Many brands dream of overnight success on Xiaohongshu (Little Red Book), China's popular lifestyle platform, through massive marketing investments. However, reality often proves harsh. Three once-prominent brands that invested heavily in Xiaohongshu campaigns have since disappeared—their accounts abandoned, stores closed, leaving behind only cautionary tales. What went wrong? Was it the platform's limitations or the brands' own shortcomings?
Case Studies: From Viral Success to Complete Collapse
Skincare Brand A: The "Traffic Trap" of Acne Products
This brand specialized in acne treatment products and initially achieved success through extensive collaborations with influencers. Their strategy focused on redirecting Xiaohongshu traffic to their Tmall store through targeted ads. While early conversion rates appeared promising, the brand eventually collapsed. The fundamental issue? Over-reliance on traffic acquisition while neglecting product quality and customer retention, leading to unsustainable business performance.
Baby Food Brand B: The "Multi-Product Dilemma" of Budget Mismanagement
Once celebrated as a Xiaohongshu success story with frequent viral posts, this baby food brand expanded aggressively to Douyin (TikTok's Chinese counterpart) while maintaining its Xiaohongshu presence. The fatal mistake? Spreading limited marketing budgets too thin across multiple product lines without achieving sufficient market penetration in any single category. The brand's attempt to be everything to everyone resulted in becoming nothing to anyone.
Food Brand C: The "Platform Dependence" Trap
This snack food brand initially thrived on Xiaohongshu, creating numerous high-performing posts about their signature potato chips. With daily ad spending exceeding $1,000 and ROI above 2, the brand appeared successful. However, when platform dynamics changed, the company failed to adapt. After abandoning both Xiaohongshu and Taobao for Douyin, the brand ultimately disappeared completely. This case demonstrates the dangers of over-reliance on any single platform without developing sustainable competitive advantages.
Key Lessons: Avoiding Common Xiaohongshu Marketing Pitfalls
These cases reveal critical insights for brands considering Xiaohongshu marketing:
External Factors: Understanding Market Realities
- Taobao Competition: Redirecting Xiaohongshu traffic to Taobao stores carries high costs. Without exceptional content and products, conversion rates often prove insufficient for profitability.
- Market Saturation: Entering mature product categories requires genuine differentiation. Without unique value propositions, new brands struggle against established competitors regardless of marketing spend.
Internal Factors: Product-Centric Strategies
- Sustainable Growth vs. Burnout: Aggressive spending to build brand awareness often attracts bargain hunters rather than loyal customers. Sustainable growth requires gradual scaling based on product validation.
- Differentiation Matters: True differentiation extends beyond packaging—it requires innovative functionality, unique value propositions, or novel solutions to consumer needs.
Conclusion: Product First, Marketing Second
Xiaohongshu marketing represents just one channel in a comprehensive brand strategy—not a magic solution. Before investing heavily, brands must critically evaluate their product quality, operational efficiency, and competitive advantages. Authentic user satisfaction and organic word-of-mouth ultimately prove more valuable than any paid campaign. The most successful brands understand that exceptional products serve as their own best marketing channel.