By Sheena on August 18,2016

Yiwu Christmas Commodities Suppliers Hardly Earned Profit This Year

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 Boiling summer prevents people from going outside, and blows away foreign orders as well. Literally, each summer is the weak season for Yiwu market. However, there is an exception to that rule. Every Mar. to Sept., is the hot season for Christmas supplies. Yesterday, we went to interview part of Yiwu Christmas Supplies circle, and obtained that the purchasing of Christmas commodities had entered into the later phase. As far as we have learned, compared to previous years, this year is featured with more large orders and less small buyers. However, large orders didn’t bring along lucrative profits. The curse of razor-thin profit margin are still spreading and being worse. 

“Contrary to the last year, customers placed larger orders.” Long Xi, the Chief of Yiwu Angel Christmas Supplies Company told us. Based on the current condition, buyers are seemed to have a bright expectation to the market this year, and they weren’t hesitant to sum up the quantity. As long as they confirmed their commodities, they will increase their quantities. A couple of buyers from Peru and Brazil raised their quantities up by 20% to 40% than last year. 
Yiwu is the world’s largest Christmas Supplies distribution center. About two thirds of global Christmas decorations and items are from Yiwu market. The performance of Christmas supplies market is always served as the parameter to gauge the whole Yiwu market’s performance. Every March to September is the hot season for exporting Christmas supplies. Buyers are constantly coming to Yiwu to purchase this Christmas’ commodities. Currently Christmas commodities suppliers are concentrated at International Trade City District 1 and the Christmas Village around Futian Residential District. These two places have gone through the busiest period throughout a year. 
Mr. Hu is dealing in Christmas cap and accessories at Futian. In his opinion, some middle and small buyers prefer to directly get commodities from local large-scaled wholesaler. Small dealers like Mr. Hu are influenced a lot. “In these years, Yiwu Christmas Item industry has stepped into a survival of the fittest circle. Merging or bankruptcy happened a lot.” Hu said. 
As a representative of labor-intensive industry, Christmas supplies have not been that lucrative business anymore. Facts showed that this industry has running on a razor-think profit margin, similar to a majority of labor-intensive industries in Yiwu market. In this round of hot season, the Christmas supplies industry didn’t make any change to its situation. Some suppliers even complained that the situation got worse. 
Hu said, “We must depend on 20% of our products to make our ends meet, otherwise, there is no any profit left.” His factory will design couple of new products every year according to the market’s needs. This year, Hu had to depend on these newly-designed products to make a profit. There isn’t any profit at all with a respect to these regular commodities. Long Xi agreed on that. In his case, although they have larger orders, they still needed to make a large budge to their buyers in order to get orders. He also mentioned that at present, the whole manufacturing industry was really slump. Investors weren’t willingly to help them out. The whole industry was stuck in a dilemma. 


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