Recording China｜"Retention" Economy: Innovation and Upgrading Practice of Yiwu Small Commodity Industry
2024-08-16
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From "trading chicken feathers for sugar" to "world supermarket", from regional market to "world small commodity capital", Yiwu City, Zhejiang Province has created a model for the development of China's county economy. Starting from the era of reform and opening up, and setting off again on the new journey of promoting Chinese-style modernization, Yiwu has continuously created new experiences and made new contributions, and continues to attract attention from home and abroad.
This summer, the "Record China" team of the School of Journalism at Fudan University (hereinafter referred to as the "Record China" team) came to Yiwu City, Zhejiang Province, to learn how Yiwu can transform traffic into "retention" and achieve sustained prosperity in international trade under the challenges of new technologies and new business models.
A different umbrella
"Come, try this umbrella." Zhang Jiying, founder of Xingbao Umbrella, opened this palm-sized folding umbrella. The moment he let go, the umbrella weighing only 100 grams fell slowly like a feather, causing a crowd to exclaim: "It's really light!"
In the shops in District 2 of Yiwu International Trade City, colorful umbrellas of various styles fill the shelves. According to Zhang Jiying, the styles, colors and packaging of umbrellas are developed and designed in a targeted manner according to different market demands. "Take Japan for example, umbrellas and raincoats have been integrated into the lives of local people. Regardless of gender, age or status, umbrellas are a must-have when going out every day, so Japanese umbrellas are generally made lighter. Our ultra-light umbrella is mainly exported to the Japanese market."
For Zhang Jiying, an umbrella is not only a tool to protect from wind and rain, but also a "fashion item" that reflects her lifestyle; Xingbao Umbrella Industry not only wants to be a product manufacturer, but also a brand that leads fashion. "Without a brand, there is no voice. Brand is the basis of our business," said Zhang Jiying. The "Record China" team observed that every umbrella in the store has a label with a simple portrait of Zhang Jiying printed on it, which is her "personal IP."
In 2003, Zhang Jiying switched from OEM to establishing her own company. In 2013, with the introduction of the Belt and Road Initiative, she registered a trademark abroad.
"Now there are more and more domestic customers coming here because of our reputation," Zhang Jiying told the "Record China" team. "We used to focus on foreign markets, but now we are slowly entering the domestic market. To truly achieve the 'dual circulation', domestic consumers must also know and recognize us."
In the AI video, "digital boss lady" Zhang Jiying introduces the product in a foreign language.
At present, Xingbao Umbrella has independently designed more than 3,000 products and owns more than 1,000 patents and copyrights. The company sells more than 7,000 umbrellas a day on average, and its products are exported to more than 100 countries and regions.
A unique "Xingbao Umbrella" can be regarded as a microcosm of Yiwu's small commodity's journey to the world. From design and research and development to product promotion and image building, Zhang Jiying and global "Yiwu merchants" explore how to turn "explosive products" into "brands" and convert traffic into "retention".
Hard-core technology empowers traditional manufacturing
On the mobile phone screen, the AI-generated digital human reproduces a series of actions in the real-life video vividly. However, the research team of Fudan University Yiwu Research Institute is faced with a new problem: the company needs a cartoon mascot, and how can AI be used to produce the actions without a human reference?
"But this problem can definitely be solved. Because it is often easy to realize demand, but finding demand is the most difficult." In the process of helping to transform and upgrade Yiwu's traditional manufacturing industry, Lu Qiyong, deputy director of the Yiwu Research Institute of Fudan University, summed it up this way.
Fudan University Yiwu Research Institute was inaugurated in 2020. Combining Yiwu's industrial characteristics and Fudan's disciplinary advantages, it has set up four scientific research platforms: a high-end, precision and scarce manufacturing center for new materials, new devices and new equipment, a biotechnology and biomedical engineering center, a "Belt and Road" and Global Governance Research Center, and a Global Communication and All-Media Research Center.
But when hard-core technology entered the "World Capital of Small Commodities", it was unable to find a place to use it for a while.
"Yiwu's industrial positioning is 'fashion industry'. Their production model is mainly 'flexible production', which is to produce different products with the same raw materials by transforming the process and technology. In this model, different communities have different products. The process is distinguished first and then freely combined. The advantage is that a variety of products can be produced quickly. The disadvantage is 'chaos'." Lu Qiyong introduced.
Under this model, Yiwu manufacturers are good at "introducing, digesting, absorbing and re-innovating", but always lack "original innovation". Yiwu companies can do 1-10 research and development, especially 10-100 industrialization, but always lack 0-1 innovation as the "source of fresh water".
"What Yiwu wants are products that can be sold. But what kind of products can be sold? I have never seen them, so I don't know." Faced with unclear demands, Lu Qiyong and his colleagues at the research institute continued to communicate with local companies and conducted multiple surveys. They moved from "self-entertainment" scientific research to "empathetic" technological innovation, helping users raise demands from the user's perspective and looking for new ideas for industrial upgrading.
