"E-commerce Replaces Market"

This article takes the transformation and upgrading of the Yiwu Small Commodity Market as the research object.It analyzes the transformation process of the market from the real market to the e-business transformation of the business.This paper finds that the Yiwu market transition to e-commerce in recent years is a process of change from the bottom up.Yiwu market grassroots entrepreneurial groups took the lead in the use of e-commerce technology to innovate in market management models,and took advantage of the innovation community’s social network and imitative learning of other elite groups to enable new business models to quickly spread,which in turn drove market transformation.Based on the new changes in the business model of the market and the new positioning of its own urban development strategy,the Yiwu government has changed its cognition and government functions,conformed to the e-commerce development trend,and used e-commerce as a new starting point for the development of Yiwu cities.The Yiwu government has adopted a new industrial policy to establish a new competitive advantage in the development of Yiwu’s e-commerce industry,and has promoted the further transformation of the entire market towards e-commerce.This study further proves that for the countries or regions which are transitioning to a market economy,government construction and market construction are carried out simultaneously.In particular,the government does not always act as an exogenous variable in the market to promote market development,but instead pays attention to the endogenous driving force of the market and creates local competitive advantages by implementing active industrial policies.