Despite the ongoing trade tensions between the US and China, Chinese e-commerce platform DHgate has defied the odds, climbing to the 2nd position on the US App Store.

Taiwan • Business • 04/15 20:49
Despite the ongoing trade tensions between the US and China, Chinese e-commerce platform DHgate has defied the odds, climbing to the 2nd position on the US App Store.

The Chinese cross-border e-commerce platform DHgate has risen to the second position in the free app rankings on the US App Store as of April 15, 2025, second only to ChatGPT, surpassing well-known apps such as Google. This phenomenon reflects a shift in consumer behavior in the context of US-China trade tensions and DHgate's growth in the US market. Driven by TikTok video promotions and the impact of high tariffs, DHgate has attracted American consumers with its low-priced products, in the process becoming China's largest B2B cross-border e-commerce platform.

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04/15 20:49

Despite the ongoing trade tensions between the US and China, Chinese e-commerce platform DHgate has defied the odds, climbing to the 2nd position on the US App Store.

The Chinese cross-border e-commerce platform DHgate has risen to the second position in the free app rankings on the US App Store as of April 15, 2025, second only to ChatGPT, surpassing well-known apps such as Google. This phenomenon reflects a shift in consumer behavior in the context of US-China trade tensions and DHgate's growth in the US market. Driven by TikTok video promotions and the impact of high tariffs, DHgate has attracted American consumers with its low-priced products, in the process becoming China's largest B2B cross-border e-commerce platform.

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From Rank 352 to Rank 2: A Download Surge

According to AppFigures statistics, DHgate was ranked 352nd on the US App Store's free app chart on April 11, but just four days later, the app skyrocketed to the 2nd position. It rose to 6th on April 13, further climbed to 3rd on the 14th, and finally peaked at 2nd on the 15th, just behind OpenAI's ChatGPT.

This surge in downloads is evident in the actual data. According to reports from TechCrunch and Evrimagaci, on April 12, DHgate's downloads on the global App Store and Google Play reached 35,400, with US users accounting for 17,300, a 98% increase compared to the average of the previous 30 days. The next day, the single-day download volume on the iOS platform skyrocketed to 117,500, with US users accounting for 65,100, a staggering 940% growth compared to the previous month's average.

DHgate's Market Positioning and Platform Strength

Founded in 2004, DHgate is one of China's earliest e-commerce platforms focused on small-scale B2B cross-border trade. Its primary service targets are small and micro enterprises, offering one-stop solutions ranging from store operations, traffic marketing, warehousing logistics, and payment finance to customer service and risk control. According to official data, DHgate currently covers 225 countries and regions worldwide, with 2.54 million registered suppliers and over 59.6 million registered buyers, with an annual average of over 34 million online products.

In the US market, DHgate has become the largest Chinese cross-border B2B e-commerce platform. The products sold on its platform cover multiple categories such as electronics, clothing, home goods, and accessories, with the selling point of "direct supply from source factories," attracting consumers seeking high cost-performance products.

Social Media Boost: TikTok as a Key Driver

DHgate's surge in popularity was no accident. After the Trump administration announced tariffs of up to 145% on Chinese goods, many Chinese suppliers and manufacturers began using social platforms like TikTok to shoot videos introducing their factories and products, highlighting that "European and American brands are actually made in China," and directing consumers to purchase "source goods" directly through platforms like DHgate.

These videos often use eye-catching titles like "Lululemon Factory Direct Sale" and "YSL Lookalike for Only $5," quickly gaining millions of views and shares on TikTok. According to Business Insider, these videos not only reveal the truth about the global luxury supply chain but also make American consumers rethink the gap between brand premiums and manufacturing costs.

Shift in Consumer Behavior: From Brand Loyalty to Price Sensitivity

Amid the dual pressures of economic stress and high tariffs, American consumers' sensitivity to prices has significantly increased. DHgate's product prices are often just a third or even less than those of Western brands. For example, a pair of men's sports pants priced at $128 on Lululemon's official website is only $32 on DHgate, with even lower prices for bulk purchases.

Additionally, DHgate's website design also caters to American consumers' usage habits. Its interface is similar to Amazon, paired with discount coupons and flash sales commonly seen on Shein and Temu, such as "up to 90% off for new users" and "$1.90 handbags," further stimulating downloads and conversion rates.

Facing Competition: DHgate's Struggle with Local US Platforms

Despite DHgate's remarkable short-term performance, it still faces fierce competition in the US market from platforms like Amazon, eBay, and Temu. Especially as Amazon has been actively promoting its "Amazon Haul" low-price product area in recent years, trying to retain price-sensitive consumers.

However, DHgate's advantage lies in its direct connection between Chinese manufacturers and overseas buyers, cutting out middlemen and brand markups, and offering flexibility in wholesale and small-scale procurement, which is highly attractive to individual sellers and small retailers.

References

People Also Ask...

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DHgate has gone viral in the US. What lessons can our local small businesses learn from this, and what effects might it have on them?

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DHgate has shot up to the 2nd spot on the US App Store. What does this mean for investing in Chinese e-commerce platforms?

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How did DHgate suddenly blow up on the US App Store, even beating out big names like Google?