XIAOHONGSHU, also known as RedNote, has moved its e‑marketplace to a prominent position on the app’s main page and is waiving commission fees for the first 1 million yuan (US$140,200) in sales by new merchants, as the Chinese lifestyle content platform intensifies its e‑commerce push.

The change represents the latest phase in Xiaohongshu’s business transformation, coming two years after the company announced an all‑in strategy on online retail. “We aim to keep a strong presence in e‑commerce and attract more quality vendors,” Afang, head of merchant development in the company’s trading business, said at a media briefing last week.

Afang said the new interface is currently available only to frequent shoppers, with a full rollout to all users expected within a month. Since seriously promoting its e‑commerce operations in 2023, the Shanghai‑based firm has steadily built out its retail infrastructure and cultivated a signature content‑driven shopping model in which lifestyle experts — buyers, store managers and other curators — create, select and match products to meet users’ personalized needs.

The platform’s shopper base is expanding rapidly, particularly among younger users, Laike, head of Xiaohongshu’s trading marketplace, told the briefing. Of Xiaohongshu’s 350 million monthly active users, half are aged 30 or younger, and 70% of those who make online purchases fall into that age bracket. Xiaohongshu characterizes its e‑commerce customers as young consumers with strong purchasing power, refined tastes and a willingness to pay for quality.

The seller community is similarly youthful: half of individual merchants operating stores on Xiaohongshu were born after 1995, and more than half are running a store for the first time, Afang said. Laike argued that Xiaohongshu’s competitive edge lies less in sheer traffic, scale or price and more in the distinctive shopping experience it offers — users come to the platform expecting to find “good stuff.”

Merchant recruitment has accelerated sharply: new merchant signups rose 8.1‑fold last year versus the prior year, and the pace continues to pick up, Xiaohongshu said. Afang added that he has been traveling weekly over the past three months to identify and onboard quality vendors.

Prior to 2022, advertising tied to product recommendations and interest‑driven content made up roughly 80% of Xiaohongshu’s revenue, with e‑commerce contributing about 20%.

The company’s focus on online retail suggests that revenue mix is shifting as e‑commerce plays an increasingly central role in its business.

(SD-Agencies)