Why luxury brands are turning to Xiaohongshu

Following the post-pandemic surge in revenge spending, Chinese consumers are no longer blindly chasing luxury. Their focus has shifted toward intrinsic value and personal expression, with purchasing behavior growing increasingly rational. As the market settles into a slower, more normalized pace, there is an urgent need for brands to recalibrate their value proposition. Recent earnings reports from several luxury houses point to a stark reality: slowing revenue, mounting inventory pressure, and longer customer decision cycles. According to Bain & Company’s 2024 China Luxury Market Report, China’s personal luxury sales declined by 18%-20% last year and are forecast to remain volatile in 2025 — making a return to high growth unlikely in the near term. Amid a cooling market, luxury brands must not only protect their core business but also rebuild their value systems and deepen consumer relationships. In this period of transition, Chinese lifestyle app Xiaohongshu has become a critical platform for engaging key audiences — and a decisive factor in whether global brands can successfully navigate their next chapter in China. Driving luxury discovery and cultural authenticity Xiaohongshu’s core audience aligns closely with luxury’s target consumer: over 50% of its users are high-net-worth individuals from first- and second-tier cities, and half were born after 1995. Their shopping behavior follows a funnel-like journey — from broad inspiration to targeted searches — making the platform essential for product discovery and purchase. With 170 million users seeking advice each month and luxury-related searches surging 90% year-on-year, Xiaohongshu is redefining consumer access and engagement. The platform’s power also lies in its role as a cultural translator. Amid a market slowdown, luxury brands must reframe their values through emotionally resonant storytelling. Xiaohongshu offers that lens: hashtags such as #NewChineseAesthetics and #MamianSkirt reflect a cultural revival that blends modern identity with heritage. In 2024 alone, #NewChineseStyle garnered 3.48 billion views, signaling users’ deep affinity for storytelling steeped in authenticity. Enabling luxury brands to connect, inspire, and convert Gucci tapped into the app’s cultural storytelling power with its Shanghai exhibition, “Bamboo Realm: Decoding a Legend,” pairing Italian craftsmanship with Chinese cultural symbols and a historical venue. Xiaohongshu users responded by unpacking the event’s visual aesthetics and emotional nuance. Searches for “old Western-style houses” rose by 38%, and views for “traditional architectural culture” topped 20 million. Max Mara offers another example of effective storytelling through Xiaohongshu. In 2024, the brand partnered with the app on the campaigns “MM Leading Lady Diaries” and “MM Leading Lady Wardrobe,” which spotlighted the leadership of everyday women. By leveraging influencers to co-create content around fashion, ambition, and self-expression, the campaign aligned Max Mara’s values of strength and independence with Xiaohongshu’s lifestyle-first tone — bringing luxury closer to everyday life. Similarly, Dior has embraced Xiaohongshu as a core digital touchpoint. Since 2022, the French luxury house has utilized the platform’s mini-programs to offer a seamless user journey, from content discovery to product browsing and boutique appointments. This integration has enhanced Dior’s ability to engage customers, minimized friction in the purchase journey, and reinforced its luxury image through curated content and elegant UX design. Nurturing the next generation of fashion KOLs Xiaohongshu also has the ability to elevate everyday individuals into fashion icons. Take Aunt Qin, a 71-year-old retiree from Liuzhou: her account, @一天一件儿子衣服的覃阿姨, went viral for creatively styling her son’s old clothes. With her authenticity and playful attitude, she resonated with audiences across generations. Her journey to walking in Miu Miu’s Fall/Winter 2024 runway show is a testament to Xiaohongshu’s role in spotlighting real, multifaceted personalities and connecting them with global luxury narratives. Content creators like Mate Li @李马特 and Carbonated Drinks Bye Bye @碳酸饮料拜拜 further democratize fashion on the platform through humorous and relatable content centered around fashion week. Whether they’re poking fun at influencer mishaps or sharing side-by-side style videos with celebrities, they make the traditionally aloof world of high fashion more approachable and engaging. A closed-loop business model However, luxury brands aren’t just seeking emotional resonance; they demand measurable impact. Xiaohongshu answers this with a closed-loop business model. For on-platform conversion, mini-programs like Dior’s enable a complete customer journey — from discovery and engagement to browsing and purchase — without users ever leaving the app. Offline, campaigns like Max Mara’s encourage in-store visits and foster community experiences around brand storytelling. Xiaohongshu’s content spillover is amplified by KOS (Key Opinion Sellers), who boost conversion through credible, story-driven content that merges personal influence with strong sales acumen. The conversion data speaks for itself. With Xiaohongshu’s “Xiaohongxing” and “Xiaohongmeng” tools integrated directly with Taobao, Tmall, and JD.com for end-to-end tracking, Taobao/Tmall saw a 20% increase in click-throughs, 109% growth in engagement, and a 335% surge in joint campaigns in 2024. Meanwhile, the newly launched “Hongmao Plan” lets merchants embed Taobao/Tmall product links directly into Xiaohongshu posts, cementing the platform as a key luxury sales channel. As China’s luxury growth cools and spending becomes more rational, luxury brands need trust, resonance, and precision — not just awareness. Xiaohongshu’s content commerce ecosystem delivers this, making mastery of the platform essential for future success in China. Luxury’s next chapter in China is being shaped by six archetypes of consumers on Xiaohongshu, as outlined in the platform's 2025 Luxury Industry White Paper: the "Luxury Lifestyle Enthusiast," "Self-Reward Seeker," "Trendy Aesthete," "Quiet-Luxury Intellectual," "Luxury Newcomer," and "Socially Polished Buyer." These profiles reflect evolving attitudes toward status, self-expression, and emotional connection. They also illustrate why Xiaohongshu is no longer a fringe player but a strategic hub for brands seeking precision, resonance, and measurable returns.

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Why luxury brands are turning to Xiaohongshu