We are working on a large sourcing project for a product line featured in a major retailer in the United States. After pricing out the products, we noticed a common trend. Yiwu suppliers (and Zhejiang) are more competitive in terms of pricing than Guangdong suppliers.
Many suppliers in Yiwu, Taizhou, Wenzhou, and Jihua are excellent sources for low-cost, labor-intensive products
for a variety of reasons. This area of China is known as the “entrepreneurial” heart of China:
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enterprise was never entirely extinguished there. So after China began market reforms in the late 1970s, Wenzhou flourished. “The Wenzhou Model” of small, low-cost manufacturing operations was widely copied in China. Wenzhou now has some 140,000 companies, and its businessfolk have invested across the country in everything from real estate to mining. The city is the locus and symbol of private enterprise in China.Read more: http://www.time.com/time/magazine/article/0,9171,2099675,00.html#ixzz2WQL2ArOH
Labor rates in Yiwu are also more competitive than Guangdong.