Yiwu Trade City at the end of the year: There are only a few "explosive orders", and it will take time for the market to recover, and it is expected to be better next year

　　With the gradual implementation of optimized epidemic prevention and control measures, Yiwu, the "world small commodity capital" that has trade relations with more than 230 countries and regions around the world, has seen the dawn of market recovery.

　　On December 13, the International Trade City in Yiwu, Zhejiang has been fully opened.

At present, Yiwu Trade City has introduced policies such as free accommodation for foreign businessmen, discounts for storage, and increased financing quotas for business spaces to help the market accelerate its recovery.

　　How is the market vitality of Yiwu Trade City restored?

According to media reports, “Many merchants in Yiwu Trade City have recently seen explosive orders and have begun to increase their reserves of goods to cope with the purchasing boom.”

　　After an interview with the Red Star Capital Bureau, it was learned that from the perspective of Yiwu Trade City operators and logistics companies, Yiwu Trade City as a whole did not immediately resume its former bustling due to the approaching end of the year and the epidemic.

There are only a few business households that ushered in the "explosive orders" at the end of the year, and most business households have switched to working from home and planning to take vacations in advance.

Business households that have passed 2022 smoothly, I believe that next year will usher in a good situation.

　　① Some people stop taking orders, and some rush to deliver the leftovers

　　At 2:00 p.m. on December 28, Mr. Zheng, a business owner engaged in the zipper foreign trade business in Yiwu Trade City, planned to go home from get off work in the store.

　　The zippers operated by Mr. Zheng are mainly sold to the Middle East, Russia, Ukraine and other places, and foreign trade orders account for 90%.

In the past half a month since the full opening of Yiwu Trade City, Mr. Zheng went to the store almost every day to deal with the reconciliation and clearing of accounts at the end of the year.

He found that the gates of many stalls in the trade city were closed.

"At present, there are not many customers coming to the market, and most of the business operators are affected by the epidemic and rest at home."

　　"Not long after it was released, foreign customers did not enter the country so quickly. At the end of the year, there were very few business operators who 'exploded orders'." Mr. Zheng said frankly that, taking the zipper industry as an example, as the end of the year approached, factories shut down one after another, and employees stayed at home due to the epidemic. Normal production cannot be guaranteed.

Considering that it is difficult to deliver on time after receiving the order, Mr. Zheng has suspended the order and plans to have a holiday on January 10.

　　Looking back on this year's business, affected by the epidemic and the conflict between Russia and Ukraine, Mr. Zheng, who has been in the zipper business for more than 20 years, said with emotion, "This year, the order volume is small, the business is not easy to do, and the turnover has dropped a lot."

　　Ms. Zhou, who is engaged in the foreign trade business of baby products in Yiwu Trade City, has not been to the store for nearly 10 days.

"Although it has been fully liberalized, the trade city is not very popular." Ms. Zhou, who is recuperating at home, told Red Star Capital Bureau.

　　Ms. Zhou's store has not yet had a "explosive order" at the end of the year, and the order volume has always been relatively stable.

Ms. Zhou's products are mainly exported to Africa. She has been in foreign trade business for more than 10 years and has accumulated many regular customers. The annual sales in previous years were about 10 million yuan.

"At present, it is mainly supported by old customers. There have not been a large number of foreign buyers coming to Yiwu Trade City to place orders, but they will return orders through online contact."

　　Ms. Zhou has been busy sending out the leftovers recently, and is waiting for the holiday in a week.

　　Another operator in the jewelry business also told the Red Star Capital Bureau that there has not been a "explosive order" at the end of the year, and the order volume is normal.

　　② Some logistics companies are busy with delivery at the end of the year

　　The business operators rushed to deliver goods at the end of the year, and the logistics outlets in Yiwu also ushered in the peak of shipments.

　　"The warehouse is full of congestion, so don't bring in the goods shipped after New Year's Day." "If it doesn't work, stop it. Don't accept the goods in the future, and leave early." "Recently, the warehouse is tight. Please try to shorten the purchase time and reduce the number of remaining goods." The staff working in an international logistics company in Yiwu, the content of the circle of friends recently is mainly about one thing - warehouse explosion.

