China’s Xiaohongshu carves out a niche in an increasingly crowded e-commerce market
- The Instagram-style platform, where people share lifestyle tips, has become a strong force in Chinese e-commerce
Xiaohongshu, the platform also known as Red with 300 million monthly active users, held a two-day summit last Wednesday and Thursday in China’s e-commerce hub Hangzhou, the home city of Alibaba, to woo online vendors, brands and influencers to open shops on its platform. Alibaba owns the South China Morning Post.
Bearing the city’s scorching heat, the venue was bustling with merchants showcasing everything from durable goods such as custom-designed sofas, clothing, and home appliances to consumables such as snacks and soft drinks. Influencers also flocked to the event, seeking opportunities for collaboration.
“In the past year, the number of merchants with monthly sales exceeding 5 million yuan on Xiaohongshu has increased by 3.5 times, and the number of purchasing users has grown by 4.3 times,” Yin Shi, head of Xiaohongshu’s e-commerce unit, said at the summit. As part of the effort, Xiaohongshu will relocate its e-commerce unit to Hangzhou, the capital Zhejiang province known as a base for influencers, from its head office in Shanghai.
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