At the 17th Caixin Summit with the theme of “Development Response” today, Xu Lei, vice president of Xiaohongshu, delivered a speech on “Why are consumers on Xiaohongshu paying”. He said that current consumption is not simply an “upgrade,” but rather that demand is becoming more and more segmented. Consumer demand signals were not seen due to oversupply; however, “planting grass” enabled these consumer demands to be seen. Consumers used to pay attention to “whether it's right for me”, but now they are concerned about “whether it's right for me”. Xu Lei also talked about the relationship between AI and content. He believes that AI has improved the efficiency of matching supply and demand. A new phenomenon is that Xiaohongshu's search terms are getting longer and longer, with some words exceeding 11 words. This indicates that users want to provide more detailed information to the platform or AI to get more accurate responses. “AI search is not an alternative relationship with UGC content, but rather a complementary relationship.” Xu Lei summed up: AI will not change the essence; good content still determines everything.

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