Xiaohongshu RED Marketing for Brands 2024

May 22, 2024

What began in 2013 as an online guide for Chinese shoppers traveling overseas has evolved into China’s answer to Instagram and Pinterest: “XiaoHongShu” (小红书) or “Little Red Book,” known simply as RED. This dynamic platform offers a one-stop destination for users to discover, share, review, and purchase lifestyle products and services, with content spanning health, beauty, fashion, travel, and entertainment. Primarily user-generated, RED’s content is perceived as authentic and trustworthy, featuring diverse formats such as photos, text, videos, and livestreams. 

Now RED is a thriving ecosystem where users seek inspiration, recommendations, and genuine connections. With over 260 million monthly active users, predominantly Gen Z females residing in China’s bustling cities, RED marketing presents a golden opportunity for brands to foster high engagement and meaningful customer dialogues building genuine trust with the audience. Let’s delve into how brands can effectively tap into this vibrant community and navigate the nuances of marketing on Xiaohongshu.

RED Key Data

Understanding RED’s Unique User Demographics and Platform Dynamics

RED’s user demographics consist primarily of educated, high-income individuals with a penchant for lifestyle, fashion, and beauty. The platform’s blend of social sharing and e-commerce creates a unique environment where users seek authentic recommendations and peer-driven content. Understanding the platform’s nuances is crucial for brands looking to navigate RED’s community-driven ecosystem successfully. Emphasizing authenticity, trustworthiness, and genuine connections is key to building rapport with RED users and driving meaningful engagement.

 

Navigating Account Setup and Marketing Strategies

Opening an account on RED is the first step towards establishing a presence on the platform. Brands can initiate marketing efforts by providing free samples to regular users or investing in paid collaborations with KOLs to generate buzz and awareness. While RED marketing can drive sales, it’s essential to understand that the platform’s primary focus is on fostering brand engagement and building a loyal community rather than high-volume transactions. Brands should adopt a strategic approach, balancing direct marketing initiatives with content-driven strategies to resonate with RED’s user base effectively.

5 reasons to Leverage RED as a Lifestyle Brand in China

RED marketing features

Exploring Top Account Content: Insights and Trends

The top accounts on RED often publish content that resonates with the platform’s user base, ranging from lifestyle tips and fashion trends to beauty recommendations and travel experiences. These accounts leverage visual storytelling, user-generated content, and influencer collaborations to captivate their audience and foster engagement. As a result, understanding the content preferences and consumption habits of RED users, brands can tailor their marketing strategies to align with the platform’s ethos and drive impactful results.

Post organic content by leveraging global material and localizing it for the Chinese audience. Stay attuned to China’s hot topics and trends, creating relevant hashtags to enhance visibility. Use specific hashtags for keyword searches and optimal placement within the platform’s algorithm. This approach ensures your content resonates with local users while maximizing reach and engagement on RED.

We suggest promoting your best-performing content with ads to further enhance reach and achieve optimal results. However, RED offers a limited range of targeting categories for ads. The platform supports four types of ad formats: pop-up ads, banner ads, keyword ads, and in-feed ads.

Learn more about advertising on RED in our previous post

 

RED Marketing: Top Strategies

Engaging with RED Users: Leveraging Influencer Marketing and Live-streaming

Firstly, influencer marketing and live-streaming are two powerful tools for brands to connect with RED users authentically. Key Opinion Leaders (KOLs) and Key Opinion Customers (KOCs) wield significant influence on the platform, capable of initiating trends, expanding brand visibility, and driving conversions. Collaborating with these influential figures allows brands to leverage their credibility and tap into their loyal follower base. Live-streaming adds another dimension to engagement, providing users with an interactive platform to interact, ask questions, and make purchases in real-time during influencer-led sessions.

Secondly, implementing an influencer seeding process involves gifting products to influencers in exchange for posts. It’s a crucial and cost-effective RED marketing strategy. By gifting high-quality influencers with new products, brands can build strong relationships and gauge an influencer’s impact before entering official collaborations. This method increases consumer touchpoints, especially when influencers share your brand multiple times. Additionally, influencer seeding serves as a market survey, helping to identify the season’s hero product based on influencer popularity. This approach is effective regardless of an influencer’s size.

In this post, we explain how to establish your presence on RED

 

RED as a travel planning platform

RED is a catalyst for new behaviors, extending its influence beyond commerce and travel to shape user patterns. While online travel agencies remain essential for planning and booking trips, RED stands out in the pre-planning phase, with nearly 40% of travelers seeking outbound experiences using the platform. Travel content holds a prominent position on RED, showing remarkable growth alongside health and beauty content. Additionally, RED excels at driving conversions for lesser-known travel offerings, showcasing its adaptability and agility in influencing consumer behavior. 

Data Travalers China 2023

Conclusion: Maximizing Opportunities on Xiaohongshu (RED)

In conclusion, Xiaohongshu offers a wealth of opportunities for brands to connect with a highly engaged and affluent user base. By leveraging influencer marketing, live-streaming, and content-driven strategies, brands can establish a meaningful presence on the platform and drive brand awareness, engagement, and loyalty. Understanding RED’s unique environment is essential for brands looking to navigate the nuances of marketing on Xiaohongshu effectively. As brands continue to explore the potential of RED, fostering authentic connections and delivering value-driven content will remain paramount in driving success in this dynamic digital landscape.

