TikTok Rival Gains Rapid Traction

Summary

• The potential US ban of TikTok has propelled the Chinese social media app, Rednote, to unprecedented popularity as a viable alternative.
• Rednote, a hybrid of Instagram, Pinterest, and TikTok, boasts a $17 billion valuation, backed by Chinese tech giants Alibaba and Tencent.
• A mass migration of former TikTok creators and users to Rednote has catapulted it to the top of the US App Store charts.

Amidst the anticipated US shutdown of TikTok, a Chinese social media platform, Rednote, is experiencing a meteoric rise in popularity. Following legal battles throughout 2024, including a House-passed ban bill in March and a Department of Justice lawsuit in October involving 13 states, TikTok's future in the US hangs precariously. Unless the Supreme Court intervenes, its removal from app stores is slated for January 19, 2025, a move the company itself has indicated preparedness for.

This looming ban has spurred US users and content creators to seek replacements, with Rednote emerging as a leading contender. Known as Xiaohongshu (XHS) in China, Rednote blends features reminiscent of Instagram, Pinterest, and TikTok. Established in 2013 as a product review and retail platform, it evolved into a significant hub for Chinese beauty and health influencers, particularly popular among women (over 70% of its user base). As of July 2024, it held a $17 billion valuation, fueled by investments from Tencent and Alibaba.

Rednote's Ascent to the Top of the US App Store

Rednote's user-friendly interface, incorporating elements similar to TikTok and Pinterest, has propelled it to the summit of the US App Store charts, surpassing competitors like Lemon8, ChatGPT, and Threads. As of January 13th, it reigns as the most downloaded app in the US, attracting a significant influx of TikTok creators seeking new platforms. The app's rapid rise is itself going viral on TikTok, Twitter, and Instagram. Interestingly, Chinese Rednote users are welcoming this surge of American users.

The irony of TikTok's potential demise due to its Chinese ownership, only to be potentially replaced by another Chinese app, is not lost on observers. Rednote's sustained popularity beyond the immediate aftermath of the TikTok ban remains to be seen. However, a complete TikTok removal from US app stores would likely further amplify Rednote's user growth.