![]() Taobao Villages have attracted attention from entrepreneurs in developing countries who want to replicate the model to drive economic growth at home. These Taobao online stores also employ many local women who have limited job opportunities: About a third of e-shop owners and nearly half of the employees are women in Taobao Villages, the World Bank report said. ![]() This helps to keep families and communities together and connected. In 2019, the 63 Taobao Villages located in the country’s most impoverished areas generated about RMB2 billion in e-commerce sales, an AliResearch report said.Īside from economic prosperity, Taobao Villages have also helped to keep both parents and young workers, who might otherwise head to factories or big cities for work, in the village. AliResearch estimated that Taobao Villages created 6.8 million jobs in the 12 months ending June 2019 throughout the e-commerce value chain. E-commerce in rural areas has also led to higher household consumption, the report says, reduced income inequality and better job opportunities for women and young people. A new study by the World Bank and AliResearch showed that household incomes in Taobao Villages are almost three times that of the average rural household income in China, and are similar to urban household incomes. A direct result of the Taobao Village boom is improved economic conditions and the creation of jobs in the most impoverished areas in China. The total number of active online shops on Taobao operated by Taobao Villagers surged by nearly tenfold to 660,000 in 2018, from just 70,000 in 2014, said AliResearch.Īt this scale, Taobao Villages have leveraged e-commerce to drive more-inclusive economic growth in rural China. The total sales generated by Taobao Villages – and Taobao Towns, which are larger-scale rural townships that deploy the same Taobao Village model – amounted to RMB700 billion in the 12 months ending June 2019. As of August 2019, there are a total of 4,310 Taobao Villages in 25 provinces, where 250 million out of China’s total 564 million rural villagers reside, according to data from AliResearch. WATCH: Defining Taobao Villages, Exporting the Model OverseasĪfter 10 years, the Taobao Village model has achieved scale to benefit about half of the total rural population in China. AliResearch, Alibaba’s research arm, defines a Taobao Village as a village that generates RMB10 million or more in e-commerce sales annually and have 100 or more active online shops on Taobao operated by local residents. ![]() On the business side, e-commerce has enabled rural villagers to sell agricultural products, handicrafts and manufactured goods by opening stores on platforms such as Alibaba Group’s Taobao. A virtuous circle is taking place whereby e-commerce is enabling more rural residents to become entrepreneurs by selling local products online, and the resultant income growth is driving up e-commerce-based consumption as these rural residents seek out products they can’t find in their neighborhood stores. Something unique is happening on both the consumption and business sides of rural e-commerce in China. These parts of the country, where about 40% of the total population live, generated RMB 1.37 trillion ($195 billion) worth of e-commerce sales in 2018, up 30.4% year-over-year and far outpacing the 24% growth seen in China’s overall e-commerce market. Out of the fast-growing e-commerce market in China, one area is showing even more potential: rural China.
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