Xiaohongshu, also simply called RED, is one of the fastest-growing smart social commerce apps on the market, with over 100 million monthly active users. RED provides multinational brands with enormous opportunities to maximize their potential and establish a strong presence in China. It’s for this reason that famous brands like Louis Vuitton and YSL are clamoring to advertise on the site. If you are not convinced yet check our previous post 5 Reasons to Leverage RED/Xiaohongshu and How to Set Up an Account.
In the ever-changing digital landscape, it’s a must-have Chinese marketing channel for beauty, lifestyle, and fashion brands.
RED helps marketers to engage and sell to their target market by utilizing a filtering algorithm that tailors material to users’ likes, which is one of the most significant advantages.
The most effective strategy to reach users is to advertise in the app’s newsfeed. User-friendly and authentic material with clear reasons to interact is preferable. We recommend to use a mix of multimedia with enticing descriptions with hashtags to cover a variety of views depending on the objectives and industry subjects.
One of the key ways to gather popularity on RED is of course collaboration with KOLs and KOC which we will cover in our next posts.
Who are Chinese influencers: KOL and KOCs?
Today, we will focus on how you can advertise using RED’s native media buy system.
While advertising on the platform is certainly beneficial to your business, navigating XiaoHongshu’s merchant setup can be tricky. There’s a lot to consider, and there’s not a lot of help available. Here’s all you need to know about selling on XiaoHongshu without the hassle!
Step 1: Create an account on RED / XiaoHongshu
To begin, you must first create an account on XiaoHongshu’s enterprise system. If you’re an incorporated business with your own email account, this should be pretty simple.
Step 2: Provide information about your business
After you’ve created an account, you’ll need to fill out the following information:
- Company information and qualification: like your contact information, location, the origin of your goods, trading model (cross-border or general commerce), and business type. Also, include a Chinese business license or letter verifying your right to sell in China and proof of incorporation.
- Financial information: your bank details, account number, billing currency, and sort code
- Brand information and qualification: adding your brand name, description, and photos, as well as whether you’re a single or a multi-brand company. Also, I Include trademark certificates, permission to resell other brands (if applicable), and authorization to sell under your own brand.
Step 3: Review of qualifications on RED
After you submit the above information, XiaoHongshu will review your application and determine whether you are eligible to sell on their site. If all of the information you supplied is correct, you can complete it as soon as one week after your submission.
Step 4: Fill out the contract
When RED approves your application, you’ll receive both a digital contract to sign through email and a physical contract to return by mail. Read these over with a lawyer and sign them as soon as possible if you wish to move further.
Step 5: Take up the XiaoHongshu training
The completion of XiaoHongshu’s online training program is the final stage in the application procedure.
This section contains all you need to know about selling on the platform, and you won’t be able to start your store until you finish it. Set aside some time to concentrate on this – it will benefit you greatly in the long run.
Time taken to register: The length of time it takes to register is mostly determined by how quickly you can complete all of the paperwork, complete your company introduction, submit photographs, and so on.
If you do everything correctly from the start, you can administer the application in one week.
Costs included: Deposits and operating fees are included in the cost of selling on the platform. Deposits vary depending on your company’s “characteristics,” your qualifications, and the type of store you intend to open.
The deposit is usually RMB 20,000 and is returned three months after the store is closed.
Conclusion
Xiaohongshu’s unique stance as a trustworthy, celebrity-approved distributor of international products is an ideal route for businesses. Especially for ones looking to leverage the social commerce trend as part of the e-commerce revolution for purchasing superior products.
However, marketing in China is never simple. There are language barriers to overcome, rules to follow, and high costs to consider. All of that makes starting all too risky.
That is why at KRDS, we commit to assisting businesses to achieve marketing success in China. If you require further support with setting up your account, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their network among Chinese customers. For additional information, please contact us by phone – Shanghai or Hong Kong