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    Haining Leather City Business Hard To Mention Rent Expansion Crisis Looming

    2012/12/17 11:42:00 65

    Haining Leather CityLeatherLeather Market

    Since P, November, the weather in the country is getting colder. The Haining a target= "_blank" href= "http://www.91se91.com/" > leather "/a" city in Haining, Zhejiang has ushered in the peak season of the year.

    In December 6th, the Haining leather city official website said, "this winter leather city sales are booming, and passenger traffic grew by 10% year-on-year."

    < /p >


    < p > however, according to field interviews, compared with last year, most of the merchants' profits were flat or slightly decreased. Since this year, the newly opened E seat ladies' hall and the F seat brand hall in Haining leather city have been very cold compared with the A, B, C and D blocks in the old district.

    < /p >


    < p > December 3rd saw that there were hardly any customers in the new E seat and F seat in the "a href=" http://sjfzxm.com/news/index_p.asp "Haining leather city" /a.

    Many shops that originally closed at five p.m. were closed ahead of schedule.

    < /p >


    < p > Haining leather city listed in 2010.

    The company is the largest leather professional market integrating commerce, finance and information services. It is mainly engaged in the development, lease and sale of market shops and supporting properties of "Haining China Leather City".

    < /p >


    Since its listing, P Leather City in Haining has insisted on the "connotative growth" mode of value-added chain of leather products, and on the other hand, it has implemented the "extension expansion" mode.

    At present, apart from the leather city in Haining headquarters, the company has opened the Haining Leather City branch in Liaoning, Jiangsu, Shuyang, Henan Xinxiang and Sichuan Chengdu respectively.

    At the same time, Beijing Haining leather city and Harbin Haining leather city are also being built.

    Haining leather city will also choose to set up a professional leather market in some other cities in China.

    According to the statistics of reporters, the total area of new markets outside Zhejiang has doubled since the beginning of this year.

    < /p >


    < p >, however, the company has constantly set up branches to attack cities in various places, and the hidden dangers brought by its rapid expansion are also gradually emerging.

    < /p >


    < p > although the new market opening this year is fairly smooth, it will increase revenue in 2012.

    However, due to the macro-economic downturn this year, the profits of the leather market industry are generally declining, and the business of new shops will be cold and cheerless. These will affect the future rental space of Haining leather city.

    At the same time, because of the limited capacity of the leather market, the expansion mode will also encounter bottlenecks.

    < /p >


    < p > < strong > headquarters opening market, business is cold, < /strong > /p >


    < p > according to press reports, the E seat and F seat of leather city in Haining headquarters opened in nine and October this year.

    But even in the busy season, business is still cold.

    < /p >


    < p > Haining Leather City Office personage tells a reporter, the expansion of Haining leather city mainly comes from connotation growth and extension expansion.

    This year's newly opened E and F seats are different from the previous A, B, C and D seats.

    < /p >


    < p > according to the information provided by Haining Leather City, Haining Leather City Phase 1 (A block) is 160 thousand square meters.

    Haining leather city two phase (B, C) 260 thousand square meters, including 64 thousand square meters of raw materials market, 66 thousand square meters of a target= "_blank" "href=" http://www.91se91.com/ "> shoes" /a > "square, 71 thousand square meters of fur square and the 28 floor of the high-end Traders Hotel and so on.

    The three phase of Haining leather city is a 200 thousand square meter brand fashion center, consisting of dozens of independent villas.

    Haining Leather City four phase (D seat) 120 thousand square meters, of which 62 thousand square meters of shops opened in November 2010.

    Apart from the brand fashion center, A, B, C and D seats operate in an area of about 423 thousand square meters.

    < /p >


    < p > this year's 9 and October Haining Leather City five phase (E, F seat) 180 thousand square meters. The first phase of the promotion is five phases. There are 185 shops between the first and the four floors of the shopping mall, which are 48 thousand and 500 square meters, and are sold only for rent.

    The business area increased this year is not much, only increased by more than 10%.

