Exports of Yiwu’s Christmas items to the US, other markets will surge despite price rise
It’s business as usual for Santa Claus thanks to companies in Yiwu in Zhejiang province, the global capital of Christmas decorations.
No, Santa won’t be put off by global trade tariff tensions and the subsequent rise in the prices of festive paraphernalia like bells, bubble hats, red coats, plastic trees, LED lights, dolls or shiny lightweight balls and trinkets, all of which constitute a multibillion-dollar market.
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A collection of Christmas ornaments on the shelves of a store at the Yiwu International Trade City in Yiwu, Zhejiang province, which attracts Chinese and foreign buyers. Ma Zhenhuan / China Daily |
In fact, industry insiders say they expect Christmas-related collective sales to increase by 25 percent this year to nearly $5 billion (4.4 billion euros; ￡3.9 billion).
As early as May, merchants in the the international trade city, the center of all things kitschy and Christmas, begin taking orders. And factories run at full steam to meet manufacturing and shipping demands from around the world.
Zhang Dan of Kunyuan Christmas Craftwork Co says her company’s shipments have doubled this year on the back of robust demand from Latin America, Europe and Africa.
Zhang’s parents first came to Yiwu from Chengdu in Sichuan province more than 15 years ago. She attended Sichuan Normal University and joined the family Christmas goods business after graduation four years ago. Since coming on board she has been focusing on exploring new markets through cross-border e-shopping platforms such as Amazon.com. In addition, and given the rising popularity of Christmas-time home decorations among Chinese people, the company caters to the domestic market via local trading platforms.
Kunyuan has a manufacturing plant in Dongyang near Yiwu and the company has inked supply deals with dozens of overseas clients. It’s cloth-based craftwork, for example, has a loyal following among Amazon users.
For Zhang, the key to robust sales lies in continuous communication with overseas clients and strong innovative design capabilities.
“We have engaged special designers in working out the latest trendy Christmas-related craftwork. For example, I research overseas destinations and get products designed in a way that is compatible with the local culture. Sometimes, our clients will also offer inspirational ideas on product designs,” she says.
Zhang is one of 470,000 market dealers in Yiwu. Dubbed the world’s small commodities capital, Yiwu is best known for its Christmas-related merchandise. That accounts for more than 90 percent of the domestic output of Christmas items and 60 to 70 percent of the world’s total, according to the Yiwu Christmas Products Industry Association.
“Sales performance of Christmas products this year is slightly better than last year, as they are being exported to more countries in Latin America and Europe,” says Cai Qinliang, secretary-general of the association.
“Yiwu’s Christmas goods are popular in South American countries such as Brazil. Europe and the US also show strong and consistent demand,” Cai says.
Cai told Beijing-based China Times in a recent interview that exports of Christmas decoration goods from China to the US account for only a small portion of Yiwu’s combined exports. Still, exports to the US grew this year despite the trade row, he says.
An article on the website of Forbes magazine said rising tariffs on Chinese products “will make shopping in the upcoming Christmas season more expensive. US consumers will have to pay more for Christmas items that are usually imported from China”.
Qiu Xuemei, manager of Weijiule, a Yiwu-based manufacturer of Christmas decorations, agrees. “Trade tensions have definitely had some effect on our exports, but the impact is not that significant.”
Weijiule focuses on markets in South America, Southeast Asia and Australia. “We have a strong designer team in Huizhou of Guangdong and our factory there mainly focuses on high-end Christmas items, with the Yiwu outlet selling medium to low-end items,” Qiu says.
“In this way, we can cover the full range of Christmas items, catching up with the latest trends and designs. In the ever-changing market, it’s the latest designs and trendy products that can generate the highest sales volumes,” Qiu adds.
“For example, we recently launched a new night lamp through the Douyin short video platform during the Double Seven – the Chinese Valentine’s Day on Aug 17. It instantly received over 300,000 hits and became a rage among consumers, but we can’t meet the overwhelming number of orders.”
The Yiwu International Trade City currently is home to over 75,000 shops that supply over 1.8 million kinds of products, including clothing, shoes, hardware and building materials, to more than 200 countries and regions. It attracts more than 500,000 foreign buyers each year.
During the 24th China Yiwu International Commodities Fair in late October, 204,700 buyers and participants, including more than 8,000 foreign buyers, came to town, sealing over 60,000 deals worth 18.4 billion yuan.
“We will continuously enhance our efforts to improve product quality and innovate to make Yiwu a ‘warehouse of the world’,” says Lin Yi, Party secretary of Yiwu.
Official data shows Yiwu’s trade was worth 171 billion yuan from January to August this year, up 11 percent year-on-year.
Countries participating in the Belt and Road Initiative have emerged as important export destinations, leading many merchants to add Arabic-language labels and manuals to their products, in addition to Chinese and English content.
Customs officials say India is the largest importer of Yiwu’s goods, with trade volume exceeding 13 billion yuan in 2017, with Hungary and Angola notching up the top two year-on-year growth rates of 232 percent and 101 percent, respectively.
Chen Huadong in Yiwu contributed to this story.
(China Daily European Weekly 11/16/2018 page28)