BEIJING, Yiwu, March 28 (Reporter Zhang Yan) “We will strengthen the daily supervision of foreign and foreign-funded enterprises and foreign partner enterprises, some of the commerce process against the interests of merchants and guilty of the violations included in the to the blacklist “. Afternoon, Bao Rong Jian, Yiwu City, Zhejiang Province, Deputy Secretary for Commerce in boosting the pilot reform of the international trade services, economic development news conference, said Trade and Industry Bureau to give full play to the business functions, lead and growth of foreign companies but also to regulate their behavior, as Yiwu International Trade reform pilot to make a better service.
Xinhua Zhejiang Channel March 28 (Xinhua) (Pang Yun Peng) on the 28th, Yiwu Industrial and Commercial Bureau held a news conference, a comprehensive introduction to the implementation of Trade and Industry Bureau of Zhejiang Province Yiwu, carry out a comprehensive reform of international trade, a number of opinions “.
Yiwu City Secretary for Commerce and Qiu increase France to boost the comprehensive reform of international trade, economic and social development of services Yiwu industrial and commercial administrative departments to shoulder the important mission. Introduction of Yiwu City, the pilot reform of a number of views for Trade and Industry Bureau of Zhejiang Province, Yiwu Industrial and Commercial Bureau based on the functions of a pilot basis, combined with the international trade of comprehensive reform and the private reality of economic development, access from the main players in the market to broaden financing channels, optimize the development environment, cultivate foreign subject, deepen the eighteen measures of the five aspects of brand building to start the introduction of relevant implementation advice and Conditions, and ferret out the intellectual potential, trying to Chamber of Commerce and Industry best efforts “lower threshold” for private economic development and growth, “reduce the burden” “excellent service”, “improving quality” to do all the counterparts of convergence of the various policies, efforts to achieve full use of resource advantages, and has achieved significant results in many areas, consolidate and enhance the Yiwu International Trade The construction of the strategic position to promote trade development mode shift, and the two six-city “has played a positive role in promoting.
Implementation of the Yiwu Industrial and Commercial Bureau issued opinions and Conditions, the more given the policy of the Yiwu market, the main terms of access, to further enrich the market of the main structure, optimization of the Yiwu Industrial and Commercial Administrative Examination and Approval Service to speed up the Yiwu industrial transformation and upgrading of the pace, and promote the Yiwu become a focal point industrial transformation and upgrade an important base for the pilot reform objectives.
Yiwu also suggested that the perfect market service system, expand financing channels for enterprises, to create a model city of national trademark strategy and the integrity of intellectual property protection of China Commodity City to give guidance. Actively guide Yiwu enterprises to take full advantage of the equity pledge trademark pledge, chattel mortgage financing, dig the stock of capital, break the problem of corporate finance, corporate restructuring and upgrading of fresh blood and improve the core competitiveness of Yiwu enterprises and the market .
At the meeting, the relevant person in charge of the Yiwu Industrial and Commercial Bureau through the accumulation of their own competitiveness, to strengthen the Yiwu market is the only such answer a reporter’s question, emphasizing the Yiwu market will be four first-class “first-class facilities, first-class market The main, first-class quality of goods and first-class credit environment to shape their own market commercial civilization, and to promote the Yiwu market has been created “, I have excellent unique advantages, and gave details of Yiwu market to create a” four-class “market competitiveness of specific measures and methods.
A tea mug a US resident finds in IKEA or other stores for at least a dollar is on sale in Yiwu for 5 cents. A sledge hammer is going for $1.40, an ax for chopping wood for $1.20…
Almost every product is on sale for about one-half, one-third, or one-tenth of the lowest price available in the cheapest discount stores of Europe and America.
What’s more, the quality of these items seemed in no way inferior to the products on sale in store around the world. In many cases, in fact, they are the same goods.
Why Yiwu market can keep such low prices?
#1 A Huge, Cheap Supplier Base
Yiwu with its neighborhoods forms the largest private/family owned factory base in China. After 20 years of running their machines day and night, they already fished off many factories in Europe and America.
Now they are the most efficient manufactures in the world for socks, buttons, zippers, straws, plush toys, jewelry accessories, hardware and tools… What’s more, they’re not only the largest, but also the cheapest.
Let’s see have a look at Mr. Jinwu’s factory:
Mr. Jinwu’s house, a 4 store building of around 800 m2 with a yard, was built 7 years ago. Now the first floor is his warehouse and workshops, the second floor part as his office and part as workshops, the third floor is where his family live, and the fourth floor is dorms for his workers.
They produce sun caps according to orders. When there are no orders, these workers doing other part-time jobs.
Mr. Jinwu pays electricity and water at residential rate, instead of industrial rate. That’s to say, he pays 50%-40% less on electricity and water every month than other factories located in industry zones. Plus zero house rental, zero insurance and medical care cost for his workers…
You can imagine how competitive his price is! There are tens of thousands of factories like this in and around Yiwu. How could anyone else beat them on prices?
# 2 Scale Effect
As so many factories get together, including many big ones, the scale effect shows its power.
Logistics cost, marketing cost reduced. Parts, accessories, materials, even production lines prices all reduced significantly.
The more factories arise, the lower prices there will be.
