Xiaohongshu: China’s Social Media is Making “Profits”
Xiaohongshu (Little Red Book) has evolved from a beloved lifestyle app into a profitable powerhouse, now reaching new heights with its first-ever net profit of $500M on $3.7B in revenue last year. For context, that’s a dramatic shift from a $200M loss just a year prior. The platform’s growth isn’t just impressive—it’s redefining the digital landscape for social media in China!
Valued at $20B, Xiaohongshu is backed by top players like Alibaba, Tencent, and GGV Capital. Known as the go-to spot for travel, beauty, and lifestyle tips among young Chinese women, the platform is diversifying, now bringing in a wave of male users interested in cars, sci-fi, and trending memes.
Here’s the kicker: it’s not only ad-driven anymore. Xiaohongshu’s e-commerce game is strong, with influencers leveraging live-streaming and short videos to sell products directly on the app. This shift has been wildly successful, with gross merchandise value skyrocketing fivefold during last year’s Singles’ Day (think China’s Black Friday). Brands are doubling down on Xiaohongshu because it delivers some of the most effective ad engagement in the market. With 312 million active users, it’s now China’s fastest-growing social media platform!
Despite this growth, Xiaohongshu’s future remains an open question. While investors are excited, the lack of a clear IPO path keeps some cautious, especially given regulatory complexities around data-heavy social media companies.
With its unique “slow livestreaming” approach, Xiaohongshu has carved out a niche in “quiet luxury” content, a refreshing contrast to the frenzied marathon streams of competitors. It’s not just a platform anymore—it’s becoming a cultural phenomenon, appealing to China’s young, affluent consumers in a whole new way.
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6 Tips to Crush It on Little Red Book (Xiaohongshu) for Your Brand 🚀
Little Red Book (Xiaohongshu) is where it’s at for brands in China, especially in the beauty industry. With millions of users sharing product tips, reviews, and lifestyle moments, it’s THE platform to reach an engaged, trend-savvy audience. Here’s how to stand out and make waves on Xiaohongshu:
1. Get Real with User-Generated Content (UGC) 📸
- Authenticity wins on Xiaohongshu. Encourage users to post about your products in real-life situations. For example, a skincare brand like GlowMe could send samples to micro-influencers, who then post honest “before and after” photos. This creates trust and generates buzz without feeling overly promotional.
2. Collaborate with Micro-Influencers for Targeted Reach 👩🎤
- Go beyond big names. Partner with niche influencers who align with your brand’s values and target market. For instance, if you’re a vegan beauty brand, find influencers known for cruelty-free lifestyles. Micro-influencers in beauty, with audiences that trust them, can deliver content that feels genuine and relatable.
3. Optimize Content for Discovery 🔍
- On Xiaohongshu, SEO matters. Keywords, hashtags, and popular phrases help users find your content. For example, if you’re launching a new organic face mask, use terms like “organic skincare,” “natural glow,” or “vegan beauty” in your captions and hashtags. Think of what users are likely to search for and use those words to boost visibility.
4. Use “How-To” Content to Educate & Engage 💡
- Tutorials are huge! Beauty brands like PureGlow can post step-by-step guides for common skincare routines or makeup looks featuring their products. For example, a “5-Step Night Skincare Routine for Glowing Skin” post can showcase how your products fit seamlessly into their daily regimen. This adds value and builds brand trust.
5. Create FOMO with Limited-Time Campaigns ⏰
- Leverage Xiaohongshu’s social nature to create urgency. Run limited-time offers or flash sales that followers can only access through the platform. Beauty brand FreshFace could launch a “24-Hour Flash Sale” on their new serum, prompting followers to act fast. This boosts engagement and drives quick conversions.
6. Showcase Real Stories & Reviews to Build Trust 💬
- Users on Xiaohongshu love real reviews and relatable stories. Encourage customers to share their journey with your product. For example, Youthful Glow might repost customer stories about dealing with acne or dry skin and how the product has transformed their routine. Re-sharing these stories shows that your brand listens and values real feedback.
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Ready to make waves? Little Red Book is all about authentic engagement and community-driven marketing. Use these tips to not just advertise but create connections. In China’s beauty industry, Xiaohongshu can be your brand’s secret weapon