Hangzhou Sijiqing Clothing Block Sales Fell 8% In The First Half Of This Year

　　 clothing The declining trend of the industry is still continuing, and the merchants in the clothing market have the most direct feelings. Sitting in a small shop in the Sijiqing women's clothing market in Hangzhou, Coco Lee, a 24 year old shop assistant, played with her cell phone. Occasionally, customers passed by, and she did not rush to greet her. An old fan was squirming around.

Xiao Zhou, a Jiangxi girl who sells clothes in a market, said that although July and August was the off-season for clothing wholesale and retail sales, it only sold one or two clothes a day, and the business was really bad. As he talked, he opened his cell phone, picked up a comfortable posture, sat down and played.

　　 The "severe winter" is coming?

Like Xiao Li and Xiao Zhou, some salesmen in the women's clothing market in Sijiqing, Hangzhou, spend some time playing with their mobile phones, some of them are getting together and chatting about their families. Correspondingly, the market is cold and cheerless, and there are few sellers who come to wholesale. Many shops, such as shop windows and window displays, are selling advertisements with discount prices.

Hangzhou Sijiqing women's wear market is the largest distributing center for women's clothing in Zhejiang Province, which has concentrated on thousands of shops. Hangzhou trade and Industry Bureau released the first half of 2012 commodity trading market operation data show: Sijiqing clothing characteristic block, in the first half of this year sales volume was 3 billion 852 million yuan, down 8.07% compared to the same period. Clothing sales in Hangzhou's Hangzhou fashion boutique market, another clothing market, dropped 23% year-on-year.

Wang Feng, a self owned brand clothing owner, mentioned sales and even shouted that he could not afford to hurt. He said that in previous years, the price for wholesalers was 3~3.5 discount. This year, it has dropped to 1.5~1.8. "No way, low price has to be sold, we must rely on quantity to maintain." Wang Feng said that although the cost of raw materials, labor and logistics had risen, sales were not strong enough to raise prices.

Although she is only 26 years old, Xiao Chen has been running a brand agency for 6 years. She said that for the traditional clothing industry, low price clearance is usually normal at the end of the year and in the middle of the year. But this year, the discount rate has come in advance. Her main brand T-shirt is retailing at a normal retail price of 110 yuan, and now the special price is 100 yuan and two pieces. "Selling a piece also costs more than 10 yuan, but it doesn't sell and it can't get back the money."

　 The business of clothing companies is not easy.

Sun Xiaoqing runs a foreign trade brand women's clothing enterprise. The production base is located in the outskirts of Hangzhou. This company produces more than ten thousand garments annually, mainly exported to northern Europe. "The most conservative estimate is that corporate profits will also drop by half this year."

Statistics show that in the first half of this year, the Hangzhou inspection and Quarantine Bureau accepted the 21064 batch, 56 million 397 thousand and 600 items and 503 million 870 thousand and 200 dollars value of export garments exported by inspection and quarantine, and the export volume and value of goods decreased by 22.35% and 12.51% respectively compared with the same period last year. The decline continued to expand compared with the previous year, the lowest value since 2007.

According to relevant personages, the two main reasons for the decline of garment export volume in Hangzhou this year are the continuous increase in labor costs and the sluggish external demand. In recent years, with the development of garment industry in the central and western regions and the return of some skilled workers abroad, Hangzhou garment enterprises are generally short of labor and wage costs are rising. Affected by this, the Hangzhou garment export price in the first half of this year amounted to $8.93 per unit, up by 12.60% over the same period last year.

　　 The traditional "Christmas season" has become the "off-season".

Not only clothes, but also some enterprises that produce Christmas products feel the coolness of the silk.

China is the largest processing country for Christmas products all over the world, and Yiwu is the largest production base for Christmas products in China. For many businesses in the small commodity market in Yiwu, summer should be a golden season for holding Christmas orders and producing Christmas products for the other side of the ocean. But this year, foreign trade bosses who are dealing with foreigners often complain: in the past, the hot "Christmas season" became today's deserted "low season".

"At the best time, the turnover of my factory can reach about 40000000 yuan." The 45 year old boss, Ping Feng Lou, has been engaged in Christmas products for more than ten years. Thousands of Santa Claus, Christmas tree and Christmas ornaments are loaded into containers every year for ocean shipping to Europe, South America and the Middle East.

