Yiwu Small Commodity Market is the largest small commodity market in my country. Although the momentum is good, there are still problems such as low product level, low management level, lack of competition awareness, and lack of a large number of high-quality talents. And in the international market, Yiwu small commodity market often encounters issues such as trade barriers and anti-dumping. How to solve its own shortcomings and actively respond to external challenges will become the focus of Yiwu’s small commodity market development strategy.
China Yiwu Small Commodity Market is the largest small commodity market in the world, with a total area of more than 10 million square meters, 45,000 business booths and more than 100,000 operators. Yiwu is the most complete variety, largest in scale and cheapest in price. known as the small commodity market.
1. Characteristics of Yiwu Small Commodity Market
(1) low price
Yiwu is a place with more people and less land. The land is very barren. The large population makes the labor very cheap, which makes the production cost low. The commodity cost and production cost make the small commodity cost low, so the small commodity price is low.
(2) Complete variety
And the variety of small commodities is very rich, with a wide range of styles, from needles, threads, shoelaces, toothpicks to all kinds of gifts and exquisite accessories; from shoes, socks, clothes, scarves to all kinds of textiles; from toys, cosmetics, Furniture, electronic products, daily necessities. All the daily commodities that people can think of are not sold here, which makes Yiwu small commodities very competitive in the country.
(3) Management Specifications
Yiwu invested and established State-owned Assets Investment Holding Co., Ltd., and the management of market enterprise management has made Yiwu small commodity market professional, market-oriented and standardized.
(4) Network advantages
With the development of the network, Yiwu has formed an online + offline development model, which makes the marketing methods flexible and diversified. In the first three quarters of 2015 alone, the transaction volume of e-commerce in Yiwu was 100.6 billion yuan, a year-on-year increase of 40%. Such rapid growth is largely due to the marketing model and development model of Yiwu e-commerce.
2. Defects in Yiwu Small Commodity Market
(1) Internal shortcomings
With the development of Yiwu Small Commodity Market, the market is getting bigger and bigger, and the drawbacks are gradually revealed. For the sake of profit, many merchants will deceive consumers with shoddy goods or even some fake goods. The high quality and low price of Yiwu Commodity Market is both an advantage and a disadvantage. Due to its cheap characteristics, it leads to the lack of brand awareness and thus the product lack of popularity. Judging from the general environment of Yiwu, all outstanding talents are flooding into the big city. If we want to develop better, we need to introduce a large number of talents to develop and innovate.
(2) External challenges
In recent years, there have been more and more domestic competitors of the same kind, and the Yiwu small commodity market is facing severe challenges. A large number of small commodity markets have been formed all over the country. Naturally, the Yiwu small commodity market has been greatly impacted, and the advantages are completely lost in an instant. While the Yiwu small commodity market is developing continuously, it has not stopped the pace of developing trade with foreign countries. However, due to its low price and large volume of exports, obligatory commodities are often the target of foreign anti-dumping charges.
3. The government’s influence on the development of Yiwu small commodity market
(1) Positive influence
Yiwu Small Commodity Market can exist for so many years, and it can become bigger and bigger. The role of the government is huge. With repeated expansions, Yiwu Small Commodity Market has become the world’s largest small commodity capital – International Trade City. If there was no strong support from the government at the beginning, how could Yiwu, which is now famous all over the country, exist.
(2) Insufficiency of the role of the government
The continuous development of the Yiwu small commodity market is largely due to the strong regulation and control of the Yiwu government. The government’s dispatch is a favorable guarantee for the better development of the Yiwu small commodity market. But nowadays, with the cloning of Yiwu’s small commodity market model, similar versions of Yiwu’s small commodity market continue to appear in various places, resulting in fierce competition. Yiwu’s small commodity market is facing a huge crisis, and in this development process, some The lack of effective measures by the government has led to unfair competition in the market, low industrial level, insufficient introduction of foreign capital, and a lack of a large number of high-quality, high-level and high-cultural talents.
Fourth, the future development strategy of Yiwu small commodity market
(1) Improve product level
Yiwu small commodity market, although the export volume is very considerable, the exported products are very low in terms of technology, and the exported products basically have no technical content, so we have almost no advantage in competition, and we can only rely on low-cost products. price to obtain the market, and this method is not desirable in the long run. If Yiwu Small Commodity Market can effectively utilize the high-tech industry, it will be an excellent opportunity for Yiwu Small Commodity Market to increase the value of products. In the future, Yiwu Small Commodity Market still needs to combine the market with its own advantages to promote the development of high and new technology, so as to improve the competitiveness of Yiwu Small Commodity Market in the international market.
(2) Actively develop the market
Yiwu small commodity market has a huge export volume. But basically all are exported to Japan and South Korea. In 2001, it suffered from the trade barriers of South Korea and Japan, which led to a large backlog of products, and the losses were undoubtedly huge. If the Yiwu small commodity market wants to vigorously develop the international market, the EU is a good direction. In the future, the cooperation with the EU will be strengthened, so that it will achieve good development in the long run, and can also increase the export volume of Yiwu’s small commodity market.
(3) Improve business philosophy
With the continuous development of foreign trade in Yiwu Small Commodity Market, its shortcomings have gradually emerged. The product level is not high, the market management level is also very backward, and it lacks business philosophy and competition awareness. Therefore, in the fierce international market competition, small and medium-sized enterprises in Yiwu Commodity Market need to improve their management level and prevent risks.
