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    Haining Leather City Creates A Nationwide "Professional Market For Sale" Chain

    2012/6/30 11:31:00 24

    Haining Leather CityHainingLeather CityLeather

    At present, China's largest Haining

    The city of leather

    It is a professional chain market mainly based on leather products. Based on the local leather goods in Haining, it started from Haining's local "professional market for origin" and gradually stepped out of Haining, aiming at establishing a nationwide "specialized market for sale" chain.


    Professional market chain is a new format.


    The so-called specialized market refers to the pactions, distribution and distribution of similar products accumulated in a certain place. In short, the same series of specialized shops and specialized shops that are highly concentrated in the same series are presented with specific customer positioning and specific business positioning.


    In China, the professional market is a long history, mainly characterized by wholesale and spot trading.

    The "specialized market of origin" is large and famous, such as the small commodity city of Yiwu, Zhejiang, and Sijiqing, Hangzhou.

    Wholesale clothing market

    And so on.

    The "specialized market for sale" is relatively small and relatively scattered, such as the specialized market near the outskirts of cities, railway stations and bus stations.

    The chain of professional markets across the country is not yet available, so this is a new format.


    Industry characteristics suitable for professional market formats


    As a large-scale professional market, the choice of its product type is very important. Generally speaking, the choice of products in a large-scale professional market should have certain characteristics: (1) the distribution channels of products are relatively backward; second, brand awareness is low; third, the quality requirements are high.


    Most of the products with relatively backward products are not able to buy them in the retail channels of daily life, so they are willing to go to a centralized place to buy relevant products. Low brand awareness and high quality requirements make the professional market's own brand guarantee for consumers, thus promoting the development of professional market chains.


      

    Haining City

    Adapted to the requirements of professional chain sales.

    On the one hand, the sales channels of leather clothing are relatively weak, and most of them are small and medium-sized manufacturers. In general retail channels, it is difficult to meet the demand for leather goods. On the other hand, leather clothing is seasonally strong, the brand recognition of single leather goods is low, and the material of leather goods is special, so its quality requirements are high.


    Quick recovery mode of Haining Leather City


    In the expansion of foreign countries, Haining city has been using its own market model.

    Among them, the 10-15% which sells no more than the area of shops and other property forms other than shops.

    As a result, the rapid expansion of Haining's fur city will enable its capital to return quickly.

    At the same time, rental projects can be profitable in those years.


    Leather clothing is a major pillar industry in Haining.

    Haining is a county-level city, Haining leather industry as a regional characteristic scale economy started in the early 1980s, in 2010, the city's leather industry enterprises more than 1900, total industrial output value 18 billion 300 million yuan, sales revenue 18 billion yuan, the number of workers 6 million people.

    Haining leather industry sales income of more than 5 million yuan of leather enterprises have 159, realize the current value of industrial output value 12 billion 924 million yuan, realize sales revenue 12 billion 636 million yuan.


    {page_break}


    The development of leather city in Haining is closely related to the profitability of Haining's leather goods business.

    The profits of Haining's leather city depend on the rentals charged to the lessee of Haining.

    However, Haining leather city is different from the commercial property in general sense. In fact, it carries the leather industry of Haining as an integral part of Haining's leather industry.

    On the one hand, the rise in rentals depends on the operation of Haining's leather city. On the other hand, the development of Haining's leather industry also depends on the operation of Haining's fur manufacturers.


    Stepping out of Haining and opening the door to exogenous growth


    The flow of Haining's Leather City: as a retail terminal, the traffic of terminal customers has always been an important indicator of prosperity.

    Haining leather city has gradually shifted from the wholesale business to the retail and wholesale development path. Therefore, statistics of the flow of Haining leather city can effectively measure the operation of leather clothing.


    The management of Ning leather Merchants: the leather industry in Haining mainly depends on the sales situation of domestic leather goods.

    Because the price of leather clothing is high, leather clothing has some characteristics of luxury goods and investment products.

    The consumption of leather goods is closely related to the domestic macro economy.

    At the same time, because the feedback of leather business is lagging behind, the rents are also lagging behind.


    Haining leather city began to develop from the local professional market of leather goods in Haining, and gradually stepped out of Haining, and established a leather chain market in Liaoning Tong Er Bao and Jiangsu, Henan and Sichuan Chengdu respectively.

    In the future, we plan to establish a professional leather market in Harbin, Beijing, Hohhot, Xi'an, Wuhan and Urumqi respectively, with a market area of about 10-15 square meters.

    Therefore, the next three years will be a period of rapid expansion of Haining's skin city.


    Shops and ancillary sales will remain stable.


    Shops and ancillary sales are the products of the expansion of Haining's leather city.

    Over the past 2006-2011 years, with the expansion of Haining's Leather City, shops and matching sales have maintained a certain scale every year.

    In the future, with the continuous expansion, shops and ancillary property sales will remain stable.


    Haining pedo Dongfang art villa is the only residential project developed by Haining city. In the future, Haining's leather city has no plans to continue to develop pure residential projects.

    It is estimated that the settlement of Oriental Art will end in 2013.

    The relative price of the settlement in 2011 is relatively low, and some of the housing prices will be raised in 2012, and gross margins will also rise significantly.


    Haining Leather City announcements the five phase of the first phase of investment in this department: the company launched five phases of shopping malls, one to four floors, and 185 shops for investment promotion, totaling 48 thousand and 500 square meters (within the area), only for rent. The five shopping malls five to seven floors are not for external investment.

    The investment recognition rate is 100%, the total rent of the first year rental shops is 71 million 613 thousand and 100 yuan, the average rent is 147.6 yuan / month.


    The rent level is in line with expectations, but the investment area is lower than expected.

    Our views on the investment area are lower than expected: the investment area is lower than expected, mainly divided into two parts, one is to cancel the sale of shops, only to rent or sell; the second is to launch one to four storey shops for rent, resulting in less than expected rental area.


    In view of the first point, we think the possible reasons for the cancellation of the shops are: 1.

    Many of the strength businesses have bought shops in the first to four stages of Haining's headquarters, and the purchasing power is not strong; 2.

    Chengdu Haining project has just completed the business invitation, and most of the strength businesses are buying shops in Chengdu.


    In view of the second point, we think that the reason why the company only promotes part of its investment is: 1.

    The five phase of this department is the brand flagship store square, the five phase is a new attempt. Whether the success still needs time, some businessmen take a 2 view.

    Most of the main business owners already have stores in this department, and some of them invest in Chengdu projects, resulting in greater short-term capital pressure. They are not interested in the five phase of the project, 3.

    The market may be saturated.

    The five phase of the leasing period is one year or three years, and the rent payment method (one year payment or one year three payment) confirms the previous view on the investment.


    The expansion of other places is the driving force for the company's future development: the five phase of the project's investment results partly indicate that the market size of Haining's headquarters is somewhat saturated (the number of merchants and the size of the market are not synchronized with the market scale). The growth of the Department's market performance is more dependent on the increase of the rent level (average annual 10-30%).


    The driving force of Future Ltd's leapfrog development comes from the chain expansion of different markets, while the local strength merchants in Haining also prefer the wide market in different places.

    We believe that the company's current development strategy is in line with the basic characteristics of leather products and the actual situation of the company, and the company's rich market operation experience and well-known brand image will lead the leaping development of leather industry, and achieve the triple win situation of the company, leather producers and consumers.

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