A recent tour to the Iu Fukuda market found that many companies are under considerable pressure. The rent for 12 square metres of space in the Toy Area on the first floor of the market is $380,000 a year.
A recent trip to the Iu Fukuda market found that many businesses were under considerable pressure. The rent for 12 square metres of space in the Toy Area on the first floor was 380,000 a year. The cost of advertising a light box at 1 square metre on the third floor of the market was more than 15,000 a year.
The market for US exports was still large last year, and most of the US’s choice was for the U.S.’s local freight forwarders. According to a survey, the Shanghai freight forwarders in 2015 charged the U.S. a fee of 2800 for 13kg, while the U.S. charged between 600 and 800. For example, a Shenzhen business owner sold $20 million on Amazon, and eventually returned $5 million, less Amazon charges, paypal fees, and advertising fees, which were not lost because of the high profits of the past year.
The core circuit boards of the balanced car usually come from Shenzhen, and Kim Hua Il has too many workshops that are being produced, at a sales price of 550 this year, compared to 1100-1200 last year. Each of the small shops that produce, assemble small workers take 20, the owner takes 50, and the town of the Golden City around Yongkang is rich, with an average of between 100 and 200 a day, so the boss earns between $5,000 and $10,000 a day. However, as competition increases and returns increase, this pattern will become increasingly difficult to sustain in the future.
Such enterprises are assembled, without their own brands, without quality assurance, and mostly exported. Because quality cannot be controlled, many Western users have a negative impression of the quality of Chinese products.
After many years of local observation, Yiu, China’s representative of small commodities and the private economy, has found that many business models are copying, and that all products come up in the middle of a price war. Many business owners want to avoid this situation and find new growth points. It is not easy to upgrade their technology because of their own cultural deficiencies, uncertainty about the future, financial pressures, etc. Moreover, in the current environment of inadequate intellectual property protection, there is a risk of being copied, so that many enterprises are reluctant to spend on the development of new products, creating a loop of copy-price-low profits.