Xiaohongshu (Little Red Book) has risen in recent years as a social platform, drawing in a wide range of brands and merchants due to its unique community atmosphere and high user engagement.
It’s a hybrid of Instagram and Reddit, serving as a lifestyle "bible" for its users. With over 300 million monthly users searching for beauty, shopping, travel, and lifestyle advice, the platform has become an essential destination. Unlike Chinese users who primarily use Xiaohongshu for restaurant reviews and travel recommendations, American users tend to turn to the platform to discover and follow the latest beauty trends.
But what makes Xiaohongshu such a phenomenon? What are its key advantages that drive brands and users to flock to the platform?
To uncover the answers, we analyzed successful brands and merchants on Xiaohongshu, identifying commonalities and patterns that reveal which types of businesses thrive on the platform and how they can stand out in this competitive space.
The Two Pillars of Xiaohongshu’s E-Commerce Ecosystem
Xiaohongshu’s e-commerce ecosystem comprises two main pillars: the buyer ecosystem and the brand ecosystem.
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Buyer Ecosystem:
This segment often features celebrities and influencers like Dong Jie and Cherie Cheung, who leverage their personal charm and close engagement with the Xiaohongshu community to drive massive sales, achieving GMV (Gross Merchandise Value) in the billions. Their influence is a cornerstone of Xiaohongshu's early e-commerce success. -
Brand Ecosystem:
Unlike the buyer ecosystem, the brand ecosystem focuses on businesses, particularly small to medium-sized brands. The rise of these brands highlights the platform’s inclusivity and diversity in products and content, making Xiaohongshu an attractive choice for businesses looking to expand.
Four Key Trends Behind Xiaohongshu’s Successful Brands
Recently, Xiaohongshu released a list of 30 top-performing brands, offering a valuable glimpse into the traits of successful players in its e-commerce ecosystem. From this list, we identified four key trends that explain what types of brands succeed on Xiaohongshu and how they can establish a strong foothold.
1. Aligning with Platform Vision and Rules
Success on Xiaohongshu begins with understanding its rules and aligning with its core values. As a community-driven platform, Xiaohongshu prioritizes content and culture over pure commerce. Brands must immerse themselves in the platform’s ecosystem, creating content that resonates with its community while fostering genuine connections with users.
Collaborating closely with the platform can unlock access to traffic support and insights, enabling brands to achieve their goals more efficiently and cost-effectively.
2. Catering to a Female-Dominated Audience
Xiaohongshu’s user base is predominantly female—a trend reflected in the brand list, where 73% of the top 30 brands cater to women. These brands span categories such as fashion, beauty, and personal care, emphasizing design, quality, and user experience to meet diverse female consumer needs.
To succeed on Xiaohongshu, brands must understand the psychology of female shoppers and craft tailored products and content that appeal to their preferences.
3. Prioritizing Design and R&D Capabilities
Brands with strong design and R&D capabilities have a distinct edge on Xiaohongshu. Designer labels and brands with in-house production can offer unique, high-quality, and non-standardized products that align with the platform’s aesthetics.
These brands attract quality-conscious users seeking distinctive, high-value items—offering an ideal alternative to the price-driven competition found on other platforms.
4. Leveraging “Content + Word of Mouth” to Drive Sales
Xiaohongshu’s success lies in its “content + word of mouth” strategy. Its emphasis on visually appealing, narrative-driven content requires brands to excel in storytelling and forge emotional connections with users.
At the same time, user reviews and recommendations play a pivotal role in purchasing decisions. Brands must prioritize product quality and actively encourage user-generated content, fostering positive feedback loops and building credibility through community-driven endorsements.
The Magic of Xiaohongshu: Platform Success and Brand Opportunities
From a platform perspective, Xiaohongshu’s triumph stems from its unique integration of community, content, and commerce. Unlike traditional e-commerce platforms, Xiaohongshu blends social interaction with shopping, creating a seamless “discover → desire → recommend” consumption pathway. This approach not only reshapes the relationship between brands and consumers but also empowers users to become advocates for the brands they love.
From a brand perspective, success on Xiaohongshu demands sharp market insights, compelling content creation, and robust product development. Xiaohongshu isn’t just about driving traffic—it’s about delivering exceptional user experiences and embracing the platform’s cultural nuances. Brands that strike this balance are best positioned to thrive.
Why Xiaohongshu Is the Platform to Watch
Xiaohongshu’s explosive popularity stems from its ability to satisfy the modern consumer’s desire for personalized, emotionally engaging, and socially interactive shopping experiences. For brands and merchants, understanding Xiaohongshu’s community dynamics and platform rules can unlock immense growth potential in this vibrant digital ecosystem.
By embracing Xiaohongshu’s unique blend of social connection and commerce, brands can not only capture market share but also forge meaningful relationships with their audience, making it a must-consider platform in today’s competitive e-commerce landscape.