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Why Overseas Brands Should Embrace Xiaohongshu

Why Overseas Brands Should Embrace Xiaohongshu

To thrive in the Chinese market, brands must adapt and embrace strategies that resonate with the younger generation. Xiaohongshu boasts 200 million monthly active users (MAUs) in China1 and has attracted 140,000 registered brands2. For foreign brands looking to increase brand awareness in China and connect with the right Chinese consumers, Xiaohongshu is virtually the must-go-to platform.

Unpacking Xiaohongshu

Often described as the "Chinese Instagram," XHS is a unique blend of Pinterest, Amazon, and TripAdvisor, making it stand out in its own right.

Xiaohongshu's social media posts revolve around reviews and personal experiences covering fashion, beauty, and lifestyle products, as well as interests and hobbies. Users share their insights through "notes" (i.e., posts) comprising photos, short videos, and textual descriptions. XHS has evolved into a trusted, community-driven environment where a large number of users search for insights and advice when making purchasing decisions.

Furthermore, XHS facilitates direct brand sales through features such as RED Mall, a cross-border e-commerce platform, live streaming sessions, paid advertisements, and links within content shared by XHS influencers.

Find out more about Xiaohongshu in our article: Precision Marketing Based On Big Data | Xiaohongshu

Targeted Demographics

Xiaohongshu's user base represents a specific demographic profile that's highly attractive for businesses looking to tap into the Chinese market. The younger generation of Chinese consumers primarily engages with it, as 72% of its users were born in the 1990s. These individuals often have a more progressive outlook, are tech-savvy, and are open to exploring new products and trends.

Furthermore, 90% of XHS 's users are located in first- and second-tier cities such as Shanghai, Beijing, Guangzhou, and Shenzhen. These urban centers are not only densely populated but also represent the economic powerhouses of China. Therefore, businesses targeting these areas can access a substantial market with strong purchasing power.

Additionally, the platform's 88.8% female user base is of particular interest to brands in sectors like fashion, beauty, and lifestyle, which are among the most popular categories on XHS. Women on the platform often seek recommendations, reviews, and trends related to these areas, making it an ideal platform for businesses targeting this demographic.

Global Accessibility

XHS 's accessibility oversteps geographical boundaries, making it a truly global platform. One of its notable features is its availability both within and outside Mainland China. This accessibility extends to an international audience, allowing users from various parts of the world to engage with its content.

For global businesses, this accessibility opens up a wealth of opportunities. By being present on XHS, brands can not only connect with the vast Chinese consumer market but also reach out to international consumers interested in Chinese products, trends, and lifestyles.

The international reach of XHS is further underscored by the fact that users can download it from Google Play and the App Store. Users from diverse regions can easily install the app on their devices, facilitating seamless access to its content and e-commerce functionalities. This accessibility aligns with the growing interest in Chinese culture and products worldwide, providing businesses with a direct channel to cater to this demand.

Product review and product seeding in Xiaohongshu

Xiaohongshu — a Fast Track for Foreign Brands into China 

Product Seeding

Xiaohongshu caters to niche, consumption-driven potential customers. It's the go-to platform for small businesses and international brands tapping into the aspirational lifestyles of young, affluent, cosmopolitan females in China. Renowned for its authentic user-generated reviews, XHS's word-of-mouth influence effectively ignites purchase desires within the target audience.

“The app is very informative, with an abundance of notes made by other users all around the globe. This app provides tips and advice for basically any subject in existence…”

—A user review on Google Play4

Brands' Engagement Opportunity

Brands can leverage XHS as a direct channel for obtaining feedback from their target customer base. Content creators can initiate discussions, gather user-generated content (UGC), or reference them within topics and posts. This two-way interaction and engagement with followers provide a goldmine of valuable insights in real-time.

By actively participating in XHS, brands not only gain insights but also demonstrate their commitment to customer satisfaction, ultimately strengthening their brand image and fostering customer loyalty.

Xiaohongshu's Closed Consumption Loop

Xiaohongshu offers brands a unique and efficient closed loop of consumption that traverses the entire customer journey, from the initial seeding phase to the ultimate satisfaction of customers. This well-rounded cycle extends from the earliest stages of brand awareness to the critical phases of consideration and final purchase.

Ideal for Influencer Marketing 

Xiaohongshu is an ideal platform for executing KOL (Key Opinion Leader) and KOC (Key Opinion Consumer) marketing strategies. Brands can leverage XHS's closed B2K2C loop, which stands for "Business-to-Key Opinion Leader-to-Consumer," to achieve their objectives.

Xiaohongshu's B2K2C loop is a virtuous cycle that fuels influencer marketing strategies. It combines the power of brands, influential voices, passionate consumers, and an engaged community, resulting in successful campaigns and lasting brand-consumer relationships.

Moreover, XHS has established guidelines for KOL and KOC marketing, with an official influencer marketing platform housing thousands of influencers. KOLs on XHS must meet specific criteria, such as follower count and post views, streamlining the marketing journey. 

Xiaohongshu users are passionate about connections, a trait businesses can leverage to convey their messages effectively.

Find out more about Influencer Markering on Xiaohongshu in our article: Embark on Your Inbound Marketing Journey on Xiaohongshu

iClick Xiaohongshu Marketing Solution

As Xiaohongshu's official overseas advertising partner and award-winning marketing agency, iClick Interactive provides a wide range of comprehensive, data-driven, and AI-powered XHS marketing solutions. Our all-rounded services encompass advertising placement service, content creation, account operation and management, and KOL/KOC advertising strategies, allowing brands to efficiently and effectively target and acquire the right customers.

We have a proven track record of assisting numerous global brands in successfully tapping into the Chinese market through Xiaohongshu, unlocking its full potential for remarkable success. Reach out to us now to explore how our comprehensive solutions can elevate your marketing strategies.

About Us

Founded in 2009, iClick Interactive Asia Group Limited (NASDAQ: ICLK) is a leading enterprise and marketing cloud platform in China, operating in over 11 countries, including the United Kingdom (UK), Australia, and Singapore. With its leading proprietary technologies, iClick's full suite of data-driven solutions helps brands drive significant business growth and profitability throughout the full consumer lifecycle and engage with their target audience through leading Chinese media channels and China’s internet giants. Over the years, iClick has won immense trust from our 3000+ direct marketers and agency clients and was listed on NASDAQ in 2017.

Source & Reference:

1 https://www.statista.com/statistics/1327421/china-xiaohongshu-monthly-active-users/

2 https://news.sina.cn/sx/2022-12-07/detail-imqqsmrp8874851.d.html

3 https://www.cbndata.com/report/2891/detail?isReading=report&page=1

4 https://play.google.com/store/apps/details?id=com.xingin.xhs&hl=en&gl=US

https://focus.cbbc.org/what-is-xiaohongshu-and-how-can-it-help-your-brand-in-china/

https://www.voguebusiness.com/consumers/xiaohongshu-a-new-pathway-to-china-for-international-fashion-brands

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