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Discovering Opportunities: Exploring China’s Recent Updates

May 20, 2024

1. Shanghai takes the lead as Chinese coffee consumption averages 16 cups per year

  • China’s coffee industry amassed a staggering 265.4 billion RMB (approx. 36.66 billion USD) in scale last year, with an average per capita annual consumption of 16.74 cups
  • Coffee Carnival is running in Shanghai between 30 April to 4 May, alongside over 50 esteemed local coffee shops.
  • Additionally, takeaway, payment, and social media platforms initiated the “Drinking in the City” campaign in Shanghai, poised to invest nearly 100 million RMB (approx. 13.8 million USD) into the consumer market.
  • With a net increase of 118 shops, marking a 14% year-on-year rise, the total count of Starbucks outlets soared to 7,093.

LINK:https://daoinsights.com/news/shanghai-takes-the-lead-as-chinese-coffee-consumption-averages-16-cups-per-year/

2.What’s driving China’s unstoppable second hand luxury market?

  • China’s secondhand luxury market is tipped to grow to $30 billion (217 billion RMB) in 2025 from $8 billion (58 billion RMB) in 2020, with Gen Z and millennials (under 40) together accounting for more than 80 percent of the total number of secondhand luxury consumers
  • From a luxury brand point of view, perceived value on the secondhand market can have direct repercussions on reputation and desirability in the eyes of consumers.
  • Brands should not see the secondhand market as an adverse phenomenon, but encourage customers to trade in or resell their pre-owned items through authorized channels, ensuring that the brand retains control over the quality and authenticity of the products in the secondary market.
  • Luxury brands must monitor and manage their perceived value in the secondhand market, as it can impact their reputation and desirability among consumers. Digital marketing efforts should focus on maintaining brand authenticity and highlighting the enduring quality and heritage of their products.

LINK:https://jingdaily.com/posts/what-s-driving-china-s-unstoppable-secondhand-luxury-market#8548723daa5e

3. Decoding China’s $170 billion ‘romance economy’

  • China commemorates love on three separate holidays: the Western Valentine’s Day on February 14, the uniquely Chinese 520 Day on May 20, a celebration derived from internet slang where the numbers “520” phonetically resemble the words for “I love you” in Mandarin, and the traditional Qixi Festival, which usually falls in August.
  • China’s Gen Z consumers are a key element of the “romance economy,” responsible for 54% of related orders according to the “Romantic Economic Big Data Report” released in 2022.
  • Survey data from iiMedia Research in 2023 revealed that regardless of their relationship status – single, in a relationship, or married – over 90% of participants were eager to celebrate romantic festivals by presenting gifts to family and friends.
  • Notably, jewellery ranks as the number top gift category for coupled-up individuals on China’s romantic days.
  • Traditional gifts like flowers, personal care items, and beauty products remain favorites and “gift boxes” persist as a preference for consumers on seasonal occasions.
  • “Love-brain” (恋爱脑) has recently emerged as a trending term online. It centers on the idea that individuals often lose their emotional or financial rationality when in love. This phenomenon prompted the creation of the phrase “scolding to cure love brain” (骂醒恋爱脑) as a response. And in turn, this has sparked a new type of service.

LINK: https://jingdaily.com/posts/decoding-s-china-s-usd170-billion-romance-economy

4. Xiaohongshu: Unlock new opportunities in Chinese beauty market

Customers are getting more connected to Chinese culture and caring about value, which makes domestic beauty brands more popular. Younger consumers are stepping up as key players in the domestic beauty market.

  • Emergence of quality Chinese cosmetics: Domestic beauty annual sales surged around 10%, outperforming foreign cosmetics with a commanding market share of 50%.
  • Co-create content with the brands: Hundreds of celebrities and top KOLs embarked on the offline and online collaboration with a lot of brands.
  • Create a personalized IP Matrix: Xiaohongshu collaborated with more influential media like CCTV network and created more personalized IP/topics for brands.

LINK: https://mp.weixin.qq.com/s/4oAwT-Q0mtbWHGQtRYSPLg

5.ByteDance surprises AI rivals with ultra-low cost Doubao model:

  • ByteDance has surprised the artificial intelligence industry with the ultra-low cost of its Doubao model
  • The company said it is capable of processing 2 million Chinese characters, equivalent to 1.25 million tokens, for RMB 1 ($0.14).
  • OpenAI’s most advanced multimodal model, GPT-4o, also unveiled this week, comes in at $5 per million input tokens handled.

LINK:https://technode.com/2024/05/16/bytedance-surprises-ai-rivals-with-ultra-low-cost-doubao-model/

6. Which fashion campaigns for China’s 520 Day hit the mark?

  • Luxury fashion campaigns for China’s 520 Day focus on limited edition collections, celebrity endorsements, and creative storytelling, often in the form of mini videos.
  • Brands like Gucci and Saint Laurent tapped into Gen Z’s preferences by incorporating traditional Chinese elements and leveraging digital platforms for greater engagement.
  • 520 Day’s fusion of traditional Chinese culture with commercialism highlights the evolving landscape of celebrations and consumer behavior, emphasizing the importance of cultural resonance and meaningful experiences in luxury marketing strategies for brands looking to better connect with consumers.
  • These strategies aimed to blend cultural significance with contemporary marketing, enhance brand appeal and foster emotional connections with consumers.