    However, due to the relatively large market, many customers shopping in A, B, C, D, to E and F seats are few.

    < /p >


    < p > in the E seat, which is positioned as a monopoly dress, the reporter saw that there was hardly any pedestrian flow from the first floor to the four floor.

    One floor salesman told reporters that the daily turnover of the entire floor was also dozens, and the weekend was better.

    < /p >


    Ms. P, a business operator, told reporters that it is now better than before. When the E and F seats were just opened, business was really too cold, and merchants were offering advice to the leather city.

    Later, from the field to leather city to buy Leather clothing bus stopped at E, F seat, the situation has improved.

    < /p >


    < p >, she said, in fact, merchants are also helpless to open shops in the newly opened E and F shops. If they do not open, other businesses will go, so their guests will probably be diverted.

    < /p >


    < p > at the same time, reporters found that many businesses in Haining leather city has many shops, although there are products in the name distinction, but because the same manufacturer, the products sold are basically similar, product homogenization is more serious.

    < /p >


    < p > by the end of September this year, the three brand fashion center of Haining leather city has opened the night market.

    But compared with the luxurious floor and bright lights of the fashion center, there are few customers here.

    < /p >


    Zhan Haihua, general manager of "Haining P", "a" target= "_blank" href= "http://www.91se91.com/" > dress less /a Co., Ltd. (hereinafter referred to as "multi face company") has a shop in C, D and E seat. He told reporters that the business of E booth is really bad, but because the opening is not yet long, so it is still watching and looking forward to the gradual improvement of the future.

    < /p >


    < p > < strong > foreign branches are still accelerating expansion < /strong > < /p >


    < p > the new market of Haining Leather City headquarters is not clear. Besides being influenced by macroeconomic factors, it also has a great relationship with the rapid expansion and diversion of the foreign branches of the company.

    < /p >


    Cao Zhongliang, a Liaoning Province who is doing leather business in Haining, told reporters that if foreign markets such as Henan, Xinxiang and other places do not open, then a few leather cities will be opened in Haining headquarters, and business will continue to be hot. P

    The problem is that the new open market largely diverts tourists.

    < /p >


    < p > at present, Haining leather city has opened the chain market of Haining Leather City in Shuyang, Liaoning, Jiangsu, Henan Xinxiang, Sichuan Chengdu and other places. In the future, it also plans to set up sub markets in Beijing, Beijing and other places.

    < /p >


    < p > data show that the expansion area of Haining leather city has doubled in Zhejiang's foreign market this year.

    Previously, the 173 thousand square meter Market of Tong Er Bao in Liaoning was opened in September 2010. The 51 thousand and 900 square meter Market in Jiangsu Shuyang opened in November 2008 and the 75 thousand square metre market in Henan Xinxiang opened in October 2011.

    The total operating area of the above branches is 300 thousand square meters.

    And this year, Liaoning Tong Er Bao two phase 130 thousand square meter market opened, and Sichuan Chengdu opened 450 thousand square meters (of which the market part 160 thousand square meters opened in September).

    This year's business area has doubled since the end of last year.

    < /p >


    < p > in fact, the rent situation in the Chengdu market has been unable to compare with the Haining market.

    According to the announcement of Haining Leather City, at the beginning of this year, the Haining Haining leather city investment and housing selection conference was approved by the tenant, which accounted for 89.2% of the rental area.

    Obviously, it can't compare with the 100% of Haining's five issue.

    < /p >


    < p > it is worth noting that the expansion rate of Haining leather city outside Zhejiang province does not seem to have slowed down: Harbin market 180 thousand square meters leather professional market and 80 thousand square meters business building are being built; Beijing market 660 thousand square meters property project (including 20~30 million square meter leather city and supporting area) is also advancing.

    In addition, in October 13th, the Haining Leather City announced that its control point, the lighthouse Tong Er Bao Haining Leather City company, won 125 thousand and 960 square meters of land for 320 million yuan, and will be used for the construction of the three phase project of Haining Leather City in Tong Er Bao.

