Metaverse Archives

As TikTok faces potential shutdown in the U.S. on January 19 due to ownership concerns, many “TikTok refugees” are seeking alternative platforms, and a new Chinese app is making waves in the American market. Xiaohongshu, known as RedNote in English, has skyrocketed to the No. 1 spot for free apps on the U.S. App Store, also claiming the top position in the Social Networking category for iPhone apps. This surge reflects a growing interest in the platform, as TikTok creators encourage their followers to explore alternatives in the wake of uncertainty.

RedNote has become the top downloaded app in the U.S

Why Is Xiaohongshu Gaining Momentum?

Xiaohongshu, originally launched in 2013, has evolved into a robust platform that resonates with creators and users alike. Often referred to as China’s answer to Instagram, the app combines the aesthetics of Pinterest with social shopping features, making it a compelling alternative for those seeking a new digital home.

Here are some key factors driving Xiaohongshu’s rise:

A Creator-Friendly Layout: With a design reminiscent of Pinterest, Xiaohongshu offers creators an intuitive and visually appealing interface to share content.
Social Shopping Features: The platform integrates e-commerce capabilities, allowing users to discover and shop products directly, enhancing the creator monetization potential.
Viral Growth: During the COVID-19 pandemic, Xiaohongshu’s popularity surged among younger Chinese users. Today, it boasts 300 million monthly active users, with 79% of them being women.

Xiaohongshu by the Numbers

User Base: 300 million monthly active users.
Funding: The app has raised $917 million in venture funding from major investors like Tencent, Alibaba, ZhenFund, and DST.
Valuation: Reportedly valued at $17 billion following a 2024 secondary share sale.
Projected Profits: Expected to exceed $1 billion in 2024, signaling its robust growth trajectory.

Opportunities for Creators

Xiaohongshu’s growth presents exciting opportunities for creators:

Content Diversification: The app’s unique mix of social networking and shopping enables creators to explore new types of content and revenue streams.
Early Adoption Advantage: With its growing popularity in the U.S., early adopters can carve out a niche before the market becomes saturated.
Supportive Ecosystem: Backed by substantial funding and a focus on e-commerce, Xiaohongshu is positioned to provide tools and features that empower creators to thrive.

Challenges and Considerations

While Xiaohongshu’s rise is notable, its long-term sustainability in the U.S. remains uncertain:

Regulatory Scrutiny: As a Chinese app operating in the U.S., Xiaohongshu could face increased scrutiny from authorities.
Competition: The app will need to differentiate itself further from established platforms like Instagram and Pinterest.
Cultural Adaptation: To succeed in the U.S., Xiaohongshu must adapt its offerings to align with local user preferences and behaviors.

What’s Next for Xiaohongshu?

With its viral momentum and robust features, Xiaohongshu has the potential to disrupt the U.S. social networking landscape. However, its future will depend on how well it navigates regulatory challenges and adapts to the preferences of an American audience.

If you’re interested in leveraging Xiaohongshu for your brand’s growth, contact us today to explore tailored strategies that align with your goals!

What does the latest news mean for NFT and metaverse in China? China is one of the countries that has publicly maintained its anti-crypto position, ordering a statewide ban on all crypto-related transactions earlier this year and threatening defaulters with fines.

Not only that, but officials in the country have begun a crackdown on crypto mining activities, citing the detrimental environmental impact as one of the reasons why such activities will no longer be tolerated in the country.

However, despite a difficult year at the hands of China’s anti-crypto government and the Chinese central bank’s request that these be monitored, the country’s IT giants are optimistic about launching metaverse and non-fungible tokens (NFT) businesses.

Companies in the Metaverse Race

The majority of the businesses that registered for trademark registrations belong to the tech sector. This includes well-known brands such as Huawei and Hisense. The former filed a trademark application for “Meta OS”. At the same time, the latter filed many trademark applications in fields such as social services, advertising, and science.

Tencent, the gaming and Internet giant, has also gotten in on the act, filing nearly a hundred metaverse-related trademark applications, including “QQ Metaverse,” “QQ Music Metaverse,” and “Kings Metaverse.” Also, Epic Games, an American gaming company in which Tencent owns a 40% share, is moving forward with its own metaverse plans, maybe with Tencent’s help.

Alibaba has launched a new company called Yuanjing Shengsheng, with USD 1.58 million in funding. “Sources familiar with the topic” indicated that the new business will focus on metaverse, but did not go further.

Baidu’s Xirang

Baidu is not staying behind with its own metaverse launched last week and called Xirang, “Land of Hope” in Chinese, accessible through a virtual reality app. The biggest search engine in China cools down the expectations. Its representative said that “it could take up to six years for a full launch”.

Meanwhile, the e-commerce giant, JD.com has already issued its first NFTs and they’ve received a positive response. The fintech published five series of the JOY Dog character-themed tokens on its Lingxi platform with minimal fanfare.

RTFKT, a creator of digital goods such as virtual shoes and NFTs, was recently acquired by the international brand, Nike.

Also following White Castle’s entry into crypto, Applebee’s is introducing a new NFT every Monday this month.

In less than four months, a gaming brand has increased its total worth to $2 billion by joining the metaverse and NFT race. Also, NFTCN, a company that was founded in claims to have worked with over 1,000 Chinese artists and handled over 10 million RMB in NFT transactions. Similarly, many more tech giants and multinational companies are joining the Metaverse & NFT squad.

What Does This Mean for Chinese NFT and Metaverse Enthusiasts?

China has unquestionably established itself as a centre of technology innovation and progress. China’s inhabitants mostly lead the pack in terms of technological adoption.

This is especially true in the emerging NFT field. Google trends data shows that the country is one of the top three countries in the world for “NFT” searches.

According to Grayscale data, Chinese officials implying space surveillance simply means that residents of both countries may have limited access to the $1 trillion space potential. A total crackdown on the sector isn’t completely off the table.

We’ve seen brands experimenting with NFT-like offerings like e.g. Burberry sold NFT deers together with a limited edition scarf during the 11/11 shopping festival. It was also a part of Tmall’s Metaverse Art Exhibition. Drops of limited editions created by luxury brands very often spark enthusiasm from Chinese consumers especially when the concept combines an innovative approach. Despite that the usability of the tokens is quite low, the items sell out quickly and are in high demand.

Predictions

We believe that metaverse and NFT will only grow further in China despite the challenges and different factors and environments. Given the fact that all the Chinese Internet giants – BAT (Baidu, Alibaba, Tencent) are already launching their own metaverses and strong adoption of online payments (with virtual yuan rolling out by the banks). These are strong indicators of the potential of the online reality.

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RedNote Surges to No. 1 on U.S. App Store Amid TikTok Ban Concerns