LINK: https://jingdaily.com/posts/which-fashion-campaigns-for-china-s-520-day-hit-the-mark

7. 2024 May Day Holiday: The rise of small cities tourism and AI companions

  • Amid an economy yet to fully recover to pre-pandemic levels, this year’s May Day break underscores a notable trend towards tourism in lesser-known destinations.
  • On social media platforms like Xiaohongshu (RED), many young people are keen to explore counties and even aim to ‘visit Top 100 Counties of China’ as a novel approach to May Day travel.
  • Hong Kong has shifted its focus to cultural and artistic events, as well as large-scale concerts.
  • It is also worth mentioning Japan. With the Yen reaching a 34-year low against the US dollar during the holiday period, this made it more attractive for overseas tourists.
  • ‘AI companion’ emerged as a new trend in travel. This involves using AI technology to offer personalised travel assistance services, crafting tailored itineraries and services.

LINK:https://daoinsights.com/opinions/2024-may-day-holiday-the-rise-of-small-cities-tourism-and-ai-companions/

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Latest News on China’s Market

August 7, 2023

1. Estée Lauder taps Asia’s male beauty market with Manchester United partnership

  • Beauty and skincare giant Estée Lauder has inked an exclusive partnership deal with Manchester United in hopes of tapping the club’s fans in China and the Asia Pacific region.

  • In China alone, the men’s beauty market was projected to surpass $10 billion in 2022 and could reach $33.4 billion (240 billion RMB) by 2027.

  • Most male consumers may be relatively new to the skincare game, especially when it comes to premium products.

  • In the first half of 2023, the GMV of men’s makeup on Douyin surged by 364.6 percent year-on-year. With this market being especially open to beauty and grooming, we’d bet that a clever campaign could work wonders.

LINK: https://jingdaily.com/estee-lauder-manchester-united-collab-male-beauty/

 

2. Male beauty’s next growth engine: Douyin

  • In the first half of 2023, the gross merchandise value (GMV) of men’s makeup sold via Douyin surged 365 percent year on year – Tmall and Taobao combined achieved 6.7 percent growth in the same period.

  • Chinese male beauty brands are quickly expanding on the short video app. Domestic labels claimed seven spots on Douyin’s top 10 best-selling mens’ skin care list, whereas international brands took three places.

  • Male skincare buyers’ profiles: Last year, 70 percent of men’s beauty purchases were made by women, according to a 2022 report from Xiaohongshu. But male buyers have caught up, now accounting for half of male cosmetics purchasers on Douyin.

  • The average age of the male makeup user is between 18 and 30 with an average price of $9.7 (69.2 RMB), significantly lower than on other platforms like Tmall and JD.com.

  • Cooperating with KOLs has proven to be a quick and effective strategy for businesses that want to scale up brand awareness. These influencers are crucial for spreading knowledge about beauty routines.

LINK: https://jingdaily.com/male-beautys-next-growth-engine-douyin/

 

3. McKinsey: Chinese consumers, brands ‘cautiously optimistic’ on tourism and spending

  • Chinese consumers are looking for better deals and sales across platforms like Douyin and Pinduoduo, where products are often sold for “half or less” than on more established competitor shopping apps.

  • McKinsey found that while many remained loyal to their favorite brands, 47 percent of respondents reported switching retailers to obtain a “lower price/discount.”

  • Travel, restaurants and apparel were the top categories consumers were spending on, the survey revealed.

  • However, international travel in June was still 58 percent lower than pre-pandemic levels, though the number of outbound flights from China is “rising rapidly.”

LINK: https://jingdaily.com/mckinsey-report-cautiously-optimistic-tourism-spending/

 

4. China ecological transition: a green revolution led by consumers

  • Keeping balance between satisfying the demand of country’s market, while preserving sustainable standards is challenging

  • Chinese consumers are demonstrating a higher attention to environmental issues compared to the previous years, this trend being reflected in several factors, from carbon emissions to locally produced goods.

  • In this sense, the pandemic has represented a turning point for the development of this trend inside consumer’s mindset, many of which are now willing to pay more for environmentally friendly products.

  • Case study of KFC:  Thanks to “Exploring Carbon Reduction” and “The Journey to Carbon Neutrality” initiatives, introduced in their super App, KFC carried out a green rewards program that encourages consumers to not use disposable cutlery, favor in-store pickup, engage in waste sorting, etc.

LINK: https://mp.weixin.qq.com/s/HBf_m9WBZ2izfmQNFgOlvg

 

5. Pink burgers, platform Crocs and Malibu dream houses: Barbie’s global collab craze

  • Resale site StockX reported to Jing Daily it had seen more sales of Barbie products in July 2023 than any other month in the company’s history, double sales in July 2022.

