(Yicai) Jan. 21 -- Five major trends characterize the e-commerce landscape of China’s Xiaohongshu, known outside the country as RedNote, a media outlet under Yicai Media Group discovered by delving into the app’s list of the top 100 merchants and 100 most noteworthy brand ambassadors and influencers over the past year.

By analyzing the recently released Rise100 E-commerce Annual List, DT Finance found firstly that Xiaohongshu is an app for younger users. Those born after 1995 account for 30 percent of its leading 100 bloggers and 15 percent of the top 100 businesses, according to the list.

Young influencers are adept at selecting products that resonate with younger audiences and when introducing these goods integrate them into lifestyle scenarios, providing young people with emotional value.

The young scions of factory-owning families are also using Xiaohongshu to promote their business’ products. For example, one brought silk scarves into trending styles such as the ‘Chinese Old Money’ aesthetic, resulting in more than 320,000 orders in a year.

The second trend identified was the use of geographical advantages to promote items. For example, merchants in Jingdezhen, a city in Jiangxi province well known for its porcelain production, sell items such as tea sets by showing customers the local supply chain in order to gain their trust.

The third trend is the popularity of Chinese traditional aesthetics and intangible cultural heritage. According to advertising professional Ding Guangqi, Chinese aesthetics are increasingly popular among people aged 25 to 35, and Xiaohongshu has become a platform for them to discuss and share ideas.

For example, one clothing merchant, who specializes in blending Chinese-style designs with urban fashion, captured a loyal base of VIP customers and sold more than CNY50 million (USD6.9 million) of products in a year.

The fourth trend is the growing focus on niche needs. One-third of the top 100 vendors on Xiaohongshu cater to specific demographics, needs, or scenarios, such as petite fashion or skin-sensitive clothing for kids.

Successful sellers “prioritize serving a small, focused group well and deeply understand the preferences and needs of their followers,” according to Chuang Hong, who oversees Xiaohongshu’s clothing, shoes, and bags category.

Lastly, Xiaohongshu has become a business startup platform, where people from all walks of life can turn their hobbies and passions into new careers and businesses. One key reason why these individuals choose Xiaohongshu is that the app is friendly to new users. Even accounts with low followings can notch up substantial sales.

Among Xiaohongshu’s top 100 influencers, just over two-thirds have fewer than 500,000 followers and 19 percent have less than 100,000, according to the Rise100 list. The person with the lowest follower count had just over 10,000.

Editor: Futura Costaglione