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Clustering effects of Yiwu Christmas gifts industry show up

Source: Yiwu sourcing agent    Author: Gary      Date: 2009-10-01

China is the largest Christmas gifts processing site . In August and September every year,businessmen are busy placing orders of Christmas gifts in the market .

At present , the domestic Christmas gifts markets are mainly located in Guangdong and Yiwu . The market in Guangdong is characterized by medium and high grade products ,while Yiwu seizes the majority shares of medium and lowgrade Christmas gifts market . This year , with the growing industry clustering effects of Yiwu market ,a great number of Christmas gifts orders have transferred from Guangdong to Yiwu and many enterprises have migrated to Yiwu as well for their orders . As a result ,
the global Christmas gifts are still made in Yiwu .

The rough estimates made by Yiwu Christmas Goods Industry Association showthat there have been over 100 new Christmas gifts enterprises since the financial crisis last year and most of them are from Guangdong, Wenzhou and Taizhou. According to incomplete statistics ,there are 200 to 300 Christmas gifts stores in Yiwu , which make the city the largest Christmas gifts export base in Zhejiang, with an annual output value of over 2 . 5 billion yuan and an export volume of over 2 billion yuan .
Although the financial crisis has an influence on the global Christmas gifts market ,the industry clustering effects in Yiwu demonstrate strong competitiveness and some medium and high grade products are popular in overseas market .
The sudden arrival of financial crisis last year reduced orders . Confronted with the difficulty ,many businessmen thought centralized management and scattered production could be an effective means to lower the risk . The complete production and supporting facilities of Yiwu attract enterprises from other places to settle in the city . Fittings of Christmas gifts could all be found in Yiwu ,which is beyond all comparison . In the financial crisis and economic slow down , the high grade Christmas gifts are in disfavor ,while the medium and low grade Christmas gifts industry in Yiwu embraces development opportunities .

Although the total number of orders is increasing , the profits are shrinking . And some businessmen force down prices when making orders . However , the phenomenon that orders fall and profits drop can also be found in other industries in Yiwu , the global commodities distribution center.

Lou Qijin ,vice director of Yiwu Toys Industry Association, said that many toy enterprises decrease production capacity on one hand and accelerate the research ,development and innovation on the other hand ,so as to get rid of the financial crisis . In order to integrate with Yiwu market better , many enterprises in other places transfer their plants to Yiwu . This year ,greater importance is attached to product's practicality rather than the Christmas elements ,and the Christmas goods are sold as goods for daily use . For instance , bolsters with many Christmas elements are developed . A bolster in the shape of Santa Claus could not only be used during the Christmas season but in other days as well , which satisfy the practical needs of European and American customers . The previous Christmas goods were all disposable , but nowgoods of practical use and with Christmas elements are very hot this year in European and American countries where people have learnt to be economical .



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