# 3 Big Battleground
As Yiwu market became the world largest wholesale market for daily using items, more and more factories, not only factories from nearby areas, but also factories from all over China, are putting their products on this market, to fight for a bigger share.
These ruthless competitions ended up with a 2-3% profit margin for many products.
# 4 Strong Government Support
While all China looked free market as an evil character of capitalism, Yiwu already opened its free market in 1982, which is one of the earliest free markets in whole China.
In the last 30 years, Yiwu government put almost all their money and energy to build markets. Then rent shops to venders at very low rentals. Private companies are not allowed to get into market building business. All markets in Yiwu are built by government and run by a government appointed company.
In this way, Yiwu attracts more and more vendors from all over China by its low shop rentals. As a result, factories from cities like Wenzhou, Ningbo, Shantou, even Guangzhou, where tons and tons of products were produced each day for exporting, came to Yiwu market in flocks to sell their products.
Yiwu market offers most-favored-vendor treatment to factory outlet centers. In recent years, they put more efforts bringing in more national top brands and global brands, all in the most favored treatment, to improve products quality level.
With these strong backup from government, Yiwu market kept prices at an extremely low level for three decades in the past. And there shows no signals that this situation will change soon.
# 5 “One-Cent-Profit” Making Money
Businessmen of Yiwu and its nearby areas are famous for hard-working and agility. They’re keen on every “one-cent-profit” businesses opportunity .
For example, the profit of one sewing needle is just about 1/10 cent RMB, the profit of one straw is just 1 cent RBM. But if you can sell containers of them in one month, you can still earn a descent profit.
As long as there is a profit, no matter big or small. These so called “ants businessmen” would desperately go for it. This is probably one of the most important reasons why Yiwu market has such cheap prices.
Tips for Mixing A Full Container From Yiwu China
One of the best things of Yiwu market is it’s super easy to mix a full container with assorted products. Because millions of products are wholesaling under one roof.
But, there are still some tips for you to mix container from Yiwu market…
Some Products Require Export Inspection Certificate
According to China law, certain products need to pass an inspection called Export Commodity Inspection, before shipping out.
The goal for this law is, to ensure certain products exported from China is SAFE for overseas consumers.
For example, toys need this inspection to make sure it’s safe for kids. Electrical appliances and cables require this inspection to make sure they’re not easily cause fire. Jewelry require this inspection to make there are not much heavy metal inside…
If the products are tested and passed these inspections, they will be granted a certificate. With this certificate, products can be exported.
However, 99% of the suppliers in Yiwu market don’t have this certificate for their products. It takes too long (about 2 weeks)to obtain certificates. So most the time, the exporters in Yiwu just buy a certificate for an LCL shipment, or pay a “special” declare fees to get a FCL shipment out.
*Here are the tips: try to mix a container of products that don’t require export inspection. So you don’t have to pay this “special” declare fee(200-300USD). Or you mix another container of products require inspection and pay the fee.
Some Products Require Fumigation
Similar as above.
The tips here are: mix a container of products that don’t require fumigation, mix another small container of products require fumigation.
Full container fumigation is much faster and easier to operate. The overall cost is similar to LCL shipments.
Yiwu spirit to create a miracle Yiwu
Yiwu spirit driven “in Yiwu exercise the day, I fully aware of the integrity of the Yiwu people work hard, pragmatic spirit. Yiwu, the miracle of today is inseparable from ‘Qin Geng studious, upright Yong, integrity and inclusive’.Yiwu merchants a dime to make money, I should start from the bit by bit, to play to their expertise, dedication to personal power for the ‘Yiwu pilot’. “yesterday morning, the Local Taxation Bureau of Zhejiang Province, Xu Lijun’s remarks at the provincial authoritiesthe civil service practice and training base site to promote the conference aroused great sympathy.
Xu Lijun, director of the Office of the Provincial Local Taxation Bureau staff member, management committee, assistant director of attachment to Yiwu international trade city is now.
At present, Yiwu, a total of five units are classified as civil service practice and training bases of the provincial authorities, are Yiwu inland port station construction headquarters, the Administrative Committee of Yiwu international trade city , Zhejiang University School of Medicine, Yiwu Hospital Affiliated Construction Command Ministry of Yiwu economic Development Zone and Hangzhou long railway passenger line Yiwu section of the construction headquarters. In October 2010, the Provincial Party Committee Organization Department selected five provincial organs of civil servants, respectively, to Yiwu five bases in the testing exercise.
In yesterday’s provincial authorities civil service practice and training bases to promote the conference, more than 40 attachment to the province of practice and training base for officers toured the construction project the Ministry of Yiwu in the construction of financial business district, Zhejiang University School of Medicine City Hospital as well as inland ports and other projects, and to listen to a related presentations and admiration Yiwu construction of a major project.
Yiwu boost bases in practice the “three”, that is to grasp the three principles to improve the three mechanisms, to take the three initiatives. Three principles focus is reflected in the choice of the base, so that can “ground air” can exercise the cadres, good working atmosphere; three mechanisms in the base to establish a sound rotation exercise mechanism, mentor Bangdai mechanism and regular exchange mechanism ; the three initiatives was fully trust in the political, the work is fully let go, life sufficient interest.
Through nearly two years of testing and tempering, Yiwu attachment cadres both exercise enhance, but also effective in promoting grassroots cadres in Yiwu style change.