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Flare Communications CEO on Xiaohongshu and how brands can tap the Little Red Book

Aug 19, 2024

China’s fastest-growing social media platform, Xiaohongshu, is Gen Z’s go-to resource when it comes to where to go, what to buy and how to live. Bastian Wong, founder and CEO of Flare Communications Group, talks to Tama Miyake Lung about what sets the Little Red Book apart and what brands can do to tap into its dynamic user base

In today’s world of Photoshop, augmented reality and viral beauty filters that can do everything from straighten and whiten teeth to reconfigure bodies into Barbie-like proportions, it’s no wonder social media users and creators alike are experiencing unprecedented levels of burnout. The disillusionment brought on by unrealistic standards has led longtime users to delete their apps and popular influencers to reject the façade of perfection in favour of “de-influencing” and “underconsumption core”. But the growing desire – if not need – for #unfiltered authenticity has actually fuelled the rise of China’s fastest-growing social media platform, Xiaohongshu, with 300 million monthly active users now relying on it for advice and inspiration on how to live their best lives.

“Xiaohongshu can be described as ‘Gen Z’s version of Baidu’ or the ‘young people’s Google’. It’s a combination of Google-like search functionality and social media capabilities,” explains Bastian Wong, founder and CEO of Flare Communications Group, a Hong Kong-based integrated communications agency that works with a wide range of leading global beauty, lifestyle, FMCG and new technology brands.

“Its growing popularity can be attributed to its emphasis on authenticity and informative content. By prioritising genuine interactions and reliable information, the platform has built a reputation as a trustworthy space where users can engage with authentic content and receive valuable updates.”

Launched in 2013 by Charlwin Mao and Miranda Qu with a Version 1.0 app called “Hong Kong Shopping Guide”, Xiaohongshu has evolved from a user-generated content community focusing on shopping experiences overseas to the leading lifestyle destination for young women living in top-tier Chinese cities to share and discover content ranging from beauty and fashion to travel and childcare. It’s also become arguably the country’s most powerful marketing tool for brands looking to connect with and convert this key demographic.

“While other platforms excel at specific strengths, such as Douyin (TikTok)’s crisp video content or WeChat’s super-app functionality, Xiaohongshu’s ability to balance informative value and visual
appeal sets it apart,” says Wong, who advises brands to incorporate Xiaohongshu as part of a holistic, integrated multichannel marketing strategy. “This unique approach potentially appeals to users who desire a more engaging and comprehensive social media experience.”

Xiaohongshu – also referred to by its English translation, Little Red Book – is not only captivating netizens across mainland China but also quickly making inroads in Hong Kong. “Currently, Xiaohongshu has over 2 million users in Hong Kong, which means that approximately one out of every three people in the city is using the platform,” Wong says. “As of July 19, it also ranks within the top three most downloaded social media applications in Hong Kong, indicating that the user base is still growing rapidly. This also suggests that Xiaohongshu is gaining considerable traction in the city’s social media landscape.” Some of the primary user groups in Hong Kong include so-called Hong Kong drifters, tourists from the mainland and Southeast Asia, and, perhaps surprisingly, young female finance professionals swapping career advice and fashion tips. The biggest influencer on the platform to emerge from Hong Kong, meanwhile, is actress and socialite Teresa Cheung, who famously became the first to achieve a gross merchandise volume of RMB 100 million in a single livestream that saw her recite Shakespeare and love poems while presenting her favourite fashion and beauty products.

Described as “China’s Instagram on steroids”, Xiaohongshu enables users to follow accounts, explore posts based on previous activity, and discover posts, products or places popular in their current location. Users can also create photo and video posts, host and watch livestreams, exchange messages and shop directly on the app. Over the years the platform has not only fuelled some of the mainland’s biggest lifestyle trends – like “citywalk” and “ballet aesthetic” of late – but also spawned a marketing language all its own.

The most well-known phrase, “grass planting”, describes the process of organically cultivating user interest and desire for a product or brand. “Unlike traditional hard-selling approaches, ‘grass planting’ emphasises authentic content that allows users to discover and become interested in offerings naturally,” explains Wong. “Another interesting expression on Xiaohongshu is ‘打 Call’, which represents endorsing and standing up for a brand. ‘绝绝子’ is another unique term that expresses great admiration and praise. The platform is rich with these types of creative, user-generated expressions that reflect the vibrant culture and vernacular of Xiaohongshu.”

Reflecting its emphasis on authenticity, Xiaohongshu tends to reward content that feels genuine and integrated rather than overtly promotional. Wong therefore advises brands to take a soft-sell approach that prioritises natural integration over direct promotion. “Deeply understand the Xiaohongshu audience – predominantly young, educated and affluent, with a majority female user base – and tailor content and messaging to resonate with this discerning group, emphasising trends, lifestyle elements and authentic storytelling. Leverage influencers who can authentically weave your brand into their content for maximum impact on this valuable consumer segment.”

The Xiaohongshu effect has already lifted brands as diverse as Louis Vuitton, which drew a record-setting 470,000 unique visitors to an experimental resee livestream of its pre-fall 2024 collection in April, and the humble essential oil shop Shiu Shing Hong in Sheung Wan, which has drawn crowds of tourists and locals ever since users started sharing photos and videos of its extensive and reasonably priced products. A range of unlikely Hong Kong tourism hot spots, from a footbridge in Mongkok to the old Yau Ma Tei police station, have also popped up thanks to the platform while a number of prominent local universities have seen a significant influx of mainland Chinese applicants after shifting from WeChat to Xiaohongshu.

“These cases illustrate how Xiaohongshu has become an impactful channel for driving user engagement and awareness of local businesses and educational institutions in the Hong Kong market,” Wong says. “The platform’s influence over immediate trends and its ability to connect users with relevant local information and opportunities highlight its growing significance in the city’s social media landscape.”

Xiaohongshu’s growing influence has attracted backing from both Tencent and Alibaba as well as international venture capital firms such as Temasek, HongShan and DST Global, resulting in a US$17 billion valuation and rumours that it could emerge as China’s next tech unicorn. Looking ahead, Wong sees significant potential for user growth, e-commerce integration and international expansion – as long as the Little Red Book stays true to its mission to “inspire lives”.

“Maintaining the platform’s distinctive identity and community-centric experience will be critical as Xiaohongshu navigates its growth trajectory. Expanding its user base, deepening its e-commerce capabilities and evolving its content must be carefully balanced to preserve the unique commerce-content-community model that underpins Xiaohongshu’s success,” she says. “To enhance its e-commerce functionality, Xiaohongshu can explore strategic collaborations with other platforms to create a more integrated ecosystem. Leveraging such partnerships will be key as Xiaohongshu capitalises on emerging digital opportunities and contemplates international expansion, which is underscored by the platform’s growing attention from major investors. By striking the right balance between preserving its core identity and judiciously expanding its capabilities, Xiaohongshu can unlock its substantial growth potential across various fronts.”

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