The Chinese cross-border B2B platform "DHgate" has gone viral in the US. (Source: official website)

The tariff policy proposed by former US President Trump triggered a trade war, causing many Americans to worry about increased future consumer spending. At the same time, a "Made in China factory craze" sweeping through TikTok unexpectedly boosted the popularity of the Chinese cross-border B2B platform "DHgate". According to the latest data from the US App Store, DHgate, Taobao, and SHEIN have become the top three free iPhone apps for shopping; in the overall free app ranking, DHgate currently ranks second, just behind ChatGPT.

According to a report by Yicai, this trend originated from the sudden popularity of videos made by foreign trade merchants on short video platforms. Recently, many Chinese merchants have created TikTok videos to explain the actual workings of the global luxury goods market to consumers. Many merchants explained in their videos that much of the clothing, handbags, and other accessories believed to be made in Europe are actually produced in Chinese factories. Some video creators provided direct links to products or websites in their videos, leading to an increase in attention towards "DHgate".

According to data from Appfigures, on April 12, the download volume of DHgate reached 35,400 times on App Store and Google Play, an increase of 56% compared to the average daily downloads over the past 30 days. Of these downloads, 17,300 were in the US, an increase of 98% compared to the average daily downloads over the past 30 days. On the 13th, the number of installations on the iOS platform rose to 117,500, an increase of 732% compared to the average daily downloads over the past 30 days. In the US market, downloads reached 65,100, an increase of 940%.

Public information shows that the cross-border export B2B e-commerce platform DHgate was founded by Wang Shutong in 2004. It is a leading online trading service platform for cross-border e-commerce in China, with a cumulative registered buyer base of 77 million, over 33 million products, covering 225 countries and regions worldwide, providing more than 100 logistics routes and 14 overseas warehouses, with global business offices set up in North America, Latin America, Europe, and other locations.

DHgate has opened up channels between small and medium-sized manufacturing enterprises in China and small and medium-sized wholesalers in North America through its "small order fast return" model.

On April 11, DHgate sent an open letter titled "Tariff Protection Plan" to its merchants, stating that for merchants who do not increase prices (for non-free shipping items, freight increases will not exceed 20% or total freight increases will not exceed 20 yuan/kg), the platform will provide comprehensive and powerful traffic and rights tilts, as well as exclusive one-on-one logistics support assistance plans. DHgate also stated that "tariff barriers are both challenges and great opportunities for merchants to optimize supply chains, deepen brand value, and services."

According to reports from Caixin, many stalls in the Huaqiangbei market in Shenzhen have suspended quotations for popular chips such as CPUs and graphics cards, and several stalls have closed down. A stall owner revealed that "everyone is observing now, hoarding inventory, fearing that prices will skyrocket or plummet."

Original article: https://www.toutiao.com/article/7493715541870330403/

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