Xiaohongshu Sparks a Global Expansion: From Traffic Hotspot to Business Empire

Remember the storm that followed the TikTok ban? While the world’s attention was locked on the chaos of the digital frontier, an unexpected dark horse began to emerge. Xiaohongshu, a Chinese social media platform, quietly gained traction — not just making waves in the social space, but also welcoming thousands of curious American users, many of whom jokingly dubbed themselves ‘TikTok refugees.’ Drawn by the allure of this uniquely Eastern digital garden, they arrived with curiosity and hope. With its distinctive content ecosystem and exceptional user stickiness, Xiaohongshu not only climbed to the top of the U.S. App Store rankings, but is now gearing up for a bold leap into the global e-commerce arena — building a robust foundation for Chinese brands to go global.

In the face of fierce competition in the global e-commerce sector, how will Xiaohongshu leverage its strengths in both social media and e-commerce to create an unprecedented consumer experience? What kind of unexpected transformation will this phenomenon of cross-industry expansion bring to the global market?

Let’s dive into Xiaohongshu’s new journey of e-commerce expansion, explore the deeper logic behind it, and see how this vibrant platform is reshaping the global consumer landscape, signaling a fresh wave of transformation in the world’s e-commerce ecosystem... 

1.The History of Xiaohongshu's Development

Founded in 2013 and headquartered in Shanghai, Xiaohongshu is a lifestyle-sharing platform that combines social networking and e-commerce features. Its core user base consists of young urban women, with over 300 million monthly active users. The platform covers various areas such as fashion, beauty, and travel. Xiaohongshu is often compared to China's version of Instagram or Pinterest, allowing users to post photos, videos, and text, and purchase products directly through its e-commerce functionality. In 2020, approximately 70% of its users were post-90s (born after 1990), and nearly 70% were female. This demographic is especially interested in luxury goods and international products.

 Xiaohongshu’s content is largely user-generated (UGC), which has attracted numerous brands to the platform. As of 2024, Xiaohongshu’s monthly active users (MAU) continue to grow, surpassing 300 million, with about 50% of its users from Gen Z and 50% from first- and second-tier cities. The platform boasts over 80 million community contributors, with UGC making up 90% of its content.

Xiaohongshu places a strong emphasis on high-quality brands, with content featuring popular international brands typically receiving higher engagement. Many global fashion and beauty platforms have also joined Xiaohongshu to promote their products. With the help of Xiaohongshu’s social ecosystem, overseas brands can quickly overcome geographical barriers, establish a distinctive style, and achieve rapid expansion from local markets to global reach.

 In terms of page design, Xiaohongshu's layout is very similar to Instagram: typically 3 to 6 images, with text descriptions usually ranging from 20 to 200 characters. The content style on Xiaohongshu often features personal stories and includes numerous emojis. Content distribution is driven by algorithms, and users can interact with posts through likes, bookmarks, shares, private messages, and comments.

2.The Influx of TikTok Refugees: Xiaohongshu's Unexpected International Opportunity

 In January 2025, the U.S. Supreme Court upheld the TikTok ban, ruling that if its parent company, ByteDance, did not immediately divest its U.S. operations, TikTok would be banned entirely on January 19. This shocking decision quickly sparked widespread concern and anxiety in the U.S., with nearly 17 million American users expressing their worry over the platform’s imminent disappearance. They eagerly began searching for alternative apps to replace TikTok. According to reports, over 3 million U.S. users registered for Xiaohongshu just last week, helping it quickly rise to become one of the most popular free apps on the U.S. App Store.

This phenomenon has been dubbed the "TikTok Refugee Effect" by the media, representing American users’ dissatisfaction and protest against the TikTok ban. Many have turned to Xiaohongshu as a platform to voice their frustrations. Data shows that Xiaohongshu’s downloads have surged by 200% year-over-year, and the related hashtag #TikTokRefugee has amassed 3.94 billion views and 44.7 million discussions to date.

3.From Rejection to Resonance: How Xiaohongshu Won Over Discerning U.S. and European Users

 The influx of "TikTok refugees" not only reshaped Xiaohongshu's user base in a short time but also facilitated cultural exchange between Chinese and American users. Chinese users welcomed their American counterparts with warmth and humor, jokingly calling themselves the "new Chinese spies" for U.S. users, and even playfully requesting foreign users to share pictures of their cats as a "tax."

 Moreover, Chinese users took the initiative to help with Chinese homework, engaging in casual discussions on topics ranging from pets to rent. Some Chinese users curiously asked, "Why are there suddenly so many foreigners here? Did I download the wrong app?" These interactions not only brought Chinese and American users closer together but also added an international flair to Xiaohongshu.

 As a result of the influx of foreign users, English-language posts began to dominate the platform. Chinese netizens joked that Xiaohongshu was becoming "Little Potato" (a reference to foreigners), and a new term, "Early C, Late A," emerged — meaning Chinese users (C) use the app in the morning, while American users (A) take over in the evening. However, this phenomenon wasn’t without its tensions. Some Chinese users voiced dissatisfaction with the platform being "taken over" and warned that American influence might pose risks. This divide highlights the complexities Xiaohongshu faces in its internationalization journey.

The debate continues to grow, with some celebrating the "digital migration" for giving Xiaohongshu unprecedented international exposure, while others are starting to critically reflect on the potential pitfalls behind its sudden rise. Yet, there’s no denying that this "unexpected journey" has provided Xiaohongshu with a rare and invaluable opportunity.

