Chinese App Xiaohongshu top of US app store amid TikTok ban

• Published On: 14 January 2025 at 18:28

Chinese-owned app Xiaohongshu has emerged as a popular alternative for both content creators and users, as TikTok is set to be banned in the United States on January 19 unless the Supreme Court intervenes.

On Monday, the app jumped to the top spot for free apps in the US App Store, becoming the most popular Social Networking app among all free iPhone downloads.

Many TikTok creators are actively promoting Xiaohongshu to their followers, encouraging them to switch to the platform as a precaution against the uncertainty surrounding TikTok's future. While influencers are unsure whether TikTok will survive the impending ban, Xiaohongshu's distinct features and proven success in China make it an appealing alternative.

Xiaohongshu, which launched in 2013, combines Pinterest and Instagram features with a focus on social shopping. Initially popular among younger Chinese users, the app's popularity skyrocketed during the COVID-19 pandemic. Today, it has 300 million monthly active users, 79% of whom are female.

Xiaohongshu's appeal stems from its visually appealing interface, social networking elements, and integrated e-commerce capabilities, making it an ideal platform for content creators and brands.

The app's popularity has attracted the attention of major investors, including Tencent, Alibaba, and Sequoia. China is contributing $917 million in venture funding. After a secondary share sale in 2024, Xiaohongshu was worth $17 billion. Bloomberg expects its profits to exceed $1 billion by 2024, paving the way for a possible IPO.

The app's viral growth and financial success indicate significant opportunities for creators and businesses that use its platform.

While Xiaohongshu's recent success is encouraging, it's unclear whether the app can maintain its current momentum. Its Chinese origin may attract scrutiny from US regulators, especially as concerns about data privacy and foreign influence intensify.