And there is another important point, businessmen.
The development of Yiwu Small Commodity Market has a lot to do with the block economy of various cities and counties in Zhijiang Province.
Zhijiang Province started out as a light industry province.
The most famous ones include electrical appliances from Yueqing, small hardware from Yongkang, ties from Shengzhou, socks from Zhuji, umbrellas from Shangyu, leather from Wenzhou, glasses from Yuhuan, clothing from Ningbo, textiles from Shaoxing, jewelry from Yiwu, etc.
If these county-based block economies want to sell their goods, they definitely cannot do so by selling them individually.
There needs to be a centralized market to bring together merchants from across the province, the country, and even the world.
The Yiwu Small Commodity Market was developed under such a specific historical background. This was not only due to the efforts of the Yiwu people themselves, but also the joint efforts of many Zhijiang people.
Just like the self-employed individuals engaged in small commodity business in Wenzhou, more than half of them later went to Yiwu, and the role played by this group of people was very huge.
But now Yuezhou's "Four Seasons Department Store" has emerged as a new force.
Four Seasons Company has relied on Walmart as a pillar of support, and the orders it has received can only be described as massive. It is simply impossible for the company to produce them in time relying solely on the more than 20 factories under its name.
This requires purchasing a large number of small commodities from outside, or OEM production, using Walmart's trademark.
Don't underestimate external procurement. For example, Walmart placed an order for one million badminton rackets. Four Seasons could only produce 300,000 units internally and had to outsource the rest.
This order for 700,000 badminton shuttlecocks is enough to support several factories.
Zhejiang businessmen are very smart. As soon as the news about the Four Seasons Company spread, factory managers from all over the province rushed to Yuezhou.
Chen Qiaogu gathered everyone in the large conference room.
Then they took out samples, marked the required quantity and product quality parameters on the back, and let the factory managers choose how many orders they could take.
Siji Company then selects the most capable and quality-assured companies from among these small commodity manufacturers to become its partners.
Therefore, for merchants in Zhijiang Province, Yiwu Small Commodity Market is a window for domestic sales, while the "Four Seasons Department Store" in Yuezhou is a window for foreign exports.
At that time, China had not yet joined the WTO and was not yet the world's factory. The Yiwu Small Commodity Market was only famous in Zhijiang Province and had not yet dominated the market and become the world's number one.
Then Yuezhou has the opportunity to overtake.
Chen Xia wanted to compete with Yiwu, and Walmart's order advantage was reflected.
Gu Wei was still giving suggestions at the dinner table.
"Think about it. Since you have orders, why not encourage those domestic small commodity manufacturers to relocate their factories to the Yuezhou Industrial Park? If anyone hesitates, just withhold your orders and see if they'll come."
Chen Xia thought to himself, these officials are so cruel, they are forcing people to move to Yuezhou.
Gu Wei didn't know what his son-in-law was saying about him, so he continued:
"Walmart supermarkets have orders for all kinds of goods, so the factories that move to Yuezhou will also have all kinds of goods. With more factories, you can imitate Yiwu and build a small commodity trading market in Yuezhou.
Don't forget, Yuezhou's geographical advantages are far superior to Yiwu's. We have railways and highways, and are close to Lin'an Airport and Ningbo Port. Yuezhou also has a well-developed inland waterway transportation industry, making it a natural advantage for developing small commodity logistics."
Chen Xia thought about it and realized it was true.
Four Seasons Company has another great advantage in opening a small commodity market.
That is the "Four Seasons Trading" company located in Hong Kong. It has become very famous in the global industry because it has become Walmart's largest supplier.
If a company is famous, customers will naturally come to it, such as the very popular 711 convenience store in Japan.
711 is operated by Ito-Yokado, the largest retail company in Japan, and its owner is Masatoshi Ito.
Masatoshi Ito is a cousin of Nobuyuki Takeda, the chairman of Takeda Pharmaceutical. With the help of Nobuyuki Takeda, Ito-Yokado officially became a trading partner of Shiki Trading Company.
In addition to supplying Walmart, Four Seasons Department Store has begun supplying its products to 7-Eleven convenience stores.
Chen Xia had also considered this cooperation. He refused to cooperate with any company that competed with Walmart.
He must ensure that Walmart has a price advantage in order to defeat its competitors.
However, 7-Eleven convenience stores are small retail stores, and Walmart does not have many supermarkets in Japan, so there is no competitive conflict between the two, so Chen Xia agreed to this cooperation.
In addition, retail companies in Southeast Asia, South Korea, and even India, have also begun to contact and negotiate with Four Seasons Trading Company. The low prices of Chinese products are enough to attract the retail industries in these countries.
Then the benefits come. As Four Seasons Trading has more and more orders, the conditions for Yuezhou to build a new "International Small Commodity City" are becoming more mature.
It is impossible for Four Seasons Company to monopolize orders forever. As China's opening up to the outside world accelerates, those foreigners will find ways to come to China to purchase cheaper goods.
Rather than being passive in the future, it is better to plan ahead and establish an "International Small Commodity City" in Yuezhou, mainly to engage in export business and attract foreign merchants.
By then, Chen Xia can become the richest man in Zhijiang Province by relying on such a small commodity city and taking control of the channels in his own hands.
Similarly, with the booming market and the sharp increase in orders, Chen Xia can completely expand the "Four Seasons Department Store". Now there are more than 20 companies, and in the future there may be more than 200 factories.
This will not only promote the development of Yuezhou's economy, but also provide tens of thousands, hundreds of thousands, or even millions of workers. With more "hostages", people can sleep more peacefully at night.
The father-in-law's words swept away Chen Xia's depression.
The next day, Chen Xia assigned Chen Qiaogu a task, which was to spread the word that if she wanted to get orders from Four Seasons Company in the future, she had to move the factory to Yuezhou Industrial Park.
Another piece of news is that Yuezhou will build a new international small commodity city, which will mainly handle foreign trade orders. It will also attract investment from all over the country and welcome everyone to open a store.
The rent is negotiable. No matter how much Yiwu charges, Yuezhou only charges half of it.
Chen Xia just didn't believe it. Could he not seize the title of the world's largest small commodity market?
Well, this seems a bit like malicious competition, but there is no way. The channels are not in his hands. If the foreign orders disappear one day, what will happen to all the factories under his name?
Going to Yiwu will only make you controlled by others, the initiative should be in your own hands.
So my friend can only die rather than me. In the business world, you have to stab someone in the back when you need to.
As for Yuezhou, they will certainly welcome it with open arms. Yiwu will definitely file a complaint with the provincial government, but who has the final say in the provincial government now?
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