Yiwu Embraces AI to Transform Small Commodities Manufacturing

Published on Aug 15, 2025.
Yiwu Embraces AI to Transform Small Commodities Manufacturing

Yiwu's wholesale market is experiencing a significant transformation as it wholeheartedly embraces artificial intelligence (AI) to enhance the manufacturing of small commodities. This move not only aims to boost sales but also serves as a testament to China's technological advancements in global trade and innovation.

Wang Junwen, the CEO of Yangyang Digital Technology Co, reported a remarkable uptick in interest in AI products since their introduction in May. "Artificial intelligence glasses are sold out. We've only got these few samples left, and they're not for sale," she stated, noting that daily demand from overseas buyers has surged since launching AI technology-driven electronics.

With AI glasses and other devices gaining traction, Wang elaborated that her factory in Shenzhen operates 24/7 to keep pace with the escalating demand. This remarkable response highlights the growing trend of integrating advanced technology into traditionally simple products, reshaping the market landscape.

As a major player in the global small commodity trade, Yiwu has been at the forefront of digital transformation. According to the Yiwu municipal government, over 30,000 merchants are currently utilizing AI tools to streamline operations, which has led to a substantial year-on-year revenue growth exceeding 30 percent.

Merchants in Yiwu are distinguishing themselves as early adopters of AI technology, effectively translating it from theoretical applications to practical tools. They are embedding AI features into everyday commodities, such as wearable devices, which include AI glasses for capturing photos and videos, AI earbuds for real-time translations, and personal AI translators.

Wang articulated that the integration of AI into products represents an evolutionary upgrade, revealing a potential goldmine for international markets. This shift not only showcases rapid advancements in China's AI capabilities but also emphasizes the strength of its industrial chain.

Moreover, traditional Yiwu commodities are also evolving technologically, attracting a keen interest in international markets. Innovative products like solar-powered fan hats and mist-spray umbrellas have become social media sensations abroad, while advanced gardening machinery is carving a niche in Europe.

Zhang Jiying, general manager of a Yiwu umbrella manufacturer, illustrated this trend by designing mist-spraying cooling umbrellas tailored for Middle Eastern clients, increasing their size to accommodate larger groups. After a successful initial export of 3,000 units, Zhang's business saw immediate reorders.

Jiang Yongtao from Zhejiang Senwai Garments Co shared that their solar-powered fan hats generated impressive sales of 3.2 million yuan in just 28 days post-launch, with over 500,000 units sold by the end of July. Following a viral TikTok video, the hat gained immense popularity, showcasing the powerful influence of social media on product visibility.

From single innovative items to a broader industrial ecosystem, Yiwu demonstrates how rapid innovation fosters a thriving smart manufacturing sector. The city's 'small but beautiful' business model effectively addresses consumer demands while accelerating growth through e-commerce.

By merging innovative designs with cost-effectiveness, Yiwu's products are becoming global best-sellers, highlighting the shift towards smarter, higher-quality Chinese manufacturing. Entrepreneurs like Zhang have navigated this terrain strategically, evolving from humble beginnings into formidable brands, thereby shaping the future of the industry.

INNOVATIONTRADE

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