Xiaohongshu’s Strategic Overhaul: A Shift Towards Integrated Growth
Summary:
- Xiaohongshu has restructured its community organization to enhance operational efficiency and growth.
- New leadership roles emphasize innovative content strategies, especially in video production.
- The company’s focus will shift from traditional vertical categories to a more integrated business development approach.
Introduction
In a strategic pivot aimed at addressing growth challenges, Xiaohongshu, the popular social commerce platform, has made significant adjustments to its community organizational structure. These changes reflect a broader intent to enhance production capabilities, streamline operations, and ultimately supercharge user engagement. According to insiders, this reorganization marks a departure from traditional operational norms, heralding a new era for the platform.
New Leadership Roles
The reorganization introduces two key figures: Yunfan and Niijima, who will spearhead new divisions within the community structure. Yunfan, now at the helm of the “Live” section, will report directly to COO Conan, whereas Niijima leads a segment named “Village,” still under the guidance of Palu, who oversees community business operations. This restructuring allows for a sharper focus on business objectives, moving away from the previous model that categorized content vertically across various domains.
Core Community Functions
The community department remains the backbone of Xiaohongshu, encompassing critical functions such as content operations, community products, and marketing. The leadership landscape has shifted significantly, with key appointments made early in 2024. Palu, previously a top executive at Kuaishou, is now responsible for community products. Meanwhile, Yunfan handles content operations, with Baiban leading community marketing efforts under Yunfan’s oversight. This fresh leadership trio is poised to drive innovation across the platform.
Noteworthy Talent
Palu, whose real name is Ye Heng, was previously a prominent figure in Kuaishou’s e-commerce product division, earning accolades for his strong product capabilities. His ambition is palpable, and since joining Xiaohongshu, he has showcased his skills across various product lines, including growth, ecological, and video products. Such leadership brings transformative potential to the platform as Xiaohongshu aims to expand its user base.
Growth Ambitions
This structural overhaul aligns with Xiaohongshu’s bold growth targets for 2023, which include reaching a daily active user count of 100 million and eventually scaling that to 300 million. Historically, Xiaohongshu focused on vertical operations in niche markets, laying a robust foundation of content before tackling growth challenges. The new strategy flips this model on its head, indicating a shift towards a more integrated approach to content and community engagement.
Innovative Content Strategies
Insiders have indicated that the “Live” division will prioritize high-quality medium-length video content, targeting aspiring influencers and producers. The goal is to cultivate a new wave of content creators, enhancing the platform’s appeal and user engagement. With Yunfan’s past experience at Bilibili, expectations are high for innovative video operations that can captivate users.
Commercial Developments
Alongside community restructuring, Xiaohongshu’s commerce segments—comprising the Commerce and Trading Departments—will retain their current organizational settings. Led by Conan alongside CMO Zhiheng, these areas aim to support the growth targets without undergoing any major changes. This stability in the commercial arm ensures that Xiaohongshu can continue to harness its existing business strengths while exploring new avenues for community engagement.
Financial Outlook
According to reports, Xiaohongshu’s valuation has surged to $26 billion, marking a 30% increase since the beginning of 2025. This valuation reflects the platform’s strategic positioning in the competitive landscape of social commerce. In comparison, rival platforms like Bilibili and Kuaishou have valuations of $10 billion and approximately $35 billion, respectively, underscoring Xiaohongshu’s growing influence in the market.
Conclusion
Xiaohongshu’s recent organizational changes demonstrate a proactive approach to addressing growth challenges and enhancing user engagement. By fostering innovative content creation and refining leadership roles within its community structure, the platform is well-positioned to meet ambitious growth targets. As Xiaohongshu continues to evolve, its commitment to integrating production and research will remain critical for its sustained success in the rapidly changing social commerce landscape.
