According to the Financial Times, Xiaohongshu, a Chinese social media APP similar to Instagram, reached 312 million monthly active users in 2023, a 20% increase from the previous year. It has become China’s fastest-growing social media platform.

1. Targeting High-Income Chinese Consumers

This platform has fewer users than Douyin (TikTok in China) and Kuaishou, with monthly active users of 750 million and 700 million respectively.  

its 312 million users are mainly from affluent Chinese cities, making it an effective digital marketing platform for targeting high-income consumers.

Xiaohongshu has fewer users than Douyin

2. Young Chinese Women with Strong Purchasing Power

70% of Xiaohongshu’s users are women, with half under the age of 30. It is a significant platform for reaching young women with purchasing power.

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Xiaohongshu’s Impressive Performance in 2023

In 2023, this “Little Red Book” achieved a historic breakthrough, generating $3.7 billion in revenue and $500 million in net profit, an 85% increase from the previous year. These figures highlight its rapid commercial expansion and increased profitability.

Leading Digital Marketing Platform in China

Xiaohongshu’s primary revenue source is advertising, with a growing focus on e-commerce.

Its strategy not only generates revenue but also provides a revenue channel for KOLs/KOCs to promote products by posting Notes, short videos, and live streamings, thereby boosting product and service traffic.

Xiaohongshu is Leading Digital Marketing Platform in China

Xiaohongshu: Best ROI Platform in China

Unlike other platforms, advertising on Xiaohongshu does not dilute brand value. Advertising and marketing on this platform do not dilute the brand’s value. According to Li Chengdong, head of Haitun Technology, brands increase their advertising spending on Xiaohongshu because this platform offers a better return than others.

Xiaohongshu: Tool for Brand Building in China

For businesses, Xiaohongshu is a more favorable platform than Taobao for building brand image and customer relationships. Sales on Taobao are often driven by platform content and activities.

Opportunities for International Brands on Xiaohongshu

1. Essential Platform for Entering the Chinese Market

Xiaohongshu is an essential platform for international brands looking to enter the Chinese market. It’s crucial to establish a direct connection with Chinese consumers and build trust and brand loyalty.

2. Chinese Consumers Open to International Brands

Xiaohongshu users are eager to explore and understand international brands and products. They actively share their user experiences, which is important for international brands concerned with authenticity and real-time interaction.

Chinese Consumers on Xiaohongshu Open to International Brands

The Future of Xiaohongshu

1. Search Engine ≠ E-commerce Platform

Xiaohongshu se développe activement dans le domaine du e-commerce, mais il est difficile de commercialiser complètement ces services. Les utilisateurs préfèrent chercher des informations et des avis sur les produits ou services, mais finalement, ils préfèrent acheter sur d’autres plateformes de e-commerce telles que Taobao, Tmall, JD, etc.

2. Investment Issues

Malgré les performances solides de Xiaohongshu, certains investisseurs pensent que son avenir reste encore incertain. Certains disent : “Je suis optimiste pour Xiaohongshu, mais cela pose un gros problème : l’impossibilité de retirer l’investissement par IPO.”


In 2023, Xiaohongshu achieved a remarkable advancement in revenue, becoming one of the most dynamic social media platforms in China.

Despite facing challenges in its economic model and future direction, Xiaohongshu is expected to maintain its leadership due to its unique position in the Chinese market and its ongoing commitment to innovation, thereby offering attractive returns to investors and advertisers.

For more information on marketing strategies on Xiaohongshu and other Chinese social media platforms, feel free to contact us. The international digital marketing experts at the STAiiRS team will be happy to answer your questions!