Summary of Key Points
The core message of this discussion is that starting a business on REDnote now is still a good opportunity. The platform still enjoys the dual advantages of information asymmetry and skill gaps, and it has gathered the group of Chinese consumers with the highest purchasing power, which can generate high profits for businesses. Even though competition is eternal, as long as you capitalize on these two scarce resources, you can make money.
Why Can REDnote Help Businesses Earn More Profit?
There’s a brand that only accounts for 20% of the business volume on REDnote, but it generates 40%-50% of the profits—this means using just a fifth of the business to earn nearly half of the money. Why is that possible? The key lies in the user base: they are wealthy and willing to spend. REDnote’s users are mostly women with higher education levels and from affluent families. These individuals have strong purchasing power and are not just looking for cheap products; they are more willing to pay for quality, excellent experiences, or products that truly understand their needs. For example, someone can sell a luxury property in Hong Kong (worth 100-200 million yuan) on REDnote and still attract customers because the family members who make the purchasing decisions may use the platform. In short, REDnote users are more willing to spend money, which naturally leaves more profit margins for businesses.
Is It Still Too Late to Get Started on REDnote? The Answer Is “Anytime”
Some people worry whether REDnote has already reached saturation. The author argues that it’s never too late, for two reasons:
1. Competition is eternal, but opportunities always exist: For instance, TikTok had a period of growth from 2020 to 2021, but in 2022, many people said it wasn’t profitable. Yet in 2024, there are still friends who started using TikTok and saw rapid success. This shows that it’s not the platform that’s the problem; it depends on whether you have something that others don’t.
2. REDnote still has dual advantages: While TikTok faces a situation where many businesses know how to operate on the platform (but some do it better), REDnote still has both information asymmetry (many businesses don’t know how to use the platform effectively) and skill gaps (even those who do may not know how to serve high-income customers). These two factors combined create opportunities.
Where Do REDnote’s Advantages Come From? Information Asymmetry and Skill Gaps
The author explains that profits come from two types of scarcity:
- Information Asymmetry: For example, REDnote launched a tool called “Lingxi” in 2024 that helps businesses analyze the interests and followers of users who have purchased their products. If you know about this tool and use it first, you can reach your target customers earlier than others. Many businesses haven’t even understood the proper ways to use REDnote, which is another source of information asymmetry.
- Skill Gaps: Even though many people are aware of REDnote, not everyone knows how to make the most of it. Skills such as knowing how to engage with high-income customers, how to create content they want to read, and how to build their trust are essential. If you master these skills, you can gain a competitive advantage.
Who Are REDnote’s Users? The Most Affluent Group in China
REDnote has over 100 million daily active users. Although it’s not as large as TikTok (with over 600 million daily active users), the quality of its users is much higher. The users are primarily women with higher education levels and higher household incomes. They don’t prefer content recommended by algorithms (like on TikTok, where you just keep scrolling without thinking); instead, they prefer to choose what they want to see on their own (REDnote’s homepage displays covers and titles, and users need to click to access content). This makes them more willing to spend because they are willing to spend time reading informative and visually appealing notes.
What’s the Difference Between REDnote and TikTok? User Control
The reason REDnote can attract high-income users is the difference in how users obtain information:
- TikTok: Algorithms determine what you see, and you just need to scroll. This is suitable for relaxation, but it makes users more passive in their content consumption.
- REDnote: You choose the content yourself (based on covers and titles), which requires active thinking—perfect for finding information and making decisions (such as choosing skincare products or furniture). This difference means that users who are more proactive in seeking information (and therefore more rational and financially capable) stay on REDnote, while those who prefer passive entertainment go to TikTok. As a result, REDnote has become a hub for high-value users, making it easier for businesses to earn high profits.
In Conclusion
If you’re considering starting a business on REDnote, now is a good time: the users are wealthy, the competition hasn’t reached a fierce stage, and many people still don’t know how to use the platform effectively. By mastering information that others don’t know (such as platform tools) and improving your ability to serve high-income customers, you can reap the benefits. After all, it’s better to target one wealthy customer and earn 1 million than to target 100 poor customers and earn only 10 yuan. That’s exactly what REDnote offers.