Abstract
The article studies the phenomenon of Taobao villages in China and its effect on sustainable development in rural area. A Taobao village is a locality (mostly a village) where more than 10% of households run an online shop, and rural e-commerce generates more than 10 million RMB per annum. The aim of the study lies in the analysis of the key factors that lead to emergence and further development of Taobao villages. Factor analysis is used to analyze the typical patterns of development of Taobao villages. The results have shown that state and municipal governments play a major role in the development of Taobao villages as recent economic incentive programs for the rural area have provided rural dwellers with telecommunication infrastructure with a free Internet connection, fiscal and direct financial stimuli. Moreover, large national corporations have stimulated e-commerce with the spread of logistics and other services. These factors have helped Taobao villages to shorten economic divide between rural and urban areas.
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Notes
- 1.
Online shopping in China to double by 2020: Goldman report. https://www.alizila.com/online-shopping-in-china-to-double-by-2020-goldman-report/ (update by 22 September 2020).
- 2.
McKinsey Global Institute. China’s e-tail revolution: Online shopping as a catalyst for growth. https://www.mckinsey.com/~/media/McKinsey/Featured%20Insights/Asia%20Pacific/China%20e%20tailing/MGI_China_e%20tailing_Full_report_March_2013.ashx (update by 22 September 2020).
- 3.
Business Dictionary. http://www.businessdictionary.com/definition/transaction-value.html#:~:text=Customs%20value%20of%20an%20imported,the%20time%20it%20was%20exported.&text=General%3A%20Appraising%20or%20estimating%20the,or%20monetary%20value.%20… (update by 20 September 2020).
- 4.
AliResearch. In China’s Taobao villages, e-commerce is one way to bring new jobs and business opportunities to rural areas. http://www.aliresearch.com/en/Opinions/Opinionsdetails?articleCode=21626 (update by 20 September 2020).
- 5.
Alibaba Group Social Responsibility Report. (2017/2018). http://csr.alibaba.com/Uploads/file/20181120/5bf385982121c.pdf (20 September 2020).
- 6.
Fan, L., & Friedrich Ebert Stiftung. (2019). Taobao villages. The emergence of a new pattern of rural ecommerce in China and its social implications.
- 7.
Jiaqi, Qi, Zheng, X., Guo, H. (2018). The formation of Taobao villages in China. Chieco.
- 8.
Lee, D., & Mueller, J. (2017). Junpu “Taobao” Village – A validation of Porter’s Diamond Model? Journal of Asian Entrepreneurship and Sustainability, XIII, 51–72.
- 9.
Wang, Q. X. (2018). Study on the development of rural e-commerce against the backdrop of rural revitalization. Open Journal of Social Sciences, 6, 1–7.
- 10.
Liting, W., & Zhang, H. (2019). IOP Conference Series: Materials Science and Engineering, 688, 055089. Study on the Operating Mechanism of Taobao Village Ecosystem from the Perspective of Information Management.
- 11.
Alibaba Group Website. https://www.alizila.com/taobao-villages-driving-inclusive-growth-rural-china/ (19 September 2020).
- 12.
Wu, W., et al. (2020, January). ICT empowers the formation of rural e-commerce.
- 13.
Taobao Website. https://world.taobao.com (20 September 2020).
- 14.
Adapted from Yang, F. (2017). Evolution of ecommerce players’ strategy – The cases of Alibaba and JD.com (p. 37). Master’s thesis. Jilin University.
- 15.
Lee, D., & Mueller, J. (2017). Junpu “Taobao” Village – A validation of Porter’s Diamond Model? Journal of Asian Entrepreneurship and Sustainability, XIII, 51–72.
- 16.
Ali Research. (2019). China Taobao village research report. Ali Research.
- 17.
AliResearch. E-commerce for poverty alleviation in rural China: From grassroots development to public-private partnerships. http://www.aliresearch.com/en/Opinions/Opinionsdetails?articleCode=21763 (18 September 2020).
- 18.
AliResearch. E-commerce for poverty alleviation in rural China: From grassroots development to public-private partnerships. http://www.aliresearch.com/en/Opinions/Opinionsdetails?articleCode=21763 (18 September 2020).
- 19.
Wang, L., & Zhang, H. (2019). IOP Conference Series: Materials Science and Engineering, 688, 055089. Study on the operating mechanism of Taobao village ecosystem from the perspective of information management.
- 20.
Lee, D., & Mueller, J. (2017). Junpu “Taobao” village – A validation of Porter’s Diamond Model? Journal of Asian Entrepreneurship and Sustainability, XIII, 51–72.
- 21.
Porter, M. E. (1998). The competitive advantage of nations: With a new introduction. Free Press. Print.
- 22.
