Xiaohongshu's Egg-citing Strategy: Hatching New Users in a Competitive Landscape
January 11, 2025, 11:06 pm
In the bustling streets of Beijing, a curious sight unfolds. Vendors hand out free eggs to passersby, but this isn’t a culinary promotion. It’s Xiaohongshu’s latest strategy to attract new users. The app, known for its urban sophistication and lifestyle content, is diving into the world of offline marketing. This approach is as traditional as it gets in China, yet it feels fresh and unexpected for a platform that thrives on digital engagement.
Xiaohongshu, with over 100 million daily active users, is on a mission. The goal? To reach 300 million daily active users by 2025. The path to this ambitious target is paved with eggs, quite literally. This offline campaign is a nod to the basics of user acquisition. It’s a reminder that sometimes, to grow, you must return to your roots.
The co-founders of Xiaohongshu, Mao Wenchao and Qu Fang, started their journey with simple travel shopping guides. These PDFs laid the groundwork for a community that values quality and cultural nuance. Now, as the app seeks to expand its reach beyond urbanites, it’s venturing into lower-tier cities. The juxtaposition of high-end lifestyle content and free eggs is striking. It’s a blend of sophistication and simplicity, aiming to attract a broader audience.
Wang Qiang, a promotional service provider, summarizes the strategy in three words: higher prices, fission marketing, lower-tier cities. This approach is not just about giving away eggs. It’s about creating a buzz. It’s about engaging with potential users directly. The competition for users is fierce, reminiscent of the battles between Douyin and Kuaishou. However, Xiaohongshu is now emerging as a competitive player in the user acquisition game.
Promotional teams are incentivized at multiple levels. They earn between RMB 34–38 (USD 4.8–5.3) for each new user, but there’s a catch. Retention metrics matter. If users don’t stick around, the payout drops significantly. This shift reflects a broader trend in the industry. As growth plateaus, companies are prioritizing user engagement over sheer numbers. It’s not just about getting users in the door; it’s about keeping them there.
The landscape of user acquisition is evolving. Offline promotions, once a staple, are now seen as a refreshing tactic in a saturated market. While some platforms have reduced their reliance on such methods, Xiaohongshu is doubling down. The campaign is designed to tap into the upcoming Lunar New Year, a time when mobility increases and potential users are more accessible.
Yet, the challenge remains: retention. Xiaohongshu’s last major push was during the 2024 Lunar New Year gala. Despite a surge in monthly active users, growth has slowed. The gala was a bridge between online and offline marketing, but keeping users engaged is the real test. The platform has adapted by leaning into video content, a trend that mirrors the success of its competitors. Video-centric creators have increased significantly, showcasing the platform’s pivot to accommodate the virality of short videos.
Diversity in content is another strategy. Xiaohongshu is branching out to attract male users, exploring categories like gaming and tech. However, the core demographic remains young urban women. The challenge lies in expanding this base without alienating existing users.
One promising avenue is the elderly demographic. With over 30 million monthly active users aged 60 and older, there’s potential for growth. Senior creators are sharing life lessons and daily experiences, tapping into a market that craves meaningful content. This aligns with broader trends showing that older internet users are drawn to informative and culturally rich content.
Competitors like WeChat Channels have capitalized on this trend, proving that there’s a demand for content tailored to older audiences. Xiaohongshu’s cautious approach to senior-focused content reflects its commitment to maintaining a refined community ethos. The platform must ensure that any new initiatives resonate with its existing values.
As Xiaohongshu continues its promotional campaign, the focus will shift from mere acquisition to sustainable engagement. The goal is clear: every user must contribute to the platform’s monetization objectives. This requires a delicate balance between attracting new users and retaining them.
In conclusion, Xiaohongshu’s egg distribution campaign is more than a quirky marketing stunt. It’s a strategic move in a competitive landscape. By blending offline engagement with a focus on retention, the platform is setting the stage for future growth. The journey from free eggs to loyal users is fraught with challenges, but with a clear vision and innovative strategies, Xiaohongshu is poised to hatch a new era of user engagement. The road ahead may be long, but the potential rewards are worth the effort.
Xiaohongshu, with over 100 million daily active users, is on a mission. The goal? To reach 300 million daily active users by 2025. The path to this ambitious target is paved with eggs, quite literally. This offline campaign is a nod to the basics of user acquisition. It’s a reminder that sometimes, to grow, you must return to your roots.
The co-founders of Xiaohongshu, Mao Wenchao and Qu Fang, started their journey with simple travel shopping guides. These PDFs laid the groundwork for a community that values quality and cultural nuance. Now, as the app seeks to expand its reach beyond urbanites, it’s venturing into lower-tier cities. The juxtaposition of high-end lifestyle content and free eggs is striking. It’s a blend of sophistication and simplicity, aiming to attract a broader audience.
Wang Qiang, a promotional service provider, summarizes the strategy in three words: higher prices, fission marketing, lower-tier cities. This approach is not just about giving away eggs. It’s about creating a buzz. It’s about engaging with potential users directly. The competition for users is fierce, reminiscent of the battles between Douyin and Kuaishou. However, Xiaohongshu is now emerging as a competitive player in the user acquisition game.
Promotional teams are incentivized at multiple levels. They earn between RMB 34–38 (USD 4.8–5.3) for each new user, but there’s a catch. Retention metrics matter. If users don’t stick around, the payout drops significantly. This shift reflects a broader trend in the industry. As growth plateaus, companies are prioritizing user engagement over sheer numbers. It’s not just about getting users in the door; it’s about keeping them there.
The landscape of user acquisition is evolving. Offline promotions, once a staple, are now seen as a refreshing tactic in a saturated market. While some platforms have reduced their reliance on such methods, Xiaohongshu is doubling down. The campaign is designed to tap into the upcoming Lunar New Year, a time when mobility increases and potential users are more accessible.
Yet, the challenge remains: retention. Xiaohongshu’s last major push was during the 2024 Lunar New Year gala. Despite a surge in monthly active users, growth has slowed. The gala was a bridge between online and offline marketing, but keeping users engaged is the real test. The platform has adapted by leaning into video content, a trend that mirrors the success of its competitors. Video-centric creators have increased significantly, showcasing the platform’s pivot to accommodate the virality of short videos.
Diversity in content is another strategy. Xiaohongshu is branching out to attract male users, exploring categories like gaming and tech. However, the core demographic remains young urban women. The challenge lies in expanding this base without alienating existing users.
One promising avenue is the elderly demographic. With over 30 million monthly active users aged 60 and older, there’s potential for growth. Senior creators are sharing life lessons and daily experiences, tapping into a market that craves meaningful content. This aligns with broader trends showing that older internet users are drawn to informative and culturally rich content.
Competitors like WeChat Channels have capitalized on this trend, proving that there’s a demand for content tailored to older audiences. Xiaohongshu’s cautious approach to senior-focused content reflects its commitment to maintaining a refined community ethos. The platform must ensure that any new initiatives resonate with its existing values.
As Xiaohongshu continues its promotional campaign, the focus will shift from mere acquisition to sustainable engagement. The goal is clear: every user must contribute to the platform’s monetization objectives. This requires a delicate balance between attracting new users and retaining them.
In conclusion, Xiaohongshu’s egg distribution campaign is more than a quirky marketing stunt. It’s a strategic move in a competitive landscape. By blending offline engagement with a focus on retention, the platform is setting the stage for future growth. The journey from free eggs to loyal users is fraught with challenges, but with a clear vision and innovative strategies, Xiaohongshu is poised to hatch a new era of user engagement. The road ahead may be long, but the potential rewards are worth the effort.