Xiaohongshu Archives

Latest Updates on China’s Market: ByteDance’s Language Model, Uncle Stars, Xiaohongshu Trends, Douyin’s PC Shopping, and More

March 2, 2023

ByteDance to emphasize search and imaging as it develops ChatGPT’s rival

ByteDance, the owner of TikTok, has assembled a sizable language model team and plans to integrate the technology into its search and advertising businesses as the hype surrounding ChatGPT, an AI-powered chatbot service, continues to encourage Chinese businesses to create analogous products of their own.

When ByteDance launches its large language model, which is anticipated to happen in the middle of this year, it will put a particular emphasis on language and imaging.

The large language model team and the image model team will be managed by Zhu Wenjia, head of global search and development for TikTok.

https://mp.weixin.qq.com/s/pGREeoSC6v-tf2zALdWZBQ

The Rise Of China’s ‘Uncle Stars’: How Middle-aged Men Are Taking The Spotlight

Idol scandals have tarnished China’s entertainment sector in recent years.

As was the case with Louis Vuitton and rapper Kris Wu, luxury brands associated with wrongdoing (“little fresh meat”) were forced to act quickly to sever their endorsement agreements in order to allay public outrage.

People in their mid-forties, also referred to as “uncle stars,” provide a safer option for brands and have a wider market recognition among both young and old consumers.

Brands are testing a new cast of ambassadors due to the expensive unpredictability of “traffic stars,” who heavily rely on the fan economy to push the sales of the products they promote.

Huang Bo, a 48-year-old actor, was named the ambassador for Shiseido’s high-end line on February 9.

These celebrities typically don’t have Xiaohongshu or Douyin, only Weibo. “By making extra efforts, brands need to increase their influence,

https://jingdaily.com/china-uncle-stars-middle-aged-men-ambassadors-shiseido-fresh-the-knockout/

2023 Xiaohongshu Annual Life Trend Analysis

To observe and research young people’s lifestyles, Xiaohongshu and the Institute of Sociology, Chinese Academy of Social Sciences, published the “2023 Life Trends” report with the theme “Into Real Life.”

The report divides various life keywords, identifies, and analyzes life trends in 2023 using Xiaohongshu’s data statistics and topic content from the previous year. An excerpt from the report is given below.

Warming up the neighborhood: Due to the scarcity of supplies during the epidemic, many residents got to know their neighbors by searching for those who lived “nearby” to shop with and trade goods with. Young people are therefore more likely to actively participate in community activities.

Eat authentically local flavors: Young people are starting to prefer regional specialties and regional traditions,

On a trip: Due to the extended stays at home brought on by the epidemic, many people seek compensatory travel in the new year. They value the chance to travel more and are prepared to spend more effort, time, and money on travel.

Stress relief: Due to environmental impact, the majority of people felt helpless and unable to control their destiny, so they needed to decompress quickly and easily. Simple techniques for stress relief have become more popular in recent years.

Overall, investing and participating in real life will be more popular in 2023. The new trend among young people today will be actively experiencing and pursuing an innovative life, which is also Xiaohongshu’s wish for 2023 in this report.

https://www.chinatradingdesk.com/post/2023-xiaohongshu-annual-life-trend-analysis

Douyin tests out PC shopping feature to boost e-commerce

Douyin, a popular video-sharing website in China, is currently testing a PC shopping feature that will let users have a similar shopping experience to that of its mobile app.

The live broadcast room on Douyin’s website now features a product mounting function that enables users to view available products right away. However, direct orders and payments are still not supported on the PC version of the live streams.

Users must scan the code with their Douyin app before they can finish their purchases.

https://daoinsights.com/news/douyin-tests-out-pc-shopping-feature/

Xiaohongshu doubles down on social networking with group chat feature

Users can access the new feature under the “group chat” drop-down menu accessible from the Messages tab on the app. Here, users have the option of starting a brand-new group chat or going to the “group chat plaza,” where they can peruse various discussions in a grid format.

Users can join group chats on Xiaohongshu with just one click, unlike private Facebook groups where they must submit a request to join and have it approved by an admin.

