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Starting from the important role of "Taobao village" in the economic development,the thesis analysed the subjective and objective reasons and promoting group and draw the general process of urbanization.It discussed the different characteristics of "Taobao village" in different economic areas and roles played in urbanizing.It also propounded some constructive suggestion to activate the industry,including strengthening industry supervision,adjusting development patterns,and emphasizing innovation.The paper consists of literature analysis,case analysis and comparative analysis to complement the demonstration.