu’s CMO Zhiheng emphasized that measurement is a means to an end: optimizing marketing strategies. The two pillars of this optimization are:

  • Granularity: Understanding consumer behavior, needs, and decision-making contexts.
  • Precision: Matching the right products with the most suitable influencers, content, and marketing channels.

Xiaohongshu's CMO Zhiheng

A compelling example comes from an outdoor jacket campaign. Xiaohongshu tailored content to specific mountains (e.g., lightweight jackets for Mount Tai’s night hikes versus UV-protective gear for Mount Siguniang). This hyper-targeted approach resulted in a top-four search ranking for high-end jackets and a 40% reduction in e-commerce platform costs.

Implications for Brands

Xiaohongshu’s AIPS model and measurement solutions mark a shift toward personalized, data-driven marketing. By understanding niche audiences and aligning strategies with consumer decision-making cycles, brands can achieve better ROI and long-term growth.

Interested in unlocking the full potential of Xiaohongshu for your brand? Reach out to us today to explore tailored strategies that drive results!

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Hermès’s Innovative WeChat Campaign: Bridging Digital and Physical Worlds in China’s Luxury Market

December 24, 2024

Introduction to Digital Innovation at Hermès

In an era where digital transformation shapes marketing strategies, Hermès has set a benchmark in China’s dynamic market. This blog post explores Hermès’s recent groundbreaking campaign that harmoniously blends offline exhibitions with interactive WeChat Mini Programs, setting new standards for engaging consumers in China’s competitive luxury landscape.

海报

Poster

Exploring the Campaign’s Mechanics

The campaign revolved around an engaging scavenger hunt/escape room that took place during an exclusive offline exhibition. Participants embarked on a journey through the venue, tasked with discovering horse-themed items—a tribute to Hermès’s equestrian roots. Each item was cleverly integrated into the exhibition, encouraging visitors to explore in-depth.

Hermes Exhibition

Inside The Exhibition

Digital Integration via WeChat Mini Program

The brilliance of this campaign was further amplified through its digital strategy, utilizing a WeChat Mini Program. Participants used this platform to log the items they discovered by clicking the corresponding images. This seamless integration of digital tools ensured a smooth and engaging user experience, highlighting the potential of WeChat Mini Programs in bridging online and offline worlds.

wechat mini program

WeChat Mini Program

Rewards and Incentives

To add excitement, Hermès offered exclusive branded rewards to those who successfully completed the scavenger hunt. This strategy not only enhanced participation rates but also created a memorable experience that participants were likely to share across their social networks.

激励

Rewards and Incentives

Key Learnings from Hermès’s Strategy

  1. Seamless O2O Integration
    • The campaign is a prime example of effective Online-to-Offline (O2O) integration, which keeps users engaged by connecting digital actions with physical experiences. This approach is particularly resonant in China’s retail environment, where digital engagement can significantly amplify physical marketing efforts.
  2. Gamification Drives Engagement
    • By gamifying the exhibition experience, Hermès managed to transform a traditional marketing event into an interactive adventure. Gamification is a powerful tool in digital marketing, especially on platforms like WeChat, where user engagement can directly translate into higher brand loyalty and customer retention.
  3. Narrative-Driven Branding
    • Hermès’s focus on storytelling, by integrating its brand heritage into the campaign, helped reinforce its identity and values. This strategy not only enriched the consumer experience but also bolstered the brand’s image in the eyes of Chinese consumers, who value rich, narrative-driven interactions.

Conclusion: A Model for Future Campaigns

Hermès’s campaign demonstrates the profound impact of integrating innovative digital marketing strategies with traditional methods. For brands looking to make a mark in China’s luxury market, leveraging social media platforms like WeChat through Mini Programs offers a direct route to consumer engagement.

This case study serves as a reminder of the effectiveness of combining physical and digital experiences in a marketing strategy, especially in a highly digital society like China. Brands aiming to expand in the Chinese market should consider similar integrations to captivate and engage with their audience effectively.

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Discovering Opportunities: Exploring China’s Recent Updates

May 20, 2024

1. Shanghai takes the lead as Chinese coffee consumption averages 16 cups per year

  • China’s coffee industry amassed a staggering 265.4 billion RMB (approx. 36.66 billion USD) in scale last year, with an average per capita annual consumption of 16.74 cups
  • Coffee Carnival is running in Shanghai between 30 April to 4 May, alongside over 50 esteemed local coffee shops.
  • Additionally, takeaway, payment, and social media platforms initiated the “Drinking in the City” campaign in Shanghai, poised to invest nearly 100 million RMB (approx. 13.8 million USD) into the consumer market.
  • With a net increase of 118 shops, marking a 14% year-on-year rise, the total count of Starbucks outlets soared to 7,093.

