Early 2025 marked an unexpected turning point for Chinese social platform Red (Xiaohongshu) when it became the destination of choice for “TikTok refugees” amid increasing operational uncertainties for TikTok in the US market. Within just one week, American user downloads surged over 30-fold, with daily active users peaking at 1.3 million and monthly active users exceeding 330 million. This windfall propelled Red to the top of app download charts in 81 countries and unveiled significant new opportunities for international businesses. This article examines how overseas companies can leverage Red’s international expansion based on the latest data and industry insights.

Red’s Global Success Factors: Content Infrastructure and Algorithm Advantages

Seamless Access and Unified Experience

Red allows registration with phone numbers from any country, while its international version (REDnote) shares data with the domestic platform, enabling direct interaction between Chinese and foreign users. By 2024, overseas users had grown from 5% to 15% of the user base, with language barriers often overcome through user-initiated translations.

Decentralized Recommendation System

Unlike TikTok’s concentrated traffic model, Red’s algorithm places greater emphasis on engagement rates and completion rates. For example, pet videos posted by American users quickly gained traction due to high interaction rates, with some accounts gaining over 50,000 followers in a single day.

Strategic Approaches for International Businesses

Culturally Resonant Content Development

Red’s ecosystem centers on lifestyle content, requiring nuanced cultural adaptation. One beauty brand successfully generated over 100,000 interactions on a single post by creating an “Ask Me Anything” topic comparing Chinese and American beauty practices. Experts recommend blending Chinese cultural elements (such as Hanfu clothing or tea culture) with interests relevant to international users to create distinctive content.

Strategic Influencer Partnerships

Data from Red’s certified S-tier MCN agency “Qinchen Culture” reveals that international brands achieve higher conversion rates when partnering with mid-tier Key Opinion Consumers (KOCs) compared to top-tier influencers. A Nordic home décor brand, for instance, saw a 120% sales increase after everyday users shared “Chinese-style transformation projects” using their products.
Monetization Pathways: Converting Traffic to Revenue

Targeted Advertising Solutions

Red’s advertising revenue grew 67% year-over-year in 2024. Its “Spotlight Lite” tool enables precise targeting for small and medium businesses, delivering an ROI of approximately 1:55.

E-commerce Integration

In March 2025, Red launched a global e-commerce pilot allowing international users to purchase Chinese products through mini-programs. Jewelry brand Aris Jewelry tested this approach with livestreaming, generating over 500,000 yuan in a single session, though cross-border payment and logistics experiences still require optimization.

Data-Driven Strategy Development

Aurora data shows overseas users generate 300 million daily searches, primarily focused on “Made in China” and “high-value products.” Companies can use targeted advertising to reach high-potential users and optimize content based on trending search terms.

Conclusion

While Red’s international expansion faces uncertainties, its integrated “content+community+commerce” model offers unique opportunities for overseas businesses. As Professor Feng Jie of East China University of Science and Technology notes: “Cross-cultural integration presents not just challenges, but opportunities for brand reinvention.”