With a surge of TikTok refugees migrating to Xiaohongshu, the latter, traditionally dominated by Chinese faces, has swiftly transformed into a "must-visit destination" for foreigners.

Evidently, this influx of TikTok refugees presents Xiaohongshu with significant growth potential in terms of traffic.

At this juncture, Xiaohongshu transcends its original identity, emerging as a formidable TikTok alternative.

Even prior to this influx, Xiaohongshu had garnered attention from Douyin, the domestic version of TikTok.

While Xiaohongshu may not rival Douyin and TikTok in terms of volume, its unique tone and popularity among young users position it as a potential competitor on the same stage.

As a flood of TikTok refugees turns to Xiaohongshu, the question on everyone's lips is whether Xiaohongshu can effectively manage this influx of traffic.

Indeed, for domestic players nearing traffic saturation, this influx represents a substantial opportunity.

Harnessing this traffic effectively and propelling Xiaohongshu to new heights is a challenge that merits serious consideration.

I

Describing the domestic internet market, it's apt to say that the landscape is set, and incremental market competition has reached its peak.

Consequently, internet players reliant on incremental markets face increasing difficulties, even the top players.

Alibaba, Tencent, JD.com, and Pinduoduo are all seeking alternatives to their incremental-focused business models.

Beyond asset lightening, another strategy for players is to expand internationally.

For both Alibaba and Pinduoduo, international expansion represents a promising growth avenue.

Ultimately, the crux of going abroad is to tap into new traffic sources and incremental growth.

For Douyin, TikTok serves as a critical aspect of its international strategy.

Indeed, through TikTok, Douyin has identified new traffic growth points.

The exodus to Xiaohongshu as TikTok's sale looms underscores this point.

Internet players like TikTok have garnered significant traffic through international expansion, becoming new growth engines.

However, amidst rumors of TikTok's sale and Xiaohongshu's emergence as an alternative, we must recognize the severe homogenization of internet players abroad and the intensifying traffic competition.

For other players, reducing homogenization and enhancing core competitiveness are crucial to avoiding replaceability.

This serves as a wake-up call for those contemplating international expansion.

International expansion must go beyond mere replication; it demands real innovation and upgradation.

Only then can we avert the intensifying competition in domestic markets; otherwise, international expansion merely shifts the battleground, without fundamental change.

II

Xiaohongshu's emergence as a TikTok substitute stems partly from their inherent similarities.

Both platforms share similarities in interface and content recommendation mechanisms.

For many foreign users, switching to Xiaohongshu feels like merely changing apps.

This prompts reflection on the ultimate nature of competition among internet players.

This concept is not new in the e-commerce industry.

Alibaba, JD.com, and Pinduoduo ultimately offer similar user experiences.

If any differences exist, they lie in business models and the unique experiences they provide through e-commerce.

Thus, the core competition among internet players hinges on underlying business models, rather than superficial manifestations.

The same applies to Xiaohongshu and TikTok.

Superficially, they may seem alike, even in content.

So, what accounts for their disparity?

The primary gap lies in their underlying business models.

TikTok is rooted in short videos, while Xiaohongshu blends short videos with images.

This distinction underscores their fundamental differences.

For Xiaohongshu, leveraging its business model to achieve parity amidst the TikTok exodus is crucial for capitalizing on this traffic influx.

While Xiaohongshu and TikTok may seem similar, to effectively convert traffic, Xiaohongshu may need to tweak its business model.

III

The TikTok exodus to Xiaohongshu highlights the similar essence of internet players and the ephemeral nature of traffic.

To sustain industry dominance, players must transcend mere replication and embark on a deep, comprehensive industry upgrade, uncovering new development avenues.

For Xiaohongshu, this traffic influx is inevitable.

However, recognizing that traffic lacks inherent loyalty to apps like TikTok is crucial. Retaining users demands making the internet an indispensable part of their lives.

Only then will traffic loss become costly, rather than inevitable.

Ultimately, internet players must focus on enhancing value and technological content, rather than blindly pursuing scale or traffic.

The profound changes in China's internet industry underscore their timeliness and necessity.

Analyzing player transformations reveals a collective focus on technological value and industry empowerment.

Today, internet players transcend single platforms, deeply integrating into various industry aspects.

They forge deep industry connections, fostering a user-traffic relationship distinct from traditional models.

This deep connection, unlike TikTok's, enables a shift from incremental to stock-based development.

The same applies to Xiaohongshu.

While the TikTok exodus has bolstered traffic, establishing a connection that transcends TikTok's model, based on domestic players' explored relationships, is essential.

By deviating from TikTok's norms and uniquely embracing this traffic influx, Xiaohongshu can truly capitalize, avoiding the fate of becoming a mere substitute.

Conclusion

Xiaohongshu's emergence as a TikTok substitute highlights the intensifying homogenization of internet players and the inevitability of industry upgrades.

For Xiaohongshu, this traffic influx is unexpected.

However, adjusting and transforming to sustain this traffic and ensure long-term viability is crucial to avoiding TikTok's fate.

In essence, Xiaohongshu is steadfast, while traffic flows like water.

Maintaining business model leadership and core competitiveness is vital to ensuring Xiaohongshu remains itself, not a TikTok substitute.