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Writer's pictureMiro Li

WHAT IS RED/XIAOHONGSHU?

Updated: Apr 10, 2020

For further exploration on RED/XIAOHONGSHU: RED GUIDE V2.0

For online course about RED/XIAOHONGSHU: XIAOHONGSHU 101



As of Jul. 2019, XiaoHongShu has reached 300 million registered users with 100 million MAU (monthly active users).


The platform is backed by the most prestigious investors including Alibaba, Tencent, Genesis Capital, ZhenFund and GGV Capital, and valued at USD 3 billion in its Series D round in June 2018.


According to iResearch, as of May. 2019, RED has a primarily female user base of 87%. The portion of male users is growing rapidly to 13%. 70% of the users are born after 1990 and 50% are born after 1995.



IS RED AN E-COMMERCE OR A SOCIAL PLATFORM?

Both. RED is a combination of social media with eCommerce marketplace. Users can share experience, comments and feelings about a product, restaurant, or anything on social page, they can also purchase on the eCommerce page.

When RED started in 2013, it was just a social platform, where people share fashion ideas or beauty tips. After accumulating a lot of user generated contents, RED started to partner with overseas brands and sell these products to consumers.


In 2017, in order to fulfil customers' huge demands on overseas products, RED started to become an eCommerce marketplace and let brands open and operate their own shop, which has attracted a lot of small to medium foreign brands.



There are a wide range of popular celebrities on the APP, like Angelababy (Over 1 million) and Cherrie Ying (Over 100K). Even foreign celebrities like Karlie Kloss (350K followers) and Kim Kardashian (100K followers) have jumped on the platform. 



Users are encouraged to post contents with hyperlinks, which can direct to the product page. XHS users enjoy visual content, posting images incorporating graphics and text overlay makes posts more appealing for users. This helps brands to convert normal users to customers and build word of month.



HOW CAN I OPEN A SHOP ON RED?

There are 2 types of shops on RED. One is brand shop, which is owned by the brand or the sole distributor of the brand. Another is the retail shop, which includes several different brands.

You will need to submit your company license (Chinese or foreign) and the authorization letter from the brand (if you are not the brand owner) to apply.

WHAT IS A RED BRAND ACCOUNT?

The XiaoHongShu Brand Official Account is an account set up and owned by the brand. It has to be verified by the Platform. Brands could post content and interact with users. Users could also send private message to the brand official account. The platform is further connecting it's community with eCommerce by linking the two together. Some marketing activities require a verified brand official acccount. 


Whether or not you have a shop, creating this account on Xiaohongshu most certainly helps with branding.

We have also created a blog post all about XiaoHongShu brand accounts, read more HERE.



HOW DO I HANDLE LOGISTICS?

RED has 6 domestic warehouses and 7 overseas warehouses locating in Hong Kong, Japan, South Korea, Taiwan, Europe, USA and Australia. The official logistics service of RED - REDelivery allows sellers to stock inventory in RED warehouse or drop ship when receiving orders. RED will handle custom clearance and last mile delivery.


HOW MUCH DOES IT COST TO GET STARTED?

RED requires a deposit of RMB 15,000 - 50,000, depending on the platform's evaluation towards the brand. There is also a flat commission rate of 15%. 

Our service packages start with USD 5,000. Each package is carefully designed to best meet the needs of every single brand, whether you are a new brand in China, or an established brand seeking for growth. We provide total solution from setting up the shop, daily operation, running the official brand page to marketing and KOL campaign. 

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