Why is the fate of Yiwu's small commodity market getting bigger and bigger with the trend of "buying globally and selling globally" - and let's go to Yiwu to see the legend

Where is the world's largest small commodity market? I'm afraid everyone knows: Yiwu.

But do you know how Yiwu "grew up"?

Due to poor resource endowment, this small county in central Zhejiang province used to be labeled as impoverished for a long time, as the saying goes, 'Seven mountains, two waters, one piece of land, many people, little land, and lack of food and money.'. In order to make a living, farmers who cannot eat enough carry goods on their shoulders and walk through the countryside with hand cranked drums. When people say 'chicken feathers for sugar', they will think of Yiwu.

After the reform and opening up, with the improvement of national policies, Yiwu people exchanged "chicken feathers for sugar" for "China's Small Commodity Capital" and "World Supermarket". For over 40 years, the international market has been turbulent, and Yiwu has stood firm in the face of repeated shocks. Nowadays, Yiwu has established trade relations with more than 230 countries and regions, truly achieving the goal of "buying globally and selling globally".

How was the 'Yiwu Legend' created? In early winter, our research team visited Yiwu.

Forge ahead and always innovate

This is a huge shopping mall that can never be fully explored: over 75000 spaces and more than 2.1 million products. If each shop stays for 3 minutes, strolls for 8 hours a day, and visits the entire Yiwu International Trade City for more than 1 year and 3 months!

At this moment, the hallway is bustling with people of all colors and languages; The store is full of goods, and merchants bargain with customers while skillfully accepting orders and packaging them; The "walking broadcasters" shuttling back and forth with their phones, excitedly and loudly carrying goods

The answers you are looking for are all in this vibrant big market. Fundamentally, it is a product of institutional innovation, "said Gong Chenghao, Deputy General Manager of Zhejiang China Small Commodity City Group, opening his memories with great emotion.

One day in 1982, a farmer named He Haimei who was selling on a street stall had all her goods confiscated by the "crackdown on speculation and profiteering in the office". She was both angry and frustrated, and went to the then secretary of the Yiwu County Committee, Xie Gaohua, to "seek an explanation": "The people are living a tight life, setting up stalls in the wind and rain to earn hard-earned money, why can't it be done

Xie Gaohua conducted research in five districts and two towns throughout the county and found that there were tens of thousands of people selling small department stores on street stalls. He organized a major discussion throughout the county on whether the market should be fully opened up or completely closed.

Consensus gradually formed, and the first generation of small commodity market in Yiwu - Huqingmen Market was born.

The reason why we dare to take the lead is because we believe that revitalizing the market is not only in line with the central government's spirit but also in line with public opinion, which is the rightful duty of reform and opening up, "said Gong Chenghao.

As soon as the market opens, people's vitality bursts out like a gate has been opened.

With a good starting point, who is afraid of suffering? "Said the old merchant Lou Nanliu. At that time, he set up a cloth stall and the market was 17 kilometers away from home. He left early and returned late every day, pedaling his tricycle back and forth, and it took him about three hours just to travel on the road. Go to purchase goods, tie the money around your waist, and don't even dare to sleep at night. In order to save shipping costs, carry as much cargo as you can on your shoulders

The hardworking Yiwu people have made use of the spirit of Zhejiang merchants to "travel all over the mountains and rivers, speak a thousand words, do everything possible, and eat all the hardships", "work as a boss in the daytime, sleep on the floor at night", and have accumulated "the first bucket of gold" in small profits and quick turnover.

In the process of dealing with the market, Yiwu people have honed their keen business acumen. What products should be sold and where should they be sold? They have a clean family background.

In 2002, the euro officially became the legal tender of most EU member states. Europeans who received the new coins found that their original wallets were no longer suitable due to the different sizes of the coins. At the same time, they discovered that suitable wallets had already emerged - shrewd Yiwu people had already sensed the business opportunity.

In the 2008 international financial crisis, some commercial banks in Europe and America were in trouble, and depositors were more worried about keeping their money in the bank. On the Yiwu market, a new type of household safe was immediately launched, and orders from Europe and America were scheduled until the end of the year.

In the winter of 2022, countries such as Germany experienced an energy crisis. When residents are worried about not being able to afford natural gas, household electric heaters, heat pumps, electric blankets, etc. from Yiwu are already waiting for them at their doorstep

After walking around the Yiwu market, the research team saw more creative products: AI dolls that can accurately recognize emotions and cry and laugh with their owners; A baseball cap embedded with an LED screen, the pattern on the screen can be freely set with a mobile phone, showcasing individuality; A children's umbrella that changes color and displays cartoon patterns when exposed to rain, opening up a "fairy tale starry sky" for children

Not only do Yiwu people pursue innovation, but they also personally create brands - because they understand that only with a brand can there be a market and an increase in added value.

