Guangzhou Clothing Wholesale Business Circle: "Big Wave" Is The First To See Gold.

People from all over the world hang around, stop and travel in narrow corridors. People of different colors are bargaining with each other in Putonghua, Cantonese, English, Korean and Japanese. People of different ages come here, and some people wash away.

Since the 90s of last century, becoming the country's largest clothing Province, the "made in Guangdong" clothing market has been sold all over the world, regardless of clothing output or export volume, ranking the first in the country.

Guangdong has more than 30 thousand garment enterprises, and has formed 26 garment characteristic industrial clusters. The number of enterprises, clothing varieties and industrial chains are the best in the country.

Guangzhou has the largest and most mature clothing wholesale market in the country.

Now, these wholesale markets are standing on the crossroads to the left or to the right. In the face of higher costs, lower profits, foreign counterparts' attack, foreign trade downturn and e-commerce impact, Guangzhou traditional clothing wholesale trade circles represented by white horse, thirteen lines and Shahe clothing wholesale market are all caught up in the dark.

When the big wave comes to see gold, it is the king who finally survives.

Clothing wholesale business circle: fragrant pastry or hot potato?

In the southern part of the country in July, the heat wave assail the people and the heat is unbearable. Ms. Liu sublets the thirteen rows of clothing wholesale stalls to others, and takes a family to travel to the north.

"For five years, I've been busy buying orders and catching up all day.

This year's business is bad, so take advantage of the children's summer vacation and bring the whole family out to avoid the summer heat.

Every June and July is the off-season of clothing wholesale. Taking advantage of the off-season and having a good rest, it will be a good choice to go out again in the rush months after a few months.

Xiao Li, who was from Zhengzhou, Henan, stood on the train for a day and a night. The train was 1.5 hours behind schedule. When he left the station, it was already twelve noon, sleepy and hungry. He narrowed his eyes and followed the crowd to the station. He was planning to eat first and find the wholesale market. He looked up and saw the famous wholesale market across the road. Suddenly, he came to the spirit. He bought a bottle of mineral water and several durian cakes from the mobile booth and went into the shopping mall.

The white horse, the horse and the Tianma make him dizzy, feeling that "Guangzhou clothes are beautiful". It seems that they have come to the wrong place. The price here is rather high, and it is not suitable for him to open a small shop near the University for the poor students.

And in Huaihailu Road, Shanghai, the shop quietly ordered several products in the white horse and the United States. In her view, the clothes in the wholesale market in Guangzhou are cheaper and more beautiful than those in Shanghai and Hangzhou wholesale markets.

Learning costume design is very demanding for clothing, fabric and workmanship. High price means high profit. 300 yuan and one piece of clothes from the Hongkong designer studio are sold back to the store for 800 to 1500 yuan.

"As long as clothes are good, some customers do not care about money."

Unlike other wholesale markets in the other regions, whether it is the Liuhua business circle with white horse as its leader or the thirteen line and Shahe business circle, there is a production line behind almost every stall in the wholesale market. Whether it is in its own factory or processing factory, it ensures that Guangzhou garments are appearing at every corner of the world at a rapid speed.

Copy and fry

In fashion, the so-called fashion is time, and time is money.

"The world is popular in Europe and America. Guangdong and Hong Kong and Macao follow Guangdong and Hong Kong and Macao.

Guangdong is close to Hong Kong and Macau. It is very easy to get information on clothing design. Many enterprises are processing international brands. What products will be popular next year? Guangdong enterprises can feel it earlier than the market. "

How long is the production cycle of a batch of goods?

Ms. Liu said, it depends on the supply of goods. If only the picture is available, it will take about 6 days to make the sample.

As long as the sample is provided, the speed is much faster. According to the fabric, structure, and difficulty, the cycle is long and short. The fastest way to do it is to knit a T-shirt, just print a flower, and you can finish it in 1 days.

If it is a shirt or skirt, it will take 2 to 6 days to make sweaters and fur coats, which will take longer.

Song Wen, a designer at a garment factory, told reporters that some processing plants will ask you where to sell.

The white horse's four or five floors above, thirteen rows and three floors above, and Shahe are completely not in a grade, the processing factory will pay according to the price and the localization "the corresponding work", like the same suit, even if the same fabric, according to the normal standard three or four days may make, but if needs to be very urgent, the lining place does not fill the lining, the double line place uses the single line, the vehicle ten needles place vehicle six needles, so that one day can make, saves the time saves labor, the cost saves many, but the clothing quality may imagine.

