Luxury: Why luxury brands are turning to Xiaohongshu

Why it is the topic trending:

• Shifting Luxury Consumer Behavior in China: The article addresses a significant change in how Chinese consumers are purchasing luxury goods post-pandemic.

• Importance of the Chinese Luxury Market: China remains a crucial market for global luxury brands, making their strategies noteworthy.

• Rise of a New Social Media Platform for Luxury: Xiaohongshu is highlighted as a critical platform for luxury brands to engage with key audiences in China.

• Content-to-Conversion Capabilities: The app's ability to drive sales for luxury brands is a key reason for its growing importance.

• Understanding Evolving Marketing Strategies: Luxury brands need to adapt their approaches to reach and resonate with Chinese consumers effectively.

Overview:

The article discusses why luxury brands are increasingly turning to the Chinese lifestyle app Xiaohongshu. Following a slowdown in China's luxury market after the post-pandemic spending surge, consumers are now prioritizing intrinsic value and personal expression over conspicuous consumption. In this evolving landscape, Xiaohongshu, with its highly targeted user base of high-net-worth individuals and strong content-to-conversion capabilities, has become a crucial platform for luxury brands to rebuild their value systems, deepen consumer relationships, and reignite growth in China.

Detailed Findings:

• Chinese consumers are no longer blindly chasing luxury, focusing instead on intrinsic value and personal expression.

• China's personal luxury sales declined significantly last year and are forecast to remain volatile in 2025.

• Luxury brands need to rebuild their value systems and deepen consumer relationships in this cooling market.

• Xiaohongshu has become a critical platform for engaging key audiences and a decisive factor in brands' success in China.

• Over 50% of Xiaohongshu's users are high-net-worth individuals from first- and second-tier cities, and half were born after 1995.

• Luxury-related searches on Xiaohongshu surged 90% year-on-year, with 170 million users seeking advice monthly.

• The platform acts as a cultural translator, helping brands reframe their values through emotionally resonant storytelling, reflecting trends like #NewChineseAesthetics.

• Gucci used Xiaohongshu for its Shanghai exhibition, blending Italian craftsmanship with Chinese culture, resulting in increased searches for related cultural elements.

• Max Mara partnered with Xiaohongshu on campaigns spotlighting the leadership of everyday women, aligning the brand with lifestyle and self-expression.

• Dior utilizes Xiaohongshu's mini-programs for a seamless user journey from content discovery to product Browse and boutique appointments.

• Xiaohongshu elevates everyday individuals into fashion icons, exemplified by a 71-year-old retiree who went viral for styling her son's old clothes and walked in Miu Miu's runway show.

• The platform has a closed-loop business model, with mini-programs enabling on-platform conversion and campaigns encouraging in-store visits.

• Key Opinion Sellers (KOS) on Xiaohongshu boost conversion through credible, story-driven content.

• Xiaohongshu's integration with e-commerce platforms like Taobao and Tmall shows significant increases in click-throughs and engagement for joint campaigns.

• The "Hongmao Plan" allows merchants to embed product links directly into Xiaohongshu posts, making it a key luxury sales channel.

• Xiaohongshu is no longer a fringe player but a strategic hub for brands seeking precision, resonance, and measurable returns in the Chinese luxury market.

• The platform's 2025 Luxury Industry White Paper outlines six archetypes of luxury consumers on Xiaohongshu.

Key success factors of product (trend):

• Highly Targeted User Base: Xiaohongshu's core audience aligns perfectly with luxury brands' target consumers (high-net-worth individuals, younger demographics).

• Strong Content-to-Conversion Capabilities: The platform facilitates a seamless user journey from discovery to purchase through features like mini-programs and KOS influence.

• Cultural Storytelling Power: Xiaohongshu allows brands to connect with Chinese consumers on an emotional and cultural level, reframing values through relevant narratives.

• Engagement-Focused Environment: The platform's emphasis on advice-seeking and lifestyle content fosters deep user engagement.

• Measurable Impact and ROI: Tools for tracking on-platform conversion and the connection between online campaigns and offline sales provide tangible results for brands.

• Ability to Elevate Authentic Voices: Xiaohongshu can turn everyday users into influential figures, creating relatable endorsements for brands.

Key reasons why luxury consumers are turning to niche platforms:

• Seeking Intrinsic Value and Personal Expression: They are moving away from simply buying luxury for status and are now prioritizing quality, heritage, and how a product reflects their individual style and values. Niche platforms can offer more curated and authentic content that aligns with these values.

