Xinhua News Agency, Hangzhou, October 20Title: "Christmas cannot be separated from Yiwu manufacturing" - Eyewitness report of Yiwu, the world's largest Christmas product production base

Xinhua News Agency reporter Qu Lingyan

"From shoes to toys, from clothes to tableware, Christmas shopping is not just about Santa Claus and Christmas trees." Niros, head of the Chinese branch of India's Lulu International Group, said, "Christmas cannot be separated from Yiwu manufacturing!"

The autumn is deep in the north, and the south of the Yangtze River is also "a burst of autumn rain and a burst of coolness". Recently, the reporter went to Yiwu, Zhejiang, the world's largest Christmas product production base, but felt "hot". This is the deadline for Yiwu's Christmas products to be shipped overseas. Factories are rushing to work, logistics shipments, foreign trade shipments... a busy scene.

"This Christmas, American consumers will pay more for this"

In the Christmas supplies market on Futian Street in Yiwu, Christmas trees, Christmas balls, Christmas lights, Christmas flowers, Christmas hats... The strong festive atmosphere has already spread in advance.

The Yinhe Electronic Lighting Company, which specializes in holiday lighting products, has a product exhibition hall decorated with various holiday lights made of wood, paper, rattan, iron and acrylic materials. "At present, more than 90% of holiday lighting products have been replaced by LED products from traditional large bulbs." General Manager Qu Xiaoping introduced that LED lights are safe, environmentally friendly, and compact, providing more choices for product innovation.

LED lighting products, which account for the highest proportion and the largest value of Christmas products, have been included in the first batch of tariff lists by the United States, and decorating houses with LED colored lights and Christmas lights is essential for American people to celebrate Christmas.

"Has the company's Christmas product sales been affected this year?"

"There is an impact, but there are also solutions." Facing the reporter's questions, Qu Xiaoping said that the cost of the tariff increase is mainly borne by the buyers, and at the same time, the company has also improved its competitiveness by updating its products. "This year, orders exported to the United States have increased by 20%, and new products account for about 50% of the total export products."

80% of the world's Christmas products come from China, of which Yiwu accounts for 80% of China. "American consumers will have to pay more for this Christmas." Cai Qinliang, secretary general of the Yiwu Christmas Products Industry Association, told reporters that as the world's largest Christmas product production base, Yiwu has the right to set standards and set prices.

Yiwu has more than 13,000 resident overseas merchants from more than 100 countries and regions, and more than 500,000 overseas merchants come to Yiwu for purchases every year. Foreign merchants in Yiwu are always paying attention to the progress of Sino-US trade negotiations.

"In addition to Yiwu, I can't think of where else I can go to purchase so many varieties of Christmas products in one stop." Ferris, a buyer from Canada, has businesses all over the world, with a focus on Europe and North America. He said that Yiwu's Christmas products are sold at low prices, which also means that most of the additional tariffs need to be digested by buyers and consumers.

A latest report released by Coresight Research, a US market research firm, in early September showed that nearly 60% of American consumers are worried that tariffs will lead to higher prices for holiday gifts. 25.5% of consumers said they might buy fewer goods, 22% turned to cheaper retailers, and 22% chose to buy cheaper products.

"All countries and regions that celebrate Christmas are our market customers"

"Today's shipment is a big order. Which country?" Cai Qinliang took the reporter to the Little Angel Christmas Products Company, where dozens of large boxes were placed at the door of the store and the staff were preparing to load the goods.

"Ship to Peru." Sales Director Long Xijin counted the goods for the last time and said to the reporter with a smile, "This order alone is worth millions of RMB."

From focusing on traditional markets such as Europe and the United States to developing diversified markets, Yiwu companies have gained experience with painful experiences. "The 2008 financial crisis had a great impact on Yiwu companies. Companies realized that they could not just hold on to a big order or a market." Cai Qinliang told reporters.

The Little Angel Christmas Products Company, which came from Guangdong and has now taken root in Yiwu, has the most say in this. Long Xijin said that the company mainly supplies mid-to-high-end products and used to mainly accept orders from the European and American markets, but orders have been shrinking in recent years. Finding that there are many foreign companies and a broad market in Yiwu, the company shifted its focus to Yiwu. Nowadays, enterprises are developing rapidly in the South American and Southeast Asian markets, and the annual sales are expected to increase by 10% this year.

The iron and rattan products in the shape of Christmas stars and reindeers displayed by Yiwu Baiyang Christmas Crafts Co., Ltd. are more modern and can be used not only for Christmas decorations, but also as daily ornaments. In the office of General Manager Yang Shengping, he calmly brewed Kung Fu tea while telling reporters that the South American market has accounted for 60% of the company's exports, followed by Europe, and the US tariffs have little impact on the company. "Last year's sales were 8 million yuan, and this year it is expected to reach 10 million yuan."

"All countries and regions that celebrate Christmas are our market customers." Cai Qinliang said that the Christmas products produced in Yiwu are rich in grades, including high-end products such as electric Santa Claus that cost hundreds or thousands of yuan, and Christmas ball decorations that cost as little as a few cents each, to meet different needs.

Statistics from the Yiwu Christmas Products Industry Association show that with the rapid expansion of Yiwu Christmas products in emerging markets such as Central and South America, Africa and Southeast Asia in recent years, the share of the European and American markets is gradually shrinking, of which the US market accounts for less than one-tenth of the export share. "This is also the main reason why the US tariffs have little impact on Yiwu's Christmas industry." Cai Qinliang said.

"Innovation is the biggest competitive advantage of our products"

At 8 o'clock in the evening, the factory of Yiwu Fuye Toys Co., Ltd. was still brightly lit, and employees were making the final adjustments to the electric Santa Claus before it was shipped out. The reporter saw that the Santa Claus produced by this company can not only shake his head, but also play dozens of saxophone songs.

"This batch is a European order, and it is urgent. The employees have to work overtime until late at night." General Manager Jin Zhixun said.

"Innovation is the biggest competitive advantage of our products. From the use of scientific and technological means to whether the Christmas doll clothing can be in line with fashion trends, it is worth studying." Jin Zhixun pointed to a Santa Claus plaid coat and told reporters that the plaid style is copyrighted. The Santa Claus they produce goes to the Frankfurt Christmas Gift Fair in Germany every year to compete with peers from all over the world, and always achieves good results.

From "copying the same" to innovative products, from being dominated by Europe and the United States to opening up a diversified market... Many Yiwu entrepreneurs proudly say that Yiwu's Christmas products have become the "wind vane" leading the world's Christmas products.

In the "secret exhibition hall" of Zhuoyuan Christmas Crafts Company, which is only open to old customers, reporters saw reindeers wearing the heads of the twelve zodiac signs, Chinese knots and tassel-shaped Christmas pendants... The latest Christmas products reflect the integration of Chinese elements everywhere.

In addition to the appearance, the content of materials, design and craftsmanship of Yiwu Christmas products is also constantly improving. At first, the Yiwu market was dominated by pendants made of foam plastics. Now there are more environmentally friendly wood, fabric, iron and even high-end acrylic products, and even the spray painting process is EU or Japanese standards.

Leading innovation and improving quality, the most obvious change is that the pricing power has been mastered, and profits have increased. "The wholesale price of a bucket of foam Christmas balls used to be 10 yuan, but now a glowing LED lighting pendant costs 50 yuan each." Cai Qinliang said.

We strive to lead the global trend of Christmas products by making full efforts in appearance and connotation innovation. This is an important reason why Christmas products in Yiwu are indispensable for the global Christmas.

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