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Xiaohongshu campaigns offline with free eggs to hatch new user growth

Written by 36Kr English Published on   4 mins read

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Targeting China’s lower-tier cities, the platform’s campaign reflects a shift toward sustainable growth and user retention.

Imagine strolling through a Beijing marketplace and being handed six free eggs—all for downloading Xiaohongshu. Since May 2024, the app, which boasts over 100 million daily active users and more than 300 million monthly active users, has been quietly launching an offline promotional campaign.

Offline promotional campaigns aren’t new. As one of China’s most traditional methods of acquiring new users, they have been repeatedly proven effective through shared bike platforms, community grocery delivery apps, and even short video giants Douyin and Kuaishou. These campaigns thrive on manpower and direct engagement, providing a straightforward solution to user acquisition challenges. However, seeing Xiaohongshu, synonymous with urban sophistication and quality living, turn to distributing eggs and more creates a jarring contrast.

Xiaohongshu was spotted setting up booths in China’s lower-tier cities, offering free eggs to attract new users. Photo source: 36Kr.

After all, the app’s co-founders, Mao Wenchao and Qu Fang, initially built Xiaohongshu on just seven PDFs—travel shopping guides for popular destinations. These early guides set the tone for the platform’s ethos: a practical yet refined community appealing to users who value quality and cultural nuance. Now, with Xiaohongshu aiming to close its e-commerce loop and bolster monetization post-2025, its growth strategy revolves around expanding beyond its existing audience of urbanites to tap into new user demographics. To achieve its stated goal of 300 million daily active users, the app has returned to the basics: acquiring new users and retaining them.

Higher prices, fission marketing, lower-tier cities

Wang Qiang, a promotional service provider, summarized Xiaohongshu’s latest offline campaign strategy to 36Kr in three phrases: higher prices, fission marketing, lower-tier cities.

Pricing for these campaigns is driven by demand. Wang recalls the peak of competition between Kuaishou and Douyin for users, when promotional teams could earn as much as RMB 45 (USD 6.3) per new Douyin Lite user. Although the rivalry has cooled and user acquisition costs have dropped to around RMB 20 (USD 2.8) for Douyin Lite as of mid-2024, Xiaohongshu has now emerged as the platform offering the most competitive rates.

According to Wang, the app’s referral system incentivizes promotional teams at three levels—promoters, partners, and senior partners—with payouts ranging from RMB 34–38 (USD 4.8–5.3) per new user. However, payouts are contingent on retention metrics, such as second-day and seven-day retention rates. Without these metrics, the reward drops to RMB 10 (USD 1.4) per user. This shift from immediate user acquisition to retention-focused rewards reflects a broader industry trend: as internet traffic growth plateaus, companies prioritize user engagement over raw numbers.

Another service provider noted that while the Douyin-Kuaishou rivalry has become a thing of the past, the cost of offline promotions has decreased alongside market saturation. Even so, as of early 2024, acquiring a new Douyin Lite user could still fetch up to RMB 20 (USD 2.8). “Douyin still occasionally releases requirements based on business changes,” the service provider added. Despite many iterations in internet products, offline promotional campaigns have never disappeared. Wang told 36Kr that platforms like Soul and Momo still rely on such campaigns today, albeit at much lower prices of just a few RMB per user, leaving them less competitive compared to others.

Wang’s 120-person team shifted entirely to promoting Xiaohongshu in late 2024, achieving an average of 30 new users per team member daily. The campaign also incorporates a multi-level referral model, where promoters earn bonuses based on their recruits’ performance, a strategy previously employed by Kuaishou. This competitive approach has spurred teams to expand rapidly in anticipation of the Lunar New Year, when mobility increases among potential users.

The challenge of retention

Xiaohongshu’s last major user acquisition push was through its 2024 Lunar New Year gala sponsorship. By that time, the platform’s monthly active user base had surpassed 300 million, but its growth had slowed. The gala’s reach allowed Xiaohongshu to target a broad audience spanning all age groups and cities, bridging online and offline marketing efforts.

However, retaining users remains the ultimate challenge. Over the years, internet giants have relentlessly vied for dominance in daily and monthly active users. For Xiaohongshu, keeping users engaged has driven significant changes to its product offerings. For instance, the platform has increasingly leaned into video content, with its vertical video interface resembling those of Douyin and Kuaishou. Video-centric creators grew by 1.48 times year-on-year in 2024, highlighting the platform’s pivot to accommodate short video’s virality.

In parallel, Xiaohongshu has diversified its content categories, including gaming and tech to attract male users. While these efforts have shown promise, the platform still predominantly appeals to its core demographic: young women living in urban areas. As one observer pointed out to 36Kr, the male users who stick around are often those drawn to gaming subcultures already intertwined with female-dominated communities.

Tapping into older users

The elderly demographic may offer Xiaohongshu its best chance at retention breakthroughs. By the end of 2024, the platform reported over 30 million monthly active users aged 60 and older, a threefold increase in senior creators over the past two years. These creators have published more than 100 million posts, primarily long-form notes sharing daily life and life lessons.

This aligns with broader trends identified by MobTech’s research institute: China’s silver-haired internet users gravitate toward content like news, health tips, and cultural insights. Competitors like WeChat Channels have capitalized on this preference, as evidenced by the viral popularity of science-related videos shared in family chat groups.

Although Xiaohongshu has dabbled in appealing to older users through initiatives like its “Laohongshu” project focused on antique appraisal, it remains cautious. As one insider explained, any senior-focused content must align with the platform’s refined community ethos. Observations show that senior users with modest followings but high engagement rates typically post detailed text and image-based stories.

As Xiaohongshu’s promotional campaign rolls on, its retention strategy will likely evolve beyond previous methods like massive cash giveaways during Lunar New Year galas. Every user acquired must ultimately contribute to the platform’s monetization goals, making sustainable engagement more critical than ever.

KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Zhong Yixuan for 36Kr.

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