In Zone 1 of Yiwu International Trade City, the research team met Lv Xulian, who worked for his son Zeng Hao. I really can't guess what these post-90s are thinking. They refuse to take on their family's business, insist on making 3D printed toys, and have to spend money to register a brand! Unexpectedly, it has become so popular across half of the earth! ”She happily complained.

In 2023, Zeng Hao posted his 3D printed toys online and they were sold out within a few days. He immediately registered the brand and strictly demanded product design and quality standards. The brand advantage quickly became prominent: exquisite conception, excellent production, high recognition, and increasingly good reputation. Now, it produces more than 10 million toys annually, and its export value increased sevenfold last year.

The change in the market is not only about products, but also about business formats.

During the visit, the research team heard good news: on December 3rd, the 100 millionth cross-border e-commerce import was born in Yiwu, making Yiwu the city with the largest volume of bonded imports for cross-border e-commerce online shopping in China.

The reason why we were able to create this' most 'character is because when the online shopping trend first emerged, Yiwu boarded the e-commerce' express train 'early on, "sighed Wu Bocheng, former Party Secretary and President of Shangcheng Group.

At that time, Yiwu was also shaken by the statement that the physical market was not working, and the vacancy rate of shops was as high as 9%.

The Municipal Party Committee and Government promptly assessed and invited a team of experts from the Chinese Academy of Engineering to diagnose and prescribe the disease. The conclusion is to embrace the Internet and build a world-class commodity information and knowledge center relying on online transactions.

There are also opposing voices. In order to unify our understanding, the Municipal Party Committee and Government have decisively issued the "Yiwu Nine Questions": If we don't transform, will we become frogs in warm water? Where is the new cheese? How can Yiwu attract the world's attention

Everyone's hearts gradually brighten up. Soon, e-commerce training courses sprouted up like mushrooms after rain, villages and communities prospered by connecting to the internet, and "local bosses" started "foreign businesses" that connected the world

In recent years, some countries have implemented "small courtyards with high walls" and built tariff barriers. How should Yiwu respond?

In recent years, I have tried my best to expand my export countries, and my business has reached dozens of countries such as Russia, Mexico, and Egypt. The more export countries I have, the less likely I am to be constrained by one or two countries, "said Sun Lijuan, the owner of Hongsheng Toy Store, with full confidence.

According to the data, in 2024, Yiwu's import and export volume to the countries jointly building the "the Belt and Road" accounted for more than 60% of the total import and export value. Latin America, Africa, Southeast Asia and other emerging markets are becoming an important support for Yiwu's small commodity exports to the sea.

Yiwu merchants who are good at forming groups have also created a new model of collective sea going. In September 2023, Yiwu proposed the "Brand Going Global" plan, placing Yiwu's good brands and products at the doorstep of foreign customers, allowing them to have "one-stop contact and be attracted at a glance". Currently, over one million products have been launched in 35 countries and regions.

In Yiwu, only what you can't think of, there's nothing you can't buy. From 'following the trend' to 'leading the market', from physical markets to e-commerce, from being spread throughout China to reaching the world, Yiwu relies on the wisdom of adapting to changing circumstances and 'turning stones into gold'. It is this deep-rooted spirit that makes Yiwu stand out in the fierce market competition, "said Gong Chenghao.

A promise is worth a thousand gold, and loyalty and righteousness will govern the world

The business is getting bigger and bigger, how can we keep doing it for longer? The answer in Yiwu is: Only with integrity can we achieve long-term success.

Arriving at the main entrance of the market in Zone 1 of Yiwu International Trade City, a row of huge red letters stood on the lintel, dazzling and eye-catching - 'Integrity and credit are priceless'.

The title that Yiwu merchants value the most is' Yishang '. This' Yi' character is not only the meaning of Yiwu, but also the meaning of trustworthiness, "Xu Yinghong, director of the City Situation Research Center of the Yiwu Municipal Party School, told the research team." The word 'Yi' comes first, with both righteousness and benefit, and righteousness comes first. "Emphasizing honest management and contractual spirit has become the unwavering belief of Yiwu merchants.

This land has a rich 'integrity gene'.

