Xiaohongshu, An Instagram-like Platform From China, Is Increasingly Popular For E-Commerce Sales

Xiaohongshu, a Chinese social media platform that is often compared to Instagram (photo: x @xiaohongshutron)

JAKARTA Xiaohongshu, a Chinese social media platform that is often compared to Instagram, is increasingly showing its influence in the world of e-commerce. With the appeal of niche brands and high-end products, Xiaohongshu is starting to record significant growth amid the tight retail competition in China.

Influencer Tera Feng, who has more than 500,000 followers, is one proof of the success of this platform. Feng, who became known for documenting his lifestyle in Shanghai, has now also made it into livestreaming. In the last three months, he has managed to sell a variety of products, ranging from Carven suits worth 15,000 yuan (around Rp. 31 million) to his favorite rice for 60 yuan per kilogram.

Xiaohongshu has become an important marketing tool in China, but its e-commerce efforts often encounter obstacles. This year, the situation is starting to change. Consultants say the platform is starting to provide tangible results, especially for brands selling niche and high-end products.

Suya Wang, General Manager of Early Data, a Shanghai-based consultant, said that Xiaohongshu offers a different consumer base.

"The brands really appreciate followers in Xiaohongshu because their purchasing power is much different from other platforms," Wang said.

Several big brands, such as LOreal and Coach, have opened official stores on this platform. In addition, many brands also partner with influencers to promote their products via livestreaming.

Unlike other platforms, such as Alibaba's Tmall or Douyin from ByteDance, which uses aggressive sales techniques with high-energy host, livestreaming on Xiaohongshu is calmer and uses a more relaxed tone of conversation.

This approach has proven to attract the attention of certain audiences. For example, the independent fashion brand Ms Min experienced a surge in sales after their product was featured on the livestream by Chinese actress Dong Jie.

Our initial idea was not to make Xiaohongshu a sales platform, but as a place to tell the story of our brand. But once Dong Jie talks about Ms Min, we can sell hundreds of units of products from just one live stream, "said Ian Hylton, president of Ms Min.

Although Xiaohongshu is relatively new in the world of e-commerce, ambitious measures have been taken. By 2022, the platform combines e-commerce and livestreaming divisions, allowing users to buy products directly while watching live broadcasts.

Jacob Cooke, CEO of WPIC Marketing + Technologies, predicts that Xiaohongshu will record triple-digit growth in 2025, with total sales estimates (GMV) reaching 100 billion US dollars (Rp1.6 quadrillion).

However, some analysts are skeptical of Xiaohongshu's potential to become the main players. Currently, China's three largest platforms Tmall, JD.com, and Pinduoduo control more than 90% of the country's total GMV which reached 2.78 trillion US dollars.

"Compared to a large platform, Xiaohongshu's GMV is too small that they don't have a substantial influence on the market yet," said Li Chengdong, Beijing-based technology and e-commerce analyst.

Xiaohongshu, which literally means small red book, has become more than just a lifestyle content sharing place. With more than 300 million users and valuations reaching 17 billion US dollars (Rp272.3 trillion), the platform attracts the attention of big investors such as Sequoia China and Citic Capital.

Xiaohongshu's success shows that a different approach, such as focusing on an aspirationive lifestyle and niche audience, can provide new opportunities in competitive e-commerce markets.