On October 19, 2023, in Changsha, China, an intriguing story unfolded about the longevity of the Hongxing Global Agricultural Wholesale Center. As the market opens its doors each afternoon, a vibrant crowd gathers at this bustling hub located in Bai Zhu Village, Tiao Ma Town, within Changsha’s Yu Hua District. Merchants, their stalls filled to the brim with goods, eagerly anticipate a diverse array of customers, a scene that continues until the early morning hours.
This expansive agricultural trading market, the largest in Central China, has transformed from its original form as the Hongxing Agricultural Products Market (referred to as “Hongxing Market”). It now sees trading activities that reach beyond borders, serving not just domestic provinces but also connecting with 28 countries globally. With an impressive annual transaction volume that hits hundreds of billions of yuan, it has been prominently featured on the “Top 100 Commodity Markets in China” list for three consecutive years.
The narrative of Hongxing Market traces back to the vibrant 1980s, an era characterized by rapid urban development across the country. Faced with the needs of a society shifting toward open reform, a young village director named Luo Yue, with fellow village secretary Wu Jiansong, embarked on an ambitious entrepreneurial journey after observing successful models in coastal regions. They devised a plan to create a local enterprise, leading to the establishment of Changsha Hongxing Industrial Company, and eventually a furniture market, which flourished post-establishment in 1994, confirming their entrepreneurial instincts.
However, the vision didn’t stop there. In 1996, as part of a broader integration strategy for the Changsha-Zhuzhou-Xiangtan region, Luo and his team identified a significant opportunity to invest in a wholesale agricultural market. Despite skepticism surrounding the risks associated with agricultural commodities, they pressed ahead, driven by the potential they saw in serving as a central gathering point for agricultural products in a city lacking a major market.
After its inception in 1997, the Hongxing Market faced severe challenges, incurring substantial losses due to its inability to distribute products effectively. However, rather than surrendering, the team, led by Luo, implemented strategic measures to invigorate the market’s prospects through reduced rental rates for merchants, marketing initiatives, and improved customer service practices.
These efforts transformed the market from a struggling operation into a thriving enterprise, gradually expanding its influence across various provinces and even internationally. Today, the Hongxing Market is recognized as a dynamic platform that facilitates a multitude of unique products, significantly contributing to national agricultural distribution.
As their operations grew, the market underwent a significant upgrade in 2015, relocating to a new site that encompassed nearly 2,000 acres and enhancing its offerings to include not just agricultural goods but also logistics, e-commerce, and more. By implementing a “Buy Global, Sell Global” strategy, the Hongxing Global Agricultural Wholesale Center positioned itself as a modern agricultural entity.
Recently, the market’s integration with the global trade network became more profound, with specialized sectors launching that catered to a diverse range of products, including seafood from Africa and fresh produce from Southeast Asia. By 2023, the total transaction volume soared to 53 billion yuan, marking its third consecutive year on the prestigious national ranking list.
Luo Yue, who has now taken on the role of Party Secretary and Chairman of Hongxing Industrial Group, attributes the market’s success to strong leadership and decisive action in aligning with contemporary demands of the industry. The establishment of a dedicated strategic development department within the group ensures that they remain responsive to market trends and consumer needs.
Retailer Chen Xingyu’s journey reflects the market’s transformative impact as he expanded from two to 32 stalls, underscoring the support offered by Hongxing in facilitating merchant growth and operational efficiency. The center’s commitment to innovation and modernization has made it a linchpin in agricultural commerce within the region.
As the market enters its new phase under the evolving landscape of agricultural needs and consumer trends, the construction of the Hunan (Hongxing) Agricultural Products Circulation Industry Park symbolizes a broader ambition to merge agriculture with modern commerce. This initiative aims to create a comprehensive ecosystem that fosters collaboration between various sectors, supporting rural revitalization and enhancing the brand value of agricultural products.
Overall, the enduring success of the Hongxing Market stems from a confluence of strategic foresight, market adaptability, and community trust. As stated by Researcher Tang Jianjun from Hunan Provincial Academy of Social Sciences, the pivotal element behind its sustained growth remains its people—especially the vision brought forth by leaders like Luo Yue, who have harnessed the optimal conditions for market success.