Opening the "Yiwu County Annals" during the Jiaqing period, it is recorded that "there are many pure and upright scholars in Wugu, who love and respect, abide by etiquette and law, solemnly promise, and carefully choose from others. They are naturally absorbed in the pot, and their size does not exceed"; During the Ming and Qing dynasties, the "Yiwu Guildhalls" spread throughout Zhejiang, Jiangxi, Fujian, and other regions, earning the reputation of "keeping promises with gold" for their "genuine goods and repaying overdue payments"; For a long time, Yiwu merchants have admired two historical figures, one is Fan Li, who "profited from righteousness", and the other is Guan Gong, who "generated wealth with righteousness"

However, during the initial period of small commodity trading, the market order also fell into chaos. Some illegal elements took advantage of the mechanism to sell counterfeit goods, engage in piracy and infringement, and smuggle goods, causing serious damage to the image of Yiwu goods and Yiwu people. "When talking about the situation at that time, Chen Rulin, who used to be the director of the Industrial and Commercial Bureau of China Small Commodity City, still felt heartbroken:" By the end of the 1990s, many local enterprises would rather mark a rare place name than the word 'Yiwu' when registering and trading

We must not allow chaos to spread! The municipal party committee and government acted quickly, and a thunderous "integrity defense war" was launched comprehensively.

On the morning of December 19, 2000, at the Welcome Square of Binwang Market in China Small Commodity City, Yiwu held its first "Anti Counterfeiting Special Struggle Judgment and Handling Conference" in public.

"Five criminals who made and sold counterfeit goods were sentenced to two to four years and six months of imprisonment, with a fine of 5000 to 10000 yuan. Another nine suspect were arrested and detained according to law.

The next day, the People's Daily published a report titled "Whoever smashes the market brand, smashes their rice bowl - Yiwu punishes counterfeiters and sellers severely".

What shocked old merchant Chen Abo deeply was the "credit rating and listing operation" system.

One day in the year 2000, every stall displayed red, yellow, and white cards in unison: a red card is a benchmark for trustworthiness and encourages business; A yellow card will be issued as a warning, and rectification will be required within a specified period of time; White card seriously violates regulations, suspension of business for rectification.

A neighbor sold counterfeit shampoo, got a white label, and their business space was taken back. The whole family was crying and moving the goods, which made everyone nervous, "sighed Chen Abo.

A complete set of mechanisms has gradually been established to defend the integrity of the market, including "hitting on the surface, preventing from being released, managing from entering the market, and controlling from being immature". These measures have continued to this day——

First to release the first national market credit index;

Take the lead in achieving interconnectivity of credit information among government departments regarding market entities;

Take the lead in launching the Yiwu Purchase Integrity Trading Guarantee System;

Take the lead in building "trustworthy merchants" and release standards for creating "honest merchants";

Take the lead in designating January 9th of each year as "Integrity Day", symbolizing the saying "one word, nine tripods"

Through persistent efforts, Yiwu has finally returned to glory - Yiwu International Trade City has been awarded the titles of "Quality and Credit", "Contract and Credit", and "National Market Credit Classification Supervision Demonstration Market".

Today, when entering Yiwu markets of all sizes, credit inquiry screens are prominently located, and customers can scan the code to check their credit scores; Red list merchants enjoy priority exhibition rights, while black list merchants face difficulties in renewing their leases; The 'credit model' enjoys preferential treatment in various aspects such as livelihood services, financing and borrowing. The concept of honest management has deeply rooted in the hearts of merchants.

With the beep of her phone, Fu Qiaoying, who runs a small jewelry business, was startled by the amount of money received, saying, "How did the promised 59000 yuan payment get to over 130000 yuan. After quick verification, she immediately dialed the phone number of the client Mr. Liu.

Look at me! I'm lucky to have met a conscientious merchant, otherwise I would have suffered a huge loss, "Mr. Liu repeatedly thanked. Just hung up the phone, the overpaid payment of over 70000 yuan was returned to the original payment method.

He Haimei's scarf business is thriving. Once, she signed a large order with an overseas client, but unexpectedly, the supplier encountered an unexpected situation and suddenly fell out of control. In order to not break her promise to others, she invested in finding workers, renting factories, and hiring technical guidance herself. After three days and three nights of continuous rotation, we finally delivered on time with almost zero profit, but we managed to maintain our reputation

Today, 'Love and Righteousness, World Yiwu' has become the cultural brand logo of this city. Trustworthy people benefit everywhere, while untrustworthy people face difficulties step by step. The concept of 'Integrity and Righteousness in the World' has made Yiwu take bigger and more solid steps! "Said Yang Zhiwen, deputy researcher of the Economics Research Department of the Zhejiang Provincial Party School.

Supported by the government, gather businesses to promote various industries

The prosperity of the market cannot be separated from the support of the government.

Today, it is common for people in various commercial markets to classify goods by type, and few people know that this standard first emerged in Yiwu.