　　Regarding this phenomenon, the operator Mr. Zheng analyzed to the Red Star Capital Bureau that it is a normal phenomenon for some logistics warehouses to explode at the end of the year, and it will occur at the end of each year.

"Because we want to catch some customers' orders and send them out before the end of the year holiday, it will definitely cause congestion."

　　In addition, this year, the logistics industry encountered the special situation of employees staying at home due to illness, reducing manpower and inevitably limiting work efficiency.

"For example, many people who do freight forwarding and logistics work are sick, and their orders may be backlogged." Mr. Zheng said, but fortunately, the logistics cost has not increased yet, and the sea freight has also dropped this year.

　　The busy situation of each logistics company is also different.

　　Compared with Mr. Zhang's experience of "exploding warehouses" during holidays, Mr. Li, who works in cross-border logistics in Yiwu Trade City, reported that the recent shipments have actually declined.

"Considering that there are holidays at home and abroad, we have almost finished handling the urgent goods before the 20th."

　　Mr. Li added that his company's logistics orders are generally carried out in a relatively smooth and orderly manner.

Due to the high degree of standardization of cross-border logistics, this time it will not be greatly affected by manpower.

"We have warehouses in Yiwu, Shanghai, Ningbo, Fujian and other places. If a certain branch is more affected, we can immediately transfer to other branches."

　　③ Favorable policies are frequently reported, and next year is expected to be better

　　"The market is not picking up so quickly, it will take time." Mr. Li predicts that it will not recover until at least March and April next year. If it is to return to the state before 2019, it is estimated that it will not be until the middle or second half of next year.

　　Mr. Zheng is gratified that the operators of Yiwu Trade City have received real support in the face of a downturn in the general environment.

"This year alone, we have received 2 notices to waive rent, adding up to a total of 6 months of rent exemption."

　　On December 1 this year, Zhejiang China Commodity City Group Co., Ltd. ("Small Commodity City" for short, stock code: 600415.SH) issued a notice on rent reduction and exemption to the holders of the right to use the business space in its market, clarifying that "the lease period of this round of business space continues Rent exemption will be extended for 3 months."

The last time Small Commodity City offered to waive rent for three months was on May 28 this year.

In response to the country's call, we will further help business entities overcome difficulties and resume development.

　　In addition, Yiwu Trade City also mobilized business operators and freight forwarding companies to attract customers together.

Newly launched preferential measures such as shared cloud warehouses and financing discounts, providing merchants with credit support of up to 2 million yuan.

　　In order to attract more foreign businessmen, Yiwu Trade City provides foreign businessmen with free 4-day accommodation, discounted warehousing, and increased business financing quota.

At the same time, a new vertical exhibition area for jewelry, department stores and other industries was newly opened, allowing 40 companies to show up together, improving the efficiency of foreign procurement and striving for more orders as much as possible.

　　According to the data of Yiwu's entry and exit management, as of now, there are more than 10,000 permanent foreign businessmen in Yiwu, which has recovered to 70% of the pre-epidemic level.

　　The new epidemic prevention policy will benefit foreign trade again.

On December 28, the General Administration of Customs issued an announcement that from January 8, 2023, nucleic acid testing for all entry personnel will be cancelled.

All entry personnel are required to declare to the customs the results of the new coronavirus nucleic acid test within 48 hours before entry.

The customs will release the entry personnel with normal health declaration and no abnormality in the routine quarantine at the port to enter the society.

The announcement also stated that the relevant provinces (autonomous regions, municipalities directly under the central government) will promote the orderly and stable resumption of cargo and passenger transport at border ports according to the procedural classification...

　　"Many foreign customers are also busy applying for visas to China. As a large number of foreign buyers enter the country one after another, the foreign trade industry will also usher in a recovery." Mr. Zhang believes, "The policy sends a positive signal, and the immediate difficulties will always come. In the past, our expectations for next year have remained positive."

　　Red Star News reporter Yu Yao and intern reporter Lu Yuejia