Chinese social media platform Xiaohongshu's e-commerce success driven by lifestyle focus and influencer partnerships

From Investing.com: 2024-12-16 01:55:32

Tera Feng has gained over 500,000 followers on Xiaohongshu, a Chinese social media platform, by showcasing her lifestyle. Her audience, financially independent urban Chinese women, are willing to spend, leading to successful livestream sales of products ranging from designer suits to rice.

Xiaohongshu’s e-commerce success is attributed to its focus on aspirational lifestyles, attracting less price-sensitive users. Brands are finding value in partnerships with influencers for livestream sales. Xiaohongshu is seen as a platform where consumers research and discover female-oriented lifestyle products.

Xiaohongshu, known as the “little red book,” has over 300 million users and a reported valuation of $17 billion. The platform, while remaining somewhat quiet about its e-commerce strategy, is anticipated to see triple digit gains in GMV next year, potentially reaching $100 billion in sales revenue by 2025.

Despite Xiaohongshu’s success, some analysts believe it will remain niche compared to larger platforms like Tmall, JD.com, and Pinduoduo, which dominate China’s e-commerce market. These top three platforms account for over 90% of the country’s $2.78 trillion in GMV.



Read more at Investing.com: China’s Instagram-like Xiaohongshu making inroads with e-commerce sales By Reuters