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    Why Did The Price Of Clothing Shops Fall? Sijiqing, North And South Stalls Sublet 20%

    2012/3/25 20:11:00 10

    Price DownMarket SaturationE-Commerce Fashion Vane

    As a native Hangzhou citizen, Miss Yip has a feeling this year: she used to feel very blocked every time she passed by Feng Jie Road near the North Rim market, and the buses and buses were coming in and out of the market. But now, some shops on the first floor of the north ring have posted "low rent" and "Wang shop transfer" notes, and the market is a bit cold and clear in the afternoon.


    "This year's clothing business is not easy to do". Recently, the reporter visited several well-known wholesale and retail markets of clothing in Hangzhou, and heard such voices from many households.


       phenomenon


    Booth for clothing wholesale market:


    It is difficult to sublet. Social status It also fell by about 20%.


    "Since last November, the clothing business has not been done well, and the booth price can not be rented." Mr. Zhang, who runs the clothing wholesale business in North China, says that the rent on the first floor of the market is 7 to 20 percent off this year compared with last year. Last year, the rental price of the booth in his market was nearly 160 thousand yuan, and this year it dropped to more than 130 thousand yuan.


    The reporter found that there is a clothing shop near the parking lot in the market. Last year, the rental price was as high as 160 thousand yuan. This year the stall owner gave the original tenant 50 thousand yuan cheaper, but the other party did not want to renew it. While waiting for the next home, the booth owner had to open his own business under the helplessness. Now the rent price has dropped to 100 thousand yuan and it has not been rented yet.


    "The economic situation is not good, some operators reduce profits or even lose money. They can not afford to rent the old stalls, simply do not rent, change to do other or earn money by themselves." Mr. Zhang pointed to the shop that closed the door.


    Not only in North China, but also in the reporter's visit, it is found that as one of the largest clothing distribution centers in the country, there are similar situations in Sijiqing's clothing characteristic blocks in Hangzhou.


    Mr. Du, who has been doing wholesale business for many years in Sijiqing, told reporters that every year he could rent out the stalls of the old market in Sijiqing, which could have a considerable income. But this year the situation is not good. Last year, it could also sublet 380 thousand yuan to a high price booth. This year, it only traded at a price of 300 thousand yuan. "At present, there are many rents in Sijiqing. Fall Unless it was previously rented out at a low price. "


    Through the clothing market such as Hangzhou Sijiqing evergreen market, reporters have seen many "rental" or "transfer" advertisements. Yuan Weidong, Secretary of the Party branch of the Hangzhou Sijiqing clothing characteristic district management committee, told reporters that at present, most of the stalls in Sijiqing are the first generation of entrepreneurs. The rents of the stall owners to the market increase slightly every year, but the rents to other people have declined this year. Many stalls were rented before the Spring Festival, but some stalls have been sublet until now. The rental price of stalls this year dropped by about 20% compared with last year. {page_break}


       The operator who produces Hangzhou women's clothing is:


       Market saturation "Can not afford to hurt"


    Some people in the industry believe that the transfer price of some stalls in Sijiqing has almost reached the peak. If the business continues to rise, many operators will not be able to afford it. To date, the increase in rent is not directly proportional to the increase in profits.


    For this reason, Mr. Du, who has been making wholesale dresses in Hangzhou with his family for six years, has a deep feeling. "This business sometimes feels that it is better than not to do so. This year, the booth rent is about 170000 yuan, the rent is about 500 yuan per day, and the two workers' labor cost is 300 yuan per day, plus taxes, water and electricity charges, air conditioning fees and so on. They do not calculate their own wages, and the cost is 900 yuan per day. Today, we only sell twenty or thirty clothes, but not 500 yuan. " He counted his fingers.


    "In the past, when business was good, about 400000 clothes were sold every year, but business began to decline last year. There are too many markets and too many goods to sell. The cost is 30 yuan, and the processing price is only 10 yuan. It has been raining before, and some of the new businesses in the market have not been supplemented. Now six or seven of the ten stalls are in deficit.


    "Now there are a lot of goods in factories, department stores, supermarkets and homes, and the market is saturated and business is hard to do. Don't mention that the clothing processing and wholesale market is springing up all over the world. There are 18 specialized clothing markets, more than 12000 stalls and more than 8000 merchants in Sijiqing's clothing characteristic blocks. If clothing exports do not go, it is difficult to digest domestic demand alone. In the whole domestic market, because of the shrinking demand of foreign trade in garment industry, some enterprises have changed from export to domestic sales, which has caused some pressure to the enterprises and operators who originally sold the domestic market. Domestic labor costs are now competing for cheap labor in Vietnam and India. Some of the garment factories recruited the drivers, but they did not work. The lathe workers went off, and our factory also shut down for more than 10 days. Mr. Du sighed helplessly.


       Reason


    The economic environment is not good.


    "The quality of the market business is not a factor. It is affected by the overall economic environment of last year, including climate and economic factors, especially the financial crisis abroad and the European debt crisis. The whole economy is like a chain, which industry has problems, the whole economic operation will slow down, and no industry can do well. " Chen Haijun, general manager of Sijiqing Suhang clothing market in Hangzhou, analyzed this.