LINK:https://daoinsights.com/news/shanghai-takes-the-lead-as-chinese-coffee-consumption-averages-16-cups-per-year/

2.What’s driving China’s unstoppable second hand luxury market?

  • China’s secondhand luxury market is tipped to grow to $30 billion (217 billion RMB) in 2025 from $8 billion (58 billion RMB) in 2020, with Gen Z and millennials (under 40) together accounting for more than 80 percent of the total number of secondhand luxury consumers
  • From a luxury brand point of view, perceived value on the secondhand market can have direct repercussions on reputation and desirability in the eyes of consumers.
  • Brands should not see the secondhand market as an adverse phenomenon, but encourage customers to trade in or resell their pre-owned items through authorized channels, ensuring that the brand retains control over the quality and authenticity of the products in the secondary market.
  • Luxury brands must monitor and manage their perceived value in the secondhand market, as it can impact their reputation and desirability among consumers. Digital marketing efforts should focus on maintaining brand authenticity and highlighting the enduring quality and heritage of their products.

LINK:https://jingdaily.com/posts/what-s-driving-china-s-unstoppable-secondhand-luxury-market#8548723daa5e

3. Decoding China’s $170 billion ‘romance economy’

  • China commemorates love on three separate holidays: the Western Valentine’s Day on February 14, the uniquely Chinese 520 Day on May 20, a celebration derived from internet slang where the numbers “520” phonetically resemble the words for “I love you” in Mandarin, and the traditional Qixi Festival, which usually falls in August.
  • China’s Gen Z consumers are a key element of the “romance economy,” responsible for 54% of related orders according to the “Romantic Economic Big Data Report” released in 2022.
  • Survey data from iiMedia Research in 2023 revealed that regardless of their relationship status – single, in a relationship, or married – over 90% of participants were eager to celebrate romantic festivals by presenting gifts to family and friends.
  • Notably, jewellery ranks as the number top gift category for coupled-up individuals on China’s romantic days.
  • Traditional gifts like flowers, personal care items, and beauty products remain favorites and “gift boxes” persist as a preference for consumers on seasonal occasions.
  • “Love-brain” (恋爱脑) has recently emerged as a trending term online. It centers on the idea that individuals often lose their emotional or financial rationality when in love. This phenomenon prompted the creation of the phrase “scolding to cure love brain” (骂醒恋爱脑) as a response. And in turn, this has sparked a new type of service.

LINK: https://jingdaily.com/posts/decoding-s-china-s-usd170-billion-romance-economy

4. Xiaohongshu: Unlock new opportunities in Chinese beauty market

Customers are getting more connected to Chinese culture and caring about value, which makes domestic beauty brands more popular. Younger consumers are stepping up as key players in the domestic beauty market.

  • Emergence of quality Chinese cosmetics: Domestic beauty annual sales surged around 10%, outperforming foreign cosmetics with a commanding market share of 50%.
  • Co-create content with the brands: Hundreds of celebrities and top KOLs embarked on the offline and online collaboration with a lot of brands.
  • Create a personalized IP Matrix: Xiaohongshu collaborated with more influential media like CCTV network and created more personalized IP/topics for brands.

LINK: https://mp.weixin.qq.com/s/4oAwT-Q0mtbWHGQtRYSPLg

5.ByteDance surprises AI rivals with ultra-low cost Doubao model:

  • ByteDance has surprised the artificial intelligence industry with the ultra-low cost of its Doubao model
  • The company said it is capable of processing 2 million Chinese characters, equivalent to 1.25 million tokens, for RMB 1 ($0.14).
  • OpenAI’s most advanced multimodal model, GPT-4o, also unveiled this week, comes in at $5 per million input tokens handled.

LINK:https://technode.com/2024/05/16/bytedance-surprises-ai-rivals-with-ultra-low-cost-doubao-model/

6. Which fashion campaigns for China’s 520 Day hit the mark?

  • Luxury fashion campaigns for China’s 520 Day focus on limited edition collections, celebrity endorsements, and creative storytelling, often in the form of mini videos.
  • Brands like Gucci and Saint Laurent tapped into Gen Z’s preferences by incorporating traditional Chinese elements and leveraging digital platforms for greater engagement.
  • 520 Day’s fusion of traditional Chinese culture with commercialism highlights the evolving landscape of celebrations and consumer behavior, emphasizing the importance of cultural resonance and meaningful experiences in luxury marketing strategies for brands looking to better connect with consumers.
  • These strategies aimed to blend cultural significance with contemporary marketing, enhance brand appeal and foster emotional connections with consumers.

