China’s e-commerce industry is predicted will be worth around $175 billion by 2024. This is amazing news.
With over 300 million users on Xiaohongshu, or Little Red Book in English, it is one of the fastest growing advanced social commerce apps on the market.
Little Red Book offers significant opportunities for international brands to leverage their potential and establish a strong presence in China. That’s why big global names like Louis Vuitton and YSL are clamoring to advertise on the platform. It is a must-have Chinese marketing channel for businesses in the ever-changing digital landscape.
Evolution of the little red book
Social media recommendation has become the main way for Chinese consumers to discover new products and decide on their purchases, with Little Red Book being a key medium for consumer sharing and research.
As of July 2019, the platform had over 300 million registered users between the ages of 18 and 35. They are affluent, love to travel, and have an appetite for the latest products, services, and trends.
90% of users are under 32 years old.
80% are women, with a growing male audience.
Over 60% come from Tier One and Tier Two cities.
Chinese consumers depend on peer groups and key opinion leaders (KOLs) for product ideas and information. This is why e-commerce and Little Red Book have excelled in recent years. The latter propelled an innovative way of Chinese social media marketing – one to add to your brand marketing toolkit.
Founded in 2013, Little Red Book originally filled an important gap by allowing shoppers to share their valuable purchases and gather reviews for the first time. It is now a premium service for celebrities and consumers to communicate their shopping and lifestyle experiences.
What is the Little Red Book for?
As Chinese consumers’ favorite application for product research, it mainly focuses on luxury goods, beauty, fashion, travel and lifestyle. However, menswear, fitness, education, digital technology and home furnishings are now strong growth categories. Ambitious trends are highlighted, allowing shoppers to experience the latest products.
Little Red Book stands out from other e-commerce platforms in distinct ways. It uses user-generated content, inspiration, and online community building to produce real-time, detailed shopping information for users to absorb, learn, and enjoy.
Working closely with KOLs and celebrity product endorsers, Little Red Book adds yet another dimension to an item’s appeal to shoppers, ensuring trust and confidence to invest. Popular with Chinese Gen Z and Millennials, it is a unique user community and e-commerce platform with multiple features:
Live streaming and viewing
Publication of videos and photos
Creation of long articles
Hashtag and trending topic/product research
Browse/shop on brand pages
Browse/Buy Little Red Book Affiliate Products
Open a Little Red Book Mini Store Program
With the introduction of livestreaming in 2019, Little Red Book added another string to its bow. Subsequently, the vlogging explosion exceeded all expectations and had a noticeable impact on the app, dramatically increasing brand exposure.
What about brands?
According to the app, 300 billion posts are viewed every day, more than 70% of which are user-generated content. Chinese consumers interact with an average of eight digital touchpoints before committing to purchase.
One of the amazing benefits of Little Red Book is that international businesses have access to it, allowing them to capitalize on a direct connection with their audience. Additionally, Little Red Book allows brands to engage and sell to their target market using a filtering algorithm that tailors content to users’ tastes.
Advertising in app feeds is the most effective way to reach consumers. The ideal content is friendly and authentic, giving clear reasons to interact. A variety of long, multi-media forms, covering a range of angles depending on industry goals and topics, works best.
Little Red Book holds tremendous potential for international brands new to the Chinese market, as well as those expanding their existing business base and seeking valuable feedback on their products.
Why not join the growth of Little Red Book?
Little Red Book has seen unprecedented growth over the past five years, and live streaming is seen as the top trend in 2021. Whether monitoring consumer sentiment, managing reputation, or nurturing the sales funnel is an essential channel for marketers.
Whatever your industry, it’s impossible to ignore this pioneering platform. It’s a key portal for consumer sharing and research, and a must-have to add to your daily marketing mix.
Want to explore Little Red Book in more detail? To download our comprehensive, in-depth guide revealing consumer journeys and top 10 tips for successful and innovative marketing and selling in this digital marketplace.
Rocky Chi is a planning manager at Emerging Communications.