The Competitive Strategy of AI-Based Social Platforms: A Case Study of Xiaohongshu

Xinyu Tang

doi:10.54097/xrew6b10

Authors

Xinyu Tang

DOI:

https://doi.org/10.54097/xrew6b10

Keywords:

Xiaohongshu, platform competition, AI technology, vertical social platforms, content ecosystem.

Abstract

The rapid rise of short-video giants like TikTok and Kuaishou has intensified competition in China's social media landscape, forcing niche platforms to seek innovative survival strategies. As a lifestyle-sharing platform, Xiaohongshu faces particular challenges in retaining its core user base while expanding into broader markets amid the dominance of these multipurpose platforms. The platform's strategic integration of AI technologies has become crucial for maintaining its competitive edge in content personalization and user engagement. This study examines Xiaohongshu (Little Red Book) and explores how it utilizes artificial intelligence (AI) technology to maintain its audience and expand user layers under the pressure of competition from multi-purpose platforms such as Tiktok and Kuaishou. Based on platform competition strategy theory, the study analyzes the differentiated competitive strategy formed by Xiaohongshu's "unique content ecosystem + precise search mechanism + high-net-worth users," revealing its competitive advantages in high-decision-cost consumption scenarios. The research shows that Xiaohongshu constructs a "dual barrier" of "algorithm + culture" based on the underlying logic of "decentralized traffic distribution" and "reverse funnel marketing," providing valuable insights for the sustainable development of vertical social platforms.

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