"But this year, the order of 120 million yuan is pretty good." Lou Feng Ping said that this year's orders were only at the end of August, but in the past years, they were generally at the end of September. During this time, the situation of new orders was not optimistic.

Hu Shengyuan, a Christmas goods merchant from Pujiang, Zhejiang, told reporters that last year, five or six people in the shop were busy. There were four or five people at the same time when busy. "This year I am alone, and I always sit around in the shop doing nothing all day." {page_break}

Hu Shengyuan said that last year, his business nearly 9 million yuan, and this year, so far the turnover is less than half of last year. In recent years, the total annual orders have been sixty or seventy of the total.

Because Christmas orders are very seasonal, the end of September will mean the end of a year's Christmas foreign orders. Hu Shengyuan said he had never expected to make money this year. It would be nice if we could keep the balance. The Christmas products industry has been regarded as a weathervane of China's domestic and foreign exports. In fact, the situation of this industry reflects to some extent the difficulties faced by other types of manufacturing enterprises in Yiwu.

The data may be more convincing. The "Yiwu China small commodity index", which reflects the market situation in Yiwu, is an important reference for domestic small commodity manufacturers and buyers at home and abroad. It has a barometer and a weathervane in small commodity trade.

Reporters noted that since its release in November 2006, "Yiwu index Despite its ups and downs, it has been hovering above the index base point for more than 1000 points. Even in 2008, which was affected by the subprime crisis, the lowest point was only 1060.82.

But since September 2011, this index has been sliding all the way. By February 2012, the "Yiwu index" fell below 1000 for the first time, although it returned to 1020.12 in April, but in May it hit a 973.03 low.

In August 23rd, the Zhejiang Provincial High Court issued the white paper on maritime trial for the first time. The data show that the number of cases in Ningbo maritime court in Zhejiang has increased rapidly since the beginning of this year. In 1~7 months, the Ningbo maritime court handled 2280 cases in all cases, an increase of 115% over the same period. This reflects the dilemma of the shipping industry in Zhejiang, which can be said to be another epitome of Zhejiang's economic situation.

As for the rise of the number of cases, the white paper on maritime trial analyzes that the lagging impact of the international financial crisis on shipbuilding and shipping is becoming more and more evident. The overcapacity of shipbuilding industry is especially strong for small and medium-sized state-owned shipbuilding enterprises, and the camp of small and medium-sized shipyards is more difficult. The case of mergers and acquisitions in shipbuilding industry continues to show an increasing trend.

At the same time, the performance of most shipping companies has declined sharply, and the shipping industry chain has been greatly affected. Enterprises are facing great pressure and began to merge and integrate. Shipping industry chain such as shipping financing, maritime insurance and other upstream industries and terminals, freight forwarders and other links in the form of disputes poured into the court.

It is reported that due to the impact of the overall economic environment, ship prices now fall to the peak value of 1/3, a large number of shipbuilding enterprises have been in the plight of inadequate start-up or downtime. Shen Xiaoming, vice president of the four court of Zhejiang high court, expects that the number of cases in the maritime court will continue to rise.

Small and micro enterprises expect to break through hard

In Zhejiang, where the private economy is active, small and micro enterprises have played an important role in the development of Zhejiang's economy with the advantage of "small boats and good turning around".

However, under the background of economic globalization, domestic and international factors of production have undergone tremendous changes. For those small and micro enterprises with strong resource dependence, extroverted dependence and large demand for labor, their original advantages have gradually become a disadvantage, and their low cost business models have been severely challenged.

Just last month, because of the bank lending, 600 private enterprises collectively wrote to local governments, and urged the government to help overcome the difficulties faced by banks in lending and lending. In this loan crisis, Yu Zhongjiang, chairman of Zhongjiang holding company, was arrested by the Hangzhou police on suspicion of illegally absorbing public deposits because of the chain break. The case involved dozens of enterprises and related assets.

The pressure of the loan squeeze finally spread along the huge joint guarantee mutual insurance network between the private enterprises, which triggered a large scale enterprise capital chain crisis, and 600 private enterprises collectively referred to the local government.

The system of mutual guarantee and joint guarantee has been designed as the fuse of "burning fire and battalion". In the view of the business community, joint listing is not a sudden event. They believe that the 600 private enterprises' experience actually confirms the macro situation of China's economy from the micro level.