  • Among so many names jumping onboard, from Vans, Kipling and Gap, to Pacsun and Nyx, one breaking through the Barbie collaboration noise online is Zara. The Spanish retailer launched a collection on July 21 (the movie release date) inspired by the fashion seen on screen, including a gingham dress, silk pajamas, and other clothing and accessories items

  • Though Zara, Vans, Nike’s Dunk Low sneaker, and Chanel’s themed efforts with the movie all made their way onto social media in China, the clothing and accessories collection from local fashion brand D’izzit is trending in the mainland.

  • Barbie mania is reaching all corners of commerce, from fashion all the way through to luxury hospitality. The W Hotel in Osaka, Japan, is one that’s proven a hit among netizens.

  • Thanks to Barbie nostalgia being at an all-time high, the IP’s pulling power feels unbeatable. Some consumers might be all pinked out, but this is definitely not the end of Barbiecore.

LINK: https://jingdaily.com/barbies-global-collab-craze/

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Unleashing the Pulse of China’s Market: Updates and Breaking News.

August 2, 2023

 

  1. JD launches vertical AI model, targets retail, finance and education sectors:

  • Context: Beijing currently is home to approximately half of the more than 80 large models available in China
  • JD on Thursday introduced its own large AI model ChatRhino. Positioned as a vertical AI model that offers industry-specific use cases, JD’s AI offering arrives a few months later than rivals Alibaba and Baidu. 
  • Why it matters: JD is the latest Chinese tech major attempting to upgrade its offerings with AI and large models. The company said ChatRhino combines 70% generalized data and 30% native intelligent supply chain data, targeting a number of sectors including retail, finance, education, and government.  
  • Details: The company has already utilized the AI model to enhance customer service, facilitate code writing, and improve product recommendations, she added.

JD’s healthcare unit also unveiled a specialized model designed for the medical industry that is capable of quickly adapting and learning from various healthcare scenarios, which will serve as a technological foundation for remote medical services. The e-commerce giant also showcased its ambition to develop humanoid robots, which will be a key exploration direction for the JD Explore Academy.

LINK:
https://technode.com/2023/07/14/jd-launches-vertical-ai-model-targets-retail-finance-and-education-sectors/

 

 

 

2. Baidu AI products overseas

 

The AI social products “SynClub” by Baidu have recently been introduced in Hong Kong, China, Japan, and other countries. This product uses the latest AI technology of Baidu, so that users can know their own AI friends, and through the company of AI friends, users can chat more interestingly and in-depth.

 

3. The “channel retrieval” feature was introduced by the channel.

 

On July 12, the channel launched the “channel retrieval” function for the certification body to support the recovery of the lost agency authentication channel.

It is understood that “channel retrieval” refers to the channel that has completed enterprise and institutional certification or main body verification and can initiate the channel retrieval process and re-operate the channel after the platform verifies the authenticity of the main body.

In the process of initiating the retrieval, it is necessary to pay attention to the following two points: First, the initiator has not created a channel, and it is necessary to use a wechat signal that has not created a channel to initiate the retrieval process. Second, the account must be in normal use, and the account that has been cancelled, blocked, or banned cannot be recovered.

 

 

 

4. Users of the Meituan app can now record and upload brief videos.

 

Meituan has unveiled a new feature on its app that now allows users to shoot and upload short videos. The addition of this feature provides users with more creative ways to engage with the platform and record their experiences.

Meituan’s latest move comes amidst the intensifying rivalry with Douyin within the online local services industry.

The food delivery giant has also made moves to shake up the live-streaming business by hosting more live-streaming events, including monthly live streams on the 18th of each month since April, where participants are offered coupons.

In addition, the company launched its very own platform, Meituan Live, which is currently only visible to a select group.

Meituan continues to evolve as a multifaceted platform in order to stay competitive in the market

LINK: https://daoinsights.com/news/meituan-app-now-supports-users-to-shoot-and-upload-short-videos/

 

 

 

5. China’s newest beauty retail battleground, Douyin, was won by L’Oreal by 1 billion RMB.

 

L’Oréal topped a ranking of brand sales in the first half of the year, hitting a GMV of 1 billion RMB 

Douyin is the nation’s newest retail battleground, and international brands are actively fighting to grow their market share for Gen Z

Social platforms like Douyin are becoming pivotal channels for brands to close the loop in digital commerce

L’Oréal collaborates with roughly 800 to 1,500 Douyin KOLs every month, ranging from mega influencers with over 5 million followers to small-to-medium key opinion consumers

LINK:
https://jingdaily.com/loreal-douyin-china-newest-beauty-retail-battleground-billion-rmb-gmv/

 

 

 

6. Three New WeChat Advertisement Products Online Now

 

Moments Ads brand gallery: advertisement is WeChat’s first vertical multi-screen display advertisement. It supports 3-5 vertical screen video cards displayed at the same time, and the new method of display brings an eye-catching visual experience by creating a high-level window texture for the brand and enhancing the user’s memory of the brand.

WeChat Channels Carousel Ads: advertising supports 3-5 components, which are displayed on large tiles throughout the process. Different cards can be diverted to different official mini programs or different pages of mini programs, or they can be turned to native pages and H5. 

