Xiaohongshu increases investment in video content, fully launching the "RED Selection Program"

``` On May 22, Xiaohongshu fully launched the "RED Select Program." Unlike regular iterations in the past, this adjustment involves a reconstruction of the platform's underlying traffic distribution logic and a leap in product infrastructure: the platform is starting to officially certify high-quality videos and tilt traffic in their favor; on the product side, a small-scale internal test of a horizontal video container has begun, displaying video, text, and comments on the same screen; on the technical side, 4K ultra-high-definition and Dolby Atmos have been fully launched across all ends. Additionally, the UGC quote and repost function has been launched simultaneously. According to a Xiaohongshu representative, since the launch, the average exposure per RED Select video has increased from 500,000 to 2.7 million. Stripping away the surface-level product moves and data growth, this platform-wide strategic pivot is essentially an ecological restructuring that Xiaohongshu must undergo to support its high valuation ahead of its push into the capital market. In terms of content format, Xiaohongshu’s long emphasis on picture and text-based "planting grass" content has built a strong community barrier, but the low threshold of this format has also resulted in content homogenization, reposting, and rampant fake accounts. The introduction of 4K and Dolby audio, as well as tests of a horizontal long-form video container, are examples of "heavy asset" infrastructure construction. This move serves two business purposes. First, raising the threshold for content creation. Through technical screening and targeted traffic support—such as individual certification badges and exclusive channels on the discovery page—the platform is trying to shift distribution weight from the low-barrier generic picture-and-text content towards high-quality PGC/PUGC video teams, thereby securing quality content supply for the community. Second, increasing user retention time. The panoramic layout of the horizontal video container aims to change the "search and leave" or "quick swipe" consumption habits from the picture-and-text era, consolidating the playback time of medium- and long-form videos. The UGC quote and repost feature is also attempting to establish social viral sharing and public discussion paths similar to Weibo within a previously mostly one-way browsing community. Behind Xiaohongshu's intensified focus on video is the capital market's scrutiny of its commercialization ability. Recent information from various sources in the primary market shows that Xiaohongshu’s valuation in the secondary market for old share transfers has exceeded $30 billion, with some transactions even reaching a valuation of $50 billion. Supporting such a massive valuation clearly can’t rely solely on traditional picture-and-text information flow ads and the "buyer e-commerce" business that is still in its cultivation stage. Comparing within the industry, ByteDance is able to command a valuation in the hundreds of billions of dollars mainly through the high-efficiency transaction loop built by short video and live streaming; while Bilibili sustains a highly sticky, youth-oriented community and long-term brand marketing value through medium- and long-form video. The reality Xiaohongshu faces is that video ads have significantly higher premium capabilities than picture-and-text ads, and medium- and long-form videos are better suited for complex brand marketing needs. A full push into video, and even experimentation with horizontal medium- and long-form videos, is a necessary piece for Xiaohongshu to complete as it tells its new story of integrating "community, e-commerce, and commercialization" to the capital market. This is not only about expanding the current advertising inventory but also serves as the foundation for the future in-depth development of live e-commerce and high unit-price brand advertising. The transition from a strong focus on picture-and-text content to a dual-driven approach integrating pictures/text and video is a relatively aggressive step for Xiaohongshu. Forcibly shifting user habits with traffic tilt and technical upgrades not only tests the precision of algorithmic distribution, but also the platform’s ability to balance "commercialization efficiency" with its "original community tone." This is both an upgrade in product strategy and an open card played ahead of IPO expectations to cater to the capital market's imagination of its commercial ceiling. Risk Warning and Disclaimer The market has risks, and investment should be cautious. This article does not constitute individual investment advice, nor does it take into account the special investment objectives, financial situation, or needs of any particular user. Users should consider whether any opinions, views, or conclusions in this article are appropriate for their specific circumstances. Any investment made accordingly is at your own risk. ```