Apps, social media and shopping - general differences between USA and China

TLDR

In "How Chinese Apps Like TikTok Hook U.S. Users With Shopping and Entertainment Algorithms," Tiffany Ap and Kinling Lo, writing for Rest of World, explore how Chinese social media platforms such as TikTok, Xiaohongshu, and Lemon8 dominate user engagement through advanced recommendation algorithms and a shoppertainment model that seamlessly integrates entertainment and e-commerce. These platforms outperform Western counterparts by fostering a highly immersive user experience but face cultural and regulatory challenges, particularly in Western markets like the United States.

The article delves into the unique strategies Chinese social media apps employ that distinguish them from their Western competitors. These platforms leverage sophisticated algorithms and social commerce to deliver a highly engaging user experience. Apps like TikTok and Xiaohongshu create an ecosystem where users are entertained and encouraged to make purchases seamlessly through the app, a concept called "shoppertainment."
 
TikTok's success is primarily attributed to its algorithm, which tailors content to users' preferences with remarkable precision. This approach creates a "discovery experience" that keeps users engaged for extended periods. Similarly, Xiaohongshu, which started as a travel shopping guide, has evolved into a robust social commerce platform that combines product reviews, user-generated content, and AI-driven recommendations. Lemon8, another Chinese app with rising popularity, follows a similar model, offering a mix of curated lifestyle content and shopping options.
 
The article points out that this integration of entertainment and commerce has been highly profitable for Chinese platforms. For instance, Douyin, TikTok's sister app in China, reported over 2 trillion yuan ($2 billion) in sales in 2023, while Xiaohongshu achieved its first net profit of $500 million the same year. By embedding shopping directly into the user experience, these apps minimize friction between discovery and purchase, creating a more seamless revenue stream than traditional advertising-heavy models.
 
In contrast, Western platforms like Instagram and YouTube have struggled to replicate the same level of success with social commerce. Their efforts often focus on improving advertising capabilities rather than fully integrating e-commerce into their platforms. This highlights a fundamental difference in approach: Chinese apps prioritize a complete ecosystem where shopping is as central as socializing or entertainment, whereas Western platforms treat e-commerce as a secondary feature.
 
The article also examines Chinese apps' political and cultural challenges in Western markets, particularly in the United States. TikTok's ties to the Chinese government have raised significant concerns about data privacy and national security, leading to bans and restrictions in some regions. On January 19, 2025, a temporary ban on TikTok in the U.S. prompted many users to migrate to alternative platforms like Xiaohongshu and Lemon8, highlighting the profound influence of Chinese apps on global social media culture.
 
Xiaohongshu introduced an AI-powered translation feature to cater to international users, showcasing its ambitions to expand globally. However, the authors note that regulatory scrutiny and geopolitical tensions may limit the reach of these platforms. While their business model has proven successful, questions about data security and political influence remain significant barriers to their acceptance in Western markets.
 
 

Concluding Reflections

Tiffany Ap and Kinling Lo argue that the dominance of Chinese apps like TikTok, Xiaohongshu, and Lemon8 demonstrates the growing appeal of the shoppertainment model, which seamlessly blends entertainment and e-commerce. These platforms have set a new user engagement and monetization standard, outpacing Western counterparts in profitability and innovation.
 
Source:
Tiffany Ap and Kinling Lo, "How Chinese Apps Like TikTok Hook U.S. Users With Shopping and Entertainment Algorithms," Rest of World.