Taobao villages are rural Chinese villages where the local economy has developed to focus extensively on e-commerce via the Taobao online retail platform. Taobao villages have contributed to economic development and rural revitalization in China.

Definition

Taobao villages are rural Chinese villages where the local economy has developed to focus extensively on e-commerce via the Taobao platform.[1]: 112  Alibaba's research division defines Taobao villages as those in which (1) businesses are located in an administrative village in a rural area, (2) the village's annual e-commerce revenues exceed RMB 10 million, and (3) the village has either an excess of 100 active online shops or active online shops account for more than 10% of village households.[1]: 112 

Overview

Taobao villages are concentrated in China's coastal regions, particularly in Zhejiang province (which is where Alibaba, which operated the Taobao platform, is located).[1]: 112  Zhijiang City in Hubei province also has a significant cluster of Taobao villages.[2]: 279  As of at least 2023, Taobao villages are increasingly developed in inland parts of China.[1]: 112 

Taobao villages first began appearing in 2009.[2]: 278  By 2013, twenty Taobao villages existed in China.[1]: 112  In 2020, 5,425 such villages existed, generating total annual revenue of RMB 1,000 billion via 29,600 active online shops.[1]: 112 

Impact

The geographical clustering of e-commerce businesses in Taobao villages have mutual benefits for these businesses, as opposed to when they operate in greater isolation.[3]: 180  Geographic clustering of e-commerce businesses results in labor market pooling, facilitates knowledge exchange, and allows for increased labor market pooling.[3]: 180–181  Increased economic activities also can attract government-subsidized capital.[3]: 185 

Because Taobao villages have increased the incomes or rural people and entrepreneurship in rural China, Taobao villages have become a component of rural revitalization strategies.[2]: 278 

See also

References

  1. 1 2 3 4 5 6 Hu, Richard (2023). Reinventing the Chinese City. New York: Columbia University Press. ISBN 978-0-231-21101-7.
  2. 1 2 3 Yang, Saidi; Wang, Puqing; Zhou, Deyi (2021). "Transformation and Development of Taobao Village in China Based on "Zhijiang Mode"". Proceedings of the 2020 3rd International Seminar on Education Research and Social Science (ISERSS 2020). Paris, France: Atlantis Press. doi:10.2991/assehr.k.210120.053.
  3. 1 2 3 Guihang, Guo; Qian, Liang; Guangfan, Luo (2014-05-23). "Effects of Clusters on China's E-Commerce: Evidence from the Junpu Taobao Village". International Journal of Business and Management. 9 (6). doi:10.5539/ijbm.v9n6p180. ISSN 1833-8119.
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