Xiaohongshu's KOB Model: Bridging brands and retailers with integrated marketing
Xiaohongshu has launched the KOB (Key Opinion Business) model, an innovative marketing solution designed for brands looking to promote and support their stores and distributors in China. This platform allows centralized management of advertising campaigns through the 聚光 (Jù guāng) platform, thus simplifying the marketing process.
The KOB model enables brands to use their certified business account to create independent sub-accounts for each store or distributor. These sub-accounts can leverage a budget assigned by the principal account to manage autonomous advertising campaigns while remaining under the supervision and control of the central brand.
To provide a practical example, imagine a brand with 100 stores in China. Using its certified business account on Xiaohongshu, the company can manage and distribute advertising campaigns and related budgets to each of the verified sub-accounts of the stores. It allows for aggregated data collection and simplifies the promotion process without creating separate independent accounts for each store. Both the main account and the sub-accounts must be certified business accounts.
Available Features
The solution provides various features to sub-accounts:
🔹 Advertising Formats: Live streaming, Smart Bidding, Feed Ads, and Search Ads.
🔹 Juguang 3.0 Platform: Supports online authorizations, covers multiple marketing scenarios, offers new video promotion options, and supports personalized messages.
🔹 Fast Search Ads: Updated version for cost expansion and targeting.
🔹 Live Streaming ROI: Optimization of ROI for live streaming payments, with simultaneous promotions in information flows and videos.
🔹 Plan Details: Advanced features for viewing and modifying advertising plans.
🔹 Third-Party Monitoring: Updates for monitoring promotional data across various account levels.
🔹 Buyer Collaboration: Management of collaboration with buyers, providing real-time insights into collaboration dynamics.
Benefits of the KOB Model
🔹 Convenient Activation Mode: The certified main account initiates online authorization, while sub-accounts have to be confirmed internally. It reduces communication costs and simplifies KOB adoption.
🔹 Unified Data Management: Brands can manage various professional accounts with different styles and sizes through a single account, facilitating data comparison and monitoring.
🔹 Comprehensive Multi-Scenario Coverage: The platform supports a wide range of promotions, including video streams and advertising campaigns in different scenarios such as live streaming, product sales, lead generation, and product promotion.
🔹 Enhanced Private Messaging Capability:
The system supports viewing the origin of private messages, enabling effective contact with the target audience. Sub-accounts can include links to Wecom accounts in their content, facilitating direct contact with sellers.
Suitable Sectors for KOB
The KOB model is ideal for sectors where physical retail outlets or networks of stores represent a fundamental sales channel, especially:
🔹Automotive: Headquarters invest in acquiring customers for city-owned stores.
🔹Home Furnishings: Headquarters support distributors by earning franchise fees through their development; multi-brand furniture stores spend money on promotions to increase brand awareness and boost product sales.
🔹Beauty: For cosmetic brands, offline medical beauty institutions are an important sales channel. Brands attract end consumers by investing in store traffic, thereby boosting product sales.
🔹Local Services: Restaurant headquarters invest in different regional branches to drive store traffic.
🔹eCommerce: Brands with matrix accounts invest in different accounts to increase user coverage.
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Case Study
Results of an automotive brand using KOB model
A car brand faces the problem of few leads and difficulty in acquiring potential customers. In the early stage of the KOB investment model product function, the brand used the investment function to place ads to dealers in different regions, continuously magnifying the good product effects, expanding from 1X+ dealers to nearly 100 dealers, helping dealers to obtain a large number 495%, ad clicks by 581%, and conversions by 169%.
A home furniture brand
A furniture brand has always faced difficulties of difficulty in obtaining volume, high conversion costs, and weak material supply capabilities. The KOB investment model helped the brand effectively broaden the source of materials. Through the material competition of multiple dealers, the brand ushered in a peak in volume during Double Eleven, with customer exposure increasing by 140% month-on-month, advertising clicks increasing by 76%, and advertising conversions increasing by 7,300%.
Xiaohongshu’s KOB service represents a comprehensive and integrated platform for managing brand marketing campaigns. With the KOB model, brands can effectively promote their stores and distributors through a wide range of advanced and updated features, ensuring centralized and simplified management of promotional activities.
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