Xiaohongshu Surpasses Instagram & TikTok: App Store No. 1

Growing Interest in Xiaohongshu Amid TikTok Uncertainty

Following concerns regarding a potential ban of TikTok in the U.S. on January 19 – contingent on Supreme Court action – another application originating from China is experiencing a surge in popularity.

American users are increasingly downloading Xiaohongshu, a Chinese short-form video platform also known as RedNote. The app has recently achieved the number one ranking for free applications on the U.S. App Store.

Furthermore, Xiaohongshu currently holds the position of top Social Networking app among all free iPhone applications.

TikTok Creators Drive Adoption

A number of content creators who are active on TikTok are now actively promoting Xiaohongshu to their audiences. They are suggesting that their followers consider migrating to this alternative platform.

While influencers cannot definitively foresee TikTok’s future, Xiaohongshu provides them with a strategy to diversify their social media presence and mitigate potential risks.

This proactive approach allows creators to establish a foothold on another platform, ensuring continued reach regardless of any restrictions imposed on TikTok.

A Platform for Social Diversification

The rise of Xiaohongshu represents a broader trend of users seeking alternatives to established social media networks.

This is particularly evident in light of ongoing debates surrounding data privacy and national security concerns related to foreign-owned applications.

By exploring platforms like Xiaohongshu, users and creators alike are demonstrating a desire for greater control and resilience within the evolving social media landscape.

Why Xiaohongshu?

Launched initially in 2013, Xiaohongshu presents a compelling alternative for content creators seeking platforms beyond TikTok. Its interface shares similarities with Pinterest, and it’s widely considered the Chinese equivalent of Instagram. Crucially, the platform integrates a variety of social shopping functionalities.

The app has experienced significant viral growth. Following a period of consistent expansion, Xiaohongshu saw a surge in popularity among younger consumers in China during the COVID-19 pandemic. Currently, it boasts 300 million monthly active users, with women comprising 79% of this base. It currently ranks as the leading app in the U.S.

Prior to its recent surge in attention, the application had accumulated approximately 3.2 million downloads within the U.S., as indicated by data from Appfigures spanning from January 2017 onwards.

This growth has naturally attracted investor interest. To date, the startup has secured $917 million in venture capital funding. Notable investors include Tencent, Alibaba, ZhenFund, DST, HongShan (previously Sequoia China), and an additional 13 entities. A secondary share sale in 2024 reportedly valued the company at $17 billion.

Bloomberg reports project the app’s profits to exceed $1 billion in 2024. This follows a quarterly sales figure of $1 billion achieved last year, as reported by the FT. This expansion underscores both the app’s potential and the opportunities available to its creators.

The long-term sustainability of the current interest in Xiaohongshu remains uncertain. Should this interest persist, the level of scrutiny from U.S. authorities is yet to be determined, particularly given the app’s Chinese origin and apparent lack of U.S.-based operations.

Interestingly, TikTok users haven't been actively promoting applications from TikTok’s primary competitor within the country, especially amidst ongoing controversies. Meta recently announced a relaxation of content moderation policies across its social media platforms – Facebook, Instagram, Threads, and WhatsApp – including the discontinuation of third-party fact-checking. This decision has raised concerns regarding the potential proliferation of misinformation and harmful content.

This article has been updated to incorporate data from Appfigures.