• Desire for Authentic Information and Advice: Luxury consumers are increasingly relying on platforms like Xiaohongshu for genuine reviews, lifestyle inspiration, and advice from peers and Key Opinion Leaders (KOLs) within niche communities. They trust these voices more than traditional advertising.

• Connection with Culturally Relevant Narratives: They are drawn to luxury brands that understand and respect local culture and values. Niche platforms often foster a strong sense of community and allow brands to tell stories that resonate culturally with specific audiences.

• Seamless Shopping Experience: Many niche platforms are integrating e-commerce features, providing a convenient and smooth journey from discovering a product through content to making a purchase within the platform. Luxury consumers appreciate this frictionless experience.

• Discovering Niche and Emerging Brands: Niche platforms can be a space where smaller, more specialized luxury brands can gain visibility and connect with consumers who have specific interests that might not be catered to on larger, more general platforms.

Key Takeaway:

In a cooling Chinese luxury market where consumers are more discerning, Xiaohongshu has emerged as a vital platform for luxury brands due to its targeted audience, strong content-to-conversion capabilities, and ability to facilitate culturally relevant storytelling, making it essential for brands to master this platform for future success in China.

Main Trend:

The main trend is the "Strategic Shift to Niche Social Commerce Platforms for Luxury in China," where luxury brands are increasingly prioritizing platforms like Xiaohongshu with highly targeted user bases and strong content-to-commerce features to drive growth in a more rational and discerning Chinese market.

Description of the trend:

"Precision Luxury Marketing in the Digital Age" describes how luxury brands are moving away from broad, awareness-focused marketing strategies in China towards more focused approaches on specific social commerce platforms. This shift is driven by the need to connect with the right high-net-worth consumers, tell authentic brand stories that resonate culturally, and directly convert engagement into sales within the platform's ecosystem. This precision marketing aims to rebuild brand value and foster deeper relationships in a market that is no longer driven by impulsive spending.

What is consumer motivation:

• Seeking Intrinsic Value and Personal Expression: Chinese luxury consumers are now prioritizing quality, heritage, and how a product reflects their individual style rather than just status.

• Desire for Authentic Information and Advice: They rely on platforms like Xiaohongshu for genuine reviews, lifestyle inspiration, and advice from peers and Key Opinion Leaders.

• Seamless Shopping Experience: They appreciate a smooth and integrated journey from discovering a product to making a purchase without leaving the platform.

• Connection with Culturally Relevant Narratives: Luxury brands that understand and respect Chinese culture and values are more likely to resonate with these consumers.

What is driving trend:

The trend is being driven by:

• Slowdown in China's Luxury Market Growth: Brands need more strategic and effective ways to drive sales in a less impulsive market.

• Maturation of Chinese Luxury Consumers: They are becoming more sophisticated and demanding in their purchasing behavior.

• Unique Ecosystem of Xiaohongshu: The platform's blend of social networking and e-commerce caters perfectly to the evolving needs of luxury brands.

• Government Regulations and Market Shifts: Changes in the Chinese economy and regulatory landscape are influencing consumer spending patterns.

• Importance of Digital Engagement: Chinese consumers are highly digital-savvy, making a strong presence on relevant online platforms essential.

What is motivation beyond the trend:

Beyond the immediate shift to Xiaohongshu, Chinese luxury consumers are motivated by:

• Aspiring to a Higher Quality of Life: Luxury goods are still seen as a symbol of success and personal achievement.

• Seeking Status and Recognition (though less overtly): While the focus has shifted, some level of social signaling remains a factor.

• Enjoying High-Quality Craftsmanship and Design: The inherent quality and artistry of luxury goods are still appreciated.

Description of consumers article is referring to:

The article primarily refers to:

• High-Net-Worth Individuals in China: The core user base of Xiaohongshu and the primary target for luxury brands.

• Millennials and Gen Z: The dominant age demographic on Xiaohongshu, representing the next generation of luxury consumers.

• Residents of First- and Second-Tier Cities: These urban centers have a higher concentration of luxury consumers.

• Consumers Seeking Advice and Inspiration: Users who turn to Xiaohongshu for product discovery and purchase recommendations.

• Individuals Interested in Culturally Authentic Brands: Consumers who value brands that understand and respect Chinese heritage and aesthetics.

