As TikTok’s U.S. ban looms, Xiaohongshu, or RedNote, has become the top free app in the Apple App Store. The Chinese alternative to Instagram boasts over 300 million monthly users and aims to achieve significant profits by leveraging influencer marketing strategies.
As TikTok faces a potential ban in the United States, the search for an alternative short video app is gaining momentum. Xiaohongshu, also known as RedNote in English, has gained traction in the U.S. and currently holds the number 1 spot in the Apple App Store’s free app rankings in the country.
What is Xiaohongshu (RedNote)?
RedNote features a Pinterest-like design and is often seen as the Chinese alternative to Instagram. Founded in 2013 by Charlwin Mao Wenchao and Miranda Qu Fang as a shopping guide for Chinese tourists, the social media app now has over 300 million monthly active users, according to a Bloomberg report.
The app gained significant popularity among younger Chinese users during the pandemic and has raised approximately $917 million in venture funding to date. Notable investors include Tencent, Alibaba, ZhenFund, DST, HongShan, and Temasek, TechCrunch reported.
RedNote has succeeded by leveraging influencers to promote products to millions of users, who encounter product tags as they scroll through photos and videos. The app is on track to double its profits to over $1 billion by 2024, and an IPO may also be in the works.
Why is TikTok facing a ban in the U.S.?
TikTok is facing a potential ban in the U.S. due to a bipartisan law passed by Congress in April, which requires the Chinese company to sell or face a ban by January 19. The bill was introduced in response to privacy and national security concerns related to the app’s connections with China. Lawmakers argued that the Chinese government could use TikTok to spy on Americans and conduct covert influence operations.
If TikTok’s U.S. division isn’t sold by January 19 or the deadline isn’t extended, the app will likely be removed from both Google’s Play Store and Apple’s App Store.
