Group 8
LI
Jiayuan
TENG
Qianyu
ZHANG
Yujia
ZHANG
Leyan
ZHENG
Xiaoyu
Freemium - Baidu Netdisk （百度网盘）
Users
can use some of the features of the web disk for free, but the file download
speed is slow, and the video quality is poor.
The
software provides two paid services: Vip and Svip.
Vip
for 25¥/month: download speed is improved / video quality is better and can be
played at double speed / PDF editing function……
Svip
for 40¥/month: has all the functions of vip / More storage space / The video
has smart subtitles……
Why
Baidu Netdisk is successful?
1.
Large User Base
The
free tier builds a massive user base, establishing the platform's dominance.
2.
Monetization Potential
The
premium tier features are designed to address the needs and pain points of the
free users, making them a valuable upgrade. It effectively monetizes a
portion of the user base and generates revenue.
3.
Sustainable Growth
The
model provides a sustainable growth path, attracting new users while retaining
existing ones.
Network
Effect - Xiaohongshu（小红书）
Direct
network effects
The
community of Xiaohongshu based largely on users themselves. The more users
there are, the more vibrant the community will be. When a user creates a new
post, what he/she creates become resource of Xiaohongshu. Users will filter the
content via Like or Comment so that useful and interesting knowledge can be
seen by more people. As the accumulation of useful information on Xiaohongshu,
it gains more traffic and more social influence and naturally attracts more new
users. Meanwhile, the active users themselves can get more fans and enhance
their personal influence as opinion leaders. They can also get profits from
this process.
Two-side
network effects
1. Value
Enhancement of Community-of-interest
When
communities of interest increase their activity on Xiaohongshu, such as by
posting more strategies notes, event news and experience shares, they provide a
wealth of content and information for others. This not only enhances the
platform's attractiveness but also increases the value of the experience for
other users, who can access useful information and entertainment content.
2.
Value Enhancement for Brands
As
the activity of communities-of-interest on Xiaohongshu grows, related brands
recognize a larger potential customer base. By collaborating with content
creators, posting official notes, and engaging in interactions, brands can
promote their products or service more effectively. This engagement increases
the brand's exposure and user base, thereby enhancing the value of the brand on
the platform.
3.
Mutual Interaction Driving Growth
The
interaction between users and brands is bidirectional. Users share content to
attract brand attention, and brands engage and promote to attract more users.
This bidirectional interaction fosters platform activity and participation,
making the platform more valuable for both users and brands.
Therefore,
Xiaohongshu, as an intermediary platform, facilitates interactions between
users and brands by providing tools and solutions. The platform's algorithms
and promotional tools help brand content reach target users while recommending interesting
content to related communities of interest. This intermediary role strengthens
the two-sided network effect, making the platform more attractive to both
sides.
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