(Yicai) July 11 -- Tens of thousands of merchants have been competing to secure a shop in the new global digitalized free trade center that will open in October in Yiwu, the Chinese city known as the world's small goods capital.

The leasing campaign for the baby and toddler products and skincare and medical beauty sectors attracted more than 19,000 merchants competing for 900 shops, according to data from the Yiwu Global Digital Trade Center's operator Zhejiang China Small Commodity City Group.

The Yiwu Global Digital Trade Center is located East of the market in District 5 of the Yiwu International Trade City, the world's largest small commodities wholesale market, also operated by China Small Commodity City. It has major sections -- market, office building, commercial block, apartment, and digital brain. The market is the main section, with 5,000 business booths of about 27 square meters each.

"For global merchants, Yiwu's markets are a shopping paradise, with an endless flow of customers," Wu Guangliang, vice president of the Cosmetics Industry Committee of the Yiwu International Trade City Chamber of Commerce, told Yicai.

Wu moved to Yiwu from Guangdong province 25 years ago and founded cosmetics brand Wokali Zhejiang Biotechnology, which opened a shop in the Yiwu International Trade Market in 2005. Like many others, Wu rushed to apply for a shop in the Yiwu Global Digital Trade Center because he believes the city is the top choice for foreign trade businesses.

Even though Wokali cannot be compared with top-tier brands from developed countries, it has gained recognition overseas in markets such as the Middle East, South America, and Southeast Asia.

Despite the impact of tariffs and the Middle East’s geopolitical situation, Wokali's export revenue this year is expected to grow by 10 percent to 30 percent compared to last year, Wu predicted.

Wokali’s first overseas market was the Middle East, from which it expanded to reach South America, Southeast Asia, and Africa.

Even though the consumption structure in some emerging markets remains low-end, their purchasing power is growing, Wu noted. "We need to plan ahead and provide local clients with quality-assured and cost-competitive products," he added.

"Doing business in Yiwu means having the support of the entire city and China Small Commodity City," Sun Lijuan, manager of Yiwu Hongsheng Trade, a local toymaker which also applied for a store in the Yiwu Global Digital Trade Center, told Yicai. She moved to Yiwu in 2015.

"Our company's revenue increased year-on-year in each of this year's first six months, with overall growth reaching 10 percent for the first half," Sun said.

Diversifying target markets is inevitable after the outbreak of tariff wars. In Yiwu, businesses can receive orders from countries across all five continents every day, without having to leave their doorstep, she noted.

In addition to Yiwu's channels, Sun also attracts customers through other methods, such as posting videos on Douyin and WeChat Video and using artificial intelligence tools to generate promotional videos in different languages.

Editor: Futura Costaglione