Start with the CBEC Empire of Word of Mouth

In the trending area of Cross-Boarder-E-Commerce (CBEC), combined with the development social network are happening crazily and explosively. In the transformation from society to e-commerce, RED is a success. Today, let's have a look of why it has become the best place for new overseas brands to start on CBEC.

Word of Mouth Marketing
 
Basically, people learn relevant information before purchasing the product, so as to judge whether the product has purchase value. For example, before we buy on Taobao, we will certainly see user comments. The key to product conversion rate is often the quality of real users' word of mouth.
 
The advantage of RED is that it has a real user reputation sharing community, and the whole community is a huge user reputation database. Friends and neighbors will drive consumption, from not knowing a brand to knowing a brand, and then drive potential users around.

By July 2019, the number of RED app users had exceeded 300million. By October 2019, the number of RED monthly active users had exceeded 100million, of which the post-90s new users accounted for 70%.
 
At present, RED has more than 200 million monthly active users, of which 72% are post-90s, 50% are distributed in the first and second tier cities, with a total of 43million + sharers.
 
According to the 2021 RED Brand Research Report released by Research Institute, the revenue of RED in 2021 is mainly composed of advertising and e-commerce, accounting for 80% and 20% respectively. The revenue of e-commerce business has not yet achieved large-scale growth, very much the same in 2020. In 2020, its e-commerce revenue is about US $150million to US $200million, accounting for about 20% of the total revenue.
 
One may argue that compare to most top tier e-commerce platforms, RED’s figure does not look impressive. However, the fact is the position of RED is still mostly in sharing and recommending, its high ratio of advertisement income also demonstrate that point. While low ratio of sales can also enhance its social media identity rather than confusing it to be a sales channel. 

 
Why Good for New Comers
 
l  Even at the beginning of the RED overseas shopping is the key word, its sharing and recommending still the core of its users activities.
l  Dividing comments apart from direct shopping show authenticity matters. The sharing and comments are experience based rather than sponsored advertisement, which gives the platform more credit when promoting new comers to the market.
l  The sharing logic of RED is to about comments on certain products or routines that can be consumed but without much assurance yet, users sharing their real experience to fill in the gap. This interaction among users simulate the experience in real life like chatting with friends about your latest purchase, just this friends share your interest. 
 
This is perfect for unknown or not-so-famous overseas brands, as in the beginning, RED was intended to share shopping tips in foreign international airport, of foreign products!
 
When we talk about whole channel marketing, sharing and comments on social media is a must especially for unknown brands in China. RED is so far still one of the best place to start. Giving samples to invite comments, start advertising among competitors, generating buzz on social media while channelizing sales on sales platforms, merchandisers should be considering the bigger picture.

 
Now the “best seller” is not by nature but more by branding, a genuine good belief in the quality of the product may encourage repeat purchasing once consumers try it out, but not enough to intrigue the first buy. For new comers, WKI is here to help you step up and push more effectively and efficiently of the first purchase.
 

 
 
 

Shanghai Wukong Integration (WKI) Center

上海唯氪市场营销中心

+86 574 27721008
lily.yang@wkichina.cn