The scientific research results of Fudan University Yiwu Research Institute are displayed in the exhibition hall. Photo by Zhang Zixin
At the intersection of traditional craftsmanship and modern technology, researchers from the institute designed an industrial upgrading plan for Yiwu's intangible cultural heritage brown sugar, where "machines replace people". In order to preserve the valuable craftsmanship and experience of the masters, the researchers conducted a lot of preliminary research and established a "knowledge base" for brown sugar production through data cleaning and verification, so that the intangible intangible cultural heritage can be transformed into a queryable and usable data resource. Based on big data and artificial intelligence, the "time-honored brand" has achieved digital transformation, improved production efficiency, product quality and production process flexibility, and moved towards innovation-driven sustainable development.
Converting traffic into "retention" and achieving industrial transformation, upgrading and sustainable development requires long-term, high-investment technological innovation as a driving force.
"When I first came to Yiwu, I felt that the cultural atmosphere here tended to be 'short, flat and fast', hoping to produce popular products; but now I can feel that the thinking and mentality of local people are slowly changing." Young researcher Yan Guanghui commented.
Telling “Chinese Stories” with “Made in China”
When you enter the "Belt and Road" International Communication Center, the first thing that catches your eye is the large data monitoring screen that fills the entire wall.
This large monitoring screen was designed by researchers from the Chinese Academy of Sciences. It can automatically capture key overseas media content through a program. Yiwu-related report titles in Chinese, English, Russian and Arabic scroll on the screen, and corresponding sentiment analysis and keyword word clouds are automatically generated.
As one of the world's largest small commodity distribution centers, Yiwu is not only synonymous with "Made in China", but also an important fulcrum city of the "Belt and Road" initiative. It not only has the Yi-Xin-Europe Railway connecting China and Europe, but also connects to the Maritime Silk Road that leads to the world. The establishment of the "Belt and Road" International Communication Center is precisely aimed at spreading Yiwu's voice and Chinese stories to the world with the help of Yiwu's trade network and international influence.
According to Zhu Guojin, director of the center, the degree of outward orientation of Yiwu's small commodities has reached 66%. In order to effectively promote these commodities and the culture behind them, the "Belt and Road" International Communication Center was unveiled in 2023 based on the Yiwu Overseas Communication Studio. At present, the center has opened official accounts on the five major overseas social media platforms: TikTok, Instagram, Facebook, YouTube and Twitter.
The Belt and Road International Communication Center released a video on YouTube, introducing the various cuisines from around the world gathered in Yiwu.
Transforming from a traditional media reporter to an overseas social media operator, Zhu Guojin and his colleagues have explored a set of "methodologies" in practice. "We cannot do hard communication, we must do soft communication," Zhu Guojin said. "When spreading 'soft news', if you can bring Yiwu out, you will succeed." Among the content published by the official account, the most effective dissemination is often this kind of lively and interesting content - a short video of "Yiwu girls playing basketball" has received more than 10 million views on TikTok.
"Spreading abroad" is another "magic weapon" of the center for international communication. At present, there are about 20,000 resident foreign businessmen in Yiwu, and about 570,000 mobile foreign businessmen every year. They are not only participants in international trade, but also messengers of Chinese culture. The center has established a foreign business blogger group and regularly publishes topics in the group, such as "Exploring Yiwu International Trade City", and invites bloggers to participate.
The topics chosen by the center are often close to the work and life of foreign bloggers, and Yiwu local media will also help bloggers to promote and increase the popularity of their personal accounts. In Zhu Guojin's view, this is a "two-way rush" between the center and the bloggers. Some bloggers with good images and strong expression skills will also form long-term cooperative relationships with the center. Only with good content and a relationship of mutual trust can Yiwu's traffic be converted into "retention" of wealth.
In addition to local anecdotes and friendly foreign merchants, Yiwu's small commodities are also "narrators" of the "Chinese story". Wherever the Yi-Xin-Europe train runs, Yiwu's overseas warehouses and overseas outlets are built, and the overseas market for Yiwu's small commodities is expanded. From Germany, France to Spain, wherever there is "Made in China", there is a "Chinese story".
"We need a basis for international communication. For example, this small commodity is an umbrella, which contains many elements of Chinese culture. So when this small product is exported, we can spread Chinese culture at the same time." Zhu Guojin told the "Record China" team.
When leaving Zhang Jiying's shop, the AI video was still playing on the advertising screen in front of the door. "Hello," "Bonjour," "Hola," etc. Zhang Jiying, the "digital boss lady," greeted foreign merchants enthusiastically in Chinese, English, French, Spanish, Arabic, Japanese and other languages, and introduced each umbrella model fluently.
This screen is like a door open to the world, attracting the attention of the world and inviting guests from all over the world to stay.
The Paper reporter Zheng Zhizu, Fudan University School of Journalism "Record China" team He Xu, Zhang Zixin, Li Yixuan, Cen Shenyi, Yu Ruijie
(This article is from The Paper. For more original information, please download the "The Paper" APP)
