Market Breakthrough: Pinghu City, Zhejiang Wants To Rewrite The Chinese Case And Bag Industry Pattern

In 2011, a 400 thousand square meter comprehensive bag and suitcase.

An interesting dialogue

In June 26, 2011, about 400 thousand square meters of Pinghu international luggage city started construction, as shareholder - EGO Group Chairman Weng Nan Dao and Samsonite International Co., Ltd., vice president of Asia Paul melkebeke, has an interesting dialogue.

Weng Nan Road: today, when you set foot on this land, we will have 400 thousand square meters, which is all related to the industrial chain of luggage and bags. It is called shoppingmall, which is a complex of display, sales, creative materials, creative design, e-commerce industry chain, fifth generation specialized market, and 400 thousand square meters. Do you understand?

Paul melkebeke: I know, because here, all the technology needed for making bags is within this scope. Once we get the inspiration, we can find a design manufacturer, a manufacturer or find a production zipper and so on. It is very important for us to put all the production design departments together. This is what we say is equivalent to three, one is three, what we see is not different enterprises, but all kinds of strengths of enterprises can add more platforms.

Weng Nan Dao: I am a "IT". Now Microsoft, apple, Intel, and all the flagship stores in the country have all entered our market. I want to ask Paul melkebeke, do you have any intention to enter the future Pinghu luggage city?

Paul melkebeke: Samsonite is a big box company in the world. It is the best seller in every market in the world.

In our enterprises, China is our second largest market and has great potential for development. That's why I came here today.

As a leader in luggage and bags, we must have our presence in any part of the world; in China, we have our own stores in various cities and airports.

So I believe that Samsonite will discuss with you soon and set up flagship store here.

After more than a year's preparation, in June 26th, Pinghu international luggage city held a grand construction celebration.

Celebrations, more than 100 well-known luggage enterprises at home and abroad, like Samsonite, are optimistic about the international luggage City, signing the ceremony with the market.

Rising from 100 billion industries

The rapid growth of the luggage industry, especially in 11th Five-Year, the output value of the luggage industry reached about 110000000000 last year, and the share of exports accounted for 40% of the international market.

Xu Yong, honorary chairman of the China Light Industry Federation and the China Leather Association, pointed out that the market of luggage and bags mainly depends on the fashion and diversification of products, and the popularity of consumption and the internationalization of the market.

In addition, with the improvement of people's living standard, the growth of consumption, such as tourism, education, leisure, entertainment and so on, will inevitably lead to the great development and prosperity of the luggage industry.

"Luggage and bag has another feature. Consumers choose this product when they are shopping. Unlike clothing, they must wear clothes or shoes with feet, so there is no limit to consumption tourism.

When we arrived at the rookie flagship store, we bought a lot of them.

Luggage and bag industry is one of the three distinctive traditional industries in Pinghu. After more than 20 years of development, it has formed a more perfect industrial chain. Pinghu has been awarded the Chinese bag and bag industrial base and the Chinese luggage bag city by the China Light Industry Crafts Import and export association and the China Leather Association respectively. It is one of the three largest production bases of bags in China.

In the fierce competition in the domestic and international market, in the past 20 years, the luggage industry in Pinghu has gone through a road of development from domestic to export, from small to large. At the same time, a large number of backbone enterprise groups with large scale of production, high management level and advanced international level of equipment have been trained.

The advantages of industrial clusters have fostered a number of well-known enterprises and independent brands. New well-known brands such as rookie, Ai Wei, Ginza, four links, star Pavilion, Bi Anka, Sanlin, Chen Xu, Zhong Rui, Lide Fu, Zhongtian, Wan Shunda and other famous brands have grown rapidly.

In 2010, Pinghu had more than 500 manufacturers of luggage and accessories, drawbars, thread, ribbon, steel wire, steel frame, printing, injection molding, splint, zipper, casters and so on. There were more than 4 sales personnel, and 168 million kinds of bags and bags were produced and sold each year, with an annual output value of about 5300000000 yuan.

It is understood that from 1 to April this year, Pinghu's total annual sales income of more than 20 million yuan, more than 49 of the luggage enterprises, total industrial output value of 1 billion 230 million yuan, an increase of 56.9% over the same period last year.

Changing big markets, small businesses, and weak brands

"China's luggage industry is a large market, small businesses and weak brands. Therefore, in international trade, although the volume of trade is relatively large, our country has not formed a network of control in international trade, and has not formed a competitive brand in the world.

Therefore, we have great room for growth and good opportunities. The pformation and upgrading of '12th Five-Year' is the best opportunity.

Xu Yongru's analysis, how to upgrade, is to innovate and develop the professional market mode, in situ pformation; the second way is to extend the industrial chain, properly supplement the shortage of the local industrial chain, and give play to the advantages of the manufacturing industry; third, it is to establish a brand strategic alliance among the large enterprises, marketers and distributors; fourth, we should work together with the famous colleges and universities to build an innovation platform; fifth, the appropriate part of the processing and manufacturing will shift to the central and western regions, and the weak areas can also be properly pformed; sixth, we must cooperate with the international buyers and big brands to promote the internationalization of our luggage brands.