WeChat Search: discovering brand surprises through WeChat Search and finding beautiful gifts for their loved ones for Qixi Festival

LINK:

https://www.luxurysociety.com/en/articles/2023/07/what-should-luxury-expect-post-pandemic-chinese-travellers 

 

 

 

7. Translation vs Transcreation: which one is the right choice?

 

When expanding a business to a new country with linguistic and cultural differences, it’s crucial to ensure that the brand’s message and identity are accurately conveyed to the new audience.

Translation is the process of converting text from one language to another while preserving the original meaning, making it suitable for more literal texts. Transcreation, on the other hand, is a creative approach that adapts the message, cultural nuances, and persuasiveness to resonate with the target audience.

Factors such as the purpose of the text, marketing strategy, target market, and time/budget constraints should be considered when deciding between translation and transcreation for a successful linguistic adaptation.

LINK:

https://mp.weixin.qq.com/s/meZQ7MC_HIHktV-0KSPdhg 

 

 

8. How AI technology is reshaping beauty retail in China

 

Store of the Future on Shanghai’s East Nanjing Road The first of its kind in China, the new concept retail space boasts seven digital touchpoints: an advanced skin analysis device powered by big data; a product recommendation feature based on AI-generated makeup trends; product labels equipped with radio frequency identification (RFID) that unlock a detailed breakdown of ingredients; mobile POS, which allows customers to check out anywhere with a beauty advisor and avoid long queues; and personalized gift packages with the option to add scents and voice messages.

Meanwhile, the Shanghai Municipal Medical Products Administration has granted SkinCeuticals, Estée Lauder, L’Oréal, and Shanghai Chuangyuan Cosmetics stores in Shanghai a license for personalized on-site services. With this license, retail stores can act as mini cosmetic factories, creating products tailored to individual skin types.

Typically, consumers seek the advice of sales assistants or search for product reviews by influencers.  plus the fact that KOLs and personal shoppers may have other motives for recommending certain items (e.g., brand sponsorships).

When stepping into the futuristic concept store, customers are asked to use their WeChat account to sign into the AI experience. Users are then connected personally to a salesperson who helps them through their purchase journey in person and can stay in touch with them once they leave the store.

 

 

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Chinese Advertising Regulations and Those Who Can’t Advertise on WeChat

October 17, 2022

China, like the majority of nations, has enacted laws governing advertisements to safeguard the health and safety of consumers. The Republic of China’s Advertisement Law stipulates general rules that all advertisers must abide by. 

There are also more stringent regulations for certain sectors, such as the tobacco, alcohol, and healthcare industries. However, as non-traditional media platforms like WeChat have grown in popularity, the nation has tightened its regulations on advertising. 

 

Get started with WeChat advertising

WeChat is one of the most used social media platforms in China. That’s why is very attractive to brands looking to market their products in China. Marketing using WeChat can reach a huge number of target audiences. 

And here comes the WeChat advertising. WeChat advertising enables companies to display promotional messages through:

Additionally, WeChat advertising is a great tool for brands to enhance and maximize the number of WeChat Official Account followers, it helps companies to drive their traffic and generate conversions into sales.

 

Industries banned or restricted in WeChat

The Chinese government in general has many laws and bans that overlook advertisements, including ads on social media platforms like WeChat. Here are some of the industries banned by the Chinese government for advertising.

  •  Pharmaceutical/drugs;
  •  Obscenity;
  •  Pornography;
  •  Gambling;
  •  Superstitions;
  •  Terror;
  •  Violence.

In addition, regulated industries for advertisements in China are:

  • Alcohol
  • Tobacco
  • Health and Medical
  • Investments
  • Real estate 
  • Education
  • Legal Services
  • Airlines
  • Financial Services

However the list is very dynamic, and WeChat always has the final say on whether your company is eligible or not to run ads on the platform.

On the other hand, note that for overseas entities WeChat requires a separate application for a WeChat advertising account and the scope of ads is strictly related to your company’s registered business. It can get quite tricky, right?

However, if your company falls within any of the above categories not all is lost. You still have plenty of indirect and legal solutions to promote your content on WeChat. For instance, you can focus on WeChat SEO and optimizing your keywords to whitelisting. Subscribe to our newsletter for more news on this topic.

Advertising regulations on WeChat

The key elements of the advertising law as they apply to WeChat are outlined below. Firstly, qhen attempting to create effective advertisements, WeChat also has its own terms that are frequently updated:

  • Avoid superlative adjectives like best, highest, greatest, etc when talking about any product or service
  • Do not place a brand, product, or service on a scale like 5-star rating or international/national ratings
  • Kindly avoid using words such as top quality, excellent, cutting edge, or premium when advertising a product/service in WeChat
  • Do not use words with “one” like “one of the top”, “one of the best” or “one of a kind” etc to describe anything in WeChat advertisements
  • Please avoid any mentions of scarcity in an ad like very rare, unique, one few left, etc.
  • Do not mention anything claiming to be “national leader” or of “international quality” or words similar to this
  • Do not use any national flag, emblem, or anthem of any country in WeChat ads
  • You can only use RMB for settlements and foreign currencies are not allowed
  • The content of the advertisements must be practical and should not be exaggerated
  • Should not talk about transportation, educational, commercial, or cultural facilities under planning or under construction
  • All the images used in the advertisement should be realistic
  • For the ads related to bank loans and other bank services, complete details of the bank must be provided
  • WeChat ads should not have language that sounds discriminatory