In China’s Taobao villages, e-commerce is one way to bring new jobs and business opportunities to rural areas. http://www.aliresearch.com/en/Opinions/Opinionsdetails?articleCode=21626 (18 September 2020).
- 23.
The 13th five-year plan for economic and social development of the People’s Republic of China. (2016–2020). https://en.ndrc.gov.cn/policyrelease_8233/201612/P020191101482242850325.pdf (20 September 2020).
- 24.
Fallah, M., Wesley, P., Howe, J., Ibrahim, S., & Howe, W. (2004). Knowledge spillover and innovation in technological clusters. Proceedings of the IAMOT Conference.
- 25.
AliResearch. E-commerce for poverty alleviation in rural China: from grassroots development to public-private partnerships. http://www.aliresearch.com/en/Opinions/Opinionsdetails?articleCode=21763 (18 September 2020).
- 26.
AliResearch. E-commerce for poverty alleviation in rural China: from grassroots development to public-private partnerships. http://www.aliresearch.com/en/Opinions/Opinionsdetails?articleCode=21763 (18 September 2020).
References
Adapted from, Fei. (2017). Evolution of ecommerce players’ strategy – The cases of Alibaba and JD.com (p. 37). Master’s thesis. Jilin University.
Alibaba Group Social Responsibility Report 2017/2018. http://csr.alibaba.com/Uploads/file/20181120/5bf385982121c.pdf. 20 September 2020.
Alibaba Group Website. https://www.alizila.com/taobao-villages-driving-inclusive-growth-rural-china/. 19 September 2020.
AliResearch. In China’s Taobao villages, e-commerce is one way to bring new jobs and business opportunities to rural areas. http://www.aliresearch.com/en/Opinions/Opinionsdetails?articleCode=21626. Update by 20 September 2020.
AliResearch. E-commerce for poverty alleviation in rural China: From grassroots development to public-private partnerships. http://www.aliresearch.com/en/Opinions/Opinionsdetails?articleCode=21763. 18 September 2020.
Ali Research. (2019). China taobao village research report. Ali Research. Business Dictionary. http://www.businessdictionary.com/definition/transaction-value.html#:~:text=Customs%20value%20of%20an%20imported,the%20time%20it%20was%20exported.&text=General%3A%20Appraising%20or%20estimating%20the,or%20monetary%20value.%20…. Update by 20 September 2020.
Fan, Lulu & Friedrich Ebert Stiftung. (2019). Taobao villages. The emergence of a new pattern of rural ecommerce in china and its social implications.
Fallah, M., Wesley, P., Howe, J., & Ibrahim, S., & Howe, W. (2004). Knowledge spillover and innovation in technological clusters. Proceedings of the IAMOT Conference.
In China’s Taobao villages, e-commerce is one way to bring new jobs and business opportunities to rural areas. http://www.aliresearch.com/en/Opinions/Opinionsdetails?articleCode=21626. 18 September 2020.
Jiaqi, Q., Xiaoyong, Z., & Hongdong, G. (2018). The formation of Taobao villages in China. Chieco.
Lee, D., & Mueller, J. (2017). Junpu “Taobao” village – A validation of Porter’s Diamond Model? Journal of Asian Entrepreneurship and Sustainability, XIII, 51–72.
Liting, W., & Hao, Z. (2019). IOP Conference Series: Materials Science and Engineering, 688, 055089. Study on the operating mechanism of Taobao village ecosystem from the perspective of information management.
McKinsey Global Institute. China’s e-tail revolution: Online shopping as a catalyst for growth. https://www.mckinsey.com/~/media/McKinsey/Featured%20Insights/Asia%20Pacific/China%20e%20tailing/MGI_China_e%20tailing_Full_report_March_2013.ashx. Update by 22 September 2020.
Online shopping in China to double by 2020: Goldman report. https://www.alizila.com/online-shopping-in-china-to-double-by-2020-goldman-report/. Update by 22 September 2020.
Porter, M. E. (1998). The competitive advantage of nations: With a new introduction. Free Press. Print.
Taobao Website. https://world.taobao.com. 20 September 2020.
The 13th five-year plan for economic and social development of the People’s Republic of China. (2016–2020). https://en.ndrc.gov.cn/policyrelease_8233/201612/P020191101482242850325.pdf. 20 September 2020.
Wang, Q. X. (2018). Study on the development of rural e-commerce against the backdrop of rural revitalization. Open Journal of Social Sciences, 6, 1–7.
Wu, W., et al. (2020, January). ICT empowers the formation of rural e-commerce.
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Zavyalova, E.B., Krykanov, D.D., Patrunina, K.A. (2021). Impact of the Phenomenon of Taobao Villages on Local Sustainable Development. In: Zavyalova, E.B., Popkova, E.G. (eds) Industry 4.0 . Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-75405-1_8
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