Taobao, the popular Chinese e-commerce marketplace smartphone app, has recently hit a home run in the U.S. iOS App Store. It even made it all the way to No. 5 in the Top Overall category! This was no small feat for Taobao. For the first time since Appfigures began tracking data, on 01/01/17, it finally managed to break into the Top Overall charts. As of Saturday, the app has climbed as high as No. 49 in the Shopping category.
The impact on Taobao’s downloads has been staggering. In April, the app suddenly became a national phenomenon with over 185,000 downloads. That’s an amazing 514% increase from last month’s 30,000 downloads. The app had the kind of explosive growth you only see on weekends when everyone is home. Installs jumped 5.7 times between Friday and Saturday!
As of Thursday last week, Taobao was already in the top 200 on the U.S. App Store at No. 188. Over the weekend it crashed to No. 461 by Sunday. U.S. consumers are growing disillusioned with shopping apps that have gained a foothold like Shein and Temu. This sea change happens just as they are looking for the most affordable alternatives in the wake of skyrocketing prices. Taobao gives consumers the ability to purchase directly from Chinese manufacturers. It’s an opportunity to drive down costs, unlike expensive luxury brands which often charge astronomical markups.
The growing prominence of Taobao too is related to the power of social media, and more specifically TikTok. Many users have turned to videos showcasing how the luxury goods market operates out of China, driving consumer interest toward Taobao as a viable option for purchasing such goods at reduced prices.
The response to the app has been incredible. It has since risen to the No. 2 overall free iPhone app in the U.S., cementing its position as a powerhouse in an increasingly crowded space. This significant growth is indicative of a larger trend. Consumers are dramatically looking for new shopping options, particularly as inflationary pressures play a role on prices.
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