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Chinese Visitors Spent A$11.2 Billion in Australia as Brands Shift to RedNote

By Rajiv MenonAustralia
2 min read
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retail vietnam china korea japan sales
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Retailers and tourism operators across Australia and New Zealand are shifting digital marketing budgets to Chinese lifestyle platform Xiaohongshu, known internationally as RedNote, according to Jeffrey Hau, CEO of digital marketing agency Prizm Group.

Chinese travelers spent A$11.2 billion in Australia in 2025, up 39 per cent year on year, cementing China as the country’s second-largest inbound tourism market, according to data from Tourism Research Australia.

Search Behavior Replaces Social Broadcasting

Unlike Western platforms such as Instagram or TikTok where visual polish and direct checkout links drive engagement, Xiaohongshu operates primarily as a recommendation search engine. Users rely on user-generated reviews, detailed itineraries, and sizing guides to make purchase decisions before visiting stores or booking attractions.

This dynamic shifts the marketing model from broad awareness campaigns to answering specific consumer queries. In Australia, more than 730,000 residents were born in mainland China, according to the Australian Bureau of Statistics. 24 per cent of Chinese arrivals enter on student visas compared to 7 per cent across all international markets, creating multi-year domestic spending cycles across retail, groceries, telecommunications, and housing.

Tourism Campaigns Drive Measurable Search Volume

Destination marketing boards have already tested the platform at scale. Tourism New Zealand ran dedicated campaigns on the network that generated more than 500 million impressions and drove a 127 per cent increase in searches for New Zealand travel guides.

“In Australia, more than 730,000 residents were born in mainland China, according to the Australian Bureau of Statistics.”

Commercial operators are tracking similar conversion patterns. BridgeClimb Sydney structured its campaigns around Mandarin-language climb options, family packages, and photography pricing, fielding direct queries in comment sections and routing prospective climbers directly to official booking channels.

Localized Creator Networks Alter Campaign Economics

For sportswear and fashion retailers, influencer pricing and reach metrics operate under different thresholds in Oceania than in East Asia. Retailer JD Sports activated local creators in Australia and New Zealand during Lunar New Year, using tracked promotional codes to connect creator posts directly to online checkouts and physical store traffic.

Agency data shows a top-tier creator in the Australian market typically commands between 50,000 and 200,000 followers. In mainland China, that follower count represents only a mid-tier account, giving local brands access to influential community voices at lower production costs.

The Operational Shift for Asia-Pacific Retailers

Targeting Chinese-speaking consumers through native platforms requires brands to rethink customer support and community management. Comment sections on Xiaohongshu function as customer service desks where users demand immediate answers regarding sizing, inventory availability, and localized payment options such as Alipay and WeChat Pay.

Brands that treat the network as an image repository fail to generate sales traction. The operational risk lies in resource allocation: businesses must maintain active, Mandarin-literate moderators to convert queries into completed transactions before prospective shoppers look elsewhere.

Consumer brands across Sydney, Melbourne, and Auckland are now aligning their upcoming seasonal inventory plans with regional travel calendars, targeting the Golden Week and Lunar New Year retail cycles.

Questions & Answers

Q.

Why are retailers and tourism operators shifting marketing budgets to Xiaohongshu?

A.

The platform operates as a recommendation search engine where users rely on detailed reviews and guides before making purchase decisions. This shifts the marketing model from broad awareness to answering specific consumer queries.

Q.

What difference is there in influencer economics between Oceania and East Asia for brands?

A.

A top-tier Australian creator with 50,000-200,000 followers is only considered mid-tier in mainland China. This allows local brands access to influential voices at lower production costs.

Q.

What operational changes do retailers need to make when using Xiaohongshu?

A.

Brands must rethink customer support and community management, treating comment sections as service desks. They need active, Mandarin-literate moderators to answer queries quickly and convert them into sales.

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