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a decade ago， when Chen Peihong came to booming Yiwu to explore new business， he faced a huge market instead of a city.
Dubbed “the world’s largest wholesale market for small commodities，” Yiwu， about 300 km south of Shanghai， attracts nearly 10 million domestic and 500，000 foreign buyers every year， and is home to almost 300，000 merchants who have permanent offices in the city. The market sprawls over more than 4 million square meters， where 60，000 stalls vie with one another for business.
Chen is one of them. His picture framing business had few takers when he started out with four employees. Today， their number has grown 10-fold and his annual sales exceed 60 million yuan （$9.6 million）.
City of exhibitions
Yiwu is renowned as a shopping paradise for small commodities. But now exhibition industry has become a new spotlight of its economic development.
And it has benefited businessmen like Chen. Instead of waiting for business to come to him， Chen decided to go out for business opportunities. He started participating in a succession of exhibitions - the China Yiwu International Commodities Fair， China Yiwu Cultural Products Trade Fair， China Frame Industry Decoration Exhibition， as well as the Canton Fair， and Hong Kong Houseware Fair. The aim was to monitor international， professional and innovative industry trends so that his company stayed competitive.
Last year alone， there were 123 exhibitions in the small but bustling city with an exhibition area of 760，000 square meters. The fairs attracted 134，000 companies and 1.43 million merchants from home and abroad. The turnover was 39.72 billion yuan （$6.5 billion）， accounting for one third of the annual trade volume of Yiwu’s small commodities market. In 2015， 17 exhibitions are expected， each covering at least 10，000 square meters.
Exhibitors introduce their companies， get new orders and meet potential clients. Yiwu exhibitions have become the most convenient procurement platform for nearly 500，000 foreign buyers annually， according to Yiwu’s Exhibition Management Office.
Traders from overseas are becoming a major force in Yiwu’s exhibition economy. Ghanaian Mpumi Thage is among the first group of Africans doing business here. About a decade ago， Thage set up his company to purchase hardware and commodities and export them to African countries. “Yiwu has a package of preferential policies for us and can provide what I need，” he said. Thage’s family of four has put down their roots in this city in Zhejiang Province and built a new life for themselves. Muhammad Adil discovered last year that most of the goods he bought came from the China Yiwu International Commodities Fair. The discovery made him go to Yiwu to buy his goods directly from there. “I need high-quality products and Yiwu fulfills all my requirements，” the Pakistani businessman said. “It is more convenient and faster to buy in Yiwu.”
Yiwu’s exhibition economy is growing exponentially. According to statistics from the Yiwu Exhibition Management Office， the 2014 China Yiwu International Commodities Fair saw a turnover of 17.07 billion yuan（$2.8 billion）， a 2.76-percent increase from the previous year. Foreign trade of $1.75 billion accounted for 62.73 percent of the total， a 3.21-percent increase. The fair is a platform for both small and medium-sized enterprises to develop domestic and international markets and buyers to procure products.
Guo Mu， President of the Zhejiang International Convention and Exhibition Industry Association， estimates the economic benefits of the three-day World Internet Conference in Wuzhen in November 2014， based on factors such as the number of participants and spending power.
“There were more than 1，000 delegates， over 1，000 media representatives， and more than 2，000 informal representatives. They created an output value of about 80 million yuan to 90 million yuan （$12.9-$14.5 million） for Wuzhen， and 800 million yuan （$131 million） for the surrounding areas in terms of food and accommodation， shopping， travel and entertainment.”
The exhibition economy， though a fledgling part of the service sector， has a huge driving effect， according to Guo. It is a high-profit industry with an average profit rate of 20 to 25 percent， and spurs related industries such as tourism， logistics， communication and advertising.
According the Zhejiang International Convention & Exhibition Industry Association， last year， the exhibition industry output value was 38.5 billion yuan （$6.3 billion）， contributing 0.96 percent of the province’s GDP. A sample survey of 1，000 foreign trade enterprises in Zhejiang showed about 70 percent of the export orders come from professional trade exhibitions.
Guo says China’s exhibition economy has developed along specialized fairs， exhibitors and audiences. Specialized exhibitions are increasing rapidly and the number of general exhibitions and trade fairs will decrease.
The silk touch In November 2014， an international cargo train service linking Yiwu with Madrid， Spain， was launched as an important part of the land and maritime Silk Road Initiative proposed by Chinese President Xi Jinping， paving the way for regional growth.
Chinese businessman Chen Peihong， who deals in picture framing， welcomed the China-Europe freight train launch， saying it would make businessmen like him more prosperous.
Yiwu， the world’s most popular wholesale market with more than 2.1 million commodities， provides a steady flow of goods to traders， no matter who they are. The China-Europe freight train and the Yiwu airport facilitate the export of goods to anywhere in the world.
At the Yiwu Exhibition Economic Forum last year， experts said the exhibition economy will prosper from the land and maritime Silk Road Initiative. Guo Mu， President of the Zhejiang International Convention and Exhibition Industry Association， said the initiative will mean the growth of at least three types of ancillary exhibitions： product exhibitions themed on the initiative； exhibitions in the countries and areas along the routes； and exhibitions at the destination.