One day in 1992, a pair of grandparents and grandchildren from Harbin came all the way to Yiwu to purchase goods. They found that the same goods had a large price difference at different stalls. The old lady requested a return, but was refused.

Disorderly operation, how can the market last?! "He Zhangxing, who was then the director of the Industrial and Commercial Management Department of Yiwu Small Commodity Market, quickly rushed to the scene upon learning of this and ordered the stall owner to refund and apologize.

This dispute gave him an idea - to allocate funds to the market and allow similar products to be sold in the same area, making it easier for merchants to compare prices from three different sources.

Quickly, the municipal government adopted his suggestion and reorganized tens of thousands of shops into 8 major trading areas and 16 product categories, which were clear and easy to understand. Buyers no longer need to search around when purchasing goods, and the prices of the products are also consistent. The market has become standardized, and there are more and more customers. In 1994, the transaction volume of small commodities in Yiwu doubled compared to the previous year, surpassing the billion mark in one fell swoop.

The reason why Yiwu's market is full of vitality lies in the government's decisive action to regulate and guide once problems are discovered. "Gong Changfu, the full-time vice chairman of Yiwu Social Science Federation, recounted one by one: In the early years, the transportation market prices fluctuated frequently, and the government immediately took strong measures to rectify and stabilize logistics prices; After the market expanded, disputes increased, and the government established a "mediation committee" to invite chambers of commerce, businesses, and shopping malls to jointly evaluate and resolve them

Yiwu understands that policies should always revolve around the needs of merchants.

"Yiwu has the only government department in the country, the Market Development Committee, which is dedicated to coordinating e-commerce, ports, logistics and other issues related to the market. It is an indispensable 'waiter' for merchants." Lu Jing, a professor from the School of Economics of Zhejiang University, told the research team a story of "roast about the birth of policies".

The overseas small batch orders have surged, and Yiwu merchants have come up with a clever trick - "consolidation" to go abroad, with one container carrying hundreds of goods from 20-30 merchants. A new problem has arisen: Customs inspection of goods requires repeated unpacking, resulting in "one ticket inspection and full container detention".

Doing so, the shipping efficiency is too low! Some enterprises find the Market Development Committee to "roast". A few days later, the Market Development Commission, Customs, and Land Port Group established a working team to study and launched the "inspection before shipment" model - parallel operation of "inspection" and "release" to avoid duplicate unloading.

The effect was immediately evident: logistics efficiency increased by 26%, costs decreased by about 10%, and the time for sea freight to the United States was shortened by more than ten days.

 

Why can the policy linkage be so smooth? It's all thanks to the 'market procurement and trade mode' tailored by the country for Yiwu, "said Liu Junxia, Deputy Director of the Yiwu Market Development Commission, detailing the benefits of this policy: if the customs clearance is too slow, the declared export goods will be released 24 hours a day; If it is difficult to export pre packaged food, it is allowed to handle procedures at the place of purchase; The export process of cosmetics is complex, so the declaration and inspection will be completed in Yiwu... At present, this model has been replicated and promoted to 39 cities nationwide.

Not only does it involve policy innovation that affects the overall situation, but it also provides comprehensive and attentive services throughout the entire process.

Unexpectedly, just click on your phone and the staff will come to your doorstep to relieve your worries! "Said Wei Juanjuan, a merchant born in the 1990s, joyfully.

Not long ago, she reached a contract with a foreign company to import a batch of shampoo and shower gel. The intermediary company that can handle this matter has not yet completed the import filing. She had to try to seek help on the "Yima Tong" platform. The next day, the Market Development Commission and the Commerce Bureau arranged manpower to teach her how to prepare materials.

This time, I successfully registered 4 new products and saved a lot of intermediary fees! "Wei Juanjuan's face was full of emotion.

There are many policies that benefit enterprises in Yiwu, but merchants are busy doing business and don't have the time to study them. We have integrated all policies into 'Yimatong', which includes' enterprise ordering, government acceptance, and on-site service '. Ma Wenchao, Deputy Director of Yiwu Enterprise Comprehensive Service Center, said that since the beginning of this year, the satisfaction rate of solving problems with' Yimatong 'has reached 99.6%.

Protecting merchants is naturally an essential part of government services.

At the Yiwu Intellectual Property Rights Protection Service Center, the research team met Zhou Jianpeng, a merchant who came to apply for a design patent and register a trademark.

A few years ago, I suffered a big loss! "Zhou Jianpeng said. He once spent several months designing a new sunshade hat, but it didn't sell for long. Others not only plagiarized but also registered patents ahead of time, which put him at risk of infringement

In order to solve such problems, the municipal government quickly established an office for intellectual property rights protection services in the small commodity city. Merchants affectionately call it the "Intellectual Property Convenience Store" -34 intellectual property services including patent application, trademark registration, copyright registration, and overseas rights protection can be accepted in one stop.