Users will have the chance to create communities to connect over specific interests thanks to the new feature. Influencers and retailers also profit from the new feature because the buzz created in group chats can boost traffic to their profiles and aid in turning that traffic into sales.

https://daoinsights.com/news/xiaohongshu-doubles-down-on-social-networking-with-group-chat-feature/

China’s Tourism Rebound Faces a Roadblock: A Lack of Travel Agents

Some predicted a “big bang” for the global tourism industry when China abandoned its “zero-COVID” regulations as Chinese tourists flocked abroad.

Millions of Chinese tourists are eager to resume their international travel. But the tourism sector isn’t prepared for them.

The number of people leaving China increased to 676,000 on February 6 when outbound package tours resumed, which is the highest number in three years but only about one-third of the pre-pandemic levels.

In many cases, travelers are prepared to return to foreign countries, but travel agencies are not.

Currently, there aren’t many options for outbound group tours, and most of them are quite expensive. Rebuilding the international teams and the supply chain takes time.

Chinese tourists still favor joining group tours over planning their own trips.

https://www.sixthtone.com/news/1012339/chinas-tourism-rebound-faces-a-roadblock-a-lack-of-travel-agents?source=channel_deep

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Top Chinese E-commerce Platforms and Fees to Expect

August 11, 2022

The Chinese e-commerce market is the largest in the world and generated €867 billion in revenue in 2019. From 2020 to 2024, the annual growth rate of e-commerce in China is projected to be 6.9%. Obviously, many overseas companies are tempted to enter the market and cater to millions of potential new consumers. Be it the youngest Gen Z or Chinese grandmas who are eager to spend more during their retirement, with a great product and market strategy it’s a great chance for brands to tip their toes.

This appeals to international businesses as well as the local business community, resulting in cross-border online trade. In 2022, it was estimated that the import e-commerce retail market would be worth close to 559 billion yuan. The most popular e-commerce platforms are Tmall, JD, Xiaohongshu, and WeChat. However, you will see there are plenty more e-commerce sites in China.

No matter the size of your brand, the first step and choosing the right platform can be paralyzing. Companies quickly realize that the entry barriers to the biggest Chinese shopping platforms are challenging starting with the paperwork to e-commerce fees, steep deposits, and commissions.

One of the most attractive e-commerce models especially for niche or small brands that want just to test the waters would be cross-border e-commerce. Therefore more platforms offer this option now.

In China, cross-border e-commerce is distinguished by the fact that overseas companies are permitted to offer some goods to Chinese consumers online at favorable tariff rates and without the need for a business license. However, solution comes with some limitations we highlight in our previous article but nevertheless, it can be a very attractive way to kick off in China.

🇨🇳 Learn more about cross-border e-commerce and if it’s a solution for your brand

Let’s look at how much it costs to sell goods on these platforms in China, the pros and cons, and see which one can be the best fit for you.

Tmall

Tmall, formerly Taobao Mall, is a platform for business-to-consumer online retail, spun off from Taobao, and operated by Alibaba Group. It’s a highly reputable marketplace where all sellers are verified by the platform. In addition, Tmall has several solutions for brands that want to sell on the platform including cross-border sales.

Tmall General:

For Tmall general trade, the security deposit is $7,500.
A deposit is required from vendors to open a Tmall store. The deposit is primarily used to ensure that retailers follow the Tmall Service Agreement and Tmall Rules so that expenses are covered in the event that retailers break any rules.
To use Tmall, an annual e-commerce fee of $4,500 must be paid. Depending on the merchant’s category, a yearly fee is paid at the time of settlement.
Suitable for brands that have Chinese business license.

Registration fee: USD 7,500 deposit + USD 4,500 annual tech support fee

Commissions: 8-12%

Tmall Global:

Cross-border solution
Suitable for overseas brands
Doesn’t require a local warehouse in China
Access to Tmall’s services including live-streaming and advertising

Registration fee: USD 7,500 deposit + USD 9,000 annual tech support fee

Commissions: 8-12%

Tmall mini-store:

Cross-border solution
Suitable for niche or small brands
Listed as sub-store on Tmall direct flagship
Suitable for smaller collections or products that can be shipped to China separately (maximum 3 products)

Registration fee: USD 4,500 deposit

Commissions: 4-12%

JD:

As Tmall, JD also offers solutions both for brands that have legal entity in China and cross-border players.

