Known as “Little Red Book,” Xiao Hongshu (sau.hong.shoo) is leveraging its Instagram-like platform to expand its e-commerce presence, targeting urban Chinese women with influencer-led sales.
With more than 300 million users and a valuation of $17 billion after a funding round in July, the platform combines social media with curated shopping experiences, making it a unique player in China’s competitive e-commerce scene.
The platform allows users to share photos, videos, and texts documenting their lifestyles, similar to the Instagram format. Recently, it has become the search engine of choice for young women looking for travel, skincare and dining recommendations.
Its e-commerce strategy includes partnering with luxury brands like L’Oreal and Coach, who are using storefronts and influencer livestreams to engage consumers.
Unlike rivals Alibaba’s Tmall and ByteDance’s Douyin, Xiaohongshu focuses on a softer sales approach, relying on influencers to showcase a mix of luxury and everyday items during live broadcasts. The platform integrated purchasing features into its live streams in 2022, seamlessly blending content and commerce.
Luxury brands see it not just as a promotional tool, but as a direct sales channel, reflecting the shift in digital retail towards personal and interactive shopping.
Backed by investors such as Hongshan, Hillhouse and Citic Capital, Xiao Hongshu is recruiting talent from competitors to strengthen its position. Experts expect its gross merchandise value (GMV) to exceed $100 billion as it captures a niche market through its social commerce model.
This puts Xiaohongshu in a position to compete with dominant platforms like Tmall and JD.com by redefining the shopping experience for specific consumer segments.