Xiaohongshu began as a forum for sharing product reviews and guides to purchasing products from other countries. While the platform’s content and user base have grown since then, the platform remains largely focused on global brands & has acquired a more cosmopolitan user base.
To understand the reason behind Xiaohongshu’s ‘cosmopolitan’ popularity, we must first understand 4 modern Chinese consumer trends.
#1 The New Age Of Consumption Upgrade
The Chinese consumer market is on the verge of a revolution that will open up new options, one of which is referred to as the “Lifestyle Upgrade” or “Consumption Upgrade.” This trend was especially visible in 2018, with Chinese consumers spending less on housing and food and more on upgrading their lifestyles.
Premium products have become the consumer’s favoured option in China. According to surveys, Chinese customers will opt to buy a more expensive product over a less expensive one, solely because of the brand image. This new trend isn’t only “youth-driven,” since middle-aged shoppers are adopting similar purchasing habits as millennials.
This emphasises the significance of a brand’s image and brand strategy in China, as it is one of the most important elements consumers consider when making a purchase.
#2 Reputation Is Prime
When it comes to purchasing decisions, the Chinese consumer depends on word of mouth and internet product recommendations more than any other consumer in the world. They have little faith in advertisements and search engine results. Over 75% of Chinese internet users provide feedback or reviews on their purchases at least once a month. In comparison only 20% of American users provide feedback or reviews.
Tip: Figure out how your brand stands out – from the perspective of Chinese consumers, not from the perspective of your own brand. In China, having a clear brand positioning is critical; it must be communicated correctly and through the appropriate means.
#3 Seeking Recommendations On Social
Product reviews on social media are becoming increasingly popular among Chinese consumers. Unlike other platforms where customers must browse through a variety of content to obtain reviews, Xiaohongshu is a place where they can quickly locate what they need.
Xiaohongshu was created specifically for this reason, and while it has developed over time, it is still a reliable online community where consumers can give and receive advise.
#4 Millennials & Gen Z – The Future Of Your Business
In China, persons born after 1985 account for 31% of the population. “Millennials are too young for my brand,” is a widespread misunderstanding among Western brands.
The Millennial and GenZ generation in China have a different perspective on consumption and money than previous generations, spending a greater proportion of their income on high-end and luxury goods. Having a presence on Xiaohongshu is a must for marketers who recognise the potential of the millennial demographic. Millennials account for 80% of Xiaohongshu users, while 70% of new users were born after 1995.
However, simply being on Xiaohongshu is insufficient. Millennials are the product of the information age. They are astute shoppers who are well-versed in the various options available to them. Brands must stand out by generating word-of-mouth recommendations from their peers. Don’t make the mistake of assuming that millennials in the East and West are the same. Make sure you choose your selling points with the Chinese buyer in mind. . Millennial Girls on social media are known for discussing and updating information about their life with their peers, and Xiaohongshu allows users to do precisely that.
For brands looking to reach these millennials, Xiaohongshu is an excellent platform. Get in touch with the team at Digital Crew, a Chinese digital marketing agency, that can help you build a successful digital strategy based on your budget and other specifications.