Yiwu Commodity City -- the largest small commodity wholesale market in the world -- is in recession again in the start of 2017.
From September 2014 to August 2016, wholesale venders in the City dropped 8,000. New comers during the same period were less than 700, according to a report from Yiwu Commodity City data base. On average, 1,039 stores closed down in the City every month over the past two years.
As consumers’ habits are changing, business operators in Yiwu have started to feel helpless in the new environment.
To explain the recession, Ling Yang ? co-founder of a start up in Yiwu ? indicated good regulations and a managing strategy are two things businessmen here lack of.
“For example, a couple of unqualified goods in a unit of cargo are forgivable. But one or two disqualified products in online retail will destroy the store completely, in terms of store reputation and consumers choices,” said Ling.
Another case Ling offered is a business operator who hired a marketing executive from Shanghai and offered him 600,000 yuan annual salary. Even if the new marketing executive was found his role was unclear, the main issue was a human resources problem.
CFP
In the unregulated working environment, business talents do not want to stay. Even those who are working in the manufacturing industry are leaving the place.
The data released by the local government shows that 1.43 million local residents out of 2 million are from other cities. Since shipping motorbikes is prohibited, and non-local residents are excluded from car hailing business, most workers decided to leave the city, with their families.
Till now it is estimated that 300,000 people have left the city, which has damaged traditional manufacture industry.
CFP
On the other hand, a surprising new opportunity in the digital era appeared, which benefit those with 'offline' experience.
Qingyanliu Village is only 8 miles away from the Yiwu Commodity City, but it has been honored as the best electronic business operating space.
The small village has gathered 25,000 corporations who are running 3,200 online stores. Their annual sale can reach 450 million yuan in total.
CFP
Offline services is the key element that supports the fast growing demand on line. Here in the village, you can have smooth information flow, accurate business data, handy chipping service and available warehouses all the time.
Now, offline services have shown its advantages in offering qualified services to businessmen and improving consumer experience on line. It has indirectly contributed to the successful business operations.
CFP
It would appear that to make it in the on line digital world old fashioned 'off-line' skills are still very much needed
