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The marketer’s guide to Xiaohongshu: Play smart, win big
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A unicorn that continues to captivate investors with its potential, the Chinese giant social eCommerce app Xiaohongshu was recently valued at US$17 billion in the newest funding round, attracting top investors like DST Global (according to Nikkei Asia).
With more than 300 million monthly active users (according to Nanjing Market Group), Xiaohongshu has evolved into a distinctive social commerce platform, blending elements of Instagram, Pinterest, and Amazon. It has become the premier destination for young Chinese urbanites, especially women, looking for lifestyle tips, product recommendations, and authentic reviews.
Having been a heavy user and marketer on Xiaohongshu since 2017, I have observed the significant attention the platform has gained not only in mainland China but also among overseas Chinese. According to Sensor Tower, a market intelligence firm, the number of overseas users in Malaysia, the US, and other markets has grown to around 10%.
For example, in Singapore, Xiaohongshu is the go-to place for local Chinese to explore new restaurants, shopping venues, and much more. Local merchants and brands in Singapore have adopted Xiaohongshu as a marketing channel to reach local Chinese users and attract Chinese tourists. Additionally, emerging local KOLs and KOCs frequently share their experiences on the platform.
For brands keen to learn more about Xiaohongshu, here’s a nutshell to get started:
1. Key behaviour on Xiaohongshu: Zhong Cao (种草)
Zhong Cao, meaning recommending or sharing a product or experience to stimulate people's interest, is the core behaviour on Xiaohongshu. Users actively search for things related to their interests. The platform’s decentralised algorithm plays a significant role in promoting this behaviour.
2. Introducing your brand to the target consumer group through a hero product is essential
Xiaohongshu promotes a unique anti-funnel model where you start by finding the core consumer and then expand to high-potential consumers and beyond. This model differs from the traditional marketing funnel. You can utilise Xiaohongshu's unique labeling to find your customers with the right product and messaging.
While your brand may have gained some awareness through KOLs, KOCs, and your official account, you can immediately tap into the next stage on Xiaohongshu: live streaming.
In this stage, you can either start your brand’s Xiaohongshu store live streaming or partner with KOLs to live stream on their account. Xiaohongshu achieved rapid eCommerce growth in 2023, with transaction volumes in multiple sectors, such as fashion, increasing by 380% year-on-year, and home furnishings by 300% year-on-year (according to KrAsia).
Unlike Douyin's live streaming, TikTok’s China version, which focuses on selling mass-market products at extreme discounts, Xiaohongshu's live streaming emphasises the KOLs' influence. From telling the brand story and showcasing unique product designs to sharing lifestyle content, KOLs can directly influence a group of high-consumption individuals.
The concept of brand buyers, introduced by Xiaohongshu in 2023, allows KOLs to select products from the brand based on their unique taste and knowledge of their followers' preferences. For instance, top beauty KOL Zhang Xiaohui had her first live stream on Xiaohongshu and achieved a GMV of 600 million RMB (US$82 million), with an average order price of over US$100 (according to Moojing Global).
Xiaohongshu's growth potential is undeniable. But how can your brand truly succeed on this dynamic platform? As a leading marketing agency, we suggest the following strategic steps to ensure your brand thrives:
1. Master China's social media landscape and Xiaohongshu's algorithms: To effectively navigate Xiaohongshu, it’s crucial to understand China’s broader social media environment and the specific algorithms and metrics that drive engagement and visibility on the platform. This foundational knowledge is the cornerstone of any successful strategy.
2. Identify and understand your target audience: On Xiaohongshu, it’s vital to know exactly who you’re speaking to. Success relies on achieving a seamless "product-channel fit" by aligning your product with the right audience and crafting messages that resonate deeply. Understanding your audience’s preferences, behaviors, and needs is essential to tailoring your approach effectively.
3. Tailor your content for Xiaohongshu: Engaging Xiaohongshu users requires content and messaging that are specifically tailored to fit the platform's unique style and user expectations. This goes beyond mere translation; it involves adapting your materials to align with local values, trends, and communication styles.
This was written by Elaine Yin, head of social and influence at Tomato Interactive (a BlueFocus company).
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