TikTok’s #1 Competitor in China Announces Plans to Launch Ecommerce in America

TikTok's #1 competitor in China has announced plans to expand into ecommerce in America.

XiaoHongShu (“Little red book”) has over 380million monthly active users and recently announced plans to expand into America. 

XiaoHongShu already became the #1 most downloaded free app in the U.S. App Store in January as TikTok's future became uncertain #TikTokRefugee became a trending term.

In this article we'll look at what XiaoHongShu is and what their plans for ecommerce are.

How Big is Xiaohongshu Compared to TikTok?

Xiaohongshu (小红书), or “Little Red Book,” is a Chinese social commerce platform that blends user-generated content with e-commerce, primarily targeting young, urban consumers.

It started as a platform for sharing overseas shopping experiences but has evolved into a lifestyle and product discovery app where users post reviews, recommendations, and short videos on beauty, fashion, travel, and more. While often called “China’s Instagram,” Xiaohongshu differs by integrating e-commerce directly into its platform, allowing users to purchase products within the app. Its main competitors in China include Douyin (抖音), the Chinese version of TikTok, which dominates short-video content and live commerce;

While TikTok dominates the global short-video space with over 1 billion monthly active users, Xiaohongshu remains a content-driven social commerce platform with an estimated 380 million monthly active users. 

Surging Traffic + TikTok Turmoil = A Golden Opportunity

On March 10, Xiaohongshu launched the “Xiaohongshu E-commerce Overseas Pilot Plan,” offering a comprehensive suite of services, including online transactions, trade exports, cross-border payments, and localized operations. With this initiative, merchants who sign the agreement can directly connect with overseas users through Xiaohongshu’s ecosystem, leveraging notes, live broadcasts, stores, and other channels to expand their reach.

The first phase of the “Little Red Book E-commerce Overseas Pilot Plan” has covered the markets of the United States, Hong Kong, China, and Macau, China.

Xiaohongshu’s E-Commerce Strategy

XiaoHongShu announced a three-pillar ecommerce strategy.

Seamless Integration of Content and Shopping (“Seeding”)

Xiaohongshu’s unique strength lies in its “content-driven shopping” model, which naturally guides users from discovery to purchase.

For instance, the hashtag #graduationmakeup saw a 3,604% surge in searches, making North American cosmetics go viral overnight. While big brands benefited, the platform also propelled emerging beauty brands into the spotlight, demonstrating its power to turn niche products into mainstream hits.

Fully Integrated E-Commerce Infrastructure

On March 10, Xiaohongshu announced that its “E-commerce Overseas Pilot Plan” would integrate a full suite of e-commerce services, including:

• Cross-border payments – Merchants do not need foreign exchange accounts. The platform settles payments in RMB, and buyers see converted prices in their own currency.
• Automated translations – Product descriptions, store pages, and even customer service inquiries are translated in real time for seamless global shopping.
• Logistics & fulfillment – Xiaohongshu handles international shipping and customs clearance, with taxes and shipping fees covered by the consumer.

Through its Qianfan system (currently invite-only), merchants can toggle their international sales on and off, manage product listings, and even specify different product versions for different regions.

This one-stop e-commerce ecosystem makes it easier than ever for Chinese merchants to sell overseas—without worrying about payment processing, foreign currency conversions, or logistics headaches.

Hyper-Targeted Algorithm for Maximum Sales

Xiaohongshu’s powerful recommendation engine ensures that products reach the right audience at the perfect time.

Here’s how the algorithm works behind the scenes:

• User Interest Mapping – If a user searches for “gifts,” they might soon see a mix of serious and humorous content, like “Niche Gift Ideas” or “Gift-Giving Fails,” to keep them engaged.
• Discovery Page Optimization – At least one out of every ten posts in a user’s feed is a personalized recommendation, ensuring that new products get constant exposure.
• Behavioral Testing – If a user interacts with a certain type of content, Xiaohongshu gradually refines their feed, making product recommendations increasingly relevant over time.

This deep level of personalization gives merchants an unmatched advantage, ensuring their products reach the right customers with high purchase intent.

Challenges Ahead: Can Xiaohongshu Compete with E-Commerce Giants?

Despite its impressive expansion, Xiaohongshu still faces significant hurdles:

• Fierce Competition – Amazon, Shein, and Temu already dominate the global e-commerce space, making Xiaohongshu’s international expansion an uphill battle.
• Logistics & Supply Chain Issues – While Xiaohongshu offers a streamlined fulfillment process, international shipping delays and quality control concerns remain potential pain points.
• Regulatory Challenges – Compliance with different tax laws, product certifications, and data protection policies across countries will be a major test for Xiaohongshu’s long-term success.

However, if Xiaohongshu can navigate these challenges effectively, it has the potential to replicate TikTok’s rapid success in the global e-commerce space—but with a more integrated, content-driven approach.

Will Xiaohongshu’s E-Commerce Expansion into America Succeed?

Will XiaoHongShu's e-commerce expansion into America succeeed?

Much of the XiaoHongShu's success would seem to depend on the fate of TikTok. The other natural question is – if XiaoHongShu does gain traction will it come under scrutiny from law-makers?

Only time will tell if XiaoHongShu becomes a viable competitor to TikTok and even potentially Amazon.