Conclusions:

The article clearly demonstrates that Xiaohongshu has become an indispensable platform for luxury brands seeking to succeed in China's evolving market. The app's ability to connect brands with a highly targeted audience, facilitate culturally resonant storytelling, and provide a seamless path to purchase offers a powerful solution for navigating the current slowdown and rebuilding value with increasingly discerning Chinese luxury consumers.

Implications for Brands:

• Mastery of Xiaohongshu is Essential: Luxury brands need to develop a deep understanding of the platform and its user dynamics.

• Focus on Authentic Storytelling: Campaigns must resonate culturally and emotionally with Chinese consumers.

• Leverage Key Opinion Sellers (KOS): Partner with influential voices on the platform to build trust and drive conversions.

• Integrate E-commerce Capabilities: Utilize features like mini-programs and direct links to facilitate on-platform purchasing.

• Understand Evolving Consumer Archetypes: Tailor strategies to the specific needs and motivations of different segments of luxury consumers on Xiaohongshu.

Implication for Society:

• Shift in Digital Marketing Power: Social commerce platforms are becoming increasingly influential in shaping consumer behavior, even in the luxury sector.

• Cultural Exchange Through Commerce: Platforms like Xiaohongshu can facilitate the exchange of cultural values between global brands and local consumers.

Implications for Consumers:

• More Authentic Brand Interactions: Consumers may experience more genuine and culturally relevant storytelling from luxury brands.

• Seamless Shopping Experience: The integration of content and commerce makes it easier to discover and purchase luxury goods.

• Greater Influence Through UGC: Everyday users can become influential voices on platforms like Xiaohongshu.

Implication for Future:

The trend of luxury brands prioritizing niche social commerce platforms in China is likely to continue and strengthen. Xiaohongshu is poised to remain a dominant player, and other similar platforms may also emerge or gain prominence. Luxury brands will need to continuously adapt their digital strategies to align with the evolving preferences and behaviors of Chinese consumers on these platforms.

Consumer Trend:

"Precision Social Commerce." Consumers are increasingly using niche social media platforms that align with their interests and offer integrated shopping experiences for targeted purchases.

Consumer Sub Trend:

"Authenticity Over Overt Status." Luxury consumers, particularly in China, are valuing genuine brand stories and personal expression over blatant displays of wealth.

Big Social Trend:

"The Rise of Culturally Relevant Marketing." Brands are recognizing the importance of tailoring their messaging and campaigns to resonate with the specific cultural values and nuances of their target audiences.

Worldwide Social Trend:

"The Dominance of Mobile Commerce in China." Chinese consumers are highly accustomed to making purchases directly through their mobile devices and social media apps.

Social Drive:

"The Desire for Self-Expression and Belonging." Luxury purchases are increasingly driven by a desire to express individual identity and connect with brands that align with their values.

Learnings for brands to use in 2025:

• Understand Platform-Specific Dynamics: Each social media platform has its own unique user base and engagement style.

• Authenticity Resonates Deeply: Genuine storytelling and relatable content are crucial for connecting with consumers.

• Seamless Shopping is Key: Minimize friction in the path from discovery to purchase on digital platforms.

Strategy Recommendations for brands to follow in 2025:

• Invest in Deep Platform Understanding: Dedicate resources to understanding the intricacies of platforms like Xiaohongshu.

• Develop Culturally Nuanced Content Strategies: Create content that speaks directly to the values and interests of Chinese consumers.

• Build Strong Relationships with KOS: Collaborate with influential creators to amplify brand messaging and drive trust.

Final sentence (key concept) describing main trend from article:

In 2025, luxury brands are strategically shifting to niche social commerce platforms like Xiaohongshu in China to achieve precision marketing, build trust, and drive sales in a more discerning market.

What brands & companies should do in 2025 to benefit from trend and how to do it:

Luxury brands and companies should prioritize mastering social commerce platforms like Xiaohongshu in China for 2025 by:

• Developing platform-specific content strategies that emphasize cultural authenticity and emotional resonance.

• Building strong relationships with relevant Key Opinion Sellers (KOS) to amplify their brand messaging and drive conversions.

• Utilizing the platform's integrated e-commerce features, such as mini-programs and direct product links, to create a seamless shopping experience for Chinese consumers.