JD General:

When creating a new account, JD.com requests a deposit starting from USD 4,500 and higher.
For the majority of categories, the commission is between 2 and 5%.
Suitable for brands that are already in China

Registration fee: USD 4,500 deposit+

Monthly fee: USD 150

Commissions: 2-10%

JD Global:

Through a new partnership between JD and Shopify, merchants on that platform now have access to a new sales channel with a simpler onboarding process and better exchange rates through the marketplace.
Fees and requirements appear to be more demanding than Tmall

Registration fee: USD 15,000 deposit+

Monthly fee: USD 1,000+

Commissions: 2-5%

Xiaohongshu / RED

Suitable for lifestyle and fashion brands
Recently, RED tries to be more brand-friendly and lower the commission costs. These do not include marketing expenditures, influencer commissions, or fulfillment fees.
Account set-up guide >>> here

Registration fee: Case-by-case basis (normally USD 3,500)

Monthly fee: None

Commissions: 5% (reduced from 20% before)

Recently, we covered another quickly expanding platform dubbed ‘the RED but for men’. You might have heard of Poizon also called Dewu on the Chinese market.

WeChat Mini-Programs as Alternative to Big Platforms

purchasing journey wechat mini programs

WeChat’s own mini-program-based online shop can be a great solution for brands that are not keen on costly registration fees and commissions. However, on the other side if you decide to go with the mini program you will have to figure out the storage, deliveries, refunds, and other logistics by yourself which the big platforms usually cover. Due to that, you will need to build the mini program by yourself.

In addition, another amazing advantage of a mini program store is that you are the owner of the data. Also, WeChat users who are already your followers are more known to be more likely to convert to customers and normally the average purchase is bigger than those on other platforms. We covered the pros and cons and how the most successful brands do it on our blog.

🛍 Why selling on WeChat can be better than selling on Tmall and other platforms?

In conclusion, the Chinese e-commerce market is in a fascinating state right now. And platforms are vying to have the best appeal to clients and businesses. However, nothing seems to be offered for free. In other words, brands must invest in order to sell products on these e-commerce platforms because of the publicity and sales they generate. Above all, China’s famous e-commerce festivals like 11.11 called Singles’ Day or 6.18 are a great opportunity for brands to generate more sales.

If you wish to know more about e-commerce and cross-border e-commerce in China or other marketing techniques, please contact our team. We use our knowledge and expertise to help businesses build meaningful partnerships and develop their networks among Chinese customers. For additional information, please contact us at contact@thewechatagency.com.

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What’s New In The Chinese Market?

July 26, 2022

Xiaohongshu cashes in on tourism by setting up a travel agency

Puzhen Xiangli, a travel agency run out of Shanghai, has been established by Xiaohongshu. About 64% of China’s regular wanderlust users now start their journeys on the platform. Since Gen Z travelers prefer Xiaohongshu over more established online travel agencies like Ctrip and Fliggy, this popularity has paved the way for Xiaohongshu to further challenge established market players.

Due to Airbnb’s exit from the market, there is now more room for domestic competitors to enter the fray. However, Xiaohongshu’s interests extend beyond homestay. Over 16 million views have been generated by platform searches for the keyword “Travel” so far, which is eight times more views than searches for the keyword “Homestay.” This shows that there is still untapped market potential for the platform to tap into.

Link: https://daoinsights.com/news/xiaohongshu-cashes-in-on-tourism-by-setting-up-travel-agency/

ByteDance debuts the first metaverse-like social app, Party Island

After the rise and fall of the formerly popular proto-metaverse social app Zheli, Chinese tech giant ByteDance has stepped up to take on the challenge of social networking with its highly anticipated social app, Party Island, which, according to Gamelook, a website focusing on the Asian games market, went live for public testing on July 13.

With the help of their personalized avatars, users can interact with one another in the three-dimensional virtual space; meet up; hang out, and even go to events like concerts and movies with their virtual peers. The app’s access to a vast media library within the ByteDance empire, including live streaming events, films, and TV shows owned by Douyin and Xigua Video, adds to its appeal.

