Revealing the decision-making reasons behind the suspension and closure of Xiaohongshu's self-operated store 'Welfare Club”

According to news on September 16, Xiaohongshu's self-operated store "Welfare Club" recently released a letter titled "It's a farewell, but also a beginning", announcing a major decision. According to the letter, in order to better meet the growing user needs, Xiaohongshu decided to concentrate resources and strength, focus on the e-commerce field, and serve more buyers, managers, merchants and brands. Therefore, the self-operated store "Welfare Club" will stop selling goods on October 16, and the store's official closing date is set for November 16.

Xiaohongshu’s self-operated store “Welfare Club” was established in December 2014 and has been successfully operating for nine years. This decision represents Xiaohongshu’s clear plan for future business development, which will further strengthen its e-commerce business

According to the editor’s understanding, not only that, Xiaohongshu Shu also announced in early September that it would close its e-commerce platform "Little Oasis" and stated that this decision was due to the failure to meet the expected goal of meeting users' outdoor needs during the business exploration and development process. Therefore, all Xiaohongshu’s self-operated e-commerce platforms will be closed, and the company will concentrate its resources on more promising areas. This series of adjustments shows that Xiaohongshu is actively optimizing its business structure to better adapt to market demand and user expectations.

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