Caoxian County, a once-quiet town in east China’s Shandong Province, is experiencing a cultural renaissance driven by the resurgence of Hanfu – traditional Han Chinese attire – and the rise of e-commerce. At the third Caoxian County Hanfu Culture Festival, held recently, 160 companies and 320 brands unveiled over 600 spring and summer designs, showcasing the county’s flourishing industry.
In 2021, a local vlogger known as Dashuo on Douyin propelled Caoxian County into the spotlight with a viral video that amassed 770 million views. While the county didn’t become a travel hotspot like nearby Zibo, it has emerged as the country’s largest production hub for performance costumes and Hanfu, as well as a major rural e-commerce center.
Caoxian County’s transformation began with a shift from traditional labor export to embracing e-commerce and digital marketing. Villages that once encouraged residents to seek work elsewhere now promote starting online businesses at home. Slogans painted on village walls read, “Instead of wandering far and wide, come home and open a shop on Taobao.”
The county’s e-commerce boom has led to significant economic growth. According to the 2022 Caoxian County E-Commerce Development Report, the popularity of the mamianqun (horse-face skirt) spurred the creation of 12,000 new online stores and 50,000 direct employment opportunities, with 60 percent of new workers being returning rural youth. Over the past decade, Caoxian County’s GDP has soared from 12.2 billion yuan (about $1.7 billion) to 46.4 billion yuan (about $6.4 billion).
“Walk through Caoxian County today, and you’ll see two dominant storefronts: Hanfu shops and live-streaming equipment vendors,” said Professor Dong Chenyu, associate professor at the School of Journalism and Communication at Renmin University of China. “The county has completely rebranded itself around these twin industries.”
The integration of traditional manufacturing with digital marketing has modernized the local economy. Factories that once operated behind storefronts now exist alongside live-streaming studios, where hosts showcase the latest Hanfu designs to a wide online audience. This model has turned a niche clothing trend into a sustainable local industry.
At the county’s digital economy industrial park, known as “E-Shang Town,” Liu Xia, deputy director of Caoxian County’s E-Commerce Service Center, explained that their model centers around farmer entrepreneurship, supported by e-commerce and government policies. This systematic approach has organized rural labor forces for enterprise-level operations, fostering economic revitalization.
Caoxian County’s adaptability is rooted in its history. Previously renowned for its woodcraft, specifically coffin-making, the county has repurposed its craftsmanship toward furniture, fashion, and live-stream studio sets. The rise of Hanfu fashion among young people across China has further fueled the industry’s growth. In 2023, annual Hanfu sales in the county surpassed 7.2 billion yuan (about $990 million), and the viral popularity of the mamianqun propelled total annual revenue to 12 billion yuan (about $1.66 billion).
“Orders came in like whips, pushing us to ramp up production,” recalled Yao Chixing, general manager of one of the largest Hanfu manufacturers in Caoxian County. “At its peak before the Chinese New Year, our daily online sales hit six figures. We planned to stock up for the holiday, but our fabric ran out before Chinese New Year’s Eve.”
To meet the massive demand, Yao’s company implemented China’s first dedicated digital assembly line for traditional garments, nearly doubling production output while adapting to design variations. Designers are also innovating by incorporating elements like peony fragrance into the garments, enhancing their appeal.
Caoxian County’s success story illustrates how rural regions can reinvent themselves through smart adaptation, merging tradition with modern technology. The county’s model demonstrates the potential for economic revitalization by aligning local culture with e-commerce and digital platforms.
