The development trajectory of Yiwu Small Commodity City can be said to be synchronized with the reform and opening up of my country for more than 30 years. The foresight of the founder of Yiwu Market has cultivated the brilliance of today’s Yiwu market. The advantages of today’s Yiwu market still make other central small commodity wholesale markets unable to surpass. In Yiwu market, the following three advantages of Yiwu Commodity City are more prominent:
1. Low-cost competitive advantage. In the period of inflation, when the income level of residents cannot improve in time or the degree of improvement is less than the price level, consumers’ practical purchases can be relatively reduced.
In this situation, consumers’ preference for low prices is becoming stronger, while non-price preferences such as the pursuit of quality are relatively weak, and more consumers tend to choose relatively low-priced products.
Therefore, wholesalers will adopt low-price strategies more in the fierce market competition. This market law is no exception even in prosperous countries where residents’ incomes are generally higher.
Therefore, in the period of inflation, Yiwu should seize this historical opportunity, make full use of the well-known low-price competitive advantage, attract more buyers, especially those from prosperous western countries, to purchase in Yiwu, and expand the scope of Yiwu market. .
2. Market information advantage. In market economic activities, market entities are based on price information and quantity information (including sales, sales and inventory, etc.) to make consumption (sales), consumption (sales), when and what central consumption (sales) Waiting for operational decisions. During the period of inflation, large price fluctuations will bring difficulties to manufacturers, wholesalers and wholesalers in operating decisions, signing contracts, and fulfilling contracts.
In this situation, Yiwu is the global commodity price formation center, and the commodity price signals and quantity signals in the Yiwu market will have greater guiding significance for global commodity manufacturers, wholesalers and wholesalers.
It can be foreseen that in the period of inflation, Yiwu. The global influence of the China Commodity Index will continue to expand. Yiwu’s position as a global commodity price formation center will be quickly established and stabilized. Manufacturers, wholesalers and purchasers will further strengthen their dependence on the Yiwu market.
3. Large-scale wholesale advantages. During the period of inflation, due to the overall increase in the price of original materials and commodity prices, manufacturers should store as much of the original materials as possible to avoid the loss of profits caused by the increase in the cost of original materials; at the same time, delay the sale of the products that have been consumed as much as possible , To obtain the benefits brought by the increase in commodity prices.
However, when the inventory of original materials and waste products reaches a certain range, manufacturers will face financial constraints and have to sell the inventory products.
Therefore, at a certain point in time, manufacturers need to rely on a large-scale sales platform to quickly clear out products in large quantities.
Similarly, during the period of inflation, wholesalers will also obtain the benefits of price increases by hoarding goods, but are limited by funds and choose to clear out a wide range of goods at an appropriate time.
Yiwu China Commodity City is a shared international trade platform with a grand sales network radiating the world. It is the most important platform that manufacturers and wholesalers can use to implement large-scale sales strategies.
To sum up, during the period of inflation, because Yiwu China Commodity City has comparable low-price competitive advantages, market information advantages and large-scale wholesale advantages, both manufacturers, wholesalers and purchasers will increasingly rely on Yiwu China Commodity City.
This provides a historical opportunity for the rapid development of Yiwu China Commodity City.
Post time: Nov-25-2021