Previously, registering patents and trademarks required waiting for over a year. Now, it can be done on the same day, which is very convenient, "Zhou Jianpeng said with a smile on his face.

At present, Yiwu City has 230000 valid trademarks, ranking first among county-level cities in China.

The successive governments have adhered to the concept of 'promoting commerce and building cities', not only providing services, but also requiring' leading 'half a step - there is nothing that merchants cannot think of, and there is nothing that the government cannot provide! "Said Jin Hangang, Vice Chairman of Jinhua Federation of Industry and Commerce.

Facing the Future, Open up Xintiandi

Through observation, listening, and recording, the research team not only gained a profound understanding of Yiwu's glorious past and vibrant present, but also traced the path of tomorrow through experts and scholars.

Upgrade! Cultivate new talents who are in line with international standards

People are the most important element in development. Market and industrial upgrading cannot be separated from human "upgrading". In the research, many experts and merchants have the same understanding: it is not the competition of "goods" that determines the future of Yiwu, but the competition of "people".

The first generation of Yiwu merchants were mainly farmers with lower education levels, who were down-to-earth, hardworking, and integrity-based, but also had obvious shortcomings in their abilities. As global trade transitions from 'experience competition' to 'professional competition', business entities must inevitably enter the 'ability based' era from the 'experience based' era, "said Ma Guang, Dean of Yiwu Vocational and Technical College of Commerce.

In response to market development, future Yiwu merchants must possess the following qualities: cross-cultural and international communication skills, digital and AI awareness, innovation and intellectual property awareness. At the same time, high-tech products such as photovoltaics, new energy vehicles, energy storage, and intelligent hardware are also entering the Yiwu market, calling for engineers, industrial design talents, and industrial operation talents. ”Analysis by Wang Jing, Dean of Fudan University Yiwu Research Institute.

How to cultivate new talents? Ma Shuzhong, Dean of the China Digital Trade Research Institute at Zhejiang University, suggested promoting the reconstruction of the "market industry university" three in one talent chain, and involving all relevant parties in enhancing merchant capabilities. For example, we can collaborate with universities to create corresponding curriculum systems, establish "Entrepreneur Training Camps" with enterprises, and jointly build research service platforms such as concept validation centers and pilot bases to support and incubate new talents.

Breach! Continuously promoting brand building

The upgrading of global consumption requires higher requirements for quality and compliance. The reshaping of the global supply chain has also put increasing competition pressure on low value-added industries such as OEM processing. Xu Yinghong believes that accelerating branding is the way out of the low price homogenization competition and the "entry ticket" for more Yiwu products to enter the mainstream global market.

The key to achieving comprehensive branding in Yiwu lies in the reshaping of public platforms, "said Wang Jing." To promote branding construction, the market, government, and platforms need to work together. The threshold for originality can be lowered by establishing a public design template library and other methods, allowing small and medium-sized enterprises to innovate at low cost, thereby enhancing their confidence and motivation for brand building

Advanced! Even without seeing goods, one can still 'buy and sell globally'

Many years ago, experts provided "tips" for the development of Yiwu: in the digital age, products can be sold directly to consumers through online transactions, bypassing intermediaries and wholesalers, further reducing product costs and improving transaction quality. Today, with the new debut of Yiwu Global Digital Trade Center, which anchors digital trade, this path is becoming increasingly clear.

Feng Chaonan, an assistant researcher at the Zhejiang Development Planning Research Institute, believes that "beyond the level of goods exchange, Yiwu can focus on the needs of 2 million small and medium-sized enterprises across the country, with a broad mind and wisdom of 'grasping fingers into fists', to create an overseas consulting platform, brand incubation center, overseas market research center, and compliance service center for them, and become the headquarters city for international trade services for small and medium-sized enterprises

Imagine a Brazilian housewife who can directly place an order for a bottle of red wine produced in Spain and shipped from the country of origin on the Yiwu online shopping platform. This Spanish red wine company only needs to list this wine on the Yiwu online platform, and can use the digital flow of this online shopping platform to sell the product to the world, "Feng Chaonan explained vividly.

Simply put, in the past, Yiwu was a hub for the distribution and transfer of goods; in the future, Yiwu will be a hub for the massive flow of global trade information. Even without commodities, one can still 'buy and sell globally'. Such a foreign trade hub is the most efficient, modern, and internationally leading. "Feng Chaonan's words are full of pride.