When it comes to Xiaohongshu marketing in China, many overseas brands still think of it as a “mystical” channel where results are unpredictable. But in 2025, Xiaohongshu is moving fast to commercialise — rolling out new lead generation tools that make customer acquisition much more structured, measurable, and cost-effective.

Let’s break down the latest features and why they matter for global brands entering China.

1. Search High-Potential Keyword Packages

On 25 July, Xiaohongshu officially launched its new “Search High-Potential Keyword Package” feature (source here).

Here’s the problem:
Most brands still chase difficult keywords — hyper-competitive, expensive, and often saturated. What they ignore are long-tail keywords, which carry untapped demand and cheaper acquisition costs.

Now, with this keyword package tool, Xiaohongshu helps brands:

Identify low-competition, high-demand search terms
Diversify content creation angles
Unlock incremental traffic growth

Xiaohongshu lead generation tool interface

Why does this matter? Because 70% of Xiaohongshu’s traffic comes from active search. And users who search are already intent-driven, meaning they convert better. This feature doesn’t just cut down lead acquisition cost (CAC) — it also feeds valuable insights back into product R&D and customer experience design.

👉 Learn more about Twish Xiaohongshu Services

2. Targeted Audiences (DMP)

Xiaohongshu has had its audience targeting (DMP) tool for a while, but recent updates make it far more powerful for lead-based industries.

Brands can now:

Combine multiple demographic and behavioural filters
Layer Xiaohongshu’s own first-party data with external third-party datasets
Target based on geo-location radius (a game-changer for local service providers)

Geo-targeting radius for home renovation services on Xiaohongshu

For example, one of our home renovation clients in Shanghai relies heavily on this feature. Why? Because consumers won’t travel across the city for a renovation service — they’ll only consider providers within a 10km radius. With DMP targeting, we can ensure ads only reach areas where the brand actually has installation teams available.

This precision targeting is especially effective for:

Home renovation
Offline training/education
Beauty salons & wellness
Food & beverage chains
Retail stores & shopping malls
Fitness and sports

Bottom line: local targeting = higher ROI.

👉 Case Study on Home Decor Brand Growth

3. Consultation Component

This one is huge for lead generation.

Xiaohongshu is now rolling out a “Consultation Component” — basically a shortcut button that lets users message a brand directly, without needing to follow them or go through ads. Even better? It doesn’t require paid promotion (currently in beta rollout).

Why is this important? Because many lead-gen businesses on Xiaohongshu actually don’t have huge followings — but they still drive thousands of enquiries each month. Shortening the journey from interest → conversation means conversion rates skyrocket.

Xiaohongshu consultation component for lead generation 1

Xiaohongshu consultation component for lead generation

Imagine a potential customer reading your post, clicking “consult now” instantly, and starting a private chat. That frictionless path is exactly what lead-based industries need.

👉 Explore Twish Lead Generation Strategy Services

4. Comment Section Links

Here’s a fun one: your comment section can now become ad space.

Brands and creators can pin links in comments, such as:

Product listings
Other posts (image or video)
Group chats
Store locations

Those comments can even be republished as new posts, carrying the embedded link forward.

For matrix accounts (multiple brand-owned accounts), KOL collaborations, or tactical “traffic capture” plays, this feature is a simple but powerful way to boost organic exposure.

Why These Updates Matter

Taken together, these updates show Xiaohongshu’s clear direction for H2 2025:

Interaction: Comment-linked ads mirror WeChat’s “closer-to-user” model, blending engagement with commerce.
Search: A decentralised, search-driven ecosystem makes discovery less reliant on algorithm luck.
Commercialisation: Consultation tools and DMP targeting make lead-gen more efficient and measurable.

For brands, this means two things:

The barrier to entry is lowering — even smaller players can now generate leads cost-effectively.
The window is narrowing — as more tools grow, early movers will capture the best ROI.

What Brands Should Do Now

If you’re a global brand looking at China, here’s the playbook:

Set up your Xiaohongshu account early (you don’t need to certify as a “professional account” immediately).
Test these new features with small budgets before competitors saturate them.
Invest in localisation — success comes from content that resonates culturally, not just translated ads.
Plan for ROI, not just visibility — align your campaigns to lead-gen KPIs from day one.

Yes, Xiaohongshu is more competitive than in 2022’s “gold rush” days, but it’s far from saturated. For SMEs, it remains one of the most effective ways to establish credibility and drive qualified leads in China.

Final Thoughts

Xiaohongshu’s commercialisation sprint in 2025 is reshaping how brands win in China. The new keyword tools, audience targeting, consultation components, and comment-linked ads are not just incremental tweaks — they represent a structural shift towards more predictable, performance-driven marketing.

The brands that act now — testing, learning, and scaling — will be the ones leading when others are still catching up.

→ Book your free China marketing consultation with Twish

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