Mr. Li Wuwei, touted as the “Father of China Originality Industry”, ever said: the originality industry boosts the city’s transformation and growth, and it will change the entire China. Mr. John Howkins, identified as the “Father of World Originality Industry” said more boldly: several hundreds of millions of people in China will engage in the originality industry.
Today, the originality industry is widespread in numerous cities of China, and Yiwu City, renowned in the world by its petty commodities, is also pulling out all the stops to make improvement. By originality, countless petty commodities become more charming, and the originality industry accordingly becomes new business card for Yiwu City’s booming growth.
Price of Petty Commodities Appreciates Largely by Originalities
“See, paper-made fruits!” “What fields will they be used in? Ornaments?” Some visitors were discussing hotly at one stationery store of the International Commerce and Trade City when they happened to see these vivid “Fruits”.
The clerk shook the head with smile, and then split an “Apple” with fingers, immediately the “Apple” turned into a small notepaper. “This is our independently designed ‘Fruit’ notepaper, and it is cute and practical, thus it is on hot sale in both domestic and overseas markets.”
When wandering at main trading zones of the International Commerce and Trade City, we can easily find fashionable and enchanting petty commodities with originality: transparent shoes box conducive to storage and finding, reading lamp that can project ocean scene on the roof, kitchen knife-style cosmetic mirror, speaking napkin box, simulative and acoustic candle lamp, bicycle without triangle frame and chain etc.
Related statistics data reveals that in 2009, sales revenue of new products in Yiwu market tended to increase, and some sales outlets’ new products made up above 80% of their total products. In the first quarter this year, the sales revenue of originality products in Yiwu market has shared more than 37% of the total sales revenue.
“The originality is the selling point and leads to handsome profits regardless of the product size.” Ms. Zhang who engaged in operation of furniture accessories and ornaments said when she pointed at the conch balls in the store. All these balls, which were independently made by Ms. Zhang and her colleagues, were made up of little conches and red Chinese Knot, and they were of both Western elements and Chinese characteristics, with the result that they received warm welcome from both Chinese and foreigners. By the originality, the conch ball price ranges between more than 10 yuan and 60 or 70 yuan according to the size.
Besides, the smart pen for correcting the sitting gesture and protecting eyesight was priced at 168 yuan, and a “Speaking” electric napkin box priced at more than 50 yuan (price of ordinary napkin box is not greater than 10 yuan)… lots of operation households said that the profit margin of ordinary commodities ranged between 5% and 10%, but that of originality commodities of the same kind hit 30% to 40% or higher.
Develop Originality Industry while Centering on the Petty Commodities’ Characteristics
It is learned that at present, simple production and processing still predominate in Yiwu petty commodities market, and there are few creative designs and lots of enterprises simulate others’ products. Commodities in Yiwu City are of low price and added value, thus the profit is as thin as the paper. Due to this, it is urgent for Yiwu City to leverage originality and innovation to boost its economic transformation as well as to create brands with independent intellectual property.
At the “Pan Yangtze River Delta Economic Forum” held in Yiwu City not long ago the Counselor of the State Council Chen Quansheng said: against the backdrop of increased manpower cost etc., cheap price will be not Yiwu commodities’ strong point anymore, and these commodities need transformation and upgrade. He added: small size is the petty commodities’ biggest strong point and characteristic, thus large innovation and invention are not necessary for petty commodities in a long term, but small reform and originality are indispensable. Yiwu City should strongly develop the originality industry so as to evolve into the centralization and distribution place for creative petty commodities, in hopes of improving Yiwu commodities’ international competitiveness to some extent.
“It is impossible for Yiwu city to copy Beijing and Shanghai’s doings during the process of developing the originality industry, and Yiwu’s originality industry shall be based upon Yiwu City’s oversize petty commodities market”, said Mr. Ren Xingzhou, president of the Market Research Institute of Development Research Center of the State Council, while inspecting Yiwu originality industry. He added: Yiwu City has fostered the world largest petty commodities wholesale market and gathered hundreds of thousands of kinds of petty commodities, and these kinds are also growing. Therefore, Yiwu City has the precondition of guiding the development trend of the global petty commodities market.”
The Right Time for Yiwu to Develop the Originality Industry
“Petty commodities’ 5% increase in added value by originality is equivalent to a new Yiwu market”, it is popular in Yiwu City and agreed by Yiwu people.
Over past years, enterprise owners successively researched and developed petty commodities with originality by themselves, and the animation toy industry grew up accordingly. With the foundation of several scientific research institutes like Yiwu Virtual Research Institute and Yiwu Business Incubator Center of Zhejiang University, Yiwu Originality Park was incorporated as well. Meanwhile, “originality” was only a slogan at China Yiwu Stationery & Arts Trade Fair but soon it was strongly advocated by Yiwu Government. At present, it is the right time to develop and expand the originality industry.
It is learned that Yiwu originality industry has transformed from the burgeoning phase to government-driven phase (i.e., the industry startup phase). At the end of last year, Zhejiang Province enacted the Zhejiang Province Culture Originality Industry Development Plan, which listed Yiwu, Hangzhou, Ningbo, and Wenzhou into “Four Major Originality Cities”. Of which, Yiwu is defined as the “International Commerce and Trade City Cultural Originality Industry Centralization Region”. Yiwu Municipal Committee and Government also attached much important to the development of the originality industry, and they enacted lots of preferential policies.
Thanks to half year of running, Yiwu Originality Park functions well. Incomplete statistics reveal that since the park was founded, 55 enterprises in the park have provided the Yiwu market with above 1,000 varieties of originality products, with output value surpassing 5 million yuan. “Today, the best technology is originality, and the originality park aims to provide the best technology with a platform for extensive communication”, President of Yiwu Industrial & Commercial College and Director of Yiwu Originality Park Wang Min was quoted as saying. Yiwu Originality Park has integrated the nationwide originality resources for Yiwu-based enterprises and operation households.
