Three Advantages of Yiwu Market in Difficulty

Source: www.AmandaIEC.com Leading Yiwu Exporter and China Wholesaler. 7th, July 2008

Since the beginning of this year, the trend of appreciation of commodities in Yiwu market has become very obvious because of the American Economy Weakness, and the increasing growth costs of the domestic labour force, means of production and means of subsistence. In the short run, Yiwu market has to bear the pressure of inflation, while in the long run, this is favourable for Yiwu market¡¯s structural adjustment,standing out the advantage of thelow-price competition and the standardization development.

The advantage of low price competition. In inflation when redients' income cannot increase promptly or the extent of the promotion is lower than the price of the goos, the real purchasing power of the consumer will decline, more people tend to buy those products which are cheaper. Yiwu should grasp this opportunity to make good use of its low-price advantage and enlarge the scale of the market.

Marketing information advantage. In inflation, the severe fluctuation of the price will bring difficuty to the manufactuer, wholesaler and retailer in making decision, signing contracts and performing the contract.

In this condition, the world influence of the Yiwu small commodities will continuously enlarge, Yiwu's position of worldly price forming center of small commodity will be enhenced, and the reliance on the Yiwu market of the manufactuers, wholesalers and purchasing agent will also enhenced.

Large-scale wholesale advantage. As the overall rising trend of the raw material prices and commodity prices, manufactuer will try their best to store the raw materials and delay to sell the already produced goods to gain from the appreciation. However, when the stocko f raw materials and finished reached a certain amount, manufactuers will be faced with financial constraints, had to use a large-scale sales of the platform, rapid, large quantities of goods will be clearing. Yiwu China Commodity City is one of the most important platform.

No matter manufactuers, wholesalers or puchasing agent will be more dependent on Yiwu small commodity city. This will provide a historical opportunity for the rapid development of Yiwu small commodity city.