Yiwu Is Waiting For The Whole World: Electricity Providers, Live Broadcasts And Small Businesses Who Are Not Prepared To Burn Money.

Qi Liang spent the most memorable Spring Festival in his experience.

In his clothing inventory business in Yiwu, the epidemic seemed to be divided into two worlds before and after the outbreak. Before the Spring Festival, the bustling city of Commerce has been almost empty city until now. "Since March, there has been little business and almost all cuts." He told financial graffiti.

He went on to say, "basically, there are no cars in Yiwu port, but they used to be lined up. Now there are no cars and gates.

And foreign trade business is not just affecting foreign trade providers such as Qi Liang, freight forwarders, international freight forwarders, neighboring factories, workers, temporary workers, and e-commerce support personnel have all been hit by the downturn in foreign trade. "At least 30%-40% in Yiwu is a foreign trade business. Foreign trade will not work. The whole industry chain will be affected." Qi Liang said.

Yiwu, a World supermarket linking 2 million small and medium-sized enterprises, is now almost isolated from the "world".

In March 23rd, according to the general list of import and export commodity chapters issued in 2020 from 1 to February, the total value of foreign trade exports from 1 to February was 292 billion 400 million US dollars, compared with the same period last year. The total value of foreign trade of textile raw materials and textile products was 29 billion 400 million US dollars, down 20.2% from the same period last year. And these macroscopical data are refracted into images, which are empty shopping malls.

"Now the foreign trade situation is, everyone is eating the soil."

"At the same time in the past year, it was a good time for us in a year, but now there is no business." Qi Liang said his tail clothing was mainly exported to Africa, the Middle East and other regions. Many foreign traders without business have gone to do epidemic prevention supplies, because from the current situation, only the epidemic prevention materials can be exported, and other goods are difficult to be shipped out. "The whole transport and transportation goods have been broken and foreign ports are not open." Qi Liang said, even the next order, the deposit of the goods can not go out.

Xiao Kun, another power business in Yiwu, said, "now the foreign trade situation is that everyone is eating the soil." Because foreign epidemic situation is serious, customers can not do business, foreigners are restricted in entry, and merchants can't get in.

The most direct pressure on business is rent. "There is no source of income, and the cost is a problem. The key is that the rent is paid annually, and 360 thousand of the rent a year is kept empty, and it is losing money." Xiao Kun said.

Compared with the past years, how much is the difference in business? "At this time last year, we could achieve 2 million sales, and business was good years ago, but now we have come from the new year, and now we have less than 200 thousand." Xiao Kun smiled bitterly.

The five brothers are in the foreign trade business of making straw woven handicrafts. The products are mainly exported to Europe and the United States and the Middle East. The unit price of the products is between 2-15 yuan. "Last year, we could have almost 2 million sales volume a month, and now it is about 300 thousand -40 million, but there is little profit." Five elder brother expresses.

The five elder brother's shop also has an annual rent of 300 thousand. "The rent must be a loss, and now shops are losing money."

"There are stalls, live broadcast."

The foreign trade business has plummeted. Under the influence of foreign epidemic situation, there is no timetable for the recovery of foreign trade. As a result, foreign trade orders have been cancelled frequently. How to deal with the goods being cancelled is a problem.

Some enterprises have turned to domestic sales. Qi Liang said, "I am now turning to domestic sales, and clothing is mainly sold domestically." "We are trying to do all kinds of ways in the domestic market. There are stalls, there are live broadcast, and there are clothes shops to get goods, probably about these channels."

However, there are also some commodities that can not be sold domestically. "The key to domestic sales is that the products of the foreign trade should be suitable for the domestic market." Five elder brother expresses.

Some products can not be sold domestically because of their attributes and prices. For example, some products that are custom-made abroad, such as gifts, and so on, are specially designed for low-priced products in Africa.

"Now that you let me go to the cat shop, I can't open it. The product is not right. For example, what I do on Christmas Easter is not wanted in China." Five elder brother said.

In addition to the product itself, there is still a lack of channels for foreign trade to be sold domestically.

In the past, it has always been engaged in foreign trade, but there are no domestic sales channels in China. "Like domestic companies have cooperative wholesalers, or they have done all the above on Tmall platforms such as Jingdong, but there are no channels for factories like ours." Five elder brother expresses.

Another way to see it is to do live broadcast. On the Taobao shake, a lot of Yiwu's live broadcasting is on the rise. Yiwu even has the live broadcast Village North Zhu, and the live broadcast in 2018 has been everywhere in Yiwu.

When foreign trade fails, many bosses will also do live broadcast, and Qi Liang will do his own live broadcast on the jitter. He will also do some live broadcast to his friends. He will try to bring goods whenever he can.

But there is a very practical problem with live broadcasting. Some commodities are suitable for live broadcasting, and some are not suitable at all, even if they are broadcast live. During the epidemic period, home belongings are suitable for live broadcasting, such as barbers, which are needed in their own way. Live broadcast has led to the purchase of goods, such as home items or good-looking items, and goods that can be used by consumers in daily life can be carried on the live broadcast. The sales volume is also very impressive, while typical special regional commodities such as Arabia robes or pure industrial products, foreign gifts are used. These are not suitable for live broadcasting.

