Entering the Chinese market is often perceived as a complex undertaking, requiring significant upfront investment and high operating costs. This perception has led many Italian companies to hesitate when considering expansion strategies in China.
In recent years, however, social commerce has emerged as an innovative solution, offering a more flexible and cost-effective way to engage with Chinese consumers. This model is based on the strategic use of personal connections and digital networks—including friends, followers and influencers—to promote products and stimulate purchase interest. By integrating interactive features and genuine user reviews, social platforms allow consumers to discover and purchase products directly, without having to visit external websites.
For Made in Italy brands, social commerce represents a valuable opportunity to establish a presence in a highly competitive and rapidly evolving market. By adopting targeted strategies, including influencer marketing and personalised content creation, Italian companies can overcome traditional barriers, reach a wider audience and build trust-based relationships with local consumers.
Xiaohongshu: A Leading Force in Chinese Social Commerce
Xiaohongshu, also known as “Little Red Book,” has emerged in recent years as one of the most dynamic and influential platforms in China’s digital landscape. Founded in 2013 by Charlwin Mao and Miranda Qu, the app combines social media with online shopping, becoming a key source of inspiration for millions of consumers interested in fashion, beauty and lifestyle.
Unlike traditional e-commerce platforms, Xiaohongshu stands out for its community-driven approach. Users share authentic reviews, personal experiences and recommendations through engaging visual content similar to that found on Instagram. This model not only helps build trust but also creates a powerful digital word-of-mouth effect, increasing interest in products and brands.
With more than 218 million monthly active users as of September 2024, according to Statista, Xiaohongshu has experienced impressive growth and attracted the attention of both domestic and international investors.
Its uniqueness, therefore, lies not only in the size of its user base, but also in its ability to seamlessly combine social interaction with the shopping experience.
For Made in Italy brands, Xiaohongshu represents an exceptional opportunity. Through targeted strategies—such as influencer collaborations and personalised content—Italian brands can reach a highly receptive and well-segmented audience while building long-term relationships with Chinese consumers. Xiaohongshu is therefore not only a sales platform, but also a valuable strategic tool for Italian companies seeking to strengthen their presence in the Chinese market.
User Profile
Xiaohongshu users are primarily young Generation Z consumers, with 95% of registered users under the age of 32 and women accounting for 80% of the user base. Most users come from China’s first- and second-tier cities, according to 2023 data reported by Statista. This audience has relatively high purchasing power and a strong interest in luxury goods, fashion and beauty. Every day, more than 300 billion posts are viewed on the platform, with user-generated content accounting for a significant share.
A Social Commerce Platform for International Companies
Xiaohongshu offers international companies direct access to the Chinese market by combining e-commerce with community engagement. In-feed advertising, interactive content and the use of KOLs are key tools for reaching consumers. The platform also supports a wide range of multimedia formats, from hashtags to customised mini-programs.
A Focus on Social Commerce
Unlike other e-commerce platforms, Xiaohongshu stands out for its integration of user-generated content and strong emphasis on community engagement. This approach allows users to discover products, share opinions and interact directly with brands.
The introduction of live streaming in 2019 further strengthened user engagement. This format has since become a key component of social commerce, with Xiaohongshu playing a leading role in the trend in China.
The Rise of Luxury Brands on Xiaohongshu
Xiaohongshu has established itself as a strategic platform for luxury brands, thanks to a distinctive approach that combines storytelling, interactivity and innovative live-streaming tools. One notable example is Louis Vuitton, which has reimagined the way consumers engage with fashion shows.
In April 2024, the brand broadcast its Womenswear Pre-Fall 2024 event on Xiaohongshu, attracting a record audience of 470,000 viewers. The broadcast included a 100-minute segment during which customers could explore the collection in detail through a “see now, buy now” experience, with the option to place pre-orders directly on the platform or book appointments at physical stores. The innovative format combined high-definition visuals with insights from expert influencers, creating an engaging and interactive experience.
