The influx of self-described "TikTok refugees" to the Chinese social media platform Xiaohongshu, also known as RedNote, is expected to create significant business opportunities for Chinese companies in overseas markets, according to an analyst.
On Xiaohongshu, a Chinese platform which combines the features of Instagram and Pinterest, hashtags such as #TikTokRefugee have been used in hundreds of thousands of posts from accounts mostly registered in the United States, where TikTok is feared to be banned this week.
TikTok, owned by Chinese internet company ByteDance but operated independently, has approximately 170 million users in the United States, nearly half that country's population.
Washington has sought to ban TikTok for many years, citing unfounded national security concerns and alleged risks to data privacy. The app faces a possible ban on Jan 19 as the U.S. Supreme Court is set to rule on enforcing a law that could either ban TikTok or force ByteDance to sell it to an American firm.
As these "TikTok refugees" engage in positive and enriching exchanges with Chinese users, they are finding innovative ways to overcome language barriers and navigate cultural differences.
Beyond fascinating cultural exchanges, the surge in users presents promising business opportunities for Chinese companies.
According to a Reuters report, over 700,000 new users joined Xiaohongshu in just two days. Share prices related to the platform have surged after the app shot to the top of Apple's US App Store download charts.
For Xiaohongshu, with 300 million monthly active users and operating on a business model that integrates content creation, advertising and e-commerce, this represents a significant opportunity for it to expand in the international market.
"When it comes to monetizing the business model, RedNote's seeding advertisements represent a well-established and mature approach. Having proven its success in the Chinese market, we believe this model holds significant potential for success in overseas markets as well. The influx of 'TikTok refugees' presents a remarkable opportunity for the platform to accelerate its international market expansion," said Zhang Yi, CEO and chief analyst of data analysis provider iiMedia Research, in an interview with China Global Television Network (CGTN) in Beijing.
Over the years, Xiaohongshu has served as a bridge for lesser-known overseas brands to connect with the Chinese market.
By October 2024, the number of overseas brands promoted on the platform had tripled compared to the previous year.
Now, with the influx of overseas users, it could potentially help Chinese brands to expand their global consumer reach.
"For brands on RedNote, the key challenge lies in effectively leveraging this surge of traffic. This is not only a critical aspect of the event but also a highly meaningful one. It caters to the needs of Chinese brands and companies to expand into global markets. Traditionally, many Chinese brands have relied on other overseas social media platforms for online marketing. However, this incident marks a pivotal shift. Driven by the influx of 'TikTok refugees', there is now a reverse education effect on overseas consumers. This presents a significant opportunity for Chinese brands to expand and establish a stronger presence in international markets," said Zhang.
Influx of overseas users offers Chinese brands opportunity to expand global reach: expert
