Xiaohongshu Rises to Top App Store Spot Amid TikTok's US Challenges
Xiaohongshu, known as RedNote in English, has captured the attention of American users, climbing to the top of the U.S. App Store's free app rankings. Its ascent comes as TikTok faces a possible U.S. shutdown scheduled for January 19, leading creators to explore alternative platforms.
The rise of Xiaohongshu has been aided by several TikTok creators who are promoting the app on their channels, encouraging followers to transition to the platform as a backup in case TikTok is banned. This shift demonstrates creators' attempts to safeguard their online presence amid TikTok's uncertain future in the U.S.
Why Xiaohongshu?
Since its launch in 2013, Xiaohongshu has evolved to meet the needs of today's social media users. It offers a Pinterest-like layout combined with Instagram-style aesthetics, making it appealing for those looking for a familiar yet fresh experience. The app's social shopping features are particularly attractive to users interested in commerce-driven interaction.
Xiaohongshu's growth trajectory has been remarkable, particularly during the COVID-19 pandemic, when it gained popularity among younger consumers in China, now boasting 300 million monthly active users—79% of whom are women. This burgeoning user base has recently propelled it to the forefront of the U.S. app scene.
Investor interest in Xiaohongshu is strong, with the company having secured approximately $917 million in venture funding from major names including Tencent and Alibaba. Following a significant secondary share sale, the app was valued at $17 billion in 2024, and projections suggest it will surpass $1 billion in profits in 2024, according to recent reports, hinting at a potential initial public offering in the near future.
Despite its current success, Xiaohongshu faces potential scrutiny from U.S. authorities due to its Chinese origins and the geopolitical climate surrounding Chinese tech apps in America. This scrutiny could impact the app's operations and user growth in the U.S., although the extent remains to be seen.
While TikTok creators are not gravitating towards apps from its major U.S. rival, Meta, due to its own controversies, Xiaohongshu provides a viable alternative without the baggage of contentious policy changes. Meta recently announced that it would relax content moderation on its platforms, including Facebook and Instagram, ceasing third-party fact-checking, which has sparked debates about misinformation and safety on its platforms.