This enables the app to provide its users with a rich digital experience that will amuse and engage them. While their resemblance to hot technology has largely won over the audience, it appears that the feature that enables a distinctive online experience and meets the social needs of today’s young Chinese is what will really pique user interest. The new innovation from ByteDance would revolutionize China’s online social networking scene if it goes off without a hitch.

Link: https://daoinsights.com/news/bytedance-debuts-first-metaverse-like-social-app-party-island/

China’s “Silver Economy” Is Here To Spend

The 2022 product catalog for China has been encouraged to include clothing and other items for elderly people by the Ministry of Industrial and Information Technology. This is consistent with the Chinese Community Party’s 14th five-year plan, which was released in 2020 and has a section devoted to enhancing government support for the well-being of senior citizens. In comparison to their Gen Z and Millennial consumer counterparts, the “new” older generation has greater purchasing power and more free time, making them more readily available for discretionary spending.

We wrote about this here >>> China Trend: Silver Generation

Link: https://jingdaily.com/china-silver-economy-government-support/

Brand zone search

It was created to strengthen the demand for building brands. Users actively look up brand terms to learn about the brand, comprehend the consulting services offered by the brand, and enter brand official account message templates, mini programs, and other private domains for information gathering and conversion. WeChat plans to develop more advertising options for search.

More details about WeChat search and brand zone in our article: A Quick Guide To WeChat Search

Link: https://mp.weixin.qq.com/s/SkduovJwM4Up0Nj9JNTw2A

Douyin, China’s TikTok, tests food delivery, bringing ByteDance into a market dominated by Meituan and Alibaba

In order to compete with market leaders Meituan and Alibaba Group Holding, ByteDance’s Douyin, the Chinese version of TikTok, is once again entering the food delivery market.

Some restaurants in specific cities, such as Shanghai, whose economies were severely impacted by a resurgence in Covid-19 this year, now offer a delivery option on their Douyin channels. However, eateries are required to employ their own delivery personnel or use external delivery drivers. Market leaders Meituan and Alibaba’s Ele.me, on the other hand, are well known for their armies of delivery drivers, who are a common sight on Chinese city streets.

To gain market share, however, one must alter user preferences for the apps that have proliferated throughout many Chinese people’s digital existences. Meituan and Alibaba made up 69 percent and 26 percent of the market, respectively, in 2020. As a result, ByteDance is still facing a great challenge. In order to gain market share, marketers believe Bytedance should think about how to set itself apart from the competition and work on its pricing strategy.

Link: https://finance.yahoo.com/news/douyin-chinas-tiktok-tests-food-093000424.html

Tencent makes a move to turn WeChat’s short-video function channels into a money pot through ads and e-commerce tools.

The Shenzhen-based company unveiled a new e-commerce tool on Thursday to build online stores on Channels, the quick-video and live-streaming platform inside the multipurpose app WeChat. This tool simplifies the procedure for merchants to list products, sell them, and collect payments.

The e-commerce tool was announced shortly after Tencent Monday added video ads to its Channels feeds, enabling users to directly shop through an ad and share it with friends on WeChat.

WeChat’s video service has added new users rapidly over the past six months, according to data from the Chinese analytics company iiMedia Research, thanks to concerts and entertainment content that makes use of Tencent’s music division’s resources.

Link: https://www.yahoo.com/now/tencent-makes-move-turn-wechats-093000560.html

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Xiaohongshu RED Beauty Trends 2022 – What’s Hot?

May 5, 2022

Xiaohongshu, a lifestyle platform, released a report dedicated to the trends gaining popularity at the beginning of 2022. Called Little Red Book, or simply RED, attracts a big number of beauty enthusiasts. As of now, it has over 200 million monthly active users. Beauty has consistently been one of the most popular content categories on Xiaohongshu, owing to a large user base with a strong interest in beauty and makeup.

Women account for 89% of clients who view beauty-related articles, while those aged 18 to 34 account for 87%, according to the survey. More importantly, many of them are now in the habit of using the site to study skincare and beauty items before purchasing them. Recently, we dug deeper into RED marketing with our Quick Guide to Xiaohongshu (Little Red Book) Marketing and talked about 5 Reasons to Leverage RED/Xiaohongshu and How to Set Up an Account?