Final Note:

• Core Trend:

  • Strategic Shift to Niche Social Commerce Platforms for Luxury in China: Prioritizing platforms like Xiaohongshu.

• Core Strategy:

  • Precision and Resonance: Focusing on targeted audiences, cultural authenticity, and seamless conversion.

• Core Industry Trend:

  • Evolution of Luxury Marketing in the Digital Age: Moving towards more focused and data-driven approaches.

• Core Consumer Motivation:

  • Seeking Intrinsic Value, Personal Expression, and Seamless Shopping: Prioritizing quality, authenticity, and a smooth purchase journey.

Final Conclusion:

The increasing reliance of luxury brands on Xiaohongshu in China signifies a pivotal shift in digital marketing strategy. As the Chinese luxury market matures, brands that can master the nuances of this platform and connect with consumers through culturally relevant storytelling and a seamless shopping experience will be best positioned to thrive in this crucial and evolving market.

Core Trend: Strategic Shift to Niche Social Commerce Platforms for Luxury in China

• Description: This trend describes the growing strategic importance of niche social commerce platforms, such as Xiaohongshu, for luxury brands seeking to engage with and sell to Chinese consumers. Faced with a more discerning market that values authenticity and personal expression over conspicuous consumption, luxury brands are increasingly prioritizing these platforms due to their highly targeted user bases, strong content-to-conversion capabilities, and ability to facilitate culturally resonant storytelling, moving away from a reliance on broader marketing approaches.

• Key Characteristics of the Trend (summary):

  • Platform Prioritization: Luxury brands are making niche social commerce platforms a central part of their China strategy.

  • Targeted Engagement: Focus on reaching specific demographics like high-net-worth individuals and younger consumers.

  • Content-Driven Marketing: Leveraging user-generated content, KOL influence, and brand storytelling to drive interest.

  • Seamless Shopping Experience: Utilizing integrated e-commerce features for on-platform purchasing.

  • Emphasis on Authenticity and Cultural Relevance: Campaigns are tailored to resonate with Chinese values and consumer preferences.

• Market and Cultural Signals Supporting the Trend (summary):

  • Cooling Luxury Market in China: Brands need more strategic approaches to drive sales in a less impulsive market.

  • Sophistication of Chinese Luxury Consumers: They seek intrinsic value, personal expression, and authentic information.

  • Dominance of Mobile Commerce in China: Chinese consumers are highly accustomed to making purchases via mobile devices.

  • Rise of Social Commerce: Platforms that blend content and shopping are increasingly influential.

  • Demand for Authenticity and Peer Influence: Consumers trust recommendations from other users and KOLs.

• How the Trend Is Changing Consumer Behavior (summary):

  • Increased Reliance on Niche Platforms for Discovery: Consumers are turning to platforms like Xiaohongshu for luxury product information and inspiration.

  • Emphasis on Authentic Reviews and Recommendations: User-generated content and KOL opinions carry significant weight.

  • Expectation of Seamless Online Shopping: Consumers prefer an integrated experience from product discovery to purchase.

  • Preference for Culturally Relevant Brands: Brands that understand and respect Chinese culture are favored.

  • Shift Away from Overt Status Signaling: Consumers are prioritizing personal expression and intrinsic value.

• Implications Across the Ecosystem (For Brands and CPGs, For Retailers, For Consumers, summary):

  • For Brands and CPGs: Requires developing expertise in niche platform marketing, building relationships with KOLs, and creating culturally relevant content.

  • For Retailers: Need to integrate with these platforms to offer a seamless omnichannel experience and leverage their reach to drive sales.

  • For Consumers: Gain access to more authentic brand interactions, a smoother shopping experience, and products that align with their values and preferences.

• Strategic Forecast: The strategic shift towards niche social commerce platforms in China's luxury market is expected to continue and deepen. Platforms like Xiaohongshu are likely to evolve further, offering even more sophisticated tools for brands. Mastery of these platforms will become increasingly crucial for luxury brands seeking long-term success and growth in China.

• Final Thought: In the evolving landscape of the Chinese luxury market, the strategic embrace of niche social commerce platforms represents a critical adaptation. By prioritizing authentic engagement, cultural resonance, and a seamless shopping experience on these platforms, luxury brands can build meaningful connections with a discerning consumer base and secure their future in this vital market.

Source: https://jingdaily.com/posts/why-luxury-brands-are-turning-to-xiaohongshu