"The attributes of products are very important. Some kinds of products are suitable for live broadcasting. Some are not suitable for live broadcast. They can be done with industry categories." Five elder brother said.

There is also a supply chain problem related to live broadcasting. The supply chain of live broadcast is that it can make some stock in advance, and many goods are also universal. The factory can produce tens of thousands of pieces on the same commodity. The supply chain is very fast, such as clothes, daily necessities, etc., one hundred thousand. But foreign trade is ordered, and orders will make factories start to do so. The supply chain speed of foreign trade can not be compared with that of direct seeding supply chain.

Most live products are also daily necessities. Even if they are temporarily stocked, they can be quickly digested and stocked up very quickly, so that they can reach the number of factories they can produce, but how many factories they can produce. But many foreign trade products are special needs. This year, they are not sold, and they may not be sold next year. For example, a popular Christmas hat this year is similar to this live broadcast product. More "non standard" goods, stocking and inventory pressure will be greater.

"Ultimately, it is related to the product itself, the difference between foreign trade products and domestic products themselves." Five elder brother expresses.

Electricity providers need to spend money on traffic.

In the face of the plight of foreign trade, e-commerce platforms have helped. In March, Zhejiang and Ningbo jointly promoted the export of 15000 local enterprises to domestic sales. Soon, a lot of combined with Zhejiang Cixi fusion to boost the export of Chinese enterprises to domestic sales 7 billion 800 million.

In April 14th, the Taobao special edition announced ten measures to support the export of foreign trade factories to the domestic market, including the Taobao special edition, the on-line sales section of the foreign trade factory, and the monthly special promotion for the industrial belt factory.

Qi Liang also tried to spell a lot. A lot of similar models and low price group buying, as a lot of trying to sell goods, he is not very good, "no browsing volume, no list, how to do it?"

As a novice businessman, just shop on the platform, put pictures, and do not spend money to buy traffic, is not attracting users. The five elder brothers also said that a lot of models are more competitive prices, many of which are also many businesses, but many of them do not make money on the platform.

And like Yiwu, the products are socks, shoes, hats and clothes. These department stores do not have big brands, nor are they high-end, so they will not attract vip.com into these electronic business platforms.

For more people, the first choice is Taobao or 1688 of these wholesale websites, which is more suitable for their original wholesale mode. "We do wholesale business in our own way, and the volume of retail sales is too small to do well. Let's go to 1688 first. After all, this is a wholesale website. I have tried this kind of pattern before. "Five elder brother expresses.

In addition to wholesale, it may also try to do some retail sales of Tmall stores. "Tmall will not do well in the early days, but we have been doing business for so many years and still want to brand. Five elder brothers said that in the future, the problem of thinking is mainly done in a single category.

The most important thing is to live.

Although they are all looking for opportunities to reverse the impact of the first shock of foreign trade, the challenge is still ahead, and the most important thing is the problem of consumption.

China's epidemic situation has gradually stabilized, and retaliatory consumption is not apparent. Consumers are becoming more cautious.

In the clothing industry, this kind of caution is also very obvious, "like girls in the past may buy a dress four hundred or five hundred, but this year, the same price, they are not willing to buy." Qi Liang said. Moreover, the demand elasticity of clothing is also large, not like food must be bought, clothes are adjusted with income elasticity, "so the reduction of consumption intensity has great impact on us."

"At the moment, we have no other way to go. We can only take one step at a time. The epidemic is very influential. It is difficult for everyone." Qi Liang is helpless.

Beside him, he is also a Yiwu self-employed person like him. He has already removed two of his warehouses due to expire, and all of his friends' stores and warehouses have expired.

"To survive, one is to reduce expenditure, the two is to have risks and minimize risks as far as possible." Qi Liang said. Traders are miserable, manufacturers are also miserable, "now many factories are also pressed in factories, and it is very cheap to lose money. For example, a piece of clothing turned out to be 20 yuan. We only received 2 yuan for the tail cargo, but after the epidemic came, it became 1 yuan or even a few cents, and even the money did not dare to pick up, because there was no place to take it." Qi Liang said.

In response to the setbacks in foreign trade, Yiwu has implemented some measures to help enterprises resume work and resume production. After the stabilization of the epidemic, Yiwu organized a chartered car to Yiwu and reimbursed the fares. In addition, foreign businessmen were invited to invite the live teams to Yiwu.

"Some policies may be better for enterprises, but we are self-employed, and there are few policies for self-employed households." Qi Liang said.

Yiwu has also made some subsidy or tax reduction policies. "But tax cuts are not enough. "The key now is that the epidemic is going to be over. China is fine, but it needs to go abroad, and this may seem to take a long time," said brother Wu.

And the biggest problem facing Qi Liang and his friends is how long they can survive.