Earlier this month, China’s lifestyle social platform Xiaohongshu released its 2022 Xiaohongshu Beauty Trends Report. The report provides valuable insights into what trends are emerging in the beauty sector from a large user base that is highly interested in beauty and makeup. It allows brands and investors to iterate their products in response to market demand and develop more targeted marketing and investment strategies.

Xiaohongshu forecasts trends based on content searched on the platform in the previous year, including ‘efficient skincare,’ ‘haute makeup,’ ‘stacking products,’ and ‘gender neutrality.’

The Four Major Beauty RED Trends 💁‍♀️

Haute Makeup
Simultaneously, searches for personalized and custom makeup increased in 2021, as individuals sought makeup that might transform potential flaws into distinct qualities. Searches for “Square face makeup” jumped 1100%, “How to define olive skin” increased 470%, and “Facial angling” increased 163%.

Stacking products
Combining the use of various items, according to Xiaohongshu, became popular since it was supposed to provide an exponential effect. Searches for “lip oil layering” and “perfume layering” jumped by 135% and 82%, respectively.

Efficient skincare
When it comes to skincare products, quality always outweighs quantity. Searches for “simple skincare” grew by 170%, while searches for “skincare pyramid” increased by 560%.

Gender neutrality
On the site, men’s attractiveness has grown in popularity. Men are searching for a broader range of beauty goods than perfumes, facial cleansers, and lotions. Searches for “Men’s eyebrow shape” and “Men’s cosmetics cream” increased by 130 and 354%, respectively.

Some of the RED Report’s Key Takeaways

Men’s beauty is emerging: More categories of cosmetics have been added to men’s beauty wishlists, in addition to the evergreen perfumes, facial cleansers, and lotions. Furthermore, the survey revealed a significant increase in men in 2021, with 14% of these becoming content creators. This group has the potential to push more men to abandon outdated notions of masculinity. Hence accelerating the rise of gender-neutral beauty labels.

Self-acceptance drives personalization: Similarly, the report demonstrates how Xiaohongshu users have embraced variety. This transition is evident in the emergence of personalized and tailored makeup showcasing the distinctive qualities of beauty customers. The practice of layering multiple cosmetics, such as lipsticks and perfumes, exemplifies the desire for individuality. Some of the brands gaining benefits from these are Perfect Diary, Proya, Carslan, FlowerKnows, Zeesea, and more.

The need for cosmetics ingredients is increasing: Cheng Fen Dang (成份党) has been a key trend impacting the beauty landscape in China since its inception in 2017. This exclusive club, founded by skincare enthusiasts with scientific degrees, discusses the professional understanding of cosmetic components and how they influence different skin types. Some of them use personal social accounts to provide product reviews that evaluate various substances and their features, which have become reliable sources of information for locals.

Xiaohongshu’s Beauty Influencers

The number of beauty-related artists in Xiaohongshu is increasing, with a 14% increase in male users in 2021 (it didn’t happen without some controversies – see our news bulletin). Beauty influencers are also increasingly younger. The group born after the year 2000 accounting for 20% of the platform’s beauty creators. Almost 70% of Xiaohongshu’s beauty producers live in major cities.

Check out our previous posts to discover more about how to advertise on RED.

Conclusion

If you wish to know more about Xiaohongshu or need assistance in creating content, 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 at contact@thewechatagency.com.

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China Trend: Silver Generation

March 3, 2022

The results of China’s most recent census confirmed what many observers had predicted for a long time: the country’s population was expanding slower and getting senior than ever before.

The “silver generation” is China’s fastest-growing demographic, with senior people accounting for one-third of the country’s purchasing, a fact that merchants and retailers should be aware of. With growing spending power, more leisure time and longer life expectancy, Chinese seniors are becoming a consumer group to reckon with. Given their growing will to live their ‘golden years’ to the fullest and taking into consideration how nuanced this huge cohort is, brands can create and communicate their products and services properly.

China’s population of people over 60 years old surpassed 254 million in 2019, accounting for 18.1% of the total population. No other country in the world faces such a significant demographic change. According to the National Bureau of Statistics, China’s ageing population will reach 330 million by 2030, accounting for 25.5% of the overall population.

