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00:00Miranda thanks so much for your time today. Thank you for having me. Hi Miranda if I shall home she'll be home soon shoot not to be confused with Mauldin sell Hong suit. Little Red Book . But you have a social media platform in China that helps young Chinese buy at least initially. Compare notes and buy luxury goods abroad. How is the specter of a global trade war affecting read your business. Actually let me figure introduced as a lot more. We're not only focused on shopping where I am more like CAC focus on lifestyle so this on if we call that trade Wall doesn't really affect us because you know we really focus on kind of like categories like Cosmo X and the fashion would. Not really in yet night. Right now it's just agricultural products and steel and pork and things like that . But China might respond to the latest proposals of another what 100 billion dollars worth of goods. If China targets some of these lifestyle products coming from the United States that would affect you. Yes actually and the where they're confident that the governments from both countries will solve this. You know their shop tie you know logistics I mentioned earlier that as a partner in China we're very confident for the economy just for the next five or 10 years and I'm sure there will always be some kind of like bumps in the middle. They were very confident . But how is your business changing over the last few years . You told me prior to this interview that less revenue is actually coming from foreign products. So it's not less revenue it's less push it less percentage of. Yes. Yes Actually no . Because in the past that people have the impression that China wants to shop overseas. That's not mean that they are only a one goods for all basis. They actually like the lifestyle they want leave a better lifestyle. And that's why Shell so surely is doing to find them the best way to works best lives at their fingertips. But this you know very interesting. A lot of Chinese factories. They know the importance of brand. They know the importance of telling the stories. And we see a lot of the Chinese individual French emergent so now is the good combination that always is brand. They have a lot of brand history very good quality and there are new emerging Chinese brands and new emerging Chinese that kind of that process is always more like that more diversified. So you erupted onto the scene in about what three years ago or so when you got this billion dollar valuation you were a new upstart you are a unicorn and you got a lot of funding you got funding from Tencent and a number of other strategic partners but what has been the key driver for the last three years you've kind of gone quiet maybe not to millennials and the jolting hole in China to use your service but to the investment community that have been focusing on the Tencent and the Alibaba is that dominate in China right now. What's happened in the last few years. Actually I think just as you measure week real quietly you know our deal grow 10 times for the past two years and our and they will see 30 percent on a RTS the one. So I think we will quite just rapidly and you know what's more important and is now the moat the majority is the user base is changing in China goes slowly from people who were born after 1980 Jihye Lee hold two people were born out in nineteen ninety five of which China would call it oh we'll have a very interesting data last year that our new uses we acquired 70 percent 70 percent of that boyfriend nighty night after night night right. So they're quite young. So how are you using that data and how are you maybe investing in a I to mine that data. I think it's right now it's you know everybody has their own cell home shoe so everybody is personalized what the feed you see the items you see they're all different. We're trying to get you know is at the technology that technology is always helping people to get to know each other better. So the more data we have that we can know the better you measure. What's your biggest challenge though right now. I think the biggest challenge is that the company's growth they're fast and user base growth very fast but Tim is still very limited. So we're just I grew up at I I think 50 percent of my schedule is high level with interviews and new hirings and now we'll how grow barley try to juice to to fix this problem. What's the next phase there. I mean you need more fund raising is an IPO either in the cards or is it on hold because of uncertainty. I think we're still very open at this stage because we're kind of like still a very young company . It's a little more than four years and we focus a lot on youth as well. And we strongly believe that if we have just very large amount of use this and the stable grows the market will will come. Just every time so an IPO is possible. You say that . I think that's going to be in two or three years. OK. Would you as the Chinese government is trying to encourage the coming home strategy. Would a domestic listing make more sense or overseas. As I mentioned that I think that for us will be kind of like two or three years ago and we're open to both markets . I think both markets that they're attractive to on foot different kinds of different companies that we're trying to get all the information. What's the going to be the focus. You told me as well you're going to start opening up physical presence. You're going to go new retail to old retail. Why. I think that's very interesting because you know in China everybody is talking about new retail because in China the retailing this week in my ise has never been really mature. So this year where opening a store there is one probably three months to test what experience they can half off line. You know people all see us kind of as an online community they love us online bid they'll have to touch us they have to fill us. They have to feel the pride they can fill the others. That's something that you can do offline. And we always think it's very interesting that when people spend too much time online they want to go offline. They want to go meet their friends they want to go to the real world. It's always it will always be the case .

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Xiaohongshu Connects Overseas Buyers With Chinese Buyers

Xiaohongshu Founder Miranda Qu discusses the impact of trade tariffs on the startup, and talks about e-commerce in China. She speaks with Stephen Engle from the Boao Forum for Asia, in Hainan, on "Bloomberg Markets." (Video edited to remove incorrect graphic, corrects guest's title in description.) (Source: Bloomberg)

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