Core Viewpoint - The Christmas goods industry in Yiwu, Zhejiang, has started its "pre-sale season" earlier this year, with a significant increase in export demand, particularly from South America and Southeast Asia, as compared to the traditional peak period in June and July [2][3]. Industry Overview - Yiwu is recognized as the "world's largest small commodity distribution center," exporting over 20,000 types of Christmas products to more than 100 countries and regions annually [2]. - The city has over 500 Christmas merchants, with exports reaching approximately 3.1 billion RMB in the first four months of this year, marking a year-on-year increase of 107.4% [5]. Market Dynamics - The demand for Christmas products has shifted, with South America, Southeast Asia, and Russia becoming key markets, while the U.S. accounts for only about 10% of Yiwu's Christmas goods exports [3]. - The complexity and quality requirements for Christmas products in the European market have increased, leading to higher profit margins for more intricate designs [5]. Export Performance - In April alone, Yiwu's Christmas goods exports reached 1.9 billion RMB, reflecting a year-on-year growth of 106.4% [5].

Core Viewpoint - The Yiwu small commodity market demonstrates strong market adaptability, significant product advantages, and risk diversification, allowing it to respond relatively calmly to unprecedented tariff wars [2][51]. Group 1: Market Response to Tariff Wars - The Yiwu market has shown resilience despite the tariff wars, with a notable recovery in trade with the U.S. as tariffs were temporarily eased [8][51]. - In 2024, Yiwu's import and export volume with the U.S. reached 91.07 billion yuan, accounting for 13.6% of its total trade, with a growth rate of 42.8% [13]. Group 2: Business Strategies and Attitudes - Three main attitudes among Yiwu merchants include aggressive market transformation, confidence in product irreplaceability, and a general indifference to the U.S. market due to its relatively low share in their overall business [12][26]. - Merchants are actively seeking to pivot towards the EU market and other regions, with strategies such as lowering prices and increasing production volume to maintain sales [18][39]. Group 3: Market Diversification - Many Yiwu businesses report that their U.S. market share is low, typically between 10% and 20%, leading to a limited focus on U.S. trade [26][27]. - The Yiwu market is increasingly looking towards emerging markets, with significant growth in trade with Africa, Latin America, and ASEAN countries, which now surpasses the U.S. market in scale [65][67]. Group 4: Challenges and Opportunities - The transition to new markets presents challenges, including adapting to different consumer expectations and regulatory requirements [45][61]. - Despite the difficulties, the shift towards emerging markets is seen as a long-term growth strategy, with many businesses optimistic about future opportunities in these regions [62][68].