Social media platform Xiaohongshu has quietly started a group buying business.
In April, Xiaohongshu launched a photo-sharing campaign, calling on users to go to more than 20 coffee shops in Shanghai and upload photos in exchange for discount coupons.
A week later, the campaign moved to Guangzhou, and this time Xiaohongshu targeted bubble-tea shops.
Beverages are a good way to avoid a showdown with giants like Meituan and Dianping who dominate the group buying in the restaurant business. Xiaohongshu is more likely to be seen as a threat to short-video platforms Douyin and Kuaishou, who have been offering similar coupons for some time. Most shops that signed up with Xiaohongshu also work with Douyin or Meituan.
Xiaohongshu is keeping a low profile. There is no link to the campaign on the app’s homepage. Thirsty members either scan a QR code in the shop or search for the Xiaohongshu account that started the campaign to find the coupons.
