Wenzhou Clothing Enterprises Set Foot In Commercial Real Estate

from Clothes & Accessories Semir clothing, a Zhejiang based enterprise, has been making frequent use of real estate projects such as commercial real estate in recent years under constant pressure from the garment industry. In September 17th, the the Mixc project in Wenzhou officially laid the foundation in Ouhai District of Wenzhou. Besides the leading role of Huarun group in the Mixc, Wenzhou's local partners are Semir costumes. According to the plan, the construction area of Huarun the Mixc project is 450 thousand square meters, with a total investment exceeding 5 billion. It will be built as the largest shopping center in the Mixc in Zhejiang province.

An advisory researcher said that Semir entered the commercial real estate "the Mixc" project. On the one hand, it effectively used local resources integration capabilities, combined with Huarun real estate, through commercial real estate projects. Brand clothing The advantages of operation complement each other, strengthen the control of future retail channels, thereby promoting the diversification of the future development of Semir group; on the other hand, Wenzhou's economy is well-developed and its residents' consumption level is high. However, Wenzhou does not yet have an upscale comprehensive shopping center, with a bright prospect of ten points. Moreover, for Semir, the profit margin of this project looks much larger than that of the garment industry.

In fact, before the purchase of land to participate in the construction of the Mixc, Semir has already tried in real estate. In May this year, Semir clothing announced that in order to obtain the land use right and housing ownership of the Chinese industrial Yanan Road housing, it intends to use the raised capital of 156 million yuan to acquire 100% stake in Zhejiang Chinese industry.

It is worth noting that in addition to Semir, the same main leisure dress has also been involved in the big business of commercial real estate. In 2011, Shanshan holding group and Shanjing Real Estate Co., Ltd. jointly developed the commercial plaza of Ningbo Shanjing orlies, and the men's clothing YOUNGOR also regarded the real estate as one of the three carriages of its own business territory. The main industry downturn is causing clothing enterprises to set foot in commercial real estate.

The first half of 2012 was the downturn of China's textile and garment industry. Reporters interviewed found that the recession of garment enterprises includes multiple factors such as OEM production transfer, fierce competition, inventory crisis, unstable raw material prices and so on.

Industry insiders say that export fatigue is not the most frightening, and even more frightening is the rapid transfer of textile and garment industry to Southeast Asian countries, which means that orders from Europe and the United States can not undertake the competition in the Chinese market, especially in Indonesia, Bangladesh and Vietnam. At present, the main advantage of domestic garment and textile enterprises lies in the complete industrial chain. Once the industrial chain of Southeast Asian countries is formed, it will have a greater impact on domestic textile enterprises.

In addition, it is worth noting that Overseas brand They are also actively entering the Chinese market to seize market share. In view of the rapid sale of the Swedish brand "H&M" in China, the Swedish Trade Minister Eva Biolin led the nine Swedish fashion retailers brands in Shanghai to announce their readiness to enter the Chinese market. "China is the second largest economy in the world, so we are advocating the promotion of fashion enterprises' export to China's booming market, choosing to take the first step in Shanghai and have confidence in the future development." Eva Biolin introduced that Sweden has the characteristics of simplicity, functionality, emphasis on tailoring, style, leisure and neutrality. Many brands also consider the sustainable development of their own product lines, and the price is not too expensive.