Yiwu Grassroots Economy

China Yiwu Grassroots Economy
Since reform and opening, Yiwu uphold and deepen the “Xing to build market” development strategy, to nurture, develop and enhance the market as the core, and vigorously promote the industrialization, internationalization and integration of urban and rural areas, out of a region rich in its own unique development.

“This place had very poor, poor natural conditions for agriculture, many farmers had to go out business, shake rattle sell sugar. Yiwu government survival of local people in difficult circumstances, in many places in the expulsion of ‘street market’ time, only able to accept them so that it can be considered to survive. can not say Yiwu city leaders had the foresight, was just out of instinct: To support farmers, in order to develop the economy. “Zhejiang Provincial Party School Vice President, Vice President of Zhejiang Administration Ma Lihong to the “China Economic Weekly” said.

As Mayuan Zhang said, in today’s Yiwu is Bo Langgu shake out, though there is no foresight leading Yiwu, Yiwu, but people know what to do and what not to do. Yiwu first in the world. Early 80s of last century, the first in China Yiwu self-employed industrial and commercial registration to relax, allowing farmers to do business, allowing open urban and rural markets. Farmers have a free hand in business themselves, and have joined the business team. During this period, some dealers do business initially completed by the primitive accumulation of capital to buy machines to do from the processing plants, forming a “front shop” business one of the family business model.

Yiwu government accepted the generous living conditions of local people has improved, from the government perspective, revenue increased, more clout on urban development. And people were unprepared, the market, once formed, after a big circulation, business people will flock to. For a time, Jinhua, Yongkang and other places are concentrated to the Yiwu small commodities, Yiwu market began to grow, eventually forming a distribution center in the country and world famous.

Although the formation of the market, but also to Yiwu people out of poverty, but not really rich, at the time, a box of crafts wholesale profit is only ten to twenty dollars. So Yiwu enterprises have followed.

Yiwu Night View

At first, Yiwu commodities mainly from Guangzhou, Ningbo and Wenzhou and other places, and only a small part of the local processing and manufacturing, but then has a very high profit industry, but Yiwu is nothing more for these local services. This also led to a number of dealers had unbalanced mind, so that they do by feeling the stones from their own business (business has been achieved through a small part of the capital.) However, in Yiwu enterprises have a unique advantage: Yiwu born business owners are mainly farmers, not highly educated, they only know what will sell what is produced, the company did no planning, not to mention what scientific management, the Employment of workers also came from Jiangxi, Anhui and Hunan and other places of migrant workers are some of the production of handicrafts and some simple daily necessities, which greatly reduces the cost of the production of socks yesterday, not tomorrow for a customer’s welcome style, not to sell tomorrow, the day after tomorrow and back, until the customer satisfaction; and customer satisfaction to a large number when put into production, while developing a new style, old style lower prices over time, many companies have formed their own brand products. This is the later Central Television called “grass-roots economy,” Yiwu model enterprises.

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