"The World's First Textile City" Is In Deep Recession.

July 21st, Wuxi New World International Textile and clothing Hereinafter referred to as the "new world international" is deserted. The "China Times" sees here that more than 3/4 of the nearly more than 6000 stalls in the mall are empty shops.

After a short period of surface prosperity and glory, Wuxi new world international, once known as the world's largest textile and garment trading center, has been on the downhill path. At the moment, the mall is ushering in the most difficult moment - hundreds of thousands of businesses are demanding exit.

On the other hand, the market gradually went to empty the shops, and merchants closed their doors. On the other hand, the real money and money invested by the parent body nearly one hundred million yuan each year continued to "package". The Shenzhen new world group was paying a heavy price for the development thought of similar developers.

Ephemeral glory

By the end of 2004, Shenzhen The new world group spent 4 billion yuan on its way from Shenzhen to Wuxi.

Before opening up, new world international vigorously and bombardment in all kinds of radio, newspapers and magazines.

"2 years rent free, ship to the sea to do global business; 3 years 6 hundred million huge promotion costs, fast and bigger and stronger market." Ms. Zhu, a shop investor, was moved by the above slogan and became one of the owners of the new world international.

But it didn't last long. "Due to the many problems in the management of the new world, many merchants who came to the new world international business did not come. The merchants who came to the market eventually quit the market for various reasons. The new world international has not yet formed the scale of business and sales for nearly three years." Ms. Zhu said.

General manager Hou Wei believes that the new world international is facing only temporary problems. "Our investment is not 4 billion, the total investment plan is 7 billion, and the actual investment has been 2 billion. The annual operating cost is 1 hundred million, which can not be calculated by loss. This is investment, segmented management, and construction in batches. The professional market needs 5-8 years of cultivation. Hou Wei said.

According to a media reporter who interviewed Hou Wei, Shenzhen's new world group has basically subsidized all the commercial property income of a 50 storey building in Shenzhen to Wuxi's new world international, which is close to one hundred million. In response, Hou Wei said in an interview with our reporter that he was reluctant to say more.

Decision making mistakes?

At the beginning of the New World International Children's wear Mr. Wang said: "after the opening of the market, there are many problems. I personally think it is a problem of positioning, and mainly the price positioning." He told the newspaper reporter that because the market management is not in place, brands and miscellaneous cards are stacked, and there are still many yuan garments. "It seems that the new world seems to be a top grade in the propaganda, and it seems that all of a sudden it seems to be the lowest price in history, and the chaos of the price system has become a" hard hurt "in the new world. He said.

Some businessmen also said: "the confusion of price positioning is just a representation. The management and guidance of the new world directly led to its slow walk to a" dead end ", and finally it was too lazy to open even the shops.

An expert from the China Textile Industry Association points out that many professional market development and construction in China are undertaken by investors or real estate developers. They lack adequate understanding of the development and trading characteristics of the industry, and some of the markets have lacked industry standard guidance since the beginning of the construction, leading to uneven development and development of the professional market.

In this regard, the industry is not worried that some of the professional market is not a single industry in accordance with the laws of the market to do better, but to build the professional market as a "money" game. Because of the development thought of real estate developers, operators are eager to withdraw funds, so as long as they can sell the project, how to locate them and how to manage them are not well planned and operated. When attracting investment, the market side made the advertisement full of hype, but after the business was settled, commitments and services were not completely in place, and ultimately hurt the interests of the business.

Facing transformation

Business is gloomy, and operators are starting to ask for rent withdrawal, which is the most worrying thing for the new world. Mr. Pan is one of the many reproducers. But to his depressing mood, the deposit paid on the day of signing the contract has been delayed.

This reporter learned in the field interview, in April 2009, a large number of merchants found the Wuxi municipal government to seek help. Through the coordination of the municipal government, the new world international negotiated with some of the merchants, and returned the part of the merchants' insurance certificate by way of the municipal government's advance.

What the new world international should undertake is not just to repay the margin of merchants. This reporter learned that the new world international adopted the mode of sale after rent, which also made it bear a heavy burden.

Ms. Kang bought a shop in the women's clothing area from the new century, and then sublet it to other people from the mall. "In the new century, we rent 6000 yuan a year, rent to tenants 3000 yuan per year, and the new century brings 3000 yuan to each store." She said. In the "5 year charter contract" provided by the merchant, our reporter noted that the rent for the first two years was rent free, the leading place for third years was 8000 yuan a year, the other berths were 3000 yuan, and the rent in fourth, fifth years would be increased.

"Buying stocks also has deficits and profits. As for investment and operation, it is also an investment period. It is not easy to evaluate the current operating status of the project with the long-term vision of investment." Hou Wei said that commercial investment such as the new world international scale takes 5-8 years to form a climate. The company will continue to invest 1 hundred million in its operation every year.

To reverse the current situation, according to Zhu Nanhai, deputy director of the Wuxi New Industrial Expo Management Committee, the new world international will introduce the photovoltaic industry and change its name to "new world international business center". Hou Wei admitted that it was true. "We pay attention to the change of industry, and we are also trying to adjust the business mode." He said.

Investment impulse

New towns such as the new world international continue to emerge, which has also worried the old shopping malls. Meng Baigan, the Standing Committee of the Shaoxing county Party committee and deputy county magistrate, said in an interview with the media: "only the large number of cities in the Yangtze River Delta belt and the city building with a single larger scale and a surging atmosphere are putting pressure on us. We have to think about the way out for China's light textile city."

It is reported that in addition to the new world international with a total investment of 4 billion yuan, the Wuxi Oriental International Textile City, which opened in the same period, is two times the light textile city of Keqiao Textile City of China, plus Shanghai Sutong International Textile City, Shanghai Yangpu International Textile City, Shanghai Fengjing clothing City, Wu Jiangguo intercity Textile City, Changshu International Garment City, Suzhou Xiangcheng International Garment City and Gaoyou Huang's international clothing trade city. At present, dozens of projects have been completed or are still under construction in the Yangtze River Delta, with a total investment of over 30 billion yuan, covering an area of nearly 10000 mu.

The textile and garment market in Suzhou Wuxi Changzhou region is so concentrated and competitive that it is rare in the country, and almost every "Textile City" claims to become an "aircraft carrier in the industry". The impulse generated by the "light textile city" city sports movement is partly due to the leading role of the government and the disorder of the market.