After only three months of operation, Xiaohongshu's in-store project has abruptly ended.
According to an official announcement, the "Xiaohong Card" trial will be suspended starting January 1, 2026. Launched in September this year, the project aimed to offer users discounts at selected partner stores under a "one-card-for-all" dining and entertainment membership, priced at CNY 168 per year.
Xiaohongshu cited "insufficient preparation to meet users' expectations for local lifestyle diversity and convenience" as the reason for the shutdown.
Both users and merchants expressed dissatisfaction. Users complained about inadequate functionality, leading to wasted membership benefits, while merchants criticized unfulfilled promises after paying for official certification. "No service, no after-sales support, no communication—just delays and empty promises," one frustrated merchant said.
**CNY 600 for "No Service"** Xiaohong Card launched ambitiously as a local lifestyle membership, initially rolling out in Shanghai, Hangzhou, and Guangzhou in September 2025. Leveraging large-scale events like the "Street Life Festival," it aimed for rapid validation.
However, some users reported poor experiences, citing a lack of reminders for membership benefits and expiration dates, which led to unused perks. Merchants faced worse issues. One Guangzhou store owner, pseudonym "Jiahua," paid nearly CNY 600 for certification but received no support, training, or promised materials. Requests for refunds were denied.
Xiaohongshu did not respond to inquiries, but the program had promised merchants platform traffic boosts, free influencer visits, and priority listing in city guides—none of which materialized for Jiahua.
**Misjudging Local Lifestyle Demand** Leon, Xiaohongshu’s head of transaction and local products, had earlier admitted the card was "still evolving." The suspension affects only Xiaohong Card, with other local services remaining operational.
Yang Huaiyu, a consumer industry analyst, called the shutdown a "misjudgment." Charging CNY 168 for limited discounts in three cities lacked competitiveness against free group-buying options on Meituan and Douyin. "Xiaohongshu’s strength is authentic recommendations, not transactions—forcing prepaid memberships contradicts young consumers' preference for flexibility and value," he noted.
**Repeated Commercialization Struggles** Xiaohong Card’s failure mirrors Xiaohongshu’s broader commercialization challenges. Past ventures like its cross-border e-commerce platform "Welfare Society" (2014-2023) and outdoor brand "Little Oasis" (closed in 2023) also faltered.
Experts argue Xiaohongshu excels at discovery, not transactions, with users often redirecting to Taobao or JD.com after browsing. Analyst Zhang Shule dismissed Xiaohong Card as a "niche experiment," ill-suited to compete with broader payment-based discounts from Alipay and others.
From e-commerce to local services, Xiaohongshu’s commercialization efforts remain fraught with setbacks, raising doubts about its business model’s viability.
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