Market Platforms, Industrial Clusters and Small Business Dynamics

Market Platforms, Industrial Clusters and Small Business Dynamics

Specialized Markets in China

Ding Ke

Specialized markets are a unique product of China’s economic transition. They are marketplaces located in industrial clusters, specializing in the wholesale of local commodities and related goods. Ding Ke reveals that, despite their seemingly primitive form, specialized markets appeared in many of the modern industrial sectors and were paradoxically upgraded and expanded as these clusters developed. He argues that specialized markets have also formed solid linkages with marketplaces in various cities in China and in other developing economies. A powerful, emerging market-oriented distribution system has thus appeared. Based on thorough fieldwork covering ten years, and using the novel theory of the platform, this book clarifies the unique development logic of specialized markets.

Chapter 5: The Specialized Market System in the Daily Necessities Industry: An Observation from Yiwu Market

Ding Ke

Subjects: asian studies, asian development, asian economics, development studies, asian development, development economics, economics and finance, asian economics, development economics, industrial economics, urban and regional studies, clusters


Source: The author. Figure 5.1 Luoshiwan Market: a major sales outlet of Yiwu commodities in Yunnan 5.1 INTRODUCTION1 The following three chapters consist of a thorough discussion of the characteristics of all the buyers and sellers in Yiwu Market. As a starting point, this chapter first discusses the traders from the domestic market. We pay particular attention to the way in which SMEs in the industrial 71 M2920 – DING 9781781006276 PRINT.indd 71 20/06/2012 13:15 72 Market platforms, industrial clusters and small business dynamics clusters, Yiwu Market, the cities and counties became interconnected with each other, and to how an SME-specific distribution system, the Specialized Market System, has been formed in China’s daily necessities industry. Yiwu merchants are a key factor in understanding this issue. As Chapter 4 pointed out, their large presence as both buyers and sellers enabled Yiwu Market to smoothly exceed critical mass in the early 1980s. This chapter further pursues the business activities of the Yiwu merchants. We will clarify the interaction between the Yiwu merchants and various SMEs in the industrial clusters and the cities. 5.2 DATA SOURCES This chapter attempts to explore Yiwu Market’s domestic linkages by primarily using the publication edited by Yiwu Forum Secretariat (2005) known as the Zhuanye Shichang Yu Quyu Fazhan – Guanzhu Yiwu Shichang Fushequan [Specialized Markets and Regional Development — Focusing on the Range of Economic Impact of the Yiwu Market (SMRD)]. Xiaoshangpin Shijie Bao [Commodities World News] is a newspaper that reports on Yiwu Market. During 2004 and 2005,...

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