LINK: https://jingdaily.com/posts/which-fashion-campaigns-for-china-s-520-day-hit-the-mark

7. 2024 May Day Holiday: The rise of small cities tourism and AI companions

  • Amid an economy yet to fully recover to pre-pandemic levels, this year’s May Day break underscores a notable trend towards tourism in lesser-known destinations.
  • On social media platforms like Xiaohongshu (RED), many young people are keen to explore counties and even aim to ‘visit Top 100 Counties of China’ as a novel approach to May Day travel.
  • Hong Kong has shifted its focus to cultural and artistic events, as well as large-scale concerts.
  • It is also worth mentioning Japan. With the Yen reaching a 34-year low against the US dollar during the holiday period, this made it more attractive for overseas tourists.
  • ‘AI companion’ emerged as a new trend in travel. This involves using AI technology to offer personalised travel assistance services, crafting tailored itineraries and services.

LINK:https://daoinsights.com/opinions/2024-may-day-holiday-the-rise-of-small-cities-tourism-and-ai-companions/

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From Gurus to Game-Changers: Embracing Key Opinion Professionals in Content Marketing

August 16, 2023

Influencer marketing is one of the pillars of communication strategies for all brands wishing to make their footprint in China. These influencers referred in China as KOLs, or Key Opinion Leaders, are individuals who have established themselves as experts or influential figures in specific industries or fields, particularly in the realm of social media and digital marketing. They have amassed a large and engaged following on platforms like Weibo, WeChat, RED,  Douyin (the Chinese version of TikTok), and other social media channels. KOLs hold significant sway over their followers’ opinions and purchasing decisions. Their presence is crucial for brands looking to market their products or services to a Chinese audience. We wrote more about idol economy and who KOLs are on our blog.

💄 Discover more about RED and RED marketing

But in the fast-paced world of digital marketing, a new breed of influencers is capturing the limelight and revolutionizing the way brands connect with their audiences. Today we’ll introduce you to Key Opinion Professionals (KOPs), how they are transforming content marketing, and why brands are swooning over their compelling charm.

Meet the Trailblazers: Key Opinion Professionals (KOPs)

Emerging from the domains of influencer marketing, KOPs offer a novel vantage point within the realm of content marketing. Contrary to KOLs, this type of content creators offer a profound exploration into their specialization, unique knowledge, and entrancing revelations.

They are not your typical influencers, by any means. Usually, KOPs boast a high education and a wealth of experience in their chosen fields. The internet age has turned them into digital artisans, sharing their wisdom through captivating visuals and videos. They entice both devoted fans and new consumers looking for professional opinion.

Chinese consumers highly rely on word-of-mouth when buying a product. They are greatly influenced by recommendations from people they are following on social media. In 2022, 86% of Chinese users visited different online communities to search for related product offers before placing order. This all to reduce potential risk and dissapointment. However, consumers are aware of professionalization of KOLs therefore they start to seek advice from experts in their respective fields.

🇨🇳 Different types of Chinese consumers: Silver Generation

KOPs – Unlocking the Secrets of Vertical Content

Naturally, KOL and KOC tend to emphasize their personal experiences and highlighting advantages of the products often supplied by brands. Unlike KOLs’ broad viewpoints and KOCs’ personal experiences, KOPs take users on an discovery ride through the vastness of their respective vertical knowledge in fields considered relatively niche.

They often represent the industries such as health, technology, engineering, or even law. They dissect product formulas, decode compositions, and unravel the mysteries of consumers’ favorite goods. All of that with the precision and thoughtfulness of seasoned experts. Their professional knowledge comes from years of education and experience. That’s why they possess such ease and confidence in discussing matters that won’t be possible to discover by KOLs. 

Examples of KOPs

KOPs

罗翔 is a law professor at People’s University of China, with 28.5 million followers on Bilibili, he shares deep insights about law, and he also makes content about how ordinary people can live a better and more meaningful life with more understandings about law. He also makes content about philosophy and book reviews.

王德峰 is a philosophy professor at Fudan University, equipped with vast range of knowledge in philosophy, art and music. His unique and interesting way of delivering Chinese and western life philosophy had great impact on young users.

武志红 is a psychologist and a best seller writer, has made his fame publishing several best seller books including the controversial 《巨婴国》The Country of  Giant Babies. Active on Chinese social media, he often shares his take from a professional psychologist POV on recent society affairs.

Key Opinion Leader KOPs

尹烨 is the CEO of 华大集团BGI（a pharmaceutical company), graduated from Columbia university with a PHD, he specializes in life sciences and he has made his appearance on several popular interview shows which attracted huge attention, then he started his own social media channel and is now making content mostly about science, technology and biology.

With more than 30 million followers on douyin, 虎哥说车 mainly creates interesting and insightful content about cars, he started in video sector very early on and has constant resources to controversial cars.

KOPs – Why Brands Fell in Love?

