Tianjin announces plan to build 10 wholesale markets

Tianjin has announced an ambitious target to build 10 wholesale markets by 2025 that would each have an annual sales volume of up to 10 billion yuan ($1.62 billion), adding that two of those markets will notch up annual sales of 100 billion yuan each.

The city in northern China is currently helping upgrade the infrastructure and facilities of wholesale markets in the suburbs of Hongqi, Jinzhong and Hanjiashu, a plan released by the city's bureau of commerce said.

It said the upgrading has begun in some agricultural wholesale markets to boost their e-commerce capabilities, along with the combination of commercialization and production and development in cold-chain logistics.

The current ceramic products markets, large commodity markets and the international auto town are being urged to boost their presence in wholesale business, the plan said.

Some international apparel markets are transferring their business such as the wholesale markets near Beijing Zoo and Dahongmen to Tianjin.

The moves is part of Tianjin's efforts to "help de-cluster Beijing's commercial and population burden in the wholesale businesses and boost integrated development among municipalities of Beijing, Tianjin and Hebei province," said the plan from the commerce bureau.

To date, some 3,000 apparel and logistics companies have moved to Zmall, a newly opened wholesale market based in the city's suburban Xiqing district, in the first step to fulfill the government's ambitious plan.

"Zmall is not only engaged in offline transactions ... but also in helping the companies create more opportunities in e-commerce and create more online-offline partnerships," Cui Jinfeng, general manager of Zmall, said.

Zmall offers online portals and live broadcast services on a number of apps and websites in a bid to boost online transactions and assist offline businesses.

He said the market is aiming to become the largest logistics center in northern China, catering to demand in apparel sales.

It has opened a 5,000 square meter logistics park during the first phase this January and the second phase will see the opening of a 300,000-square-meter park in the near future.

"To better serve the de-clustering of businesses of the top apparel wholesale markets in Beijing, such as Dahongmen, we have attracted many of their logistics companies to move here," Cui said.

Many of the top logistics companies such as Anlongtong, which has a solid foothold in Beijing's Dahongmen area, are making their presence felt at Zmall.

But vendors moving from Beijing said there are more challenges ahead which must be tackled.

Sun Xiaomei, a fashion sales company head who has had shops in Xiqing district for 20 years and has had wholesale business experience in Beijing and Seoul, South Korea, said there is a need for more commercial clustering.

Zhao Jinhong, a vendor who has moved from Beijing to Zmall and has been engaged in selling clothing for more than 14 years, said she expects better logistics and management policies in the new wholesale markets to slash her costs when restarting her business in Tianjin.