Secondly, there are more requirements for advertising:

  • When publishing ads about limited sales, the exact dates and duration must be provided in the advertisement
  • Do not provide statistical information in WeChat ads until a proper evidence source link is given
  • Avoid ads with unlicensed tie-ups with major events happening in the country like Winter Olympics, Olympic Games, etc.
  • Should not use language that can possibly manipulate the consumers
  • Do not use Click-for-gift tactics in WeChat ads. Any gifts offered must include all the details like name, value, quantity, and any timeline for the event
  • Never use words referring to a special title like superstar, leader, or synonyms

In addition, WeChat accounts registered with overseas business licenses must apply separately for WeChat advertising accounts.

In conclusion, advertisement regulations are a great way to protect consumers. Similarly, China, like any other country, wants to protect consumer safety and health. But the restrictions are stricter than in most countries, and it’s common for all social media platforms, including WeChat.

On the other hand, WeChat has its own restrictions too, which makes it even harder to advertise using WeChat ads. In addition, specific wording requirements might make your ad not pass the verification by Tencent. 

If you are a business that’s looking to advertise on WeChat, it is very important to understand the rules and regulations on the government and platform levels and above all abide to the requirements to not have your WeChat official account suspended or deleted.

At The WeChat Agency, we use our knowledge and expertise to help businesses build content in accordance with the advertising regulations in China and WeChat. We help create meaningful partnerships and networks among Chinese customers. For additional information, please contact us at contact@thewechatagency.com. Feel free to subscribe to our monthly newsletter too. 

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Advertising on RED/XiaoHongshu

February 21, 2022

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

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5 Reasons to Leverage RED/Xiaohongshu and How to Set Up an Account?

February 18, 2022

China is one of the world’s largest e-commerce markets, with a myriad of marketplaces to choose from. Taobao, Tmall, JD, and Pinduoduo have drawn millions of shoppers to become frequent buyers over the last decade. 

Social media has substantially impacted the way Chinese consumers shop online, in tandem with a tremendous increase in mobile phone usage. Especially those born in the mid-to-late-nineties, Chinese Gen Z also called the post-90s generation, are pioneering new trends.

That’s where XiaoHongshu comes in: a well-known “lifestyle” UGC and review app that’s taken the e-commerce world by storm. You can find the introduction to RED we covered before here – A Quick Guide to Xiaohongshu (Little Red Book) Marketing. 

XiaoHongshu, or RED, is a combination of beauty, lifestyle, and fashion app in one that allows users to share their personal style while also discovering new goods from around the world. It is the Chinese equivalent of Instagram on steroids, and it’s a great way to read product reviews, share daily outfits, get fashion advice, and find high-quality businesses and all of this with just one click to buy the products mentioned in the article. This is especially relevant for relatively unknown, small luxury brands since beauty enthusiasts in China love to search for new labels and one of the industries that enjoyed this trend are niche perfumes – The Accelerating Growth of Niche Perfume Brands in China.

Why Should International Brands Leverage the Platform?

XiaoHongshu provides a variety of free and paid ways for businesses to advertise their brand to their user base. Some of them include:

Reason 1: Brand accounts

On XiaoHongshu, brand accounts are one of the most effective ways to interact with the community. They can send ‘notes’ to fans, add photographs and videos, sell their own items, and answer fan reviews and comments.

A brand account on XiaoHongshu with the correct strategy and content in place might quickly build attention on the platform, especially if your notes are added to the ‘boards’ of popular influencers.

Reason 2: 100 Monthly Active Users

XiaoHongshu has over 100 million monthly active users with 70% female and almost 40% users being between 25 and 34 years old. If you are a beauty, fashion, or lifestyle brand targeting Chinese gen Z that’s the platform to be. 

Content Promotion Model

Reason 3: ‘Key Opinion Leaders,’ or influencers

Xiaohongshu developed as a review platform and grassroots content is still dominating. Influencers and key opinion leaders (KOLs) are critical to establishing traction on XiaoHongshu and are perhaps the most powerful type of advertising available.

The XiaoHongshu ‘Influencer Platform,’ a database with roughly 6,000 influencers, is designed to match you with individuals who are most relevant to your speciality and budget.

Who are Chinese influencers: KOL and KOCs?

Reason 4: XiaoHongshu advertising 

XiaoHongshu also offers traditional advertising in the form of ‘pop-up’ ads that display when the app is used and promotional messages that are organically incorporated inside the platform’s ‘explore’ feed, in addition to organic opportunities and influencer marketing.

Develop content for the most important Chinese e-commerce festivals to catch the attention of Chinese users. Check out how to advertise on the platform in our article – Advertising on RED.

Overseas Shopping

Reason 5: Crossborder e-commerce

Xiaohongshu offers cross-border e-commerce business for brands based outside of China and wishes to target and sell to the Chinese market. Because of its business model, RED takes care of the warehouse and logistics within China making it easier for foreign brands to operate.

Find out more about cross-border e-commerce in China. 