In 2014， Yiwu boosted exhibition exchanges and cooperation with countries and regions along the land and maritime Silk Road routes. Yiwu held exhibitions in Malaysia， Indonesia and Brazil， countries with complementary economies， debuting in the two latter destinations.
Apart from helping enterprises explore overseas markets， overseas exhibitions offer Yiwu commodities an opportunity to test the global market. The demand for consumer goods - accessories， arts and crafts items and toys - is continuously growing in the countries and regions along the routes through more frequent international exchanges and cooperation.
Wang Wen， Executive Dean of the Chongyang Institute for Financial Studies at the Renmin University of China， said the Initiative is very attractive for foreign businessmen. More frequent personnel exchanges， the growing internationalization of the yuan， and better transportation will see improved communication in financial as well as diplomatic affairs.
Internet implications
This being the age of the Internet when everything is online， many perceive the exhibition industry as a sunset industry. At the Yiwu Exhibition Economic Forum last year， Zhang Jun， Chairman of Sungoal Exhibition and Convention， a leading exhibition organizer， said in future， online exhibitions would become the new trend. However， the industry is likely to achieve online-to-offline market integration as the two versions complement each other and can’t replace each other. Li Yifei， Secretary of the Communist Party of China’s Yiwu City Committee， said e-commerce will change the local trade pattern. Chinese e-commerce giant Alibaba’s headquarters are in Hangzhou， capital of Zhejiang， only 130 km from Yiwu. Besides its natural geographical advantages， Yiwu could utilize Alibaba’s e-trade model to expand business online. In fact， it is already doing that. Last year， its e-commerce sales generated 115.3 billion yuan （$19 billion）， an increase of 35 percent from the previous year. E-transactions led to 350，000 packages being dispatched daily by international express on average， a 40-percent year-on-year increase.
China will boost the development of its exhibition industry through market liberalization， says a State Council guideline released in April this year. China， though a latecomer to the exhibition business compared with developed countries， has become the world’s second largest exhibition holder in terms of the number of events and venues. Still， the guideline notes， China’s exhibition market is far from mature due to weak global competitiveness and an absence of policies.
There is a 2020 deadline for China to establish an exhibition center “with a sound development environment and a high level of internationalization.” The guideline says this will send out an important message that the Chinese exhibition industry has favorable prospects and ample opportunities.
Ghana’s Thage is gearing up for the China Yiwu International Commodities Fair in October 2015. “Since I came here， I have participated in this fair every year，” he said. “Yiwu and the Yiwu fair have made me what I am today.”
Dubbed “the world’s largest wholesale market for small commodities，” Yiwu， about 300 km south of Shanghai， attracts nearly 10 million domestic and 500，000 foreign buyers every year， and is home to almost 300，000 merchants who have permanent offices in the city. The market sprawls over more than 4 million square meters， where 60，000 stalls vie with one another for business.
Chen is one of them. His picture framing business had few takers when he started out with four employees. Today， their number has grown 10-fold and his annual sales exceed 60 million yuan （$9.6 million）.
City of exhibitions
Yiwu is renowned as a shopping paradise for small commodities. But now exhibition industry has become a new spotlight of its economic development.
And it has benefited businessmen like Chen. Instead of waiting for business to come to him， Chen decided to go out for business opportunities. He started participating in a succession of exhibitions - the China Yiwu International Commodities Fair， China Yiwu Cultural Products Trade Fair， China Frame Industry Decoration Exhibition， as well as the Canton Fair， and Hong Kong Houseware Fair. The aim was to monitor international， professional and innovative industry trends so that his company stayed competitive.
Last year alone， there were 123 exhibitions in the small but bustling city with an exhibition area of 760，000 square meters. The fairs attracted 134，000 companies and 1.43 million merchants from home and abroad. The turnover was 39.72 billion yuan （$6.5 billion）， accounting for one third of the annual trade volume of Yiwu’s small commodities market. In 2015， 17 exhibitions are expected， each covering at least 10，000 square meters.
Exhibitors introduce their companies， get new orders and meet potential clients. Yiwu exhibitions have become the most convenient procurement platform for nearly 500，000 foreign buyers annually， according to Yiwu’s Exhibition Management Office.
Traders from overseas are becoming a major force in Yiwu’s exhibition economy. Ghanaian Mpumi Thage is among the first group of Africans doing business here. About a decade ago， Thage set up his company to purchase hardware and commodities and export them to African countries. “Yiwu has a package of preferential policies for us and can provide what I need，” he said. Thage’s family of four has put down their roots in this city in Zhejiang Province and built a new life for themselves. Muhammad Adil discovered last year that most of the goods he bought came from the China Yiwu International Commodities Fair. The discovery made him go to Yiwu to buy his goods directly from there. “I need high-quality products and Yiwu fulfills all my requirements，” the Pakistani businessman said. “It is more convenient and faster to buy in Yiwu.”
