Hangzhou Clothing Market Super Low Price Clearance, Half Year Flat Performance

In the first half of this year, Hangzhou

Business is bleak.

Hangzhou industrial and commercial bureau yesterday announced the operation of Hangzhou commodity trading market in the first half of 2012. The famous Hangzhou Sijiqing clothing characteristic block, sales in the first half of this year were 3 billion 852 million yuan, down 8.07% compared with the same period last year. The sales volume of the Hangzhou hang Pai boutique clothing market in another provincial key regional market was 259 million yuan, a decrease of 77 million 760 thousand yuan from the same period last year, a decrease of 23%.

A sharp contrast to the slump in the clothing market is the paction volume of the production materials market of several major steel products, hardware and electrical machinery in Hangzhou. Data show that the turnover of these markets reached an unprecedented 133 billion 600 million yuan in the first half of this year, an increase of 48.44% over the previous year, reaching a record high. However, although sales are booming, the overall situation of the steel market is not optimistic.

The costumer's capital chain is at stake.

By the end of the year or the middle of the year, ultra low price clearance has become the norm of Hangzhou's clothing market in recent years.

But for business operators, the pressure this year is bigger than ever.

Ms. Wang, who has been in the clothing business for many years, is also an investor in the clothing market. She can rent a shop from the market or the landlord and make a profit at the beginning of the year.

But last year, Miss Wang's shop, which had been able to eat the 6 year rent through a loan, has been unable to get rid of it this year. "A good market basically has been stolen from a shop, and this year the price is cheap or it can't be rented out."

Miss Wang said that the rent of the market in the past is going up every year. In order to facilitate the increase of the rent, investors generally sign a contract in the first year when signing contracts with the merchants. "But at the beginning of this year, in order to retain the merchants, some investors took the initiative to reduce the rent. As far as I know, some of the sharp drop has dropped by almost 1/3."

This year, Mr. Zhang, a clothing market worker in Sijiqing clothing District, Hangzhou, said

The decline is obvious, and profits are falling. Garment traders are facing huge inventory pressure.

Several clothing markets in Hangzhou are quite popular this year except for a few people.

"An important reason for the huge inventory is that the investment threshold of clothing is relatively low. In the past few years, a large number of investors from other industries have been gathered, making money in those two years of good situation, so they have invested more capital in production.

Clothing has deviated from its original attributes and become an investment product, resulting in a large number of stocks.

Mr. Zhang's clothing market has such investors.

But in the Hangzhou Clothing Industry Association brand women's clothing branch secretary general Chen Shengyao looks, this year Hangzhou women's clothing production enterprise's life is also not good.

In addition to the decline in sales, the rapid rise of labor costs is also a great challenge for garment enterprises.

Mr. Zhang, a vice president of a brand garment in Hangzhou, said that in the past few years, Hangzhou has seen many

Investing a lot of money to set up branches in the whole country has created a great burden on enterprises.

"Unlike the agent's order, the stores must sell their own goods, and the risk is greater than joining or acting."

According to the ratio of clothes, Mr. Zhang said, in order to provide customers with enough size and color, generally speaking, the inventory of a garment is about 1: 3 or 1: 4.

However, in some industry circles, this year's overall clothing inventory ratio has been as high as 1: 10, "this is the main reason for the current industry rumors that clothing inventory can be sold for three years."

The relevant person in charge of the market department of Hangzhou industry and Commerce Bureau said that the clothing market is bad, such as weather, inventory and so on. On the one hand, the continuous rainy weather at the beginning of the year will affect the overall market sales. On the other hand, because of the increase in raw material prices and the increase in labor costs, the upstream garment manufacturers will therefore raise prices, resulting in no price advantage in the hands of dealers, and the overall economic downturn and the decline in consumption. Therefore, this year's spring and summer outfit is very strong, coupled with the backlog of winter clothes in the previous two years. The inventory of Hangzhou's clothing market this year is higher than that of previous years.

"Now many clothing dealers are very pressed for funds. In order to enable them to run normally, some markets are also helping operators to think of ways, such as market guarantees, stalls and collateral, to get some small loans, hoping to pass the 'cold winter'.

Overall weakness in steel market

The steel market is not as good as it is.

Although the volume of turnover has risen sharply, turnover has not been enlarged correspondingly, which is basically the same as last year. The Hangzhou industrial and commercial bureau's analysis report even used the word "sales overall performance tends to be weak" to describe the Hangzhou steel market in the first half of the year.

Take the Hangzhou canal steel market as an example, the market in the first half of this year sold mainly wire rod, rebar and round steel, with a turnover of 3 million 60 thousand tons, with a turnover of 15 billion 300 million yuan (including tax).

Among them, the first quarter was affected by the Spring Festival holidays and the price war of the previous year, the turnover was only 1 million 460 thousand tons, with a turnover of 6 billion 350 million yuan, which was unchanged from the same period last year.

In the two quarter, the market expected "red May" also failed to come. The paction price continued to suffer under pressure and continued to go down, under the pressure of all parties, and the turnover was only 1 million 600 thousand tons.

"In the first half of the year, the whole steel market plunged into a state of panic.

Steel mills cut production, bank funds tighten up, dealers dare not hoard goods, inventory is at a low level, and the development prospects of downstream main steel fields are not optimistic. Generally speaking, the producers of the means of production market have difficulty in financing, and the funds are slow to return, and business development is rather difficult.

Hangzhou city commerce and Industry Bureau of the market responsible person said, the steel market turnover significantly red, mainly because iron ore price increase led to the rise in steel prices, in fact, only in the first half of June, the housing market has shown signs of recovery, the volume of steel market turnover has just been a bit of improvement.

The weak steel market has made the capital chain of steel traders at risk. Some of the banks' lending policies for steel traders have been changed from loan limits to stop loans, and some banks have not accepted the steel traders or even mortgages.

Steel traders' financial problems are frequently exposed: in February, Li Guoqing, a boss of steel trading market in Wuxi, Jiangsu, was trapped in the "run away" rumour because of the loan fraud. Huang Gang, the honorary president of the Shanghai chamber of Commerce in Fujian, a steel trade background, was exposed. The bank loans involved both exceeded 100 million yuan. In May, a female boss of a steel trade enterprise in Nanjing Shimonoseki committed suicide.

However, the industry is still optimistic about the steel market in the second half of the year, because the housing market is showing signs of recovery, and the protection room will have a more obvious pull for the rebar market.

"The macroeconomic environment in the second half of the year should be good for the steel market, and the price will be lower and higher."

Hangzhou city commerce and Industry Bureau said.