The sample production cycle of clothing has an important role to play. It not only controls the time of garments production, but also determines whether these clothes will join the popular army in the future and bring more orders.

Therefore, whenever a good format is presented on behalf of the trend of the season, the staff of the stalls should have more eyes, because there will be a bunch of colleagues who pack into the packing room to copy the edition. The thirteen lines copy the white horse and Shahe copy thirteen lines. After copying it, they will get the sample cloth from the processing factory, and then batch production, and it will take five or six days and two or three days.

Because of the higher rental and labor costs in Guangzhou, garment processing plants are generally located in Yangjiang, Zhongshan, Dongguan, Shantou and even cheaper Guangxi.

The cost of processing in these places is 6-7 yuan less than that in Guangzhou.

Now the high rent of stalls has become the biggest cost for operators. The monthly rent of stalls for thirteen rows and one or two floors with a width of 1 meters is forty thousand or fifty thousand yuan, double that of two or three years ago.

The rent of the one or two floor of white horse is generally higher than that of other wholesale markets, fifty thousand or sixty thousand yuan or even more than ten thousand yuan per month.

People familiar with the matter said that these stalls were bought by many Wenzhou people early in the early days of the market, and then they were subleased to people in the clothing business. Although the Department of shopping malls would restrict them, some investors would hang up their clothes to support the doors and wait for the right opportunities.

Many of the stalls were turned over by several hands, and the sublet cost was as high as 4.5 million yuan. Even the stalls of the white horse had a million yuan rent pfer, but the first hand monthly rent was 2000 yuan.

Reporters learned from several investment outlets of wholesale markets and surrounding property agents, such as Baima, Hui Mei, thirteen lines and other characteristics of this distinctive, mature wholesale market almost no vacant stalls, such as the financial crisis in 2008 and this year's general downturn in business, it will only lead to a high turnover rate of operators, frequent handover, long-term stability is only about three or four, and the rest are all cast iron camp.

If the contract is not willing to continue to do so, it will often be cleared today. The new decoration will start tomorrow.

Mr. Chen once learned from the security office of the thirteen bank that there was an office to be pferred, and immediately contacted with the other party. He had been robbed first in 5 minutes when he and his family discussed details.

In July 30th, the Guangzhou international fashion exhibition and Trade Center (FTC), which was in the same place Liuhua business circle, invested extensively.

At noon on the day of the introduction, a staff member of the business office said, "the rest of the pavement is not much, women's clothes are only the No. one or two building of Museum No. 6 and a small number of berths".

FTC will be a trade exhibition platform different from the traditional wholesale shopping mall. The brand exhibition area of No. 1 has been signed by GUCCI, brother, Ayilian and other brands. The No. 3 Pavilion will be built for a long year. The area of the fashion women's and men's wear area is generally 30-40 square meters. It is required to buy the 9 year management right in one time. The floor and position price range from 24 thousand to 38 thousand yuan per square meter. The rent of the first two years is free, and the rent of 170-230 yuan per square meter is collected from third years.

Compared with the surrounding mature shopping malls, this price is very tempting.

However, the "people coming" think that the novice operators or investments prefer to choose a mature shopping mall with high rents and do not enter the newly built shopping mall with low rent. The new shopping mall generally has a high vacancy rate and a small passenger flow. Although the rent is very low, it is hard to get back to the original, but after all, the wholesale run is the quantity. If it is investment, it is another matter.

In the clothing wholesale circle of Guangzhou, there is such a saying: "sell sweaters instead of fried shops".

The rise in land prices has led to a sharp rise in the rental prices of commercial properties, and the operating costs of the brand tenants in the apparel market have been increasing and profits have shrunk.

The operators of the clothing market, which are closely related to the interests of tenants, should also consider adding new added value to tenants to consolidate the tenancy relationship.

Whether copying, roasting or frying shops, while bringing rapid and huge profits to these smart businessmen, it also makes Guangzhou's clothing wholesale market look very prosperous. However, the lack of homogenization competition and branding will cause them to get bogged down in the mire.

The way out in the era of small profits

"Two years' profits have fallen sharply, which is about half of the previous years."

Ms. Liu has done a good job in cost control. She owns a complete production line of jeans. She has her own weaving factory, washing plant, garment processing factory and her own stalls. Apart from raw materials, cotton yarn and accessories, she needs not to share profits with others in all production processes.