Even though most of KOPs started posting online out of willingness to spread their knowledge, brand quickly took notice. In a world where cautious consumers rule the roost, KOPs are the superheroes that brands crave. 82% of consumers meticulously scrutinize products before purchasing, seeking safety and efficacy. KOPs enter the spotlight with their arsenal of professional insights and authentic recommendations. Effectively, they can be the element that make the difference and seal the deal in the ever-growing decision-making process. For example, beauty brands can work with skincare doctors or chemists to discuss product formulas and give their recommendations based on ingredients used. B2B brands are also more likely to work with KOPs than KOLs due to the nature of their offering. 

 

Unleashing the Power of KOP, KOL, and KOC

The secret formula to content marketing success is the mighty combination of KOL, KOC, and now KOP. When these forces unite, brands can increase their share of voice and captivate users across multiple platforms.  KOLs reach their mass audiences and KOCs add their flair with personal touchpoints, while KOPs help users to confirm their purchase decision with authoritative product endorsements.

 

Conclusion

While KOP marketing is a relatively new concept. However it’s surely a much needed phenomenon in the highly saturated influencer industry. Consumers seek for more authenticity and reliable source of information. KOPs with their mastery of vertical expertise, combined with the allure of KOLs and the authenticity of KOCs, makes for an unbeatable trio. As consumers increasingly seek genuine recommendations and professional knowledge, KOPs are soaring high as trusted beacons of influence. In the coming years, we will surely see more and more influencers wearing lab coats and other professional attires populating feeds of the top Chinese platforms. 

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The Idol Economy in China; Who are KOLs and KOCs?

October 25, 2021

Idolising stars and celebrity worship has become an increasingly important part of modern Chinese culture. Chinese Gen Z’s are continuously engaged with internet information as a result of growing up in a connected environment, and they are especially attentive to what their idols have to say.  

With the debut of innumerable TV series, brand endorsement deals, and the growing KOL market in China, these trends have naturally aided the rise of China’s idol economy. 

Who are KOL’s and KOC’s?

In a world dominated by social media and influencer marketing, key opinion leaders (KOLs) and key opinion consumers (KOCs) have become integral aspects of brands’ online marketing strategies to raise brand knowledge and recognition among their target audiences. Despite the fact that they both advertise products or services, they are two very different things.

A key opinion leader (KOL) is a well-known figure whose endorsement of a product is valued by a larger audience. Individuals who are trusted and respected for their status quo or expertise are known as KOLs. KOL’s include people such as actors, models, and celebrities, as well as people who have built a name for themselves on social media platforms. 

KOCs, on the other hand, are valued for their insight into products and services based on their personal experiences. They are people that do not conform to the status quo, making them relatable to the public. Although KOCs have a smaller following — only a few thousand — than KOLs, their fans are extremely loyal. 

Benefits of working with KOL’s and KOC’s

 

  • Working with idols is more profitable
    Young Chinese fans idolise their stars and are willing to go to great lengths to support their celebrity idols. According to a recent survey, roughly a third of “Gen Z” respondents said they’d be willing to buy products that their idols recommended or used, and a fifth said they’d be willing to watch their idol’s Livestream and purchase virtual gifts.

 

  • Chinese celebrities do not fear marketing
    Sponsorship arrangements are often avoided by Western celebrities because they believe that too much exposure could jeopardise their reputation. With Chinese idols, however, this is not the case. The local celebrities are easily involved in marketing and brand endorsement efforts to promote items via a variety of channels. This is due to censorship, which means that projects in China can be easily cancelled or repealed, thus idols must ensure that they have other sources of income.

 

  • The fan culture is a collaborative effort
    A form of collectivism popular in China suggests that fans affect one another during the purchasing process, and studies demonstrate that “the more collectivist a person’s orientation, the more vulnerable he or she will be to social influence in the purchase decision. As a result, if Western businesses can win over the heart of one hardcore idol lover, they may be able to win over the entire fan base.

Conclusion

Marketers and retailers benefit from the idol economy, but few multinational companies are yet to capitalise on Chinese celebrities’ fame. This is primarily due to Western corporations’ continued lack of understanding of the Chinese fan economy and the youthful, impulsive consumer base that supports these idols. 

The idol economy is expected to grow in the next few years, therefore international brands looking to stay ahead of the competition should seek closer links with the Chinese stars.

However, though the idol culture is prevalent in China, it is vital to exercise additional caution when selecting a reputable KOL, as there have been various KOL scandals in the past, and the Chinese government is attempting to simmer down the idol economy. As a result, seeking advice from a skilled partner is recommended.

Working as a partner, KRDS offers the expertise and abilities you need, including access to the relevant KOLs for your business and the know-how to quickly create Chinese social media KOL partnerships that meet your goals. We can also help B2B businesses with KOL collaborations by partnering with other renowned official accounts in the industry or niche experts. Please contact us to discuss further.

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