Yiwu’s exhibition economy is growing exponentially. According to statistics from the Yiwu Exhibition Management Office， the 2014 China Yiwu International Commodities Fair saw a turnover of 17.07 billion yuan（$2.8 billion）， a 2.76-percent increase from the previous year. Foreign trade of $1.75 billion accounted for 62.73 percent of the total， a 3.21-percent increase. The fair is a platform for both small and medium-sized enterprises to develop domestic and international markets and buyers to procure products.
Guo Mu， President of the Zhejiang International Convention and Exhibition Industry Association， estimates the economic benefits of the three-day World Internet Conference in Wuzhen in November 2014， based on factors such as the number of participants and spending power.
“There were more than 1，000 delegates， over 1，000 media representatives， and more than 2，000 informal representatives. They created an output value of about 80 million yuan to 90 million yuan （$12.9-$14.5 million） for Wuzhen， and 800 million yuan （$131 million） for the surrounding areas in terms of food and accommodation， shopping， travel and entertainment.”
The exhibition economy， though a fledgling part of the service sector， has a huge driving effect， according to Guo. It is a high-profit industry with an average profit rate of 20 to 25 percent， and spurs related industries such as tourism， logistics， communication and advertising.
According the Zhejiang International Convention & Exhibition Industry Association， last year， the exhibition industry output value was 38.5 billion yuan （$6.3 billion）， contributing 0.96 percent of the province’s GDP. A sample survey of 1，000 foreign trade enterprises in Zhejiang showed about 70 percent of the export orders come from professional trade exhibitions.
Guo says China’s exhibition economy has developed along specialized fairs， exhibitors and audiences. Specialized exhibitions are increasing rapidly and the number of general exhibitions and trade fairs will decrease.
The silk touch In November 2014， an international cargo train service linking Yiwu with Madrid， Spain， was launched as an important part of the land and maritime Silk Road Initiative proposed by Chinese President Xi Jinping， paving the way for regional growth.
Chinese businessman Chen Peihong， who deals in picture framing， welcomed the China-Europe freight train launch， saying it would make businessmen like him more prosperous.
Yiwu， the world’s most popular wholesale market with more than 2.1 million commodities， provides a steady flow of goods to traders， no matter who they are. The China-Europe freight train and the Yiwu airport facilitate the export of goods to anywhere in the world.
At the Yiwu Exhibition Economic Forum last year， experts said the exhibition economy will prosper from the land and maritime Silk Road Initiative. Guo Mu， President of the Zhejiang International Convention and Exhibition Industry Association， said the initiative will mean the growth of at least three types of ancillary exhibitions： product exhibitions themed on the initiative； exhibitions in the countries and areas along the routes； and exhibitions at the destination.
In 2014， Yiwu boosted exhibition exchanges and cooperation with countries and regions along the land and maritime Silk Road routes. Yiwu held exhibitions in Malaysia， Indonesia and Brazil， countries with complementary economies， debuting in the two latter destinations.
Apart from helping enterprises explore overseas markets， overseas exhibitions offer Yiwu commodities an opportunity to test the global market. The demand for consumer goods - accessories， arts and crafts items and toys - is continuously growing in the countries and regions along the routes through more frequent international exchanges and cooperation.
Wang Wen， Executive Dean of the Chongyang Institute for Financial Studies at the Renmin University of China， said the Initiative is very attractive for foreign businessmen. More frequent personnel exchanges， the growing internationalization of the yuan， and better transportation will see improved communication in financial as well as diplomatic affairs.
Internet implications
This being the age of the Internet when everything is online， many perceive the exhibition industry as a sunset industry. At the Yiwu Exhibition Economic Forum last year， Zhang Jun， Chairman of Sungoal Exhibition and Convention， a leading exhibition organizer， said in future， online exhibitions would become the new trend. However， the industry is likely to achieve online-to-offline market integration as the two versions complement each other and can’t replace each other. Li Yifei， Secretary of the Communist Party of China’s Yiwu City Committee， said e-commerce will change the local trade pattern. Chinese e-commerce giant Alibaba’s headquarters are in Hangzhou， capital of Zhejiang， only 130 km from Yiwu. Besides its natural geographical advantages， Yiwu could utilize Alibaba’s e-trade model to expand business online. In fact， it is already doing that. Last year， its e-commerce sales generated 115.3 billion yuan （$19 billion）， an increase of 35 percent from the previous year. E-transactions led to 350，000 packages being dispatched daily by international express on average， a 40-percent year-on-year increase.
China will boost the development of its exhibition industry through market liberalization， says a State Council guideline released in April this year. China， though a latecomer to the exhibition business compared with developed countries， has become the world’s second largest exhibition holder in terms of the number of events and venues. Still， the guideline notes， China’s exhibition market is far from mature due to weak global competitiveness and an absence of policies.
There is a 2020 deadline for China to establish an exhibition center “with a sound development environment and a high level of internationalization.” The guideline says this will send out an important message that the Chinese exhibition industry has favorable prospects and ample opportunities.
Ghana’s Thage is gearing up for the China Yiwu International Commodities Fair in October 2015. “Since I came here， I have participated in this fair every year，” he said. “Yiwu and the Yiwu fair have made me what I am today.”