China’s Xiaohongshu is Turning a Giant as a Female-Focused Platform
Xiaohongshu, the popular social commerce platform in China, is eyeing an IPO in the US as soon as this year and has recently hired Citigroup’s former Hong Kong–based Managing Director as Chief Financial Officer, as part of the preparation for the listing. The sources said the IPO could bring Xiaohongshu’s valuation at more than USD 10 billion, much more than its latest private valuation of USD 6 billion.
As one of the fastest growing platforms, Xiaohongshu has over 300 million registered users. According to CBNData, in 2020, 86.1% of Xiaohongshu users were female, while 83.7% were under 35. The user base is also slowly stretching into the lower tier cities.
Xiaohongshu was originally designed as a user-generated content (UGC) social sharing platform. As the spending power of modern Chinese women is getting higher, ‘she economy’ continues to emerge in China. More brands are eager to engage with Chinese women through more targeted campaign strategies. As a result, Xiaohongshu has seen the opportunity in the female-focused market and leveraged the increasing spending power of Chinese female consumers to build a highly-engaging community among young, urban women. Xiaohongshu believes that women not only drive consumption but also boost ‘she economy’.
Xiaohongshu is a perfect choice for new overseas brands that want to test out the Chinese fashion and beauty market, particularly if they are targeting young Chinese women. It is one of the best platforms for social listening in China as the majority of the content and comments are based on users’ first-hand experience. Brands can easily understand the actual needs of the young Chinese female community and project whether their products will succeed in China.
At Comms8, no matter you want to kickstart your marketing journey on Xiaohongshu or localise your content to target Chinese female consumers, our Chinese-speaking marketing specialists will help you to launch a comprehensive digital plan on Xiaohongshu and other Chinese social media ecosystems. Contact us now to get started!
Source: Xiaohongshu
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