The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
WeChat’s mini-programmes, a tool many of the world’s fashion, beauty and luxury brands already use as part of their direct-to-consumer e-commerce operations in China, are now accessible via the Xiaohongshu social commerce platform.
Followers of official Xiaohongshu accounts for luxury brands such as Louis Vuitton, Gucci, Celine, Saint Laurent and Givenchy, can now directly click through from Xiaohongshu to those brands’ WeChat mini-programmes to purchase and pay for goods.
The move marks the beginning of a shift in China’s social media sphere, which has long been made up of separate closed eco-systems, to a more open and collaborative environment. It also makes the integration of online retail channels more streamlined for luxury brands.
Xiaohongshu now has more than 300 million users, according to third party data. More than 95 percent of the active users are young people under the age of 34, and more than 90 percent are female living in China’s top-tier cities. The platform has become one of the most important destinations for fashion lovers to research and discover different styles and trends.
From May 2019 to March 2020, nearly 30 luxury brands opened official Xiaohongshu accounts, according to Chinese business media outlet, Jiemian.
Mainland shoppers have flocked to local tourism hubs like Macau and Hainan over Chinese New Year and are expected to visit Asian destinations like Thailand and Singapore before returning in droves to European fashion capitals later this year.
Beijing’s Covid-19 policy shift will give the sector a boost in 2023 but a surge in infections and sluggish economic growth could dampen the recovery after an uplift from Chinese New Year.
This week, China rolled back some strict zero-Covid measures, opening a road to recovery for luxury and retail. But the journey is likely to be long and bumpy, experts warn.
Despite disappointing Singles Day sales results, harsh Zero Covid restrictions and supply chain woes, international beauty conglomerates continue to see China as a growth engine.