Gucci has also benefited from Xiaohongshu’s potential. Its Cruise 2024 livestream attracted more than 33,000 viewers and generated a significant increase in brand-related searches, with interest in Gucci-related content rising fifteenfold in the following days. Gucci’s strategy demonstrated how live streaming can act as a catalyst for user engagement and user-generated content, both of which are essential for strengthening a brand’s presence on the platform.
In addition, the “quiet selling” approach—characterised by a more measured presentation style and sophisticated storytelling—has proved particularly effective in attracting discerning consumers who are more interested in the overall brand experience than in impulse purchases.
How Italian SMEs Can Use Xiaohongshu to Enter the Chinese Market
Xiaohongshu represents a valuable resource for Italian small and medium-sized enterprises (SMEs) seeking to expand their presence in the Chinese market. With a rapidly growing user base composed largely of young, upper-middle-class consumers, Xiaohongshu enables companies to engage with Chinese customers in an authentic and direct way by combining social networking with e-commerce.
Below are several practical strategies for approaching the platform.
Build a Community Around Your Brand
Building a community is essential on Xiaohongshu. Italian SMEs should focus on the following:
- Share valuable content: Italian SMEs should create content that reflects their brand values and identity. Stories centred on quality, design and sustainability—attributes that are highly appreciated by Chinese consumers—can help differentiate a brand from its competitors.
- Engage with consumers: Responding to comments, participating in conversations and adapting language and communication styles to the local audience can help build genuine relationships.
- Focus on specific niches: Xiaohongshu is particularly effective for targeting well-defined consumer segments. Brands operating in sectors such as fashion, cosmetics, or Italian food and wine can create targeted content designed to attract consumers with a specific interest in these categories.
Collaborate with KOLs and KOCs
Key Opinion Leaders (KOLs) and Key Opinion Consumers (KOCs) play an essential role in promoting brands on Xiaohongshu.
- Choose the right KOLs: Companies should work with influencers whose audiences are aligned with their brand values and target market. KOLs can influence purchasing decisions through authentic reviews and product tutorials.
- Work with micro-influencers (KOCs): KOCs are often perceived as more authentic than major influencers. They can positively influence their circles of friends and family, helping to increase trust in a brand. They are also generally more affordable and can develop stronger long-term relationships with brands. Investing in both KOLs and KOCs can therefore help strengthen brand reputation and drive sales.
Integrate Xiaohongshu with Other Chinese Marketplaces
To maximise the platform’s effectiveness, companies should integrate their Xiaohongshu presence with leading Chinese marketplaces such as Tmall and JD.com.
- Direct links to marketplaces: Businesses can add links to their Xiaohongshu account that direct users to their stores on Tmall or other platforms. This helps streamline the purchasing journey and drive qualified traffic to official sales channels.
- WeChat Mini Programs: Integrating with WeChat, one of the most widely used platforms in China, can further increase visibility and conversion opportunities. Xiaohongshu supports connections with WeChat Mini Programs, helping create an ecosystem that guides users from social discovery to purchase.
Leverage the Potential of Live Streaming
Live streaming is one of Xiaohongshu’s key features for improving engagement and conversion rates. Organising live events allows companies to:
- Showcase products in real time: Present products, tell the brand story and answer consumer questions during live broadcasts.
- Encourage immediate purchases: Features such as direct purchasing links and live-stream promotions can encourage consumers to buy products while watching the broadcast.
Conclusion
China continues to be the world’s largest and most dynamic e-commerce market, and its rapidly expanding middle class represents a major opportunity for Italian companies.
The Covid-19 pandemic accelerated the adoption of online shopping, a behavioural shift that remained firmly established even after lockdown restrictions ended, creating new opportunities for companies to sell through digital channels.
Within this context, social commerce platforms such as Xiaohongshu have emerged as strategic channels, allowing companies to connect directly with consumers and guide them towards purchase decisions in an authentic and engaging way.