Is Lemon8's sudden popularity accidental or inevitable? Can it truly surpass Xiaohongshu and become a new social force?

Original content by Shendu Shangye ( Deeply read business )

Author | Hu Fei

Editor | Liu Manxin

In 2024, the social media landscape witnessed another storm. Lemon8, launched by Zhang Yiming's ByteDance, emerged as a formidable player in the North American market, rapidly climbing to the top of the US App Store charts.

I. Can Lemon8, Zhang Yiming's masterpiece, surpass Xiaohongshu and become the new leader overseas?

In recent years, competition in the social media space has intensified, with emerging apps sprouting up continuously. As a crucial part of ByteDance's overseas strategy, Lemon8 has stirred up a storm overseas with its unique design and precise targeting.

In March 2020, Lemon8's predecessor, Sharee, debuted in Japan, focusing on sharing and product recommendations. From the start, it aimed for the overseas market. After more than a year of development, Sharee officially changed its name to Lemon8 in September 2021, symbolizing sharing fresh ideas like a refreshing lemonade, with the number "8" representing limitless possibilities. The renamed Lemon8 refined its target audience to primarily young women in their twenties and thirties, covering content in fashion, beauty, food, and more.

In October 2021, Lemon8 began expanding into Southeast Asian markets like Thailand and Indonesia, but initial responses were tepid. It wasn't until March 2023 that Lemon8's overseas expansion took a turn for the better. Upon entering the European and American markets, Lemon8 shot up to the top 10 in the US App Store downloads and eventually topped the lifestyle app category. Data from Data.ai shows that since September 2023, Lemon8 has consistently been the most downloaded lifestyle app on iOS devices in the US, ranking in the top 20 among all iOS apps. It also ranks among the top 7 lifestyle apps on Android devices.

Lemon8's success is inseparable from ByteDance's strong support.

According to reports, since 2020, ByteDance has heavily invested in Lemon8 promotions on platforms like Apple Search Ads, Facebook, and Instagram, while continuously nurturing top creators on these platforms. From April 2023 to April 2024, Lemon8's advertising material volume exceeded 53,000 pieces in markets outside mainland China, demonstrating a spending spree and determination akin to TikTok's overseas expansion. Furthermore, TikTok has provided crucial promotion ground for Lemon8, placing ads through its "For You" section and supporting creators in directing traffic to Lemon8 from their profiles.

Lemon8's initial attempts in Southeast Asia were unsuccessful, warranting reflection.

On one hand, cultural differences and user needs in Southeast Asia significantly vary from those in Europe and America. On the other hand, Lemon8's initial positioning and strategy may not have fully aligned with local user needs. Consequently, Lemon8 underwent extensive adjustments and optimizations before entering the European and American markets, ultimately leading to its breakout success.

Lemon8 is dubbed the "overseas version of Xiaohongshu" due to its similar product design and page layout to the domestic platform. This similarity has rapidly attracted a large user base overseas, particularly those who prefer Xiaohongshu's style but reside abroad.

As a leading player in the domestic seeding economy since its inception in 2013, Xiaohongshu has focused on building a lifestyle community. Through strategies like inviting celebrities and enriching content ecosystems, Xiaohongshu has achieved rapid growth and amassed a vast loyal user base. According to a report by Zhongyan Puhua Research, among consumers in the seeding economy, those aged 27 to 39 account for 62.4%, and those with an income of RMB 5,000 to 10,000 make up 64.5% of the population. These figures underscore Xiaohongshu's dominance in the seeding economy.

Lemon8's rise poses a significant challenge to Xiaohongshu. Especially in overseas markets, Lemon8, backed by ByteDance's strength and precise market positioning, has quickly established a foothold. Compared to Xiaohongshu, Lemon8 places greater emphasis on user experience and interactivity in product design. For instance, Lemon8 requires users to upload high-definition vertical photos, preferably 3-7 per post, with captions ranging from 100 to 300 characters. This image-text seeding format not only attracts users but also caters to diverse needs.

Moreover, Lemon8 adopts a similar double-column waterfall layout to Xiaohongshu for content presentation, enabling users to seamlessly browse diverse content. This design enhances browsing efficiency and user engagement. Compared to Xiaohongshu, Lemon8 targets a more precise audience of young women, covering content in fashion, beauty, food, and more.

However, for Lemon8 to truly surpass Xiaohongshu is no easy feat. Xiaohongshu has cultivated a mature content ecosystem and user base in the domestic market over the years. While Lemon8 has achieved notable success overseas, it still needs to continually strive in content innovation and user experience to compete globally with Xiaohongshu.

II. The Battle for Seeding Economy Among Big Players

ByteDance's ambition in the seeding economy is evident. As early as 2018, ByteDance launched the lifestyle community app "Xincao APP," aiming to precisely deliver content to users through powerful algorithms and recommendations. However, Xincao was discontinued after a year without making a significant impact.

