Yiwu (义乌), known as the "World's Supermarket," continues to capture global attention with its innovative trade practices and embrace of digitalization. As one walks through Yiwu International Trade Market, banners proclaiming "New Digital Era, New Trade Opportunities" highlight the city's focus on leveraging digital trends to enhance trade efficiency. Despite changing global trade landscapes, Yiwu remains steadfast in optimizing its business environment, pushing reforms to align with the new realities of international commerce.
This year, cross-border e-commerce has become a significant growth driver for Yiwu, opening new avenues for its merchants. By introducing an innovative "consolidated cargo" trade model and implementing the "inspect first, load later" pilot program, Yiwu has made strides in supporting the expansion of new trade formats. These efforts have boosted Yiwu's foreign trade and improved global connectivity.
Yiwu's logistical infrastructure has long been a cornerstone of its success. The city's strategic position and emphasis on logistics innovation have helped transform it into a global trading hub. This is evident in the success of entrepreneurs like Bishnu, a Nepali merchant who has expanded his market from Nepal to neighbouring countries like India and Bhutan, thanks to Yiwu's comprehensive logistics network.
Yiwu has effectively capitalized on land and sea routes, such as the "Yiwu-Ningbo-Zhoushan" and "Yiwu-Europe" logistics corridors, creating a robust system connecting over 230 countries and regions. This extensive reach enables Yiwu to dominate the global supply chain, allowing merchants to trade globally at an efficient pace.
The rise of digitalization and green initiatives is pivotal in transforming global trade, and Yiwu is at the forefront of this shift. According to recent data, China's cross-border e-commerce grew by 10.5% in the first half of 2024, outperforming traditional trade growth rates. Yiwu's merchants are quickly adapting to this digital shift, utilizing new logistics models and integrated financial services to cater to the growing demand for streamlined global trade.
Consolidated Cargo and New Platforms Boost Yiwu's E-Commerce Exports
Adopting new models, such as consolidated cargo shipping, transforms Yiwu's export landscape. Small-scale orders and multiple consignments have always been a critical feature of Yiwu's trade. Still, with the emergence of platforms like Temu, SHEIN, and TikTok, small merchants are finding new opportunities to expand their reach globally.
Yiwu's cross-border e-commerce landscape has been further strengthened by the rise of small and medium-sized businesses engaging in the global marketplace. According to officials, from January to June 2024, Yiwu registered over 65,000 new e-commerce entities, 40% of which are involved in cross-border trade. This surge is driven mainly by small merchants leveraging consolidated shipping and e-commerce platforms to enter new markets, particularly in the U.S.
The innovative logistics solutions offered by Yiwu, such as building domestic consolidation warehouses paired with international warehouses, have greatly enhanced trade efficiency. These initiatives allow goods to be shipped with the speed and convenience of express services but at cargo freight rates, attracting a wide range of businesses.
Yiwu's efforts don't stop with logistics. The city is also pioneering regulatory innovations, such as the "inspect first, load later" system. This approach allows for the inspection of goods before loading onto shipping containers, reducing delays caused by the traditional method of inspecting shipments post-loading. By minimizing the risk of hold-ups, Yiwu is helping its merchants expedite their exports while lowering costs.
Yiwu is not only focusing on facilitating exports but is also nurturing businesses to move up the value chain by building strong global brands. The city's efforts to foster brand development are evident in companies like RockBros, a sporting goods company that has leveraged e-commerce platforms to expand its reach in Europe and North America.
RockBros' journey from being an OEM supplier to creating its brand was fueled by its experience in dealing with the challenges of traditional e-commerce. By owning their inventory and developing in-house products, RockBros ensured better control over quality and supply, allowing them to meet growing consumer demand without relying on third-party suppliers.
Yiwu's local government has been actively supporting companies in developing their brands by offering incentives for businesses to obtain quality certifications, apply for government awards, and invest in research and development. Through these initiatives, Yiwu hopes to encourage more enterprises to transition from "Made in China" to "Created in China," increasing their value in the global supply chain.
Business Environment at the Core of Yiwu's Success
At the heart of Yiwu's remarkable growth is its dedication to creating an environment where businesses can thrive. The city's policies aim to make it as easy as possible for domestic and foreign entrepreneurs to start and grow their businesses. With over 1.1 million registered market entities, Yiwu has surpassed other major commercial hubs, solidifying its position as a leader in global trade.
Yiwu's continued success also relies on catering to the needs of its diverse resident business community, which includes over 15,000 foreign merchants. The local government has worked diligently to provide these foreign traders with the necessary resources, from easing visa and business registration processes to creating educational opportunities for their children.
As global trade evolves, Yiwu is prepared to face new challenges head-on. With its innovative trade practices, advanced logistical systems, and commitment to fostering business growth, Yiwu is positioning itself as a critical player in the future of international commerce. By staying true to its ethos of reform and innovation, Yiwu remains a vital link in the global supply chain, ensuring its relevance for decades to come.
