Source: Yiwu sourcing agent Author: Gary Date: 2008-03-10
At the end of 2005, UN and World Bank published a joint economic report titled Worldshocking
Figures from China,ascertaining that Yiwu was "the largest wholesale market of commodities in the world". A county-level city in the hinterland of Zhejiang Province,and with only a few hundred thousand permenent residents, Yiwu has become the most influential merchandise exhibition city in the world through 20 years' development. Today's market of Yiwu boasts a total business area of over 2.5 million square meters with more than 58 thousand business booths. More than 100 thousand enterprises from over 40 trades in China deal in more than 500 thousand kinds of products of nearly 2000 categories, covering 70% of the product kinds in the world trade catalogue. At the end of 2006,"Yiwu Commodities Index " was published with a significant and deep influence in the world.
The wide coverage and the large scale of commodity business in Yiwu market are naturally an appeal to purchasers around the world. At present, nearly 10 thousand foreign traders coming from over 100 countries and regions in the world have established purchasing agencies in Yiwu, and more than 1000 foreign trade agencies and companies were set up formally.
Yiwu's experience of success in market development is very special. All visitors to Yiwu can find that Yiwu mainly exhibits small commodities and exhibitiors are mainly small enterprises.
But Yiwu has formed the unique circulation frame of " small commodities forming a large industry "and "small enterprises running in a large supporting system ".
The foremost reason for Yiwu's growing into an international commodities distributing centre is that it's a production base of small commodities itself. Currently, Yiwu has more
than 26 thousand manufacturing enterprises of small commodities,covering lots of daily necessity trades such as cosmetics,toys, jewelries,hardware,shoes and handicrafts. Quite a number of categories are widely diversified and well backed up,and they take a considerable share in the home market. It is the strong advantage of intensive production of small commodities,along with development and exibition of other kinds of products,that has made Yiwu market the largest in the world.
The great consumption power of Inland and East China markets is another vital element for the success of Yiwu. Located at the middle of Zhejiang Province, to the south of Shanghai, to the west of Ningbo,Yiwu owns more advantages in supporting services such as modern logistics and spreads heavy and convenient transportation net of highway,railway and aviation with many highways, electric railways to other provinces, new airport of 4C level,and various airlines to Beijing,Shenzhen, Guangzhou,Shantou and Xiamen. The successful experience for Yiwu being the international exhibition city has attracted the attention of Hong Kong industrial and commercial circles for a long time. It is learned that there are over 100 Hong Kong enterprises conducting the business of processing,production and exhibition in Yiwu now with over 1 billion US dollars of investment. Both the number of enterprises and the investment top that of foreign enterprises.A great number of Hong Kong
enterprises having exhibition agencies in Yiwu established "Hongkong Hall in International Trade City " last year with considerable annual trade volume of billion yuan. In the future the sponsors of Hongkong International Exhibition City could contact those Hongkong enterprises in Yiwu first which could be the bridge between two areas and introduce some successful inland enterprises in Yiwu to Hongkong.
On the other hand the export of some largest pillar processing industries in Yiwu is urgent such as toy,knitting,hardware,and decoration and it is beyond the power of exhibition platform of Yiwu. At the end of last year when Yiwu government held promotion meeting in Hongkong to attract Hongkong and international enterprises to set up permanent exhibition agencies and construct permanent exhibition center in Yiwu,Hongkong government and relative
departments could come to visit Yiwu government and senior businessmen to push inland enterprises to the world through Hongkong.