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September peaks in Yiwu Christmas gift orders increase prices rose
"‘80% to 90% of the world’s Christmas gifts are made in China,’ said Lou Qijin, vice president of the Yiwu Toy Association, during an interview with the *Daily Economic News* on September 6th. This year, Yiwu’s small commodity exports have shown a clear recovery, with many production companies reporting that their orders for Christmas gifts are fully booked until November.
With rising costs of raw materials and labor, prices for Christmas gifts in Yiwu have increased by more than 5% this season. Manager Zhang of Sote Electronic Toys Co., Ltd., which specializes in electric toys, mentioned that domestic retailers like Walmart and Carrefour have scheduled their orders for November. “At least 70% of Russia’s Santa Claus toys come from our company,†he added.
In addition to higher material costs, labor expenses have also risen significantly—by 15% to 20% this year. Wang Qiang, editor-in-chief of First Textiles Network, noted that the increase in export product prices is a trend driven by global cost pressures. He emphasized that businesses must adapt to these changes.
Manager Zhang explained that his company has managed the cost increases by introducing new products, such as changing the design or features of toys, allowing them to adjust prices accordingly. “We use innovation to absorb the pressure,†he said.
Lou Qijin highlighted that Christmas gifts are seasonal products with high demand, and September marks the peak period for order placements due to shipping lead times. This year, export order growth during the peak season was 30% to 40% higher than in previous years.
While the gross profit margin for Christmas gifts can reach 10% to 15%, the margin for Yiwu wholesalers is much lower, at around 5%. Product innovation has become a key factor in competition, especially as some export-oriented companies shifted to domestic sales after the financial crisis.
Wang Rong, an analyst at Huatai United Securities, noted that the current export market is recovering but not yet booming. Some backlogged orders from last year were released this year, contributing to stable growth. However, she warned that export growth may slow down soon, as foreign demand remains relatively unchanged.
Lou Qijin observed that the export industry is facing a sharp divide, with well-performing companies struggling to meet demand while others face severe pressure. He stressed that innovation is the only way to survive in this competitive environment.
Li Xuerong, a researcher at China Investment Advisor, pointed out that the main advantage of Chinese small commodities is their price competitiveness. If prices rise too much, this edge could be lost, potentially affecting future exports. While there are signs of recovery in the foreign retail sector, the rapid growth seen earlier this year may not continue into the second half of the year."