How many American and European families are buying new Christmas trees and decorations this year? Not as many as before. That's bad news for Chinese vendors in the world's biggest "small commodity" -- basically all kinds of consumer products -- wholesale market in Yiwu, Zhejiang province.

"The Christmas goods section is festively decorated, but only from time to time, a couple foreign buyers show up in the hall, driving hard bargains. The Christmas songs, played repeatedly, make the empty market even more cheerless," a story from the Qianjiang Evening News describes.

Vendors, most of whom make their own products, are trying everything to move their inventory and survive the winter. Some are subletting part of their booth space, others have let go of some employees. Disappointed with overseas orders, vendors are marketing the goods to domestic customers more aggressively than ever. "I text-messaged everyone I know, offering good prices and free shipping," a young businessman said. "Many restaurants, hotels and airports [in China] are buying."

The export situation in Yiwu really isn't as bad as it could have been. Thanks to the massive closure of factories in Guangdong province, more buyers are looking into Zhejiang province, where factories produce even cheaper products than those in Guangdong.

"They prefer cheap plastic Christmas trees now, no bells and whistles," a vendor said.

Low price is all that matters. Price-cutting pressure squeezed Hong Kong-listed Boto Co., formerly the world's largest maker of artificial Christmas trees, out of business in late 2007. Boto's high-tech, innovative trees attracted Wall Street Journal reporters and American private equity, but didn't beat the cost hikes and consumers' tighter pockets.