On January 10, the U.S. Supreme Court upheld a ban on TikTok unless ByteDance divests its American operations, potentially shuttering the platform in the U.S. by January 19. As a result, millions of TikTok users, dubbed “TikTok refugees,” have turned to alternatives, including popular Chinese social media app Xiaohongshu (Little Red Book).
The hashtag #TikTokRefugee has already garnered over 78 million views and 2 million discussions on Xiaohongshu, with many new users describing the platform as a mix of Instagram and TikTok.
In just a few days, Xiaohongshu surged to the top of the U.S. App Store’s free apps chart and secured leading positions in Australia, the UK, and the Netherlands.
However, the sudden influx of users has highlighted Xiaohongshu’s recent pivot toward short videos. The platform replaced its “Shopping” tab with a single-column video feed reminiscent of TikTok.
Despite pushback from some Chinese users—who lament the shift toward “Xiao Douyin” (Little Douyin, referring to TikTok’s Chinese counterpart)—Xiaohongshu has embraced the change as part of a broader strategy to enhance its e-commerce capabilities.
A Push Toward Video-Driven E-Commerce
Xiaohongshu’s shift toward short videos isn’t just about appealing to TikTok users; it’s a deliberate move to strengthen its e-commerce ecosystem.
COO Conan Cheng emphasized in late 2024 that Xiaohongshu aims to position itself as a “lifestyle e-commerce” platform. To achieve this, the company has been integrating its community, content, and commerce algorithms to optimize for user engagement and revenue generation.
The transition to short video and livestreaming is critical for fostering consumer habits like livestream shopping, which relies on an instant influx of viewers to drive sales.
The single-column video format reduces user choice compared to the traditional dual-column layout, improving the flow of traffic to livestreams and increasing e-commerce conversion rates.
Xiaohongshu has also been proactive in courting manufacturers and businesses from China’s industrial hubs, such as Guangdong and Fujian, to expand its product offerings.
Unlike its earlier focus on high-end, niche items, Xiaohongshu is now embracing affordable products and mass-market appeal. For example, livestreams featuring low-cost winter boots and casual apparel have gained traction, mirroring the sales tactics popular on platforms like Taobao and Douyin.
Scaling E-Commerce Amid Intense Competition
Despite these efforts, Xiaohongshu faces significant challenges in scaling its e-commerce business. Competition from giants like Taobao, JD.com, and Douyin is fierce, with each platform investing heavily in supporting small businesses and industrial suppliers.
Xiaohongshu has also begun aggressive user acquisition campaigns, targeting not only urban millennials but also older and rural demographics.
Recent initiatives, such as partnering with local governments and offering referral bonuses for new users, have expanded its reach. In addition, the platform’s collaboration with China’s national Spring Festival Gala for a second consecutive year underscores its ambition to become a household name.
However, scaling without diluting the platform’s community-driven ethos will be a delicate balancing act. While Xiaohongshu’s core users value its curated aesthetic and high-quality content, expanding into broader demographics may risk alienating this base.
The Road Ahead for Xiaohongshu
The influx of TikTok refugees may boost Xiaohongshu’s global visibility, but retaining these users poses a challenge.
Many new users are driven by frustration with U.S. tech giants or geopolitical concerns rather than a deep connection to the platform. Cultural differences and regulatory hurdles could further complicate Xiaohongshu’s efforts to sustain its overseas user base.
Moreover, Xiaohongshu’s reliance on livestream shopping to drive e-commerce growth will require substantial investment in infrastructure and partnerships.
Competing with established players like Douyin and Taobao, which already dominate livestream e-commerce, will require Xiaohongshu to refine its value proposition, improve merchant tools, and lower barriers to entry for small businesses.
While TikTok’s turmoil presents an opportunity for Xiaohongshu to capture new markets, the real test lies in whether it can replicate Douyin’s success and build a sustainable e-commerce ecosystem.