The Evolution Of Yiwu's Small Commodity Market: Cultural Entrepreneurship, Digitalization, And Internationalization Toward Southeast Asia

Abstract

Yiwu, a county-level city in Zhejiang Province, is one of China's most economically developed regions. In 2005, the United Nations, World Bank, and Morgan Stanley recognized Yiwu as hosting "the world's largest small commodities market". The people of Yiwu are known for their spirit of innovation and exploration, enabling the city to keep pace with the times, pursue progress with determination, and establish a globally renowned small commodity market. This study examines the historical evolution of Yiwu's small commodity market through three interconnected dimensions: cultural entrepreneurship built on the foundation of "Yiwu Spirit," digital transformation that has restructured market operations, and internationalization strategies directed toward Southeast Asia, particularly within the context of the Belt and Road Initiative (BRI) since 2013. Based on qualitative research including in-depth interviews with 16 key stakeholders including chamber of commerce leaders, local entrepreneurs, designers, and cultural consultants, document analysis, and field observations, this study reveals how Yiwu has evolved from a traditional marketplace to a global trade hub. Findings show that Yiwu leverages cultural and creative products to enhance local cultural value, undergoes digital structural transformation, and adopts culturally-sensitive approaches and fan economy models to boost market engagement in Southeast Asian markets. The synergistic mechanism between these three paths has become a key driver for Yiwu's sustainable development in the BRI era. These transformations demonstrate how local culture, design, and innovation can collaboratively drive global market expansion, offering a reference model for other regions pursuing sustainable economic development within the global value chain.