 

How to Set Up an Account on RED/Xiaohongshu?

Setting up accounts on WeChat and XiaoHongshu is frequently done in conjunction and is substantially less expensive than selling on Tmall.

Step 1: On RED, there are over 20,000 brand community accounts. Nearly 10,000 third-party e-commerce merchants use the network, which offers over 100,000 distinct products. As a result, the most vital initial step is to create an account.

Step 2: After you’ve created an account on RED with a Chinese phone number (you can also create an account with an international phone number, but your app’s functionality would be limited), the next step is to see if you can use their in-app e-commerce option. 

Requirements for setting up an account

Your company must have a business registration in China in order to use this function. One of RED’s biggest advantages as a social commerce platform is that it has its own store where users can make purchases directly from the app. Many brands benefit from this closed-circuit integration since it allows them to sell their products more easily.

The main documents required to open a XiaoHongshu account are:

  • Papers for registering a business
  • Incorporation certificate
  • Form for customs registration

You’ll also need to submit the following supporting papers.

  • Information about the company 
  • Logistics commitment letter 
  • Authorization letter for store operations 
  • Brand information Application form 
  • Authorization form Trademark authorization

Conclusion

Xiaohongshu is an amazing platform where lifestyle brands can advertise things such as fashion, cosmetics, nutrition meals, accessories, and brands that are popular with young female shoppers. Hence, If you want to reach Chinese young female consumers, XiaoHongshu should be a big component of your strategy.

More than just another e-commerce marketplace; it’s a lifestyle community where users and influencers share photos, videos, and information about things they’ve used.

That is why at KRDS, we are committed 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

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WeChat for Beauty/ Makeup Sector

November 9, 2021

Thanks to rising disposable incomes in urban areas, consumers in China are increasingly interested in health and beauty products such as cosmetics, perfumes, fashion accessories, and vitamin supplements.

The Chinese beauty, cosmetics, and grooming market is second only to the US in terms of size and maturity after several years of rapid expansion. Although some newbies to the industry have begun to climb the rankings, foreign brands continue to outperform domestic players.

Beauty Brands and WeChat

Brands in China are turning to the WeChat app to move beyond generic marketing and into a more personal level of connection, interaction, and targeting. Many people are discovering that using WeChat to take a customer-centric strategy produces greater results than merely posting and sharing blogs and other information.

Offering unique deals and exclusive content to subscribers, samples for testing, live event invites, games and competitions with rewards, and loyalty programmes are all examples of connecting with WeChat.

 

Why WeChat for Digital Marketing?

With so much growth expected in the cosmetics industry, it’s critical for companies to establish brand recognition in China. WeChat accounts for 47% of all mobile time spent and has 1.1 billion daily users, so it goes without saying that this app is critical for organisations looking to expand their digital presence in China. 

WeChat has accumulated a vast amount of user data as a result of its many capabilities and large community. In marketing, this translates to extremely useful data for Paid Media initiatives. In fact, many Chinese businesses begin their digital presence on WeChat before developing their own website or app.

 

How can WeChat Benefit your Beauty & Service Business?

  • Subscribers can get discounts, rewards, games, entertainment, interactive experiences, and other perks.
  • To fine-tune and optimise targeting based on interest, divide the audience into categories.
  • Customers can be geo-targeted and informed about upcoming in-store deals and specials.
  • Provide customised beauty solutions for each customer.
  • Interact and communicate with people one-on-one rather than in groups.
  • Provide a personalised answer to questions and inquiries (as opposed to automated).
  • During occasions that involve gift-giving, promote and offer extraordinary one-of-a-kind gifts (such as Chinese New Year).

 

Conclusion

WeChat Ads are a hot trend in China for breaking through and winning over the audience. WeChat offers a wide range of utilities and targets, making it a wonderful chance for businesses and marketers looking to break into China.

While WeChat has a lot of potential for beauty firms, getting started can be difficult. Get in touch with our team if you need assistance with this. We use our experience and knowledge to help businesses establish a digital marketing plan that better targets and communicates with Chinese consumers. Contact us via phone or email for more information.

 

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The Idol Economy in China; Who are KOLs and KOCs?

October 25, 2021

Idolising stars and celebrity worship has become an increasingly important part of modern Chinese culture. Chinese Gen Z’s are continuously engaged with internet information as a result of growing up in a connected environment, and they are especially attentive to what their idols have to say.  

With the debut of innumerable TV series, brand endorsement deals, and the growing KOL market in China, these trends have naturally aided the rise of China’s idol economy. 

Who are KOL’s and KOC’s?

In a world dominated by social media and influencer marketing, key opinion leaders (KOLs) and key opinion consumers (KOCs) have become integral aspects of brands’ online marketing strategies to raise brand knowledge and recognition among their target audiences. Despite the fact that they both advertise products or services, they are two very different things.

A key opinion leader (KOL) is a well-known figure whose endorsement of a product is valued by a larger audience. Individuals who are trusted and respected for their status quo or expertise are known as KOLs. KOL’s include people such as actors, models, and celebrities, as well as people who have built a name for themselves on social media platforms. 

