Haining Leather: A Market Fission, Nirvana Of An Industry

This is a special market: it has more than 2800 business households throughout the country. Leatherwear In the professional market, it is the first to achieve listing. It is a national AAAA tourist attraction. It receives more than 4 million 500 thousand visitors per year, and achieves over 10 billion yuan in sales annually. It also breaks through the traditional mode and has successfully arranged the specialized market chain to the whole country.

This is a traditional industry: like many block economies, it has started ups and downs since its small workshop. By the end of last year, it had gathered 1954 factories, more than 70 thousand employees, and nearly 1000 designers. It can produce a ticket clip in 3 seconds on average, making an average of 48 seconds to make a group of leather leather sofa sets, an average 1.3 seconds to produce a fur coat, and more importantly, it also leads the trend of Chinese leather fashion.

This market and industry share a common name: Haining leather, the former is Haining China. The city of leather The latter is called the leather industry in Haining. The relationship between them is similar to that between chicken and eggs, eggs and chickens.

The lump economy is like a chicken. In the process of development and development, the egg of the professional market is bred. In the process of developing together with the mother, the two sides interact with each other, and gradually form the endless relationship between the chicken and the egg. In the development process of Jiaxing's massive economy, almost all of them follow such a path, such as Pu Yuan, Honghe sweater industry and sweater market, Haining Xu Village home textile industry and decorative cloth market. However, how to promote the common promotion of the market and industry through benign interaction is a difficult problem encountered in the transformation of many massive economies.

Leather industry has bred Haining China Leather City, and the development of leather city has led the industry. Transformation and upgrading Although this interactive process is not smooth sailing, there have been many twists and turns, but compared with the development mode of Haining China Leather City and Haining leather industry, it will provide experience for the transformation and upgrading of Jiaxing's many specialized markets and massive economies.

Hatching start: chicken lays eggs

In Haining, the relationship between leather industry and leather city was initially related to chicken eggs.

In the 80s of last century, with the rapid development of private economy, Haining, which had no skin production, grasped the opportunity of competition with other regions because of mastering the core link of leather industry chain, leather making technology.

In the early 90s of last century, leather industry was first nurtured as the leading industry in Haining, and soon formed an atmosphere of vigorously developing leather industry. In 1992, there were more than 200 leather enterprises in Haining. At this time, many people in Haining just sell their fur clothes to the mall, and the payment is slow and the capital flow is slow. How to sell the whole country to buy Haining and build a professional market has become an inevitable choice.

In September 22, 1994, the Zhejiang leather garment city (Haining China Leather City) was officially opened, covering an area of 31 thousand square meters. On the same day, the first National Leather Clothing Fair opened. The opening of leather city has set up a platform for marketing and promotion of leather enterprises in Haining, and has also taken the wings of soaring development of leather industry. After 3 months of opening, the turnover of the market is as high as 580 million yuan. The development of the market has led to the upsurge of the leather garment factory in Haining. By the end of 1995, the leather and leather enterprises registered by the industry and Commerce Department in Haining had reached 1987.

However, leather city is not a natural "good egg", because the market management is not standardized, quality supervision is not strict, and so on, while driving the rapid development of the industry, this "egg" congenital deficiency begins to pour the "matrix", affecting the healthy development of leather industry.

In 1997, the problem broke out. At that time, because the fur market continued to be hot, some enterprises were playing the crooked idea of shoddy work: the use of inferior leather, the level of work decreased. At the same time, a large number of low-quality leather clothing flooded the market, and quality problems emerged one after another. The former Haining fur coat with unlimited scenery became synonymous with low quality goods. In the winter of this year, a shopping mall in a big city even hung out such a banner: "there is no Haining fur coat in the mall."

There was a vicious circle between "chicken" and "egg", and a large number of enterprises began to go bankrupt.

Change begins with harnessing this bad egg. Since the second half of 1997, leather city has been determined to pay close attention to quality, intensify quality inspection and prevent inferior leather clothing from entering the leather city. "There is no way to live without fighting." Now, in retrospect, the director of the leather city management committee said: "cracking down on counterfeiting is a necessity for the development of China's professional market. Many other leather markets that are emerging at the same time as the leather city of Haining have not been able to go through this, and have gradually withered and closed down."

Quality is enhanced, and brand is also needed. Since 1999, there has been no way to shift the focus of leather city's work to the brand: the commodities entering the leather city must have brand labels, the excellent brands advertise, the leather cities subsidize...

A series of measures have made the "bad guys" reborn, and the leather industry of Haining has also ushered in a development peak. In 2002, the number of leather enterprises in Haining reached a record number of 5127. The annual output value of the leather industry reached 13 billion 150 million yuan, and the total leather industry ranked the first in the country. Carson, Mongolian slave and snow leopard and other leading enterprises of leather industry emerged in large numbers. {page_break}

Transformation and development: a positive interaction between chicken and eggs

The interaction between industry and market transformation is to evolve from the hatching relationship of chicken to egg into a positive interaction between chicken and eggs.

