Yiwu makes windfall gains from Olympic orders
With the Paris 2024 Olympics around the corner, orders for sports merchandise have inundated Yiwu, the world's largest wholesale market for small commodities located in East China's Zhejiang province.
Over the years, businesses in Yiwu have expanded their presence in the international market by participating in major global sporting events and accumulating a wealth of experience.
This has enabled them to seize market opportunities and stay ahead of the competition, experts said.
According to statistics from Yiwu Customs, the export value of sporting goods came in at 4.1 billion yuan ($563.97 million) in the first five months, marking a year-on-year growth of 44.4 percent.
A convergence of multiple sports events this year has created a unique opportunity for Yiwu, allowing merchants to tap into a wider customer base and land new orders, said Xu Yan, president of the Yiwu Cross-border E-commerce Association.
Businesses specializing in sporting goods have experienced a substantial surge in order volumes, with many witnessing an increase of over 30 percent compared to earlier periods. Demand for jerseys, socks, flags, horns and other sports-related items has skyrocketed, Xu added.
At the Yiwu International Trade Market, covering an area of more than 4 million square meters and housing over 62,000 booths, a shop is displaying silicone bracelets bearing the official emblem of the Paris Olympic Games.
"This bracelet is manufactured by our factory under official authorization," said Lin Daolai, a merchant.
In October last year, his company won the bid for an order to produce 1 million Olympic bracelets, Lin said, adding that he and his team wasted no time when they received the order.
Production started in December, and by the time the Chinese New Year ended in mid-February, the first batch of 500,000 bracelets had been flown to Paris. The remaining bracelets were all dispatched before May.
The increased visibility and credibility gained from being an official supplier of Olympic merchandise have translated into a 30 percent growth in overall sales for the flag-themed bracelets, Xu said.
Since last year, many business owners like Lin in Yiwu have received substantial Olympics-related orders.
Wang Qiang, president of the Yiwu Sports and Fitness Supplies Industry Association, said the association swiftly took action and began convening enterprises in the summer of last year to discuss marketing strategies, optimize the supply chain, and seize the business opportunities presented by the event.
The city's production and supply systems are renowned for their efficiency and the ability to adapt to the unique needs of buyers. This adaptability has positioned Yiwu as a preferred destination for sourcing relevant products for major sporting events, Wang added.
The scope of sports events encompasses a diverse range of product categories, allowing businesses to tap into new avenues of growth. In addition to sporting-related merchandise, the demand extends to commemorative items, catering supplies, and hotel products.
As spectators enjoy their favorite sports events with a refreshing beverage in hand, demand for bottle openers has also surged, said Liu Liping, another merchant in Yiwu.
"We have experienced a significant increase in overseas orders for bottle openers since April, with sales growing by 20 percent to 30 percent," Liu said, adding that the recent influx of orders from Portugal and Spain has prompted the manufacturer to ramp up production, resulting in a workshop filled with goods bound for Europe.
However, escalating sea freight costs have prompted businesses to explore alternative transportation options, with the China-Europe railway emerging as an attractive solution.
As the Belt and Road Initiative continues to advance, the trade logistics costs between China and Europe through land channels are expected to decrease further. This cost reduction will create a favorable environment for trade and establish a virtuous cycle, bolstering Yiwu's position as a global trading hub, said Bao Yuefei, general manager of Yiwu CF International Logistics Co Ltd.
