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Hot on the heels of TikTok imminent closed on January 19 on its property in the United States (unless the Supreme Court intervenes), it seems that another Chinese app is attracting attention. US users flock to the Chinese short-form video app Xiaohongshu (known as RedNote in English). The app today reached the No. 1 for free apps in the US App Store. It is also the number one social networking app among all free iPhone apps.
Many TikTok creators promote Xiaohongshu on their accounts, encouraging their followers to transition to the platform. Influencers may not have a crystal ball to predict whether TikTok will get banned, but Xiaohongshu gives them a way to hedge their social bets.
(We’re digging into the install numbers and will update this post with more data as we get it.)
Why Xiaohongshu?
Xiaohongshu was originally launched in 2013, and it hits many of the right notes for creators looking for a TikTok alternative: it has a layout that is similar to Pinterest; it is typically thought of as China’s answer to Instagram; and critically boasts a number of social shopping features.
And it has also been on a strong viral trajectory. After a few years of steady growth, during the COVID-19 pandemic Xiaohongshu has grown among young Chinese consumers. It now boasts 300 million monthly active users; 79% of them women. And for now it is the first app in the United States
Unsurprisingly, the startup has also attracted the attention of investors. To date, it has raised approximately $917 million in venture funding, with backers including Tencent, Alibaba, ZhenFund, DST, HongShan (formerly Sequoia China), and some 13 others. It was estimated at $17 billion after a secondary share sale in 2024.
According to a report from Bloombergthe app is projected to increase its profits to more than $1 billion in 2024 (it hit $1 billion in quarterly sales last year, for this FT report), ahead of a possible IPO. This growth not only means the potential of the app, but also suggests the promising opportunities it could bring to its creators.
It is not clear whether Xiaohongshu will sustain the interest it is receiving now. And if it does, it remains to be seen what it could mean in terms of scrutiny by American authorities, since Xiaohongshu is not only from China, but apparently has no claim to being operative in the United States.
Meanwhile, it is known that TikTok users have not recommended apps from the biggest rival of TikTok in the country, which is going through its own drama. Meta recently announced that its stable of social apps, which includes Facebook, Instagram, Threads and WhatsApp, will ease content moderation policies, interrupting its third-party fact-checking in the process – raising concerns about the potential spread of hateful content and misinformation on its platforms.