Each cost is 10-20 yuan, wholesale short 50-60 yuan, long 60-70 yuan.

When business is good, you can send three or four containers to nearly 100 thousand pairs of jeans every day during peak season.

Today, such good days are gone forever.

According to the customs data of Guangdong customs, since August 2010, due to the two major factors of rising cotton prices and RMB appreciation, the scale of Guangdong's clothing exports has been shrinking. Only 1-2 months this year, the import and export volume of clothing increased significantly. According to the analysis of the industry, the export increment of these two months is due to Christmas and new year, and can not represent the long-term trend of garment foreign trade.

In addition, the quality requirements of the outgoing list are very high. Especially for Japanese customers, a boss took orders from 3000 Japanese clothes and eventually checked by Japanese customers carefully, leaving only two or three fully qualified clothes, and the rest returned to them.

Profits are getting thinner and thinner, foreign trade is declining, and domestic market competition is becoming more and more intense. Where is the way of Guangzhou wholesalers?

There are several enviable models in the clothing wholesale circle of Guangzhou, such as brothers, Gloria and YISHION. The stores and counters of these big brands have spread all over the country, and they all start from small stalls.

Ten years ago, Gloria's designers

A skirt with a hundred pieces of cloth (rags) was put together to win a design prize. From then on, "carp leapt to Longmen".

Miss Liu and other friends who have made clothes have dreamed of making their own brands and opening their stores to all parts of the country, but they often can't get ahead in reality.

"To do business is to pursue profits.

The factory is well managed, and it does not take much time. The management cost is low, the efficiency is high, and the output is high.

Having no experience in brand development is costly and risky.

Now the processing of international clothing brands is very good. At the beginning of the year, we can figure out how much money we can make in a year.

A business owner thinks so.

Some bosses also think: "from these enterprises' own situation, instead of branding, it may be more appropriate.

In fact, processing enterprises are slowly shaping their own brands, maintaining their old customers, signing new customers, and brand enterprises have a reputation for processing factories. This brand is accumulated in long-term cooperation, not formed by commercial promotion.

At the end of July, when journalists visited the wholesale market, all the stalls and pavements were covered with discounted clothes. The prices were very tempting.

At the beginning of August, when the reporters visited the shopping malls again, they found that discount sales were not so popular. A few autumn winter clothes had been put on shelves. Most of the stalls were selling the brand of this brand.

The white horse and one horse have a small number of stalls closed for decoration. There are many lorries in the storage area. Only a handful of people on each floor walk around with one or two black parcels. This is only in the off-season.

Some shopping malls are hung with banners that protect "intellectual property rights and encourage independent innovation".

For the current situation of the wholesale market, Cheng Jiuzhou, general manager of Baima clothing market Co., Ltd. has his own idea.

At present, for many garment operators in the two tier market, with the improvement of people's brand awareness, the "scattered batch selling" has become increasingly difficult to adapt to the tastes of today's consumers. How to choose the most promising brand from the numerous and complicated clothing market is the most urgent problem to be solved at present.

In view of this market demand, the pformation and upgrading of the wholesale clothing market is already in the firing line.

"We should make classification and household management, support those brands that set up a network system in the whole country, promote regional brands to march into the national brand, and eliminate some businesses that are not roasted or have strong strength."

Cheng Jiuzhou said that the number of tenants and the number of buyers may be slightly reduced, but "what we need is effective flow of people, building up the brand's franchise and development center and becoming the brand's incubator base".

In addition to stagnation in brand building, Guangzhou garment enterprises also fall behind their counterparts in the capital market.

To this end, the Guangdong clothing and apparel industry association and the Blue International Investment Consultants Co., Ltd. jointly set up a specialized agency -- Guangdong clothing enterprise capital operation service alliance, to boost the capital operation of enterprises.

Jiang Hengjie, executive vice president of the China clothing association, predicted that the garment industry will pform its pattern in "fission" and "fusion" in the future: "split" refers to the further subdivision of the market and industry; "gathering" refers to the further accumulation of capital and resources to the dominant enterprises.

At the same time, the wholesale business of e-commerce has sprung up, and is also gradually eroding the traditional wholesale market's customer resources.

Alibaba's "clothing and apparel wholesale" network, the volume of clothing every day can reach its total turnover of 1/3, about 1 million pieces.

