The Trump Trade War has spread word-of-mouth in Tiktok, bringing Chinese e-commerce app Dhgate to the top of US app stores.
After Trump increased US tariffs on Chinese imports by 145%, many Chinese suppliers and manufacturers began making videos of Tiktok and explain to consumers how the global luxury market actually works. The clothing, handbags and other accessories that many people assumed were made in Europe are derived from factories in China, the video explains.
As a result of this trend, China's wholesale market app Dhgate has surged to become the third top free iPhone app in the US app store as of Monday morning.
For comparison, according to data from App Intelligence Provider Appgu, the app ranked 352nd in the non-game free iPhone app category, before jumping to 6th on Friday, April 11th, Friday, April 11th and Sunday, and 3rd on Monday. On Monday, Dhgate rose to third place across the top charts for free iPhone apps, including games.
The company told TechCrunch that on Saturday, April 12, the DHGATE app was downloaded 35,400 times across the App Store and Google Play, up 56% from the 30-day average. The US accounted for 17,300 of these installations, earning a 98% jump above the 30-day average.
On Sunday, April 13th, these installations increased to 117,500 on iOS, up 732% from the 30-day average. The US accounted for 65,100 of these downloads, up 940%. (The Android download data for Sundays is not available yet.)
Image credits: AppFigures
DHGATE is a cross-border e-commerce company that connects both businesses and consumers to suppliers and manufacturers in China and other markets. Today, we stock over 30 million products across categories, including electronics, home and toys, shoes and apparel, jewelry, health and beauty. The website states.
The demand for the app came from the Tiktok virus trend, where Chinese manufacturers began to reveal secrets to the American people. Following this trend, other online creators have begun to tell viewers that the DHGATE app is the source of purchasing luxury items before brands add labels to their products.
The reality is that it is difficult for consumers to tell which factories are original contracted by luxury brands, which factories are and which are making copies, also known as Dupet. However, online communities such as Reddit's R/Dhgate may provide help in that respect.
In the popular Tiktok video, the Chinese manufacturer claims that the majority of the world's luxury bags are made in China, but then the bags are sent to a factory with European brands, with labels added and the bags are repackaged. If you do that, the bag will look as if it was “made in Italy” or “made in France,” the video creators argue.
In another video, the same creator @senbags2 explains that a $38,000 Birkin bag is made for just $1,400, with consumers paying for the logo and flashy packaging. (The creator's Tiktok account has since been deleted, but there are still many stitches and re-uploads.)
Videos from other creators focus on gorgeous categories such as clothing and jewelry. Brands such as Hermès, Gucci, Louis Vuitton and Chanel were mentioned in the video, as were mid-range brands such as Lululemon, Tommy Hilfiger, Lacoste and Hugo Boss.
The point of the video is to highlight that even brands that the US thought consumers were producing high-end European products domestically, they rely on China rather than the US realize. Not all fast fashion and cheap electronics found at Shein and Tiktok shops.
Of course, this is not news for anyone who understands the global supply chain, but the video has led Tiktok users to find ways to buy directly from Chinese manufacturers, leading them to DHGATE and other apps connecting to the Chinese market. A similar app, Taobao, became the 10th overall iPhone app on Monday.
Image credit: dhgate on the app store
The use of DHGATE is not actually a solution to avoid Trump's tariffs, as China's imports into the US are currently affected by tariffs other than some exceptions in electronic devices. However, the backlash from the Chinese manufacturers who created these videos was caused by an increase in tariffs.
As one Tiktok commenter stopped, these trends were the result of the US claiming to hold all the cards in the trade war, with China responding, “We make all the cards.”