Yiwu: Small Commodity, Large Market
Yiwu: Small Commodity, Large Market
Source: www.AmandaIEC.com Leading Yiwu Exporter and China Wholesaler.
Located in eastern China's Zhejiang province, the small town of Yiwu is believed to be the largest small commodity market in the world. The city currently offers over 400,000 kinds of commodities covering 43 industries.
Everyday, over 1,000 TEU containers of products are sent from Yiwu to around 200 countries and regions. In the first half of this year, the city saw over 800 million US dollars of trade volume.
From toothpicks to digital equipments, how does small commodity create huge profits?
Wandering around the markets in Yiwu, almost everybody will be astonished by the cheap prices.
You can buy 3 pairs of cotton socks for only 70 cents, which usually cost 10 Yuan in most cities in China. And 100 toothbrushes only cost 15 Yuan.
A businessman who has been making zippers for ten years in Yiwu believes that good business can be behind small margins.
"In Yiwu market, we pursue small profits but quick turnover. We produce different products according to customers' need, price is low but demand is huge."
At least 200,000 businessmen gather in Yiwu for business on small commodities, and their shops receive 200,000 visitors a day on average.
Small commodities create big market in Yiwu, Lou Zhongpin is one of the most successful businessmen there who has made considerable profits from small commodities.
"I only do business of drinking straws, it takes my whole life to deal with."
According to rough statistics, manufacturer can profit 8 milli-yuan , or one thousandth of one yuan, from a single piece of drinking straw, Lou's company exports nearly 8 tons products everyday, which are 15 million drinking straws. The small drinking straw creates a 400 thousand margin for the company monthly.
Now, Lou's company is the world's biggest drinking straw manufacturer, accounting for one quarter of the global market.
"The specialty of Yiwu's enterprises is small but comprehensive, there is no big company in Yiwu, only small and medium-sized enterprises. Although we are small, we strive to make it competitive, which helps us to gain big opportunities."
Lou Zhongping is not the only one who succeeds from the wee profits of small commodities. There are over 58,000 booths selling all kinds of small commodities in Yiwu, in 2006, the city's Gross Regional Product reached 35.2 billion Yuan, and its GDP per capital topped 6,300 US dollars.
Small commodities have created big business opportunities in Yiwu.