Xiaohongshu Enters Local Life with ‘Xiaohong Card’ Launch

Blue Whale News, September 29 (Reporter Peng Leyi) – Xiaohongshu is officially entering the local life business. Recently, Xiaohongshu launched its local life membership service “Xiaohong Card,” initially available in Shanghai, Hangzhou, and Guangzhou. Cardholders enjoy up to 10% off at “Xiaohong Card Selected Stores” year-round and priority access to exclusive offline events. Users can get a free 90-day trial card by checking in at any selected store or purchase an annual card for 168 yuan. Meanwhile, the 3rd Street Life Festival runs from September 26 to October 12 in these cities, marking the first exclusive event for the Xiaohong Card.

Before the official launch, the Xiaohong Card underwent nearly two weeks of hype and internal testing. In mid-September, a Blue Whale Technology reporter found relevant materials and signs prominently displayed at Shanghai merchants. “Selected Good Stores” are the core of the Xiaohong Card, aiming for a win-win: users get better experiences, merchants gain traffic, and the platform deepens community value.

Xiaohongshu Takes Key Step in Local Life with Selected Stores

In June, when preparing for the 3rd Street Life Festival, Xiaohongshu wanted to “take a step forward”—not just bring foot traffic but real transactions. At a September 26 media conference, Xu Lei, Vice President of Xiaohongshu, noted transactions are a deeper, more rigid demand for platforms, brands, and users. “Local life is something Xiaohongshu has to do,” said Leon, Head of Transaction and Local Products. “We’ve become a lifestyle community, so local life is unavoidable.”

As a content community, Xiaohongshu has many store visit notes and merchant accounts. The Xiaohong Card connects these online interactions offline. Positioned as a “one-card for selected dining, entertainment, and leisure,” users can view store maps, leave reviews, and access past notes about stores. A key feature: consumers must settle on Xiaohongshu to enjoy discounts, cutting through package complexity.

When asked about GMV targets, Leon said scale matters but the focus is on user payment willingness in lifestyle scenarios. Selected stores—curated via AI analysis of user notes/reviews and merchant reputation—are the core, not just discounts. Merchants like Guangzhou’s Bryant Park joined for matching “Xiaohongshu vibe,” while cities were chosen for active consumption and特色 stores.

Opportunities and Concerns: Xiaohongshu’s Local Life Ecosystem

Xiaohongshu’s logic: connect users/merchants via the Xiaohong Card to close the “content seeding-transaction-word-of-mouth” loop. Merchants pay no intermediary fees but a 0.6% payment processing fee (funds arrive T+2). Discounts are merchant-funded and don’t stack with existing offers. For example, a Hangzhou coffee shop’s membership system offers bigger discounts, so customers prefer the mini-program.

During the Street Life Festival, users get discounts and exclusive events (e.g., blind box gifts). Merchants hope for targeted traffic support—organic notes drive exposure, but writing high-quality notes is a threshold for non-heavy users. Youzan, the exclusive service provider, promotes an AI note-writing tool, but merchants worry about quality.

Competition heats up: Amap targets Dianping with its street list, Taobao/Ele.me launch group buying, and Meituan dominates. Leon says Xiaohongshu focuses on its unique value, not just market size. The Xiaohong Card pushes seeding (long-term content influence) to transactions, but merchants worry about user willingness to pay 168 yuan/year—hence the 90-day trial.

Xu Lei emphasized Xiaohong Card is still exploratory, needing time to iterate. (Ding Lei is a pseudonym at the interviewee’s request.)