    < /p >


    < p > a Mr. Chen, who has come to inspect the market from Liaoning, told reporters that the influence of the leather cities between different places is relatively large. The new market opens up the market share of the original market, and its future development may also be cold.

    For example, the market of Tong Er Bao in Liaoning is better now. By the end of the week, almost 1/3's license plates came from Harbin.

    Once Haining leather city has established a market in Harbin, it will have a certain impact on the market of Tong Er Bao.

    In his view, it only takes four hours to drive from Harbin to Tong Er Bao, so there is no need to build another market.

    At the same time, Tong Er Bao is still expanding, and its future development must be deserted.

    < /p >


    < p > < strong > rapid expansion is difficult to digest < /strong > /p >


    While P is expanding rapidly in Haining Leather City, some problems emerge.

    The problem of slow growth in leather market, rising operating costs, and the lack of business tenants' difficulties in raising rent are emerging.

    < /p >


    < p > December 6th, Haining leather city official website shows that at present, Haining China Leather City has entered the most popular season.

    As of the end of November, the flow of leather city has reached 4 million 300 thousand people, an increase of nearly 10% compared with last year. It is estimated that the annual passenger volume will exceed 5 million 600 thousand, and turnover is expected to exceed 10 billion yuan.

    Under the background of the current economic downturn, the leather city of Haining has grown in an opposite direction, creating a new record in Haining.

    < /p >


    < p > but the growth of just 10% is obviously unable to satisfy the expansion of Haining's skin city in Haining.

    The overall popularity of Haining leather city can not hide the embarrassment of some businesses.

    The development of merchants will affect the future development of Haining city.

    < /p >


    < p > Cao Zhongliang told reporters that the profit of the whole industry has declined since the beginning of this year.

    Raw materials and labor costs and other terminal prices rose little, making gross margin lower than last year, business is getting worse and worse.

    Zhan Haihua, general manager of multi appearance company, also said that this year's situation is worse than last year.

    < /p >


    < p > Cao Zhongliang believes that Internet sales have also affected the business of leather city shops to a certain extent.

    For example, during the "double eleven" activities of Taobao, there were merchants selling thousands of items through the Internet, which is unmatched by physical shops.

    < /p >


    Mr. P said that many bosses were following the chairman of Haining Leather City, where the market went, and where the shops went. But now profits are becoming more and more difficult. Although the plates are bigger, the cost is also rising, especially the cost of management has risen.

    These bosses will not have a good time in the future.

    < /p >


    < p > at the same time, the cold market of leather market will further affect the rent situation of leather city in Haining.

    < /p >


    < p > it is understood that from the current situation, in the old market, some of the operators are directly buying property, the rentals they rent are still higher than the rental price of Haining Leather City, and there are strict qualification checks into Haining city.

    Therefore, the shops in Haining city are still scarce. This is also the reason why the E block of Haining Leather City headquarters and the rental of F block have reached 100%.

    Many operators told reporters that their rents in E and F seats were almost the same.

    < /p >


    < p > however, if the business is not well conceived, it will inevitably affect the rent raising.

    In the first half of this year, there was a protest against rent rents in Haining Leather City yard, Tong Er Bao, Liaoning.

    Many operators in the Haining market told reporters that because of the bad macroeconomic conditions, this year's business situation will be lower than last year.

    The rents of Haining leather city have been rising every year, but they haven't risen much. If rent increases much, they will not be able to afford it.

    < /p >


    < p > Li Xiangfeng, an analyst with debbond securities, said in the research report that the leather market belongs to the "professional market segmentation", and the "ceiling" exists in itself.

    There are two obvious characteristics of the leather professional market operated by Haining City: one is the subgroup which is located in the leather consumption, and these groups are mostly distributed in the relatively cold northern regions. Two, the leather market itself has a large radiating radius, generally speaking, its radiating range can cover at least 1~2 provinces and cities.

    The company is in the fine molecular industry, and there is a bottleneck in the extension of the industry. In the long run, there is a certain "ceiling".

    < /p >

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