Xiaohongshu, also known as ‘Little Red Book’ in Chinese, is a social media and e-commerce app. It is unusual in receiving backing from both Alibaba and Tencent, two giants that rarely co-invest in other companies. In early 2020 it was reported to be valued at $6 billion, although there has been media speculation about an initial public offering in the US this year at a valuation closer to $10 billion.
The company has made its name as a platform for sharing content, where people can post product photos with reviews and tips for other users. The idea is to aggregate trusted content from a community of users, which supports word-of-mouth advertising and online sales of products. Between 70-80% of Xiaohongshu users are women, with a heavy focus on fashion and beauty brands on the platform.
For more on the background to Xiaohongshu, read here.
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