Xiaohongshu deep-dive

The future will require further growth of the user base into regions that XHS is not as unfamiliar with - the male population, the lower-tier cities population, the over 30 population - groups that are not the typical garrulous and aspirational set that XHS is used to. Will these dilute the community culture? Almost certainly. Will utility-based co... See more

After amassing 200m users and 43m creators4, XHS has monetised through various advertising formats. These include screen advertising upon opening the app, influencer-led marketing coordinated through a platform called PGY and consultative-style advertising services that leverage XHS’ user insights, dubbed IDEA strategy. According to XHS, there are ... See more

XHS shows the number of times a piece of content has been ‘collected’. XHS posters note that the algorithm prioritises content that has been ‘collected’ instead of ‘liked’ since that’s a more robust signal of usefulness.

The double-column layout for XHS has a double-column layout to allow the user to show more intention while browsing content. Empowering users with these choices will give XHS a tighter feedback loop for recommendations, creating a virtuous cycle that serves both the user and the company.

Being closer to the consideration layer with utility-oriented content means XHS will be less substitutable for entertainment. Being closer to the conversion layer also lends its content to easy monetisation through either advertising or commerce.

XHS’ genesis as a practical shopping guide has lent a pragmatic path dependency to the content. Comparisons to Instagram and Pinterest overshadow XHS’ comparative advantage of utility-led content rather than entertainment-led content. Baidu’s failing search and Zhihu’s rambling answers have led to a gap in the Chinese market for actionable short-fo... See more

Relative to Instagram, which is vibe heavy and dependent on accounts followed, XHS concentrates on targeted searches and gives actionable to-dos. It’s a fascinating example of path dependency from XHS’ early days as an international shopping guide.