yesterday, the reporter from Yiwu Municipal Government Port Office was informed that the approval by the State Port Office, the sixth consecutive year temporary opening of this year, Yiwu air port. Yiwu to Hong Kong round-trip direct flights on-time from July 1 to November 15. One week to fly four days Fare more benefits According to the Southern Shantou Airlines to fly the person in charge, and a week last year, every single fat ban this year, Yiwu – Hong Kong flights every Tuesday, four, six, day to fly a week to and from the four classes. Flights specific arrangements as follows: Yiwu to Hong Kong flight number CZ617, except Thursday departure time is 8:20 am, and the remaining three trips take-off times are 8:00 am, the flight about 2 hours to arrive in Hong Kong. Hong Kong to Yiwu flight number CZ618, return Yiwu flight departure time except Tuesday at 10:50 am, the remaining trips are 11:10 to take off, arrive around 13:00 Yiwu. Need to be reminded that international flight clearance test was used to compare carefully the procedure is relatively cumbersome, even from the door of the airport to check in advance at least one and a half hours to get to the airport. In addition to the convenience advantages of Yiwu – Hong Kong flight fares are very competitive. See from the price announced by the recent Southern Shantou, Yiwu Branch team value in Hangzhou, Ningbo, Wenzhou, Shanghai and other surrounding airport offers many added, “a fire, which will summer to visit Hong Kong market to heat up. Yiwu will become the province The fourth Airport ports April 27 this year, the General Administration of Customs formally below Yiwu air port included in the national port development plan (2011-2015). Yiwu air port to become one of the 10 new open air ports of the country during the second five, the province’s five-second period only a new port, will become the province Hangzhou, Ningbo, warm airport after the fourth Airport Port . Yiwu air port included in the national planning, and this is a major breakthrough in Yiwu pilot. Yiwu air port for five consecutive years of successful implementation of the temporary opening, during which opened Yiwu to Hong Kong Ferry route, a total of 638 sorties taking off and landing aircraft, personnel of 54 487 people, with an average load factor of 66.7%.The proportion of business travelers on the route up to 49.3% last year, overseas visitors for more than half can be described as a truly international flights. Convenient “Airbus”, both for the convenience of Zhejiang, central and western regions businessmen to Hong Kong exhibitors turn for the better, further promoting trade and economic exchanges, but also conducive to the residents of both each other’s sightseeing and shopping to boost the development of tourism and improve the province’s “big clearance system, and further promote the province’s small and medium enterprises to the world, promote the transformation of the mode of economic development.
Yiwu known as the largest market in the world for primary commodities is located in South of China. Yiwu International Trade City is considered as ” Ocean of Commodities, and paradise of shoppers” With a total area of 4 million square meters the market is home to more than 62,000 booths, showing over 2,000,000 commodities everyday. As high as 16% of the commodities are exported to foreign coutries. And it has ranked the first market among all special markets around the country for 19 successive years.Its a good place for oversea business who have just started to buy from China. The population of this small city is more than 2 million with 10,000 permanent residence from abroad.Its about 4 hours drive from Shanghan Pudong Airport and 2 hours flight from HongKong.
The garment industry is one of the pillar industry of Yiwu is the first fame, the Dachen shirt Yiwu garment industry for a long time plays an important role in the domestic shirt market. In recent years, with the changing market demand and industrial structure adjustment, Yiwu garment industry is rapidly changing the strategy, continue to walk in the forefront of the trend in the clothing market. Today, specialized the Dachen clothing emerging, serialization, and export-oriented three main features, once again risen up the “backbone” of the traditional strengths of the industry.
Yiwu garment industry many companies to complete the strategic adjustment, the original single shirt has been the series of suits, jackets, T-shirts and other products supplement. OEM mode at the same time, the emphasis on short-term interests of the gradual weakening of the brand and brand licensing business management in vogue. Light “the hometown of Chinese shirt Dachen, it has the” Daly “,” proud man “,” quite too handsome “and other parts of Zhejiang famous brand to Dali clothing has also become a” national exemption product . ”
Zhejiang quite handsome costumes responsible person said, Yiwu garment industry after many years has established a perfect marketing network, and continue to maintain the momentum of steady growth for the industry has laid a solid foundation. Can Dali Group has a total distribution in the country, region more than 600 agents, quite too handsome clothing provinces and cities with Shanghai as the marketing network-centric products all over the shopping malls, supermarkets, Austria will dress in the country built the provinces and cities of the dealer — regional distributors — the ladder of terminal vendors selling system … highly structured, a wide range of sales tentacles, creating the advantages of Yiwu garment industry in the ability of market information collection and product contingency.
Yiwu garment industry similar to the enterprise of the Golden Bird Group’s business model is no less than 20, by taking the brand licensing business and create their own brand of the road of combining solid business foundation for the development at the same time, achieving a successful product and enterprise-level transformation. Austrian chairman of apparel company inscriptions Kwong said with deep feeling, “Yiwu garment enterprises more than the previous value immediate, while ignoring the long-term development. Business decision-makers attach great importance to the scientific nature of the business planning and strategy development, the formation of sustainable development for the enterprise force to create the conditions. “Zhejiang Beckman clothing company is in the scientific planning, has become one of the largest foreign trade export enterprises in Yiwu.
To get rid of the industrial development of low-level pattern, take the road of specialization, serialization, export-oriented garment industry re-emergence of the main driving force. Dachen, many enterprises has always attached great importance to the introduction of professionals and advanced management experience, at the same time strengthen the product development and series production capacity, improve the technological content of products and brand influence, on the one hand, continue to consolidate the domestic market share, on the other hand effectively expand international market share, industry development, enterprise development space.
Professionals, accompanied by a large number of companies re-accumulation of energy, have a single product variety, developed fatigue and a slump in Yiwu garment industry will steadily into a higher level of the rising channel, a whole new garment industry base is being formed.
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.