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As tensions over tariffs between Washington and Beijing escalate, American consumers are abandoning expensive domestic platforms for Chinese e-commerce apps that provide lookalike luxury at a fraction of the price. The rush has pushed apps such as DHgate, Taobao, and Shein to the top of US download lists — a retail revolution fueled by viral TikTok trends and bargain-hunting nervousness.
As per SensorTower, DHgate — also referred to as “the Little Yellow App” by enthusiasts — has reached the #2 position in Apple’s US App Store. Shanghai shares in CTS International Logistics Corp., which collaborates with DHgate, jumped the 10% daily limit on Wednesday as investors speculated in the app’s increasing overseas traction.
$28000 Birkins bag can be bought from China by the same factory at $1000 (sans logo)
Chinese suppliers have flooded American TikTok with cost breakdown of luxury products from Gucci, LV, Hermes & the 3000-5000% markups of brands pic.twitter.com/f8gIPEjeJQ
Advertisement · Scroll to continue— Ayoosh (@ayooshveda) April 14, 2025
TikTok Turns Factory Floors into Viral Showrooms
Chinese factories are turning to TikTok, sharing behind-the-scenes factory footage and asserting that several high-end European brands buy their products from the same factories now offering knockoff versions online. These viral videos point directly to Chinese sellers, providing consumers with a means of avoiding high markups and impending tariffs.
One of the popular videos instructs the audience, “You don’t have to play the Hermes game. Save your money — get your Birkins and Mini Kellys just in time for summer 2025,” encouraging designer knockoffs available on DHgate.
Luxury Lookalikes for Less
The bargains are incredible. A fake Louis Vuitton pochette wallet, which would cost $1,490, was selling for a mere $3.24 — more than 100 of them, based on app data. Lululemon yoga pants that cost $98 were being sold for $13, with sales of more than 10,000 pairs.
DHgate’s ‘Tariff Escort Plan’
Anticipating the impact of tariffs, DHgate launched a “Tariff Escort Plan” last week, promising increased traffic, subsidies, logistics solutions, and cost-saving incentives to help its 2.6 million registered suppliers stabilize prices and sales.
Founded in 2004 by Wang Shutong, nicknamed the “female Jack Ma”, DHgate has quietly built a global empire with over 30 million products, 100 logistics routes, and 10+ overseas warehouses serving 200+ countries.
With trade war tariffs looming and threatening to drive up US retail prices, Chinese apps are quickly becoming a lifeline to American discount hunters — and a possible headache for luxury brands and regulators. Whether the shopping spree goes the distance or gets shut down is yet to be determined. Until then, the Little Yellow App is winning.
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