The clothing network, which started from the clothing store owners forum, refers directly to the core B2B area of clothing wholesale. The general manager of the clothing network revealed in China that although many businesses operate well in the traditional wholesale channels, but they see the trend of online shopping, they have already begun pilot projects in the network, and there are more than 1000 merchants.

On the contrary, the e-commerce websites of many entities wholesale markets are just like what they do, and online trading is sluggish.

Analysis of the industry, the reason lies in the distribution of benefits, "many physical markets want to stall rent out, only to get the rent to be profitable, if you let go of the development of" net batch ", the interests of the owners of the market will definitely lose.

Bill Gates said, "either e-commerce or business."

According to the relevant planning of Guangzhou, by 2015, the number of e-commerce circulation enterprises in Guangzhou will exceed 70%. In addition to this plan, many traditional wholesale markets have been upgrading and upgrading, and its important contents are e-commerce and tradable trade.

Some forerunners have begun to act. Before that, a brand clothing company in Shantou, which had traditionally made "cash, spot and spot" wholesale, opened a number of electronic trading platforms since last year, while in the thirteen line business circle, the number of customers on the line of goods increased obviously.

In addition, the inland two or three line city merchants get goods from the Internet has become a trend.

CEO is still confident about the "net batch". They are seeking to cooperate with some traditional stores to pfer some stall owners' business to the Internet. "Net batch" is the general trend. I believe that this trend will become a reality in the near future.

Is Guangzhou ready for the sixth largest fashion capital in the world?

Always catching up, never surpassing.

In China, fashion design in Guangzhou is fashionable and fashionable, leading the trend of the whole country. However, there is no advantage in going abroad.

Paris, Milan, London, Tokyo and New York are the fashion capital of the world. Guangzhou only follows them step by step, catching fashionable information behind them and picking up popular elements.

Is it possible that Guangzhou with strong production capacity will always exist only as a follower of the fashion industry?

Can it become the leader of fashion and become the sixth largest fashion capital in the world?

The key control factors in clothing value chain come from the invisible competitiveness of R & D, design, brand and market channel to a large extent.

"Whoever grasped the core link of the value chain would seize the whole value chain and control the industry."

Gu Qiang, director of the planning department of the Ministry of industry and information technology, once said that after the financial crisis, a number of famous international brands were taking China as a life-saving straw and constantly appearing in various cities. They jointly operated with Chinese enterprises through technical cooperation, management support and so on, and gradually divided the share of China's clothing market.

LVMH group, GUCCI group and PRADA group respectively control the high-end market with the annual turnover of 13 billion euros, 2 billion 500 million euros and 1 billion 700 million euros. In addition, American GAP, Spain's ZARA, Sweden's H&M, Japan's UNIQLO, Germany's C&A and other international apparel "fast fashion" zero sale brand accelerate the entry into China, with a large amount of money and less business strategy, and greatly impact the market.

By contrast, Guangzhou clothing is still on the pace of traditional wholesale.

Many enterprises' demand for profit is mainly produced by the order, the futures of each dealer or distributor will be produced at once, output to the terminal, and sold in several bands, bringing profits to 70% to 80% of the whole progress, or even more.

But now, 8-9 months ahead of time, a large number of futures are required, which means great risks to enterprises and agents.

This is a conventional theory of marketing -- the closer the distance from ordering to manufacturing to the needs of consumers, the more accurate the prediction and judgement will be when ordering. The farther away the distance is, the greater the risk will be.

After more than 20 years of development, Liuhua business circle now has 34 specialized clothing markets, with an indoor area of about 600000 square meters and more than 50 thousand employees, with an average daily traffic volume of 200 thousand and an annual turnover of more than 50 billion yuan.

As the largest garment production base and circulation base, the most scarce of the Guangzhou garment enterprises is the design talents, especially the fashion designers with many years of experience and understanding of the international fashion market trend.

Whether in the high-end market or in the fair market, the ultimate fashion still needs designer.

Only by designing ahead can Guangzhou catch up with and surpass the five largest fashion capital in the world.

Li Kai Luo, President of Guangdong Institute of fashion industry economics and President of Bi LAN International Investment Consulting Co., Ltd., puts forward that the value orientation of business circles will determine the shaping of regional brands.

He believes that "the prosperity of the professional market will be the prosperity of the fashion trend", from "simple trade and business gathering" to "professional fashion trend gathering", and then to "popular pan fashion gathering", from "primary stall mode" to "intermediate business model", and then to "advanced channel gathering headquarters mode".