'Taobao' villages spur growth

With the rapid adoption of the internet and the rising income of rural residents, e-commerce is no longer something exclusive to city dwellers. Villages in Zhejiang province, the hometown of e-commerce giant Alibaba Group Holding Ltd, are riding the e-tide to achieve stellar growth.

Currently, the southeastern province has more than 280 "Taobao" villages, the largest number in China, each of which handles at least 10 million yuan ($1.5 million) worth of e-commerce transactions every year, according to Aliresearch, Alibaba's research institute.

"What's special about the trend is that it is a natural development, rather than something organized by the government," said Sheng Zhenzhong, an analyst at Aliresearch. "When villagers realize the convenience of e-commerce, they spontaneously form into village-based online business clusters."