Globally silver generation is undergoing its own changes and is connected more than ever, particularly in China, where, according to Quest Mobile 2020, the number of internet active users aged 50 and up will surpass 100 million by May 2020.

Silver-Haired Consumers and Their Demography

The term “silver-haired group” refers to China’s senior population, which ranges in age from 60 to 69 years old. Thanks to improving living standards, healthcare and relatively early retirement age, China’s older generation in their 60s and 70s is generally healthy, self-sufficient and have a lot of spare time.

According to research, these so-called ‘’active seniors’ of which China has around 150 million are mostly found in first-tier cities. Shanghai has the greatest proportion of people over the age of 60 in its population (30%). In Beijing, Tianjin, Chongqing, and Guangzhou it stands at around 20%

When compared to peers who live in rural areas, those who live primarily in major urban centres have better salaries and spending power. Pensions are the primary source of income for the elderly in cities. Self-employment income is the primary source of income in rural areas. With their own savings and the support of their children, elders in China are enjoying considerable financial freedom for the first time in history.

Experts predict that the spending power of the silver group will reach CNY 20 trillion in 2030, from CNY 4 trillion in 2014.

The Role of E-Commerce and Internet Access

Seniors are becoming more willing to accept technology and the tools it provides. This explains why the number of senior users has increased from 54 million in 2018 to 100 million by 2020.

There are many more female users than male users among these elderly netizens (57.1% vs 42.9% ).

Prior to the epidemic, physical stores still played a significant role in the older consumer sector. However, since the onset of COVID-19, this pattern has shifted dramatically, with more older consumers joining online buying force.

They mostly utilise mobile devices to access the internet, more than 40% use Taobao and Alipay to make purchases. Apart from daily basics like food and health supplies, the silver-haired generation seeks goods and services ranging from apparel to home appliances, travel, insurance, and financial services. They spend 1,000 RMB every month on average.

They are not only emerging as a major consumer force, but also as new fashion and beauty influencers. A well-known example is Sang Xiuzhu, the 76 years old Chinese social media sensation with videos of glamour in the golden years.

She became a member of the Fashion Grandmas two years ago, whose one-minute clips and live streams showing them transforming Beijing’s streets into a catwalk watched by millions of people. They combine beauty with wise words on marriage, love, and life. All coming from a generation that is becoming increasingly important to China’s economy and online culture.

“Our young fans say they are not afraid of ageing after seeing grannies like us living fashionable and happy lives”.

Is There an Untapped Market Among Senior Generation for Brands?

Without a question, the COVID-19 epidemic has accelerated transformation that would have occurred anyway in the long run.

The Chinese senior population is increasing, which means that the silver economy’s potential are expanding as well. Brands should stop thinking of the elderly in China as grannies and grandpas with old-fashioned big-button phones. Start think of them as self-sufficient consumers with plenty of buying power who aren’t hesitant to embrace new technology.

This unexplored market presents a great chance for brands to establish a strong consumer base in China.

Many well-known brands have already begun to tap into this lucrative market. Xiaohongshu has developed a successful online lifestyle community for China’s youth and is now focused on the country’s elderly. Xiaohongshu’s application for Laohongshu (literally meaning Old Red Book) registration has finally been approved after months of waiting. The upgrade has attracted a lot of attention in the domestic media implying a cunning move toward the “silver-haired economy.

Alibaba, which started its “Taobao for Elders” program in early 2018, is another company targeting the generation’s tech spending potential. The senior-friendly version includes chat feature and a “pay for me” link that users may send to family and friends.

Conclusion

China’s baby boomers are not a direct substitute for the country’s millennial and generation Z consumers. Therefore initiatives to boost birth rates will be critical to fully exploiting the country’s domestic market.

However, a government must make the best use of all of its tools. China has an underdeveloped sector of its economy in its 200 million senior citizens waiting to be unleashed.

In the next few decades, China’s elderly population will exceed 500 million. They are the generation that is catching up on social media and becoming more visible, particularly on short-form video platforms.

Chinese elders are becoming a new market that enterprises. This is especially true as the population grows and more people enter the digital world.

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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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