“From January to August this year, the total output value of Xianju’s craft and gift industry exceeded 4 billion yuan, with a year-on-year increase of about 30%,” said Wang Huanyong, president of the Xianju Craft Gift Association in Taizhou. “The pandemic has led to the return of orders from Vietnam, the Philippines, and other regions, while the Regular home-based living lifestyle in Europe and America has driven increased demand for home decor items.”(Xianju- a county of Zhejiang province in China)

The rapid response to the sudden surge in demand reflects the decades of solid development behind Xianju’s craft and gift industry, which has earned it the titles of “China’s Capital of Craft Gifts” and “China’s Craft Gift City.”
The craft and gift industry in Xianju began in the 1960s. Today, it boasts over 1,000 registered enterprises and 12 major product categories, which are sold in more than 130 countries and regions across Europe, America, Japan, and beyond, with an annual output value exceeding 10 billion yuan.
In recent years, driven by market demands for transformation and upgrading, local companies have seized both the challenges and opportunities brought by the pandemic. They have continuously innovated in materials and made breakthroughs in design, leading to a surge in both production and sales.
Expanding Product Variety
Walking into the product showroom of Taizhou Yisiteli Lighting Co., Ltd., one is greeted by a dazzling array of decorative lamps in various styles. “We used to produce traditional crafts with low technical barriers, making them easy to imitate,” said Wu Sheng, the company’s manager. “Now, we integrate technological elements into our lamps, which are highly popular among international buyers. This year, we’ve set an output value target of 45 million yuan—something we never dared to imagine before.”
Innovating on the foundation of a traditional industrial base and expanding product variety have become Xianju’s strategic response to market changes.
Zhejiang Weilaoda Industrial & Trading Co., Ltd., established in the early 1990s, is a local veteran enterprise and a pioneer in product innovation. Last year, the pandemic created a vast market for the company’s public chopsticks, which saw continuous orders as soon as they were launched.
“We gradually shifted from wooden products to bamboo products, focusing on developing non-toxic panel technology. We now offer over 1,000 products across more than 20 series, including bamboo cutting boards, pot mats, tissue boxes, trays, craft bamboo chopsticks, chopstick holders, and small furniture,” said Zhang Min, the company’s chairman.
A wider variety of products brings more opportunities and greater confidence. Zhang Min’s perspective is shared by many entrepreneurs in Xianju’s craft gift industry.
Enriching Product Cultural Value
The industry is shifting from selling products to selling culture and emotional value. At Zhumei Group, the effort to enhance the cultural depth of craft gifts is particularly evident.
In 2019, Zhumei Group completed a 4,500-square-meter cultural industrial park. This marks a key step in the group’s transformation—integrating industry with trade, tourism, culture, and education, and aligning with Xianju’s large-scale tourism, culture, and health industry clusters valued at tens of billions.
Today, the Zhumei Pillow Culture Museum displays over 300 pillows from different eras and of various forms. It is a leading pillow-themed museum in China, the first “Zhejiang Provincial Cultural Industry Demonstration Base” in Xianju, and also serves as an educational site for primary and secondary school students.
By combining traditional Chinese medicine principles with wellness and sleep culture, the group developed the “Zhumei Aizhenfang” health pillow series and successfully applied for four national invention patents. As soon as the products entered the Japanese market, they sparked a buying frenzy.
For industrial enterprises venturing into cultural projects, success requires not only cultural elements but also creativity and scale. Today, Zhumei Group uses its industrial park as a flagship to extend the industrial chain and achieve diversified development.
In Xianju, many craft gift enterprises are delving deeper into product meaning and cultural value. Similar examples include Fenda Craft Co., Ltd.’s “Photo Frame Culture Exhibition Hall,” Huanxi’s “Chinese Furniture Culture Exhibition Hall,” and Weilaoda’s “Bamboo Culture Exhibition Hall.”

Innovating in Materials
“Look, this table is made entirely of reclaimed wood, and we’ve eliminated paint to make it more eco-friendly and natural. This product line was an instant hit at this year’s trade fair,” said Wang Huanyong, head of Xianju Huanxi Gifts Co., Ltd. He emphasized the importance of evaluating materials with a focus on “green standards and international trends.”
In recent years, to meet market demand and increase product value, the company has boldly innovated in materials for furniture-style craft gifts. They reclaim old wood, turning waste into treasure for resource reuse. At the same time, they replace traditional spray painting with green techniques, enhancing both aesthetics and environmental friendliness—a approach that has gained market recognition.
“The company’s overall sales of furniture craft gifts have increased by over 40% compared to the same period last year,” Wang noted.
Similarly innovative in materials, Zhejiang Palmar Environmental Technology Co., Ltd., located in the Baita zone of the Xianju Economic Development Zone, transforms PVC and sawdust through an extrusion process into wood-like panels. These panels are then used to produce various items, including small wooden houses. Last year, in collaboration with Tsinghua University and Zhejiang A&F University, the company developed wood-plastic composite products that gained immediate popularity overseas.
Behind the robust production and sales lies the powerful stride of Xianju’s craft and gift industry in its ongoing self-reinvention and upgrading.