Why RED (Xiaohongshu) is standing out for marketers in China’s crowded online ecosystem

China’s popular apps increasingly look alike. They have all integrated social, e-commerce, entertainment, livestreaming, and video into their extensive suite of functions.

While Douyin leads in attracting advertising spend, it saw a year-on-year decline in September, alongside almost all of China’s major online platforms. The one notable exception was RED (Xiaohongshu), which has grown in relevance to both brands and consumers in recent years.

Last week, we were asked what makes RED different, particularly when so many Chinese apps appear to offer the same features? It’s a good question. The answer lies in the platform’s unique consumer base, why they use it, how it fits into their customer journey, and the algorithms that power it.

For starters, compared to more mainstream apps like Taobao, Douyin, JD, PDD, and WeChat, RED’s 300 million users are generally from higher-tier cities with higher spending power. They are often trendsetters, influencing the purchasing behaviours of other Chinese consumers. Around 70% of RED users are Chinese women – arguably the most important consumer group in the world. For foreign brands, this audience represents China’s most internationally-minded and progressive consumers, seeing the number of foreign brands on RED increasing 3-fold between 2022 and 2024.

These users are drawn to the platform’s authentic, user-generated content. Unlike other platforms that push aggressive “buy-buy-buy” messaging, RED offers a reprieve with its softer, more organic approach. User-generated content spans detailed product reviews, lifestyle tips, and personal experiences, fostering a trusted, community-driven environment where social proof strongly influences purchase decisions. This authenticity sets it apart from platforms where advertising is more overt.

Much of RED’s user experience is shaped by its advanced algorithms, which curate personalized content feeds to ensure users see relevant and engaging material. While RED has built-in e-commerce capabilities, many users end up purchasing products elsewhere. Successful accounts on RED often monetize their traffic and followers on external e-commerce platforms or private domains, rather than within the app itself.

As a result, marketing on RED requires a more sophisticated, emotionally driven, and long-term brand-building approach. Brands can’t rely on the short-term “sugar hit” strategies that dominate other apps – a practice recently criticized by China’s richest man, Zhong Shanshan. On RED, brands must “plant seeds,” cultivating trust and engagement before expecting sales, which contrasts with the immediate conversion-focused tactics common on platforms like Douyin and Taobao.

As customer acquisition costs continue to climb on platforms like Douyin and Tmall, and ROI continues to decline, brands are increasingly recognizing the unsustainability of transactional marketing. This realization has driven more ad spend and sophisticated brand-building efforts on RED.

Foreign brands face additional challenges competing with domestic brands that accept lower margins, allocate a higher percentage of revenue in marketing, and prioritize price-based strategies. To succeed, foreign brands must avoid defaulting to quick-win tactics like livestreaming and KOL-driven sales. Instead, they need to balance these with strategies that build longer-term connections and loyalty.

At China Skinny, we can help you understand what truly resonates with your target audience and use those insights to build sustainable relationships, some of which may include leveraging RED as a key platform.