Xiaohongshu, China’s reply to Instagram, hits no. 1 on the App Retailer as TikTok faces US shutdown
On the heels of TikTok’s looming shut down on January 19 over its possession within the U.S. (except the Supreme Courtroom intervenes), it appears to be like like one other Chinese language app is catching some consideration. American customers are flocking Chinese language short-form video app Xiaohongshu (often called RedNote in English). The app as we speak surged to the number-one spot without cost apps on the U.S. App Retailer. Additionally it is the highest Social Networking app throughout all free iPhone apps.
A number of TikTok creators are selling Xiaohongshu on their accounts, encouraging their followers to transition to the platform. Influencers could not have a crystal ball to foretell whether or not TikTok will climate a ban, however Xiaohongshu provides them a approach to hedge their social bets.
(We’re digging into set up numbers and can replace this put up with extra knowledge as we get it.)
Why Xiaohongshu?
Xiaohongshu initially launched again in 2013, and it hits a whole lot of the appropriate notes for creators in search of a TikTok different: it has a format that’s much like Pinterest’s; it’s usually regarded as China’s reply to Instagram; and critically it boasts various social procuring options.
And it additionally has been on a powerful, viral trajectory. After a couple of regular years of progress, throughout the COVID-19 pandemic Xiaohongshu boomed amongst youthful Chinese language shoppers. It now boasts 300 million month-to-month lively customers 79% of them girls. And for now it’s the highest app within the U.S.
Unsurprisingly, the startup has additionally caught the eye of traders. Up to now, it has raised some $917 million in enterprise funding, with backers together with Tencent, Alibaba, ZhenFund, DST, HongShan (previously Sequoia China) and a few 13 others. It was reportedly valued at $17 billion following a secondary share sale in 2024.
In keeping with a report from Bloomberg, the app is projected to extend its earnings to over $1 billion in 2024 (it hit $1 billion quarterly gross sales final 12 months, per this FT report), forward of a doable IPO. This progress not solely signifies the app’s potential but in addition hints on the promising alternatives it may convey to its creators.
It’s not clear whether or not Xiaohongshu will maintain the curiosity it’s getting proper now. And if it does, it’s additionally nonetheless to be seen what that may imply when it comes to scrutiny from US authorities, given Xiaohongshu, not solely hails from China however seemingly has no pretence in any respect of being operative within the U.S.
In the meantime, it’s notable that TikTok customers haven’t been recommending apps from TikTok’s largest rival within the nation, which goes by means of its personal drama. Meta not too long ago introduced that its steady of social apps, which embrace Fb, Instagram, Threads and WhatsApp, would ease content material moderation insurance policies, discontinuing its third-party fact-checking within the course of — elevating issues concerning the potential unfold of hateful content material and misinformation on its platforms.
