Trend #1 Zoom: Xiaohongshu stores are booming as live-streaming picks up

REDnote has been rapidly expanding its live-streaming e-commerce capabilities as part of a significant pre-IPO effort. In April 2024 compared to the same period last year：

A 5x increase in brands starting official account live-streaming

A 12x increase in customers placing orders during these live sessions

A 7.4x rise in the number of brand stores achieving over 1 million RMB in sales

The platform’s live-streaming success is largely driven by celebrity influencers who, despite having limited shows, generate impressive sales figures.

Rapid Expansion: The platform is upgrading its e-commerce infrastructure, hiring talent from competitors, and rapidly expanding live-streaming capabilities, leading to projections of triple-digit GMV growth and significant market influence.

Key Categories: Live-streamed sales are particularly strong in beauty, apparel, jewellery, and specialized products, with a focus on delivering engaging, high-quality, theatrical experiences.

The platform is rapidly evolving from a discovery engine into a full-fledged buying journey, bridging the gap between social interaction and, according to LinkedIn users, high-end retail. 

For instance, Dong Jie and Zhang Xiaohui, both prominent figures on REDNote, achieved average gross merchandise value (GMV) per live-stream of 43 million RMB and 78 million RMB, respectively. These influencers focus on high-value products such as fashion items and skincare sets, which resonate well with the platform’s user base.

Key elements of this boom include:

High-End Community: The user base is predominantly young, affluent, and female, with a high concentration in top-tier cities, making it ideal for niche and luxury brands.

Trust-Based Commerce: Unlike high-volume, discount-driven platforms, Xiaohongshu thrives on authentic reviews and curated live-streaming content that builds consumer trust, resulting in high conversion rates.