Business
From Economic Powerhouse to Ghost Town: The Impact of Price Wars on China’s E-commerce Heartland
From a thriving center to a deserted city: China's e-commerce core suffers from price war aftermath
With China's economy faltering, a fierce competition in the e-commerce industry has negatively impacted traders and producers.
Even now, remnants of that era persist in the 99 dwellings previously inhabited by live-streaming vendors in Beixiazhu. Advertisements touting "excellent supply chains" and "popular live-stream items" are still seen on shop fronts. A worn-out wall still carries a barely visible painted phrase: "Why venture to Yiwu if not for dreams?"
However, the thronging masses have disappeared. Store proprietors, who once hastily prepared shipments, have now reduced their speed.
The proprietor of a store gestured towards a slim trail just outside his establishment, reminiscing about a time when it was bustling with vehicles and people broadcasting live. If a single item became popular, everyone would scramble to sell it at a reduced cost to outdo their competition. However, this ultimately led to a situation where profits were non-existent, culminating in a collapse, he explained.
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