"No cash flow, no big business will die." Zhu Guoquan, 42, runs a shoe company. Affected by the European debt crisis, his foreign trade orders have been reduced by half, and profits are not losing money. What makes him more worried is that for this small factory, it can only be sold at a low price. {page_break}

Zhejiang Provincial People's Congress on the first half of this year, Zhejiang's economic performance survey data show that: in the first half of this year, Zhejiang business efficiency decline, production and operation costs increased, orders further reduced, production and shutdowns increased, Wenzhou alone has 60% scale enterprises to cut production or stop production. In the first 5 months of this year, profits of large, medium and small enterprises in Zhejiang decreased by 23.8%, 18.3% and 14.3% respectively. Ship and photovoltaic enterprises cut production and stop production is more common. Of the 3998 Industrial Enterprises above Designated Size, there are 140 enterprises shutting down this year, and the output value has dropped by 2276 over the same period of last year, with a drop of 57% in Wenzhou.

Meanwhile, the overall cost of production and operation continues to increase. In the first 5 months, the total profit of Zhejiang enterprises decreased by 19%, a decrease of 9.7 percentage points compared to the same period in 2009, a loss of 20.8% and a loss rate of 13.6%, an increase of 5.2 and 6.7 percentage points compared to the same period last year, with a loss of 15 billion 220 million yuan, an increase of 71.5%.

"Fewer orders, lower profit margins, hard work and less money." It is the most direct feeling of many foreign trade enterprises in Zhejiang nowadays. According to the quarterly survey conducted by the Zhejiang Provincial Commission of letters, thousands of key enterprises showed that 42.9% of the enterprises reflected two orders in the same period, a 3.1 percentage point increase over the first quarter.

Statistics from Hangzhou Customs show that in 2012 1~6, Zhejiang achieved a total import and export value of US $149 billion 650 million, an increase of 3.5% over the same period last year, lower than the national average growth rate of 4.5 percentage points. Among them, exports of US $105 billion 650 million, an increase of 5.2% over the previous year, lower than the national average growth rate of 4 percentage points.

The European Union is the largest export market in Zhejiang, accounting for more than 1/4 of total volume. In the first half of this year, Zhejiang's exports to the EU decreased by 6.9% compared with the same period last year, compared with an increase of 20.7% over the same period last year.

Zhejiang's monitoring data on the employment of 5000 enterprises also prove the difficulties of small and micro enterprises from another angle. Data show that the small and micro enterprise practitioners appeared the first net reduction since February this year, and the monthly decline in June reached 0.66%. It is estimated that the total number of more than 5000 enterprises monitored is 1 million 940 thousand, which is equivalent to a decrease of 12 thousand and 800 people, of whom 2739 are small and micro enterprises.

Why is it so hard? "Labor and materials are rising, that is, orders will not rise." A boss said that the main reason is nothing more than cost, sales and capital, which is also a problem for all enterprises that rely on cheap labor. "Last year's salary guarantee is 2000 yuan per month, and this year it will cost 3000 yuan."

The growth of foreign trade and the growth of GDP will bring pressure to Zhejiang's economy. Zhang Handong, director of the Zhejiang international economic and Trade Research Center, believes that the traditional growth mode of foreign trade, which is based on price advantage and quantity expansion, has been difficult to continue. Zhejiang's foreign trade will enter a long and difficult climb stage.

But it is worth mentioning that the reporter noted that revitalization of the competitiveness of SMEs has become the consensus of all walks of life. Zhejiang is further gathering to drive the recovery of the economy to a good momentum.

In view of the "Butterfly Effect" triggered by mutual insurance in Zhejiang's private enterprises, governments at various levels have held several meetings of banks and enterprises to help enterprises tide over difficulties. The Zhejiang provincial government has also cracked down on the difficulties faced by small and micro enterprises in raising financing profits, improving development difficulties, and successfully starting businesses. It has issued some opinions on promoting the re innovation advantages of small and micro enterprises, put forward a package support policy, and made corresponding provisions in taxation, administrative and business charges, financing, training and financial support. In addition to the provincial authorities, the local government is also offering corresponding support policies. In the boss's building of Wenzhou, the advantages of logistics, commodity flow and information flow accumulated by Zhejiang for many years are not replaced by other places in a short time. The economic sector also believes that the current impact on China is mainly from countries and regions with relatively low labor costs, such as Southeast Asia and India. What is needed now is to study these advantages and transform them into real ones. Order "