After 2020, the vendor economy has become a hot topic in China. Based on the background of the Chinese government's intention to support the vendor economy, its importance is gradually being emphasized. As an essential component of the informal economy, the vendor economy enhances urban employment and helps the urban poor groups and is an important part of China's urban life and traditional culture. At the same time, it poses increasingly apparent conflicts and problems, such as space abuse and hygiene issues. This project analyzes the advantages of the vendor economy and the deep reasons for conflict. It proposes a strategy that preserves the benefits and addresses the disadvantages of the vendor economy. The design provides a better business environment for the participants, improves the quality of urban public space, and increases urban vitality while helping low-income people in the city. The research methodology and strategy development process will also provide the basis and inspiration for developing a good vendor economy in Chinese cities.