 In just a few months, Xiaohongshu has garnered attention in overseas markets beyond expectations. This remarkable surge in visibility is rare in the history of Chinese social platforms going global. In the crowded global social media market, such an influx of organic traffic is like a "windfall." This wave of attention not only brought traffic but also paved a "golden highway" for Xiaohongshu's future global e-commerce expansion — brand recognition is often the first major hurdle in breaking into new markets.

Striking Gold After the Tide Recedes: Xiaohongshu’s E-commerce Expansion and Transformation

 However, the "TikTok refugee" surge didn’t last long. With the TikTok ban situation in the U.S. taking a turn, the TikTok users who had flocked to Xiaohongshu began to return to their original platform, and the massive influx of traffic that had poured into Xiaohongshu started to taper off. By early February, Xiaohongshu’s daily active users overseas had dropped by 70% from their peak.

 But for Xiaohongshu, the real story on the international stage is just beginning. After several failed attempts to expand internationally in recent years, Xiaohongshu has finally found a key breakthrough. Thanks to the "TikTok refugee" event, it has managed to break out of its niche. This time, Xiaohongshu is choosing not to hold back, instead actively entering the e-commerce expansion race. Its recruitment plans and strategic moves clearly signal the company’s determination to push its e-commerce efforts overseas.

 After the Spring Festival, Xiaohongshu posted job openings for Cross-Border Business Management Trainees (MT) and Cross-Border Logistics roles. The cross-border logistics employees are expected to "be responsible for the planning and design of cross-border export logistics fulfillment products, have experience in cross-border e-commerce logistics and supply chain product management, and possess in-depth understanding of the entire export e-commerce process."

 On March 10, Xiaohongshu launched its "Xiaohongshu E-commerce Overseas Navigation Program," officially marking its first step into the overseas e-commerce market. Additionally, the company leased a 7,000-square-foot office in Times Square, Causeway Bay, Hong Kong, with plans to leverage Hong Kong's established financial and legal system to optimize cross-border data flow and payment frameworks, addressing the uncertainties in U.S. and European policies.

 According to the official announcement, this initiative is Xiaohongshu’s solution for businesses looking to expand internationally. It integrates a full range of services, including online transactions, trade exports, cross-border payments, and localized operations, helping businesses reach global customers. Once businesses sign up for the overseas expansion program, they can showcase their products across Xiaohongshu’s content ecosystem, including in posts, live streams, and stores.

Currently, the first phase of the "Xiaohongshu E-commerce Overseas Navigation Program" covers the U.S., Hong Kong, and Macau markets. After joining this program, businesses expanding overseas will enjoy four key benefits:

1.Access to global users, enabling precise targeting of international customers.

2.AI-powered translation, eliminating language barriers for overseas expansion.

3.Officially partnered logistics and full-chain logistics solutions, ensuring efficient and reliable delivery.

4. One-stop business operations, improving efficiency.
5.  

 In terms of finance and settlement, Xiaohongshu’s overseas merchants don’t need to open a separate foreign currency account, nor do they need to pay deposits, additional service fees, taxes, international shipping fees, or currency exchange rate differences. They only need to pay a technical service fee. When overseas users place an order, they will see a reference price in their local currency. The platform will settle the payment in RMB to the merchant's domestic account.

For logistics, merchants only need to ship their products to Xiaohongshu’s designated transfer warehouse within the promised delivery time. From there, the platform's partner warehouse will handle customs clearance and transportation until the goods reach the customer. Users can track the entire logistics journey on the Xiaohongshu mobile app.

 When it comes to product selection, the platform will review the merchant’s product categories and standards. If they meet the criteria for overseas expansion, the products will appear on the overseas product list. Merchants just need to select "Automatically add new products to the cross-border export pool" or enable "Export Status" for individual products.

 Regarding the most common concern for overseas sellers—refunds—if the seller has enabled "Express Refund," users can apply for a refund before the product is shipped, and the system will automatically process it. If "Express Refund" is not enabled, a refund will only be processed after two rounds of approval. After the product is shipped but before it's signed for, or within 20 days of shipping, users cannot initiate after-sales services. Once the product is signed for, users can initiate a return for a refund, which will be reviewed by platform customer service.

Looking at the comprehensive range of services covering operations, marketing, payment, logistics, and after-sales support, it’s clear that Xiaohongshu has been meticulously planning its overseas expansion. The "TikTok refugee" surge provided the perfect opportunity for its international push.

On February 10, Xiaohongshu launched an overseas MCN (Multi-Channel Network) recruitment program to bring in local creators. At the same time, the company’s overseas local teams have quietly started to take shape: publicly available information shows that after the Spring Festival, Xiaohongshu posted two cross-border logistics-related positions.

With the right timing, favorable conditions, and careful preparation, Xiaohongshu’s e-commerce expansion overseas is successfully taking off.

Conclusion

 In conclusion, Xiaohongshu’s journey towards internationalization is at a critical turning point, with both opportunities and challenges ahead. How it maintains a competitive edge amid geopolitical tensions and responds to the diverse needs of global markets will determine its future success in international markets. For companies that are willing to embrace change and innovate, the future market will be even more expansive. Whether Xiaohongshu can emerge as a leader in global social e-commerce is something we’re all eager to watch unfold.

Let’s see how this social platform from the East will write its own new chapter in the wave of globalization!