China's economy is currently facing significant challenges, with many businesses reporting reduced economic flow and falling revenues. At the forefront of this discussion is Li Guoqing, the founder of Dangdang and chairman of Xiangdanga, who addressed these issues at the recent 2024 Yibang Future Consumption Summit held in Shanghai.
During his keynote speech, Li highlighted the shift toward building personal brands as companies navigate this treacherous economic climate. He noted, "流量红利正在急剧减弱，直播带货领域正面临一个重大的转折点," emphasizing the necessity for innovation amid declining traffic benefits. His insights reflect a broader sentiment among industry leaders about adapting to new market dynamics.
Li explained how technology, particularly social media platforms like Douyin and Xiaohongshu, can serve as tools for effective brand communication and sales. He encouraged entrepreneurs to leverage their personal influence to create strong personal brands. This new model not only enhances visibility but also translates to commercial value, allowing businesses to engage with consumers more meaningfully.
With the consumption summit serving as the backdrop, Li shared personal anecdotes about how he managed to cultivate his brand without relying on massive publicity budgets. He employed methods of completely engaging audiences, noting how potential customers could easily be drawn to authentic interactions and relatable content.
On another front, Xiaohongshu (Little Red Book) is aiming to strengthen its market position by optimizing its search capabilities. This social media platform has witnessed rapid growth, with its daily average search volume reaching 6 billion. It is strategically positioning itself to compete with established giants like Baidu and Google by launching its AI search feature, "Dian Dian," which aims to cater to users' real-life queries based on shared experiences.
According to media reports, Xiaohongshu is treating search not just as functionality but as core to its revenue generation efforts. The platform’s COO, Conan, indicated, "随着搜索量快速提升，小红书有望打开更大的增长空间," pointing to the rising significance of user-generated content and its impact on consumer decision-making.
Both trends from Li’s speech and Xiaohongshu’s initiatives speak to the overarching need for adaptability as traditional sales strategies become less effective. Li urged businesses to embrace personal branding, emphasizing the need for authenticity, shared values, and community building. His personal mantra throughout his career has been to share knowledge aggressively, stating, "我的温度是迫切的要跟大家分享，迫切的要替‘你’着想," underscoring the importance of fostering trust and loyalty among consumers.
These developments coincide with broader economic challenges facing China. With growth slowing and companies feeling the pinch, identifying new growth areas is becoming imperative. Organizations are encouraged to innovate, exploring avenues like live-streaming commerce and enhancing online customer experiences. Li’s insights serve as guiding principles for many to navigate these tumultuous waters.
Small businesses, especially, are urged to reassess their strategies, focusing on enhancing personal connections with customers. Engaging through social media platforms allows for these interactions to take place and can significantly influence purchasing decisions.
Summing up the key takeaways from both Li Guoqing’s address and Xiaohongshu’s advancements, it’s clear this new phase of economic reality requires more than just traditional business models. The future belongs to those who can pivot quickly, leverage their personal brands, and use digital tools to create lasting consumer relationships.
The 2024 Yibang Future Consumption Summit not only shed light on the challenges of today but also provided forward-thinking strategies, urging all market players to adapt to maintain relevance and sustainability during these challenging times.
