Leather Clothing Price: Is Haining Leather City OK?

Haining leather city has released its 2014 performance bulletin.

Data show that the company achieved a total revenue of 2 billion 439 million yuan, down 16.81% from the same period last year.

There is a view that last year's fur market downturn has dragged down the overall performance of Haining leather city to a certain extent.

However, the chairman was optimistic in his law. "Raw materials have fallen, clothing prices have dropped, consumers are happiest, and they can buy cheap clothes."

Yesterday, he told reporters in the first financial daily that the passenger traffic volume of the leather business circle last year was over 10 million, an increase of 10%.

Reporters visited the city of Haining yesterday.

It is March, and is already entering the off-season for Haining leather city merchants. There are only sporadic customers in the whole shopping mall.

Yang Yihua, Vasa Siti Bnnie's boss, told reporters that in 12 months of a year, the real time for business is three months in November, December and January.

"After the year, business began to be cold."

Yang Yihua told reporters.

Due to the price drop of the Copenhagen fur auction, the pressure on some large inventory enterprises is very large. The value of clothes in the warehouse has shrunk.

Yang Yihua told reporters that in 2013, 80% of the owners of Haining's fur city were all at a loss.

The market in 2014 was slightly better.

"The price of raw materials in 2013 was too high, and it fell down in 2014.

So of course, those who bought it earlier died.

Although the price of raw materials in the first half of 2014 had plummeted, it began to pick up again from the second half of the year. "It rose once in September and November, and it was raised again in February this year."

She said, "I hope this year's market will be better."

It is reported that the construction area of Haining leather city is 1 million square meters, with a total of 6 phases (6 phases being built).

Most of the main leather traders are concentrated in the earliest 1 phase (built in 2004), and there are about 1500 shops.

"Almost all shops are full rented, and there are shops close to exit, but immediately someone will come in, so there is no rent break."

Mr. Xu, the head of the 1 phase of the market department, said that the sales of merchants in the peak season in 2014 were good.

Mr. Chen, partner of orlandic costumes, told reporters that although some policies were affected, fewer people came to the public funds to consume. "But now everyone's conditions are good. Many foreigners come to buy one or two pieces, so they can earn money back to the air tickets."

The fluctuation of raw material prices is a normal phenomenon in Mr. Chen's view. "Too high to fall a little bit depends on the opportunity of stocking goods."

Now that the industry is getting warmer, why?

Decline?

There are people in the industry who believe that the Haining leather city only confirmed the sales revenue and profits of the fashion industrial park last year, which is the main reason for its lower than expected performance, and the related project proceeds will be postponed until 2015.

Apart from doing commercial real estate, the only selling item in the company is Dongfang Yi Shu, which has entered the late sale, and its revenue has dropped by 88.61% to about 20 million yuan.

The two sharp decline has basically offset the increase in property leasing and management revenue.

Reporters learned that Haining Leather City 80% of the construction area to lease, the absolute right of speech for rent, the annual rental growth rate of 10%~20%.

Nevertheless, but by the impact of the electricity supplier, the traditional retail industry gradually decline.

A businessman told reporters that even in the peak season last year, "the business is not as good as it used to be".

It is reported that

In the past two years, they began to abandon the idea of buying land to build houses, turning them into brand exports and taking light asset lines.

Last year, the company announced that joint developers to jointly develop the Xinjiang market, greatly reducing the risk of new market cultivation and capital expenditure pressure.

In addition, in order to increase revenue, the company also pformed Internet finance outside its main business.

In March 16th of this year, Haining Leather City announced that its P2P Internet financial platform "skin city finance" was formally launched.

Su Jian, a financial founding partner, expects to earn 2 billion yuan, 4 billion yuan and 10 billion yuan in 2015~2017 respectively.

Many industry analysts optimistic about the performance of Haining's leather city this year. It is believed that as the market stabilizes, it will enter the cycle of performance improvement in 2015.

However, some people hold different opinions.

Shenyin Wanguo [micro-blog] analysts believe that Haining leather city for the traditional leather industry market, and leather clothing consumption seasonally strong, it is difficult to form a stable consumer groups.

The Internet finance is mainly for the market merchants. The demand for financing and the financial needs of the market merchants depend on whether the merchants themselves are profitable, so the dependence on the chain of the leather industry is high.

The analysts pointed out that the leather industry in the short run is oversupply, there is a process of capacity clearing, so whether the company's performance can improve, we need to pay attention to the peak season consumption of Pi city.