Abstract: Taobao Village is the phenomenon that Taobao sellers gather in some villages during the development of electronic commerce in rural areas. In recent years, Taobao villages have developed rapidly in rural areas, and some Taobao villages have become a new engine to drive the development of county economy. Taobao village has attracted much attention by causing changes in social economy and other aspects in rural areas. This paper takes cashmere Industry agglomeration area of Hebei Province as a case study. Using the methods of ArcGIS spatial analysis, this paper discusses the spatial and temporal development characteristics of “Taobao Village” based on the development of the local industry in the county and try to figure out the influencing factors. The results indicate that: (1) The cashmere industry is the leading industry in Qinghe County and Nangong City in Hebei province. Its development mainly experienced two periods: the traditional cashmere industry cluster period and the transformation and upgrading period from traditional cashmere industry to e-commerce industry. (2) The spatial and temporal diffusion process of “Taobao Village” in Qinghe County can be roughly divided into three stages: Initial Development, Rapid Development and Steady Development; centered with Donggaozhuang Village, “Taobao Village” spreads in a circular way to the periphery through progressive and saltatory model, and finally forms a kind of space distribution of “gathering in a small scale and dispersing in a large scale”. The spread of “Taobao Village” has a strong radiation effect on the adjacent Nangong City, showing the spatial characteristics, that is, the diffusion happens in the adjacent areas, or develops along the traffic axis of the two counties. And the diffusion intensity gradually decreases with the increase of distance. At present, the radiation range of “Taobao Village” is only related to the region in northeast Qinghe county and the region in southeast Nangong city, while the other regions of the two counties have not yet appeared “Taobao Village”. (3) Homo habilis effect, social network relations in this rural area, as well as strong industrial basis, traffic conditions and government support promote the vigorous development of e-commerce in the county.