Yiwu, in east China's Zhejiang Province, is widely recognized as a hub for entrepreneurship, where business opportunities abound. The city accounts for 80 percent of the country's small commodity exports. For 18 consecutive years, it has ranked first nationwide among county-level cities in per capita disposable income for both urban and rural residents.

The enterprising people of Yiwu offer a glimpse into the secrets behind the city's success.

In early January, a horse toy with its mouth accidentally sewn upside down — giving it a comically sad expression — went viral. The unexpected success drove Zhang Huoqing's factory to sell more than 6 million yuan (about $860,000) worth of toys both at home and abroad in just one week.

Zhang Huoqing holds the viral crying horse toy in front of her store at Yiwu International Trade Market in Yiwu, east China's Zhejiang Province. (Photo courtesy of the interviewee)

To meet surging demand, Zhang expanded her factory from just two production lines to more than a dozen, shipping 20,000 toys a day. The viral success of the crying horse also drew attention to horse toys with smiling faces. In addition to cities in China, the horse toys have been sold to countries including Brazil, Mexico, South Africa, Russia, Spain and Pakistan.

In 2008, at age 27, Zhang and her husband left their hometown of Shangrao in east China's Jiangxi Province and moved to Yiwu to seek new opportunities. She started out working as a shop assistant, and in 2017, the couple launched their own business selling plush toys. Today, they run a shop at Yiwu International Trade Market and also operate their own factory.

Zhang has developed a deep emotional attachment to the city, attributing the rapid scale-up of the sad horse toy production to Yiwu's highly efficient supply chain.

"Yiwu is truly a magical place," she said. "It allows room for trial and error and encourages creativity. It gives people the confidence to dream big, and the courage to act and compete."

Zhang Yun, a native of Pujiang county in Jinhua, Zhejiang, has been doing business in Yiwu for more than two decades. He initially made his name selling crystal lighting fixtures. Last October, when the Global Digital Trade Center — a landmark project in the construction of the sixth generation market in Yiwu — opened, he launched a new shop there selling high-tech products including drones, smart glasses and smart translation devices.

Zhang came to Yiwu at 20 and started by learning how to repair sewing machines. Later, he moved into crystal handicrafts and then switched to crystal lighting. As his business grew, most of his customers turned out to be from Russian-speaking countries. To reduce costs, he set up a company in Russia.

A client operates a smart toy drone under staff guidance at Zhang Yun's store at the Global Digital Trade Center in Yiwu, east China's Zhejiang Province. (Photo courtesy of the interviewee)

As demand for high-end crystal lighting in Russia slowed after 2019 and manufacturing in Southeast Asia continued to grow, Zhang realized it was time for another shift.

"Foreign customers really love our high-tech products," he said. "When they visit the shop and see drones that can follow people, glasses that provide real-time translation, or smart rings that can take photos and monitor health data, they are genuinely amazed and can't put them down."

This year, Yiwu was selected as a sub-venue for the Spring Festival Gala, with filming taking place just downstairs from Zhang's office. He takes great pride in this. "We want the world to know that Yiwu is more than a hub for small commodities. It also has a strong presence in high-tech products."

Zhang is already planning his next shift. This time, he plans to go all in on short-video marketing, hoping to prove he can sell smart devices on a global scale.

At her 60-square-meter store at the Global Digital Trade Center, Cao Fanyue operates her own brand, offering fashion accessories designed to help young consumers showcase their personal style.

Cao Fanyue (first from left) arranges accessories at her store at the Global Digital Trade Center in Yiwu, east China's Zhejiang Province. (Photo courtesy of the interviewee)

Her parents run a shop at Yiwu International Trade Market. While studying overseas, Cao returned home to help out with the family business. As she became more involved in the trade, she found the work increasingly fulfilling. In 2021, she launched her own brand.

Two years ago, during an accessories exhibition held at Yiwu International Trade Market, Cao showcased her brand, which quickly became a hit and brought in a steady stream of new orders.

Cao said Yiwu's complete supply chain allows creative ideas to be turned into products quickly. A new design can reach customers within just one week.

About six months ago, with support from the market management, Cao began using AI to streamline various processes. Her factory has saved at least several hundred thousand yuan thanks to AI.