In December 2002, Haining first put forward the goal of transformation and upgrading of leather industry: the idea of creating the world's advanced leather manufacturing base. It will enhance the internationalization level, core technology and core competitiveness of leather industry on the agenda.

Like hundreds of leather enterprises in Haining, the support relationship between "chicken" and "egg" has been fully verified in Haining dragon horse leather Co., Ltd.

In 2002, leather city invested 200 million yuan, and set up the export processing zone of China Leather City in Haining, which provided a broader development platform for enterprises. This year, Li Jun, who was only 29 years old, took over the baton of the dragon horse leather industry from his father and carried out a series of transformation. In 2003, the dragon horse leather industry moved from the urban area of Haining to the export processing zone, and the business area expanded by 10 times. At the same time, Li Jun turned the products from women's clothing to high-end men's clothing which is more sought after. This year, the dragon horse leather industry opened the door of rapid growth. In 2004, the output value of the dragon horse leather industry has reached 15 million yuan, an increase of 6 times compared to 2002.

In 2005, the overall relocation of leather city and the big platform of new leather city injected new impetus to the development of leather industry.

After the relocation of the leather city, in order to create a complete value chain for the leather industry, a total of more than 250 suppliers of leather raw materials and accessories with larger scale and strength were introduced. A series of activities such as "Leather Fair", "Haining fashion fashion", "the Grande Canale fashion Haining fashion wind" and other activities were organized, and Haining leather enterprises were organized to "go out", thus enhancing the popularity and influence of Haining leather.

The dragon horse leather industry is also a beneficiary. It has participated in a series of activities such as "going out" organized by the leather city organization, which has greatly enhanced the visibility of the enterprises. It is also based on the value chain platform created by the transformation of leather city, Li Jun began a new turn, decided to transform from OEM to ODM, in order to get more added value. Now, his design team will go to Europe, Japan and other places every year to learn and enhance the design ability, attracting a large number of high-end brand customers to buy designs. This year, the company has registered two brands. From 2012, the company will build its own brand.

The significance of transformation and upgrading of leather city has been fully reflected in the ensuing 2008 financial crisis.

In 2008, the leather industry in Haining realized output value of 12 billion 190 million yuan, down 23.4% compared with the same period last year, the first negative growth in 5 years. It was also in this year that leather city moved against the trend and invested 600 million yuan to build a leather brand fashion center to provide leather enterprises with an upgrade platform for "brain body separation and brand operation".

A series of measures have promoted the confidence of enterprises and pointed out the direction for the transformation of enterprises in difficulty. Nowadays, the three brand fashion center of Haining leather city has attracted 72 enterprises to enter. Haining has also set up a leather Designers Association, and more and more companies are competing for their own design and brand creation. At present, there are more than 200 leather designers in Haining, and nearly 1000 designers are gathered.

Promoting expansion: the cycle of laying eggs and laying hens

In the positive interaction between "chicken" and "egg", the original "little egg" itself evolved into a "golden egg" chicken and formed an endless cycle of "laying eggs and laying hens".

At 9:30 on January 26, 2010, with the opening bell of the Shenzhen Stock Exchange, the Limited by Share Ltd of China Leather City in Haining was officially listed. The domestic leather specialized market has the first listed company. The listing has provided impetus for the new strategy of leather city, and has also made the leather city a chicken that lays golden eggs.

After the leather city's national strategy was rolled out, it was discovered that after 17 years of development, the "egg" originally developed by the leather industry began to reproduce and regenerate the positive interaction between the professional market and the industrial cluster's symbiotic development, so as to achieve national expansion.

In 2010, the Liaoyang leather city of Tong Er Bao, a total investment of 450 million yuan, was officially opened. In the first half of this year, the traffic volume of Tong Er Bao Leather City reached 700 thousand passengers. The northeast is only one point of its layout. In its planning, Shandong, Central Plains, Beijing Tianjin, Chengdu Chongqing and other regions, each region has at least one leather city. The company should not only be the biggest and strongest industry leader, but also have to export and manage the output of the brand at the same time of the layout of the whole country. At present, Haining China Leather City has covered Shuyang, Tong Er Bao, Xinxiang and other places.

Such a national expansion strategy is not only based on the domestic consumer market, but also the support of Haining's leather industry. Ren said, "Haining Leather City, more than 160 thousand square meters of Tong Er Bao, did not spend a penny on advertising and reception costs. It only sent a message on the website, attracting operators 3 times the number of stalls, of which quite a few are followers of Haining leather enterprises."

With the strategic expansion of Haining China Leather City in the field, Haining leather enterprises also benefit from it. The most direct thing is to win a larger market share in the whole country. Nowadays, many businesses in Haining have set up a branch in Tong Er Bao, distributing the products to the huge northern market through this convenient channel. This year's orders for the dragon horse leather industry are already full. The annual output value is expected to reach 200 million yuan, up 70% over the same period last year. "Although not expanding along with the leather city, however, the visibility, customer recognition and the intensity of customers coming out of the leather city will indirectly benefit the enterprises." Li Jun said.