Archive — US — techcrunch
Chinese shopping app Taobao joins DHgate in Top 5 on US App Store
Taobao, a Chinese shopping app, has surged to the Top 5 on the U.S. App Store, benefiting from Trump's tariffs and increased interest in direct-from-manufacturer purchases. Users are drawn to Taobao's lower prices on luxury-style goods, with downloads rising 514% in April. Meanwhile, DHgate has also become a top app as consumers seek alternatives to pricier shopping apps amid a backlash against markups.
Key points
- Taobao and DHgate rise in popularity due to Trump's tariffs on Chinese imports.
- U.S. consumers turn to these apps after TikTok videos reveal luxury goods' origins.
- January-April 2023 saw Taobao's downloads spike from 30,000 to 185,000, a 514% increase.
- Taobao ranked No. 5 on the App Store by Thursday, rising from outside the Top 461 just a few days prior.
- The appeal lies in lower prices and direct purchasing from manufacturers.
- Quality varies widely, consumers advised to check reviews before buying.
Why it matters
- Rise of e-commerce apps aligns with growing consumer awareness of direct-from-manufacturer buying.
- Similar trends seen in earlier tech shifts like the rise of Alibaba in Western markets.
- Impact of social media (TikTok) on consumer shopping behaviors highlighted.
- Shifts in global trade and consumer preferences post-COVID-19 continue to influence e-commerce.
Taobao's rapid ascent in the U.S. App Store reflects changing consumer habits and attitudes toward luxury goods purchasing, emphasizing the importance of direct access to manufacturers in a price-sensitive market.