    "The clothing industry is almost the same as agriculture. In the final analysis, it also depends on the weather. The weather also affects consumer psychology. Over the years, our market from November to the end of the lunar year is the golden age of winter clothing sales, but last year it encountered warm winter, and sales of winter clothing decreased significantly compared with previous years. As in previous years, the market on the street opened at eighteen, and the spring clothes were on sale. But because of the cold weather and heavy rain this year, the sales of spring clothes were delayed, and the overall business situation was not very good. And it will be April, when the weather is hot, the spring clothes will not sell. Chen Haijun said that these factors have led to the fact that the operation and leasing of the clothing market are not as good as in previous years.


    In addition, Yuan Weidong said that this year's clothing business difficult to do, but also with the economic downturn, resulting in a reduction in social purchasing power. Second, the increase in labor costs is also a factor that can not be ignored. Now clothing processing, raw materials prices, labor prices, bringing pressure to operators. Now an inexperienced salesperson in the market is at least 3000 yuan a month, and the experienced salesperson has an annual salary exceeding one hundred thousand yuan. In addition, the rents of the stalls are relatively high, which has caused some pressure on the operators. "The market has two higher rental rates, and the stall owner wishes to have a higher rental price." {page_break}


       way out


       Electronic Commerce Or become a breakthrough point


    It was originally the operator who looked for the booth, and now it became a booth to find a business operator. It was really "thirty years of Hedong, thirty years Hexi".


    In terms of how to deal with it, the reporters found that the market strategy and pace varied. Some choose to wait and wait while others choose to change their formats and take differentiated competitive routes.


    The Yanan city's Pearl City has always been more lively, but nowadays its popularity has been greatly reduced. Ren Baoming, general manager of Hangzhou Tianyang Mingzhu Department Store Co., Ltd., told reporters: "the impact of online shopping has a great impact on us. The price and quality of online goods are not very different from those of physical stores. Now we have to wait and wait until the subway is opened earlier, and Yanan road can be recovered soon after the renovation is completed. "


    So is the wholesale market. Zhu Xing, manager of Zhongxing foreign trade clothing City limited, said: "Internet commerce is a direction of market development in recent years. The market has already begun to take some measures in attracting network operators. There are many clothing markets in Hangzhou, and the market competition is fierce. It depends on who is the first to eat crabs.


    Careful passers-by found that the nine day international clothing city, new Hangzhou faction, Bao Taihe network clothing wholesale center near Zhongxing foreign trade clothing city had launched a large number of "Taobao stalls", "new e-Business areas" and "Taobao shops" investment advertisements, hoping to attract the eyes of high quality network operators.


    Yuan Weidong said that building the market is easy and keeping the market difficult. Sijiqing has undergone four transformation and upgrading. After upgrading the market, it hopes to tap its potential and market space in e-commerce. At present, the market is heading towards this development, and merchants also have this demand.


    In this regard, Chen Haijun has also made a lot of thinking: "some markets provide venues for the network operators, so that operators can do well in online shops. What I am thinking of is how to make the online shop unified by the market and how to break through the traditional market to do transformation and upgrading of online stores. We are considering cooperation with Taobao. We want to be an online shopping mall based on physical stores, mainly for the old customers who come to our market. They have come to our market, trust us, and directly trade on the online mall, and then expand new customers on this basis. The specific operation is still under negotiation.


       difficulty


    "Burst money" is hard to find. The old generation needs to "borrow the brain" to transform.


    "The transfer price of individual clothing market stalls in Sijiqing is still at a high level, and it is estimated that it will be difficult to surpass in the future. This year, the number of stall transfer households in the market is more than in previous years, but there are new people entering. In fact, these are the epitome of the whole market undergoing transformation and some people suffering from transformation. Manager Zhu calmly looks at the current situation.


    Indeed, transformation costs a lot, and the road to transformation will not be smooth sailing. As Yuan Weidong mentioned, because the style, color, fabric and so on can not keep up with the new situation, many old business operators are facing the reality of being eliminated by the market. "Some of the old business owners talked about the past very well, and they were selling explosions. After all, people's needs are different now. If they rely on the storefront, they feel the pressure themselves.


    "Now the first generation in the market is the old business people, the idea is a bit old, business pressure. The second generation are those who worked before. After having experience and customers, they set up a mountain to make their own decisions. These are transitional periods. Now the third generation, mostly college students, have culture and ideas, and their ideas are advanced. Today, these people are on the rise. In front of them, they are doing e-commerce, and they are potential new forces.


    However, Chen Haijun said that the current market is basically based on the second generation of households. College students have the ability to comprehend but lack professionalism and sense of responsibility. Many generations of business people feel that they are too hard to do their parents' business.


    He said: "the traditional market should keep pace with the times and gradually transform. The key to transformation is to transform from ideology to practice. Without the change of ideas and ideas, everything stays in the oral language. It is necessary to guide operators to change their concepts, let them accept the Internet, guide them to do so, and their enthusiasm will be improved after they taste the sweetness. In addition, for operators, we need to do something with high added value.


    Close to the deadline, Mr. Du, who cares about the business of French fashion city, told reporters that he recently intends to see the graduation design of universities and colleges, and excavate one or two young designers to provide fresh inspiration. "Although competition is fierce, we can not blindly follow the trend and do it." Fashion vane Only in this way can we revive.

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