Unlocking growth: How Hong Kong SMEs can thrive on Red Note

Red Note, also known as “Little Red Book”, “Xiaohongshu” or simply “XHS”, has rapidly grown into one of China’s most influential lifestyle and social commerce platforms. For Hong Kong’s small and medium-sized enterprises (SMEs) and micro SMEs, Red Note could be the key to navigating a highly competitive market and expanding into mainland China. 

What is Red Note

Founded in 2013 by Miranda Qu and Charlwin Mao, Red Note began as a community-driven platform where users shared tips on shopping overseas. A year later, it added e-commerce features, allowing users to buy products directly on the app. Today, it has grown into a lifestyle-focused social commerce platform with over 300 million registered users.

What makes Red Note different?

Red Note combines the interactive nature of social media with the convenience of online shopping. Users post product reviews, beauty routines, travel vlogs and daily lifestyle content, all while having the option to purchase items in-app. Advanced features like artificial intelligence (AI)-powered recommendations and product tags enhance the shopping journey and keep users engaged longer. For Hong Kong SMEs who want to sell on social media, Red Note is a powerful all-in-one platform that seamlessly blends community, content marketing and direct sales opportunities. 

Who is using it?

According to CNN¹, Red Note’s core audience is young (aged 18 to 35), urban and digitally savvy. Originally known for its female-dominated user base, the platform now sees growing interest from male users too. Today, about 30% of those who use Red Note are male. Beauty, fashion, travel and lifestyle continue to be the most popular content categories – areas that also show strong demand for quality international and Hong Kong brands.

How Hong Kong SMEs can use Red Note for brand and product marketing

After securing your Red Note business account, your next step is securing a strong presence. To stand out, Hong Kong SMEs can consider these approaches: 

Creating engaging content for Red Note

On Red Note, like any social media, authenticity wins. Users trust peer-to-peer content, especially when it comes to product reviews and recommendations. This makes content marketing and community engagement vital. Brands that encourage user-generated content (UGC), respond to comments and work with the right influencers (KOLs or KOCs) tend to see better traction and stronger customer loyalty.

To reach Red Note’s Mainland Chinese audience, SMEs should focus on storytelling through visuals and authenticity. Instead of polished ads and marketing cliches, try sharing product “unboxings”, “how-to” tutorials or behind-the-scenes content.

For example, a Hong Kong-based skincare brand could post a 30-second video showing how their face mask fits into a busy student’s night routine – relatable, helpful and visually appealing. Hashtags and trend participation (like “OOTD” or “travel skincare”) – especially those popular in Mainland China – can also help brands reach new audiences organically.

Leveraging Hong Kong's product strengths

Hong Kong brands have a strong reputation in several areas that align with some of Red Note’s popular social media content categories:

• Beauty and personal care: Natural skincare items, shampoos and personal care essentials strongly resonate with Red Note’s lifestyle-focused audience. Hong Kong SMEs can capitalize on the growing demand for eco-friendly formulations, particularly appealing to sustainability-conscious Gen Z consumers. According to Fitch Solutions, Hong Kong’s personal care segment is set for remarkable growth in 2024, with a 4.6% year-on-year increase² pushing total spending to HK$374.5 billion. The future looks promising, with Statista Market Insights projecting the cosmetics market to grow at a 2.19% compound annual growth rate (CAGR) between 2024 and 2028, while skincare maintains a steady 1.81% CAGR³.
• Fashion and apparel: Hong Kong’s rich textile heritage positions local SMEs perfectly for Red Note’s fashion-conscious audience. The proposed Fashion and Creative District in Sham Shui Po aims to establish the city as a sustainable fashion hub, focusing on high-value wearables and functional apparel⁴. This initiative comes at an opportune time, with Hong Kong’s apparel and footwear retail sales, reported by Statista, at HK$44.1 billion in 2024⁵, demonstrating strong market potential for premium, sustainable fashion products.
• Activewear: The activewear sector presents a significant opportunity for Hong Kong SMEs, particularly in innovative sportswear designs. Euromonitor reports that Hong Kong’s sportswear market reached HK$21.1 billion in 2023, achieving an impressive 34% year-on-year growth – the highest in 15 years⁶. This growth, fueled by Hong Kong’s border reopening, has been particularly notable in equipment, accessories, apparel and footwear. Brands can tap on this momentum to offer premium quality products to mainland Chinese consumers seeking stylish yet functional activewear options.

Influencer marketing and community building

KOLs and KOCs play a massive role in driving trust and sales. Instead of mega-celebrities, work with micro-influencers who reflect your niche. For example, a Hong Kong handmade soap brand could collaborate with a Red Note beauty blogger who focuses on clean skincare. Building a loyal community around your product builds long-term brand equity.

Utilizing Red Note’s e-commerce features

Red Note’s e-commerce functionality sets it apart from typical social media platforms. The in-app Red Store enables direct purchasing while users browse content, creating a natural path from discovery to purchase. For Hong Kong SMEs, this means every piece of content can become a potential sales channel. 

Product tags in posts act as digital shelf space, allowing customers to shop instantly when they find something compelling. The platform’s curated approach keeps product listings focused and relevant, which is particularly beneficial for Hong Kong brands entering the mainland market. For instance, instead of competing with a flood of unrelated products, a Hong Kong skincare brand offering vegan face masks will appear alongside similar lifestyle content, increasing its chances of reaching the right Chinese audience who are already browsing for clean beauty solutions.

Successful SMEs on the platform typically maintain product pages with detailed visuals, comprehensive information and authentic customer reviews. Red Note’s AI-driven system further refines the experience, connecting products with interested audiences based on browsing patterns and engagement. This integration of social proof, seamless shopping and smart targeting creates an ecosystem where quality products can naturally find their audience.

Logistics and payment solutions for Mainland China

Red Note’s integrated payment systems, including WeChat Pay and Alipay, make transactions seamless for mainland customers. The platform’s support for these popular payment methods means Hong Kong SMEs can focus on what matters most – getting products safely and swiftly to their buyers. 

DHL Express brings decades of expertise in navigating cross-border commerce between Hong Kong and Mainland China. Their comprehensive international shipping service handles complex customs clearance processes, offers door-to-door delivery with free pickup and provides flexible delivery options that mainland and worldwide customers expect. For SMEs managing multiple orders, DHL Express’ end-to-end parcel tracking offers transparency throughout the shipping journey, helping maintain trust with customers who expect regular updates on their purchases. Plus, you can access these details via the DHL Express Mobile App.