Dirty Yiwu, Done Dirt Cheap…..Where to Source the Cheapest Products in China

by Julian Righetti on March 27,2014 in South America China Trade ,

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

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for a variety of reasons. This area of China is known as the “entrepreneurial” heart of China:

Wenzhou is known for making shoes, buttons, eyeglasses, electric switches, water valves and 70% of the world’s cigarette lighters. But its most famous product is entrepreneurs. Hemmed in by

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mountains and with little arable land, this city on China’s southeastern coast has relied on trade for centuries. Even in the Maoist era, when capitalism came under sustained and violent attack, private

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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.

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