Shi Jihong, chairman of Pinghu box City Co., Ltd., said: "at present, Pinghu has played a very important role in the middle of the three major bags and industrial bases in the country. But because of the current export and luggage industry base in Pinghu, we have two problems."

The luggage industry in Pinghu is greatly affected by the international market. That is to say, if the international market sneezes, it is sure that Pinghu bags also catch a cold.

So it is like the current situation of luggage in the first half of the year is very good, but now all the luggage enterprises in Pinghu feel that the order behind is relatively small. Many enterprises may not have finished the order in July.

In addition, the profit margins of export oriented manufacturing enterprises are too low, and many box enterprises have a net profit margin of less than 5%.

In fact, coastal areas, such as luggage and bags, and other traditional industries, are facing difficulties in their development. As local governments and local enterprises, some have taken a passive approach. That is, coastal areas will take some policies to squeeze labor-intensive enterprises from their localities and lead to higher value-added industries, with high-tech and new energy sources.

The positive way is to carry out industrial self rescue locally, that is to say, the traditional industries such as luggage and bags industry in Pinghu will develop from low value-added to high value-added, so that industrial pformation and upgrading can be carried out in a real sense.

Shi Jihong said: "we are very grateful to the Pinghu municipal government for recognizing the luggage industry in Pinghu as a traditional pillar industry in Pinghu. In the past two or thirty years, we have made great contributions to Pinghu's economic development and provided us with a platform, including Pinghu's international luggage and bag City, which was actively promoted by the government. Our secretary and mayor have discussed with us several leading enterprises in this environment."

Shi Jihong believes that the global situation of luggage and bags will still fluctuate, and the domestic luggage industry must run autonomously.

"Through industrial pformation and upgrading, through the integration of the industrial chain, change the original mouth of a piece of money is a piece of money.

We make professional market, the first step to do wholesale and retail well, that is, a piece of money will become two yuan, three yuan; fifth generation professional market, integration of industrial chain, the bag and bag raw materials, bags and finished products, as well as around these bags and bags basic industry supporting R & D design outsourcing services, logistics outsourcing services, and so on, by the professional market to solve.

That is to say, it is wholesale and retail one plus one. Now we have a lot of interest bodies on 1 to get one plus one equals two effects on this resource. In fact, 1 of the original manufacturing industry is likely to turn 10 or even 20 through industrial agglomeration and professional market, which means that it is a geometric level change.

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New standards lead the market of luggage and bags

Pinghu international luggage City, relying on its strong luggage and bag industry advantages and the location advantages of the center of the triangle center, builds the fifth generation professional market of the industry: relying on the strong developed pportation network, taking logistics as the foundation, taking exhibition and Expo as the guide, taking design, research and development as backing, informationization as the means, bulk purchase, centralized supply, factory direct selling, e-commerce paction as the main business mode, and multi-function, omnibearing, strong radiation, circulation, intensification, networking and specialization of large-scale industrial comprehensive service platform.

"Subverting the industrial structure and setting up benchmarks for industries", Pinghu international luggage city has become the world's fifth generation professional market leader and has become the world's main luggage industry market complex, and has developed five new industry standard models:

- providing a new platform.

Pinghu international luggage city is committed to building raw materials trading center, branded bags exhibition and Trade Center, international purchasing and trading center, R & D design center, fashion publishing center, and global box business center.

- setting up the height of "new benchmarking".

Pinghu international luggage city will integrate the luggage industry resources, and will be based on the Yangtze River Delta in the trading, exhibition, design, R & D, fashion publishing, headquarters office, e-commerce and modern service industries.

Look at the strategy of "new pattern".

Pinghu international luggage city will be closely linked with the domestic and foreign luggage industry associations, manufacturers, domestic and foreign purchasers and distributors, making it bigger and stronger, and building China's leading, world leading and 10 billion market absolute leader.

- the spirit of "new world".

Pinghu international luggage City, with the help of forward-looking industrial upgrading planning, strong and reliable national policy support, fully relies on the strong luggage industry foundation in Pinghu and the Yangtze River Delta region and the leading local backbone enterprises to participate in the joint construction mode to help win the world.

- the vision of winning the "new future".

Pinghu international luggage city takes the linkage of industrial base and modern service industry, drives the modern service industry with luggage and bag industrial base, and truly creates a global market for luggage and bags.

Pinghu international luggage city will become a model for Zhejiang to develop modern service industry. The project will enhance the pformation and upgrading of luggage industry, enhance industrial competitiveness and accelerate regional maturity.

World luggage theme expo, China luggage and bag industry research institute, global luggage industry price index center, global box business center, bag business innovation incubator......

All the services and luggage industry will be gradually realized along with the construction of Pinghu international luggage city.