A new e-commerce startup in China, has finished up their second round of fundraising. They have now gathered over $10 million of investments, being led by GGV Capital. Due to GGV Capital having invested so much into the new platform, the managing partner Hands Tung is on the board of directors.
The new e-commerce startup is being called Red for short, the actual name is Xiaohongshu, which roughly translates to Little Red Book. The e-commerce platform is going to serve as a social web platform in which shoppers can utilize to buy luxury products from abroad, getting in on discounted prices.
Red will have several subscribers from abroad that will allow users to look through the website or mobile apps in order to see the products being offered. These products are going to have real photos of them, as well as small testimonials so users can make an educated assessment on the product they want to purchase.
The goal of Red is to provide a shopping experience for Chinese users that is going to be more of a guide in buying luxury goods and products. Along with including the information about the individual products, the e-commerce platform is going to explain the background of country that produces the product, as well as the places in which this product can be purchased.
The goal that Red has is not something new in the Chinese e-commerce market. However, Red is going to be more focused on user sharing and the community to help people make the proper choice for the product they are interested in.