A few days ago, Yang Ruo, the CFO of Little Red Book, left his job. This is certainly not good news for a company with a valuation of 20 billion dollars. (It is said in the industry that Xiaohongshu originally planned to IPO this year, but the company never admitted it). It is said that Yang Ruo has gone to Fosun. From the perspective of employment, we all know the current situation of Fosun. What's more, this is a quite mature company with a certain elderly culture. As an airborne executive, it is incomparable with the space provided by Little Red Book in terms of performance space and long-term benefits. As for the reason for Yang Ruo's resignation, neither the company nor the individual clearly stated, but there should be sufficient reasons for any termination of labor relations. Recently, I have been thinking about what kind of state Xiaohongshu is in, or to put it bluntly, whether this Internet company, which is still in the stage of scale growth, is also facing some key problems. In general, the problem is eternal. What a company wants to do, what it should do, what it has done, and whether it can do well, it involves goals, strategies, implementation and results. Many people think that these four issues are linear, but in my opinion, sometimes they are not unified. Even when a medium-sized company uniformly schedules these four issues too linearly, it is easy to fall into the "medium-sized trap". Such enterprises all have a common problem. They are both arrogant and inferiority complex, radical and conservative. They have formed ambitions comparable to those of large companies, but they have no firm determination to continue. So we did this and that, but we did not dare to make strategic investment in new business. As Duan Yongping said, we should do the right thing, and then do the right thing. To put it bluntly, many medium-sized companies pay too much trial and error costs because they can't stick to the right day. 01 First of all, I don't think it's a good idea for Xiaohongshu to do business closed-loop at this stage. Of course, I understand the great commercial value of Little Red Book. Based on the data of all parties, its DAU is 65 million, and its MAU has reached about 200 million. Among these active users, the middle class is highly concentrated, and mainly women. The primary market represents a mainstream perspective, and they also highly recognize the value of small red books, especially in the absence of high-quality targets. According to the latest round of financing of this company, the valuation has reached 20 billion dollars, which is about three times the current market value of Station B. In addition, the single user value of Little Red Book has reached $100, more than twice that of Station B, and 10 times that of Zhihu, based on 200 million monthly life. Therefore, Qu Fang, the co-founder of Xiaohongshu, thought, "Now we are like a gold mine. Many people want to dig for gold, which really challenges us. We need to speed up our actions." Xiaohongshu's approach is to prevent others from mining. It is very determined. In August 2021, Little Red Book launched the "all-in-one shop", hoping that the brand would open a shop on Little Red Book, and at the same time, Little Red Book cut off the external chain. On the surface, the content platform breaks the external chain and self closed loop, which is a thought of finality. Sooner or later, everyone will come to this step