In light of TikTok’s impending shutdown on January 19 due to its ownership issues in the U.S., unless the Supreme Court intervenes, another Chinese app is gaining significant attention. American users are rapidly adopting Xiaohongshu, known as RedNote in English, a Chinese short-form video app. Today, the app surged to the number-one spot for free apps on the U.S. App Store and is also the top Social Networking app across all free iPhone apps.
Several TikTok creators are actively promoting Xiaohongshu on their accounts, encouraging their followers to transition to this new platform. While influencers cannot predict whether TikTok will survive the potential ban, Xiaohongshu offers them an alternative to safeguard their social media presence.
Why Xiaohongshu?
Xiaohongshu was originally launched in 2013 and has several appealing features for creators seeking a TikTok alternative. The app’s layout is similar to Pinterest, it is often considered China’s answer to Instagram, and it includes numerous social shopping features.
The app has experienced significant viral growth. After several years of steady growth, Xiaohongshu saw a surge in popularity among younger Chinese consumers during the COVID-19 pandemic. It now boasts 300 million monthly active users, with 79% of them being women. Currently, it is the top app in the U.S.
Unsurprisingly, Xiaohongshu has also attracted the attention of investors. To date, the startup has raised approximately $917 million in venture funding from backers including Tencent, Alibaba, ZhenFund, DST, HongShan (formerly Sequoia China), and 13 others. The app was reportedly valued at $17 billion following a secondary share sale in 2024.
According to a Bloomberg report, Xiaohongshu is projected to increase its profits to over $1 billion in 2024, having already achieved $1 billion in quarterly sales last year, as reported by the Financial Times. This growth not only highlights the app’s potential but also suggests promising opportunities for its creators.
It remains uncertain whether Xiaohongshu will sustain its current level of interest. If it does, it is unclear what this might mean in terms of scrutiny from U.S. authorities, given that Xiaohongshu originates from China and does not appear to have any operational presence in the U.S.
Meanwhile, it is notable that TikTok users have not been recommending apps from TikTok’s biggest rival in the country, Meta. Meta recently announced changes to its content moderation policies across its suite of social apps, including Facebook, Instagram, Threads, and WhatsApp. The company will ease content moderation policies and discontinue third-party fact-checking, raising concerns about the potential spread of hateful content and misinformation on its platforms.
