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The Evolution of Chinese Manufacturers’ Strategies in the Digital Marketplace

DHGate recently communicated to MIT Technology Review that increased attention from social media platforms has led to a notable rise in transactions across various categories. Notably, home goods, electronics, outdoor equipment, and pet supplies have experienced significant demand. During the week of April 12 to 19, sales in home appliances surged by 962%, while security technology saw a remarkable increase of 601%.

This trend underscores that TikTok is far more than a mere platform for self-promotion; it has transformed into a crucial survival tactic for manufacturers navigating a crowded marketplace.

Historically, Chinese factories have exported goods to global markets. However, a slowdown in domestic economic growth over the past decade prompted many manufacturers to seek connections with international buyers through prominent B2B platforms like Alibaba. Yet, as time progressed, achieving visibility for these manufacturers on these established platforms became increasingly cost-prohibitive.

According to Logan Wang, an e-commerce consultant at Shendeng Consulting, the digital landscape for manufacturers has become saturated. “It could cost anywhere from 30,000 to 40,000 RMB [approximately $210,000 to $290,000] annually just to ensure your factory appears on the first page of search results,” he explains.

Compounding these challenges, traditional manufacturing sectors have faced issues of oversupply coupled with stagnation post-COVID-19. In 2024, China’s apparel exports to the United States saw a growth of under 1%, while the average unit price for these products fell by 7.6%. This data highlights intensifying competition and dwindling profit margins.

The introduction of new tariffs further complicates the situation, driving Chinese manufacturers to seek innovative solutions for reaching buyers. Linda Luo, a manager at an apparel factory in Guangzhou, notes that recent sanctions led her factory to halt shipments to the U.S., which had previously constituted about 30% of their revenue. As a result, storage rooms are becoming increasingly cluttered with unsold products.

“Many neighboring factories share our predicament,” Luo states. “We are all waiting to see how these tariffs will evolve, hoping for a resolution.” Inspired by the achievements of peers who have gained viral success, her team is now actively pursuing relationships with TikTok influencers in an effort to establish direct connections with new customers.

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