Following Xincao's discontinuation, ByteDance didn't abandon the seeding economy. In July 2022, it introduced "Kesong APP," focused on fashion, travel, and lifestyle content, similar to Xiaohongshu's positioning. Kesong also emphasized user participation in content creation and interaction, launching features to encourage users to explore popular creation topics and challenge activities. Nevertheless, Kesong failed to gain market and user acceptance and was taken down within 20 days of its launch.

Despite setbacks with Xincao and Kesong, ByteDance persisted in the seeding race. In April 2023, it introduced Youshi APP, an upgraded version of Toutiao Search APP, featuring food guides, life experiences, and more. Youshi aimed to leverage Toutiao's vast content repository, transforming suitable image-text and video content into seeding material. Compared to Xiaohongshu, Youshi still lags in market share and user engagement.

Contrasting its domestic setbacks, ByteDance's overseas seeding strategy has proven successful. Lemon8's rise has not only secured ByteDance a foothold overseas but also bolstered its global seeding economy layout. Through continuous trials and optimizations, ByteDance has gradually found its footing in the seeding economy and achieved success in overseas markets.

As the seeding economy gains traction, more big players are entering the fray. Besides ByteDance, Tencent, Alibaba, and Kuaishou have also introduced their seeding products.

Tencent launched the seeding project "Qipeng Huimai," integrating local, seeding, and community attributes, deeply integrated with the Tencent ecosystem. Users can shop across various categories through the "Qipeng Huimai" mini-program. Compared to Xiaohongshu and Lemon8, Qipeng Huimai still needs to improve its market share and user engagement.

Alibaba has also introduced seeding e-commerce apps like "Taibang" and food seeding app "Chihuo Biji." These apps share shopping tips and product recommendations through images, texts, and videos, offering a convenient shopping experience. However, Alibaba's seeding products still lag behind Xiaohongshu in content ecosystem and user base.

Kuaishou introduced seeding products like the trendy sharing platform "Bifeng," which has gradually faded from the market due to its inability to sustain growth. This may be attributed to Kuaishou's positioning and strategy, as it primarily focuses on short videos, while the seeding economy necessitates a stronger emphasis on content and user interactivity.

In the battle for the seeding economy among big players, ByteDance has gradually emerged with Lemon8's rise.

III. Lemon8: ByteDance's New Overseas Darling, Can It Surpass Xiaohongshu to Become a New Social Force?

Lemon8's rise has sparked heated debate about whether it can surpass Xiaohongshu. Despite similarities in product design, user personas, and content ecosystems, Lemon8's ability to easily surpass Xiaohongshu remains uncertain.

Firstly, Xiaohongshu has amassed a vast user base and rich content, fostering a strong community atmosphere and user engagement that Lemon8 struggles to match. Secondly, while ByteDance has invested heavily in Lemon8's advertising and collaborations with influencers, this requires significant financial support and sustained investment. Any issues with funding or ineffective influencer partnerships could severely impact Lemon8's development.

Furthermore, Lemon8 faces competition from other social apps. In the North American market, Instagram and Pinterest already occupy significant market shares, posing formidable competition for Lemon8. To stand out in this intense competition, Lemon8 must continually innovate and enhance user experience.

Of course, Lemon8's success is not accidental.

Firstly, precise positioning and differentiated competition. From the outset, Lemon8 clarified its positioning as an interest-driven seeding community, differentiating itself from Xiaohongshu while satisfying users' demand for in-depth seeding content.

Secondly, content is king, and user participation is crucial. Lemon8 prioritizes high-quality images and in-depth image-text combinations, offering a rich user experience. It also encourages user content creation and interaction, enhancing user engagement and platform content quality.

Thirdly, multi-channel promotion and brand collaborations. Lemon8 adopts a multi-channel promotion strategy and leverages TikTok for traffic redirection. It also partners with brands to jointly promote products and content, expanding Lemon8's reach and commercial value.

Data-driven and intelligent recommendations. As a ByteDance app, Lemon8 leverages the company's data advantages and algorithmic technology. By analyzing user behavior and preferences, Lemon8 provides precise recommendations and personalized services.

Lastly, Lemon8's success stems from its global layout and localized operations. When entering overseas markets, Lemon8 carefully considers cultural differences and user needs, making adjustments and optimizations accordingly. In the future, Lemon8 should continue to deepen its global layout and localized operations to expand into more markets and reach more users.

[Conclusion]

In summary, Lemon8 has quietly risen to prominence, swiftly topping the US App Store charts and earning the title of "overseas version of Xiaohongshu." Launched in 2020 as Sharee, this ByteDance-backed social app underwent several transformations before finally breaking out in 2023.

Behind Lemon8's success lies the meticulous planning and substantial investment of Zhang Yiming's team. However, amidst fierce market competition and ever-changing user needs, whether Lemon8 can sustain its lead and even surpass Xiaohongshu to become the new social leader remains to be seen over time.