KOCs, on the other hand, are valued for their insight into products and services based on their personal experiences. They are people that do not conform to the status quo, making them relatable to the public. Although KOCs have a smaller following — only a few thousand — than KOLs, their fans are extremely loyal. 

Benefits of working with KOL’s and KOC’s

 

  • Working with idols is more profitable
    Young Chinese fans idolise their stars and are willing to go to great lengths to support their celebrity idols. According to a recent survey, roughly a third of “Gen Z” respondents said they’d be willing to buy products that their idols recommended or used, and a fifth said they’d be willing to watch their idol’s Livestream and purchase virtual gifts.

 

  • Chinese celebrities do not fear marketing
    Sponsorship arrangements are often avoided by Western celebrities because they believe that too much exposure could jeopardise their reputation. With Chinese idols, however, this is not the case. The local celebrities are easily involved in marketing and brand endorsement efforts to promote items via a variety of channels. This is due to censorship, which means that projects in China can be easily cancelled or repealed, thus idols must ensure that they have other sources of income.

 

  • The fan culture is a collaborative effort
    A form of collectivism popular in China suggests that fans affect one another during the purchasing process, and studies demonstrate that “the more collectivist a person’s orientation, the more vulnerable he or she will be to social influence in the purchase decision. As a result, if Western businesses can win over the heart of one hardcore idol lover, they may be able to win over the entire fan base.

Conclusion

Marketers and retailers benefit from the idol economy, but few multinational companies are yet to capitalise on Chinese celebrities’ fame. This is primarily due to Western corporations’ continued lack of understanding of the Chinese fan economy and the youthful, impulsive consumer base that supports these idols. 

The idol economy is expected to grow in the next few years, therefore international brands looking to stay ahead of the competition should seek closer links with the Chinese stars.

However, though the idol culture is prevalent in China, it is vital to exercise additional caution when selecting a reputable KOL, as there have been various KOL scandals in the past, and the Chinese government is attempting to simmer down the idol economy. As a result, seeking advice from a skilled partner is recommended.

Working as a partner, KRDS offers the expertise and abilities you need, including access to the relevant KOLs for your business and the know-how to quickly create Chinese social media KOL partnerships that meet your goals. We can also help B2B businesses with KOL collaborations by partnering with other renowned official accounts in the industry or niche experts. Please contact us to discuss further.

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WeChat for Education Sector

October 18, 2021

With the growing competition in the foreign education market, education brands are looking for new ways to attract Chinese students, such as incorporating e-learning courses, offering home and distance learning, and establishing physical campuses in China, among other things. As the educational landscape becomes more digitally disrupted, most educational marketers have begun to embrace digital platforms and compete in the brand and marketing area.

With over 1 billion registered users till Q1 2021, 780 million using WeChat Moments and 400 million using Mini Program, WeChat can be greatly beneficial to education sectors.

How does WeChat benefit the education sector?

One of the most difficult challenges for educational institutions such as colleges is building an efficient content marketing strategy that communicates to all of their various audiences.

WeChat advertising comes in handy in this situation. Because of WeChat’s developed digital ecosystem and vast user database, it is a common tool for education brands to leverage in their digital marketing plan. Marketers may use WeChat’s smart data capabilities to execute targeted ads and obtain vital consumer insights. 

Creating well-developed, highly detailed personas — fictional characters that encompass a certain target group or demographic, based on market research and genuine data – is one of the first steps in constructing an efficient content marketing strategy for educational organisations on WeChat.

 

Here are some ways education sectors can leverage the WeChat platforms:

  • Product Promotion
    WeChat advertising is helpful in guiding visitors to online sale sites when a business is launching a new collection or wants to promote hero products and stimulate direct sales through its marketing.

    To advertise its Chinese EMBA courses, the Chinese University of Hong Kong conducted a WeChat marketing campaign. The ad’s creativity enticed users to schedule a one-on-one inquiry session in Guangzhou or Shenzhen. Users were routed to the university’s official website when they clicked on the ‘details’ button.

    WeChat advertising is applicable to a wide range of scenarios, and brands can discover the appropriate solutions based on the characteristics of various sectors. 
  • Lead Generation Campaign
    In its ad structure, WeChat advertisements can enable simple sign-ups for lead generation campaigns. During the campaign, user conversion can be successfully boosted, which can also lead to increased brand recognition.     

    A WeChat moments ad intended at increasing the number of direct sign-ups for an education service company that provides counselling and help for students choosing international universities. The ad presented the major selling features of its service and offers with a basic creative and provided a list of its partnered schools and colleges throughout the world.

 

  • Others
    WeChat also provides other services like selling webinars or one-on-one coaching sessions, selling books and products, translations, etc. Students can see everything from scientists teaching quantum physics to professors providing writing tutorials for college applicants. Amateur enthusiasts can also learn from mountaineers, hikers, and photographers.

Conclusion

The development of mobile technology has ushered in a new era of informal, personalised, lifelong learning outside of the classroom. However, when it comes to efficiently implementing mobile learning, we’re still figuring it out.

WeChat is installed on practically every other person’s smartphone in China, as it is widely used in almost every field of life. This is the only app that overseas students in China use. As a result, any company looking to establish a presence in China’s education market should consider starting with a WeChat account and leveraging the available tools.

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