Xiaohongshu Struggles With Profitability Amid Content Crackdown
Xiaohongshu faces multiple challenges including content ecosystem imbalance, account suspension controversies, and intense e-commerce competition. Its profit model, heavily reliant on advertising, leads to fake endorsements and a decline in user experience. To break through, Xiaohongshu needs to rebuild trust, strengthen content moderation, differentiate itself from competitors, and learn from overseas market experiences to regulate market order. This involves addressing issues of authenticity and ensuring a more balanced and reliable platform for users and businesses alike.
