Where Is The Future Of The Wholesale Clothing Market?

According to the world clothing and shoe net, Yang Li sat at the door of his shop and ate lunch in the middle of 2017 winter.

This family is thriving in Shanghai.

The six or seven square meter shop in the market has not thrived for many years.

Only three of the more than 10 shops that are side by side with them are still open, with very few customers.

Yang Li has been guarding this shop for more than 10 years, and the market is crowded with people every day seven or eight years ago.

Nowadays, almost all the old neighbors who worked with Yang Li in the clothing business in the early days are gone. Some have moved elsewhere and some have changed.

At that time, in Beijing, the famous zoo clothing wholesale market (referred to as "dynamic batch") has been in the closing stage, and in November 30th, the last wholesale garment manufacturer.

The East Ding mall is closed.

So far, 11 wholesale markets and 1 logistics companies have been closed.

Besides, the wholesale market of Guangzhou clothing, which once provided the supply market for other clothing markets in the whole country, is also suffering from many other small businesses besides the most famous white horse clothing market and the cotton wool clothing market.

Even in the white horse clothing market, the rent is not comparable with the previous years.

Including the booming clothing wholesale market in Cheap Road, these traditional clothing wholesale markets are now facing the test of the cold winter: to live or to disappear, and to survive, how can we get out of the predicament?

Millions of years into the golden age

When the Taobao was not born in the 90s of last century, the wholesale clothing market was the most important platform for clothing circulation.

As the most concentrated city of garment enterprises, Guangzhou was born as a wholesale market represented by white horse and red cotton, providing goods for other clothing wholesale markets nationwide.

As a hub for pportation between the north and the south, Shanghai, which is adjacent to the railway station, becomes a hub for distributing East China's Cheap Road.

Shanghai's Cheap Road clothing market first appeared in the 70s and 80s of last century, and just started reform and opening up. "At that time, the traffic was not developed, the clothes in the South went to the north, and Shanghai became a pit station." Lu Qiang, who has worked in Cheap Road for more than 10 years, said.

Around 2000, under the policy of "entering the market on the road", a group of businessmen from Wenzhou, Fujian and other places in Zhejiang bought the land of Cheap Road, and built 12 garment markets before and after.

Take Henan North Road as the boundary, East is Hongkou District, there are two markets, and the 10 markets in the West belong to the original Zhabei District (now Jingan District), with a total construction area of about 300000 square meters, and once gathered more than seven thousand clothing shops. The clothing retailers of Jiangsu, Zhejiang, and Anhui, Shandong and other places around Shanghai are regular customers of Cheap Road. It is estimated that the highest volume of clothing pactions in the area has reached 5 billion yuan a year.

More than 10 years ago, Cheap Road was known as "cheap road", and it was the Taobao resort.

Fan Degui is one of the senior bosses in Cheap Road market.

As a native of Shanghai, Fan Degui's old house is on the seven Pu Road.

In the 90s of last century, Fan Degui, who was still working in a foreign company, rented the shops in Cheap Road to others to sell clothes.

"At that time, the rent was about one hundred thousand per year, but they sell clothes a lot more than that one year."

So Fan Degui, who was so hot eyed, quit his job and decided to go to sea to make a wholesale garment.

The new seven Pu market opened in 2001. Fan Degui, who won the first prize in the first place, took 10 berths in one breath.

"It seems that everything can be sold, and clothes do not need any insight."

Although there has been no contact with the clothing industry before, Fan Degui's pformation is very smooth. "All around are clothes making. I know where they are. I know where they are stocking up. I went to Guangzhou to live in a hotel, and we talked to each other, and we could tell each other about the supply of goods."

At that time, the clothing market adopted the agent system, and Fan Degui followed the foreign trade colleagues quickly to win the Shanghai agent of some garment factories: "2005 is the peak period."

"Do not worry about selling, but worry about not getting goods."

Fan Degui recalled that at that time, he was in charge of picking up goods every day in Guangzhou, and the store began to deliver goods from four or five a.m., "at 9 o'clock in the morning, it could be closed."

He runs at least ten thousand or twenty thousand yuan per store every day, and his profit can reach 30%.

"Some bosses really make a lot of money!" Lu Qiang witnessed the most prosperous market.

Ten years ago, bosses in Cheap Road could earn millions of dollars a year.

Last year, the shops on the four floor of the new seven Pu market were open for sale. The total price of some large shops was over ten million.

"The most hated man is Ma Yun".

In 2008, the Taobao mall of Taobao B2C was launched. In 2009, the double eleven shopping carnival was born, and now it has become the most important shopping festival.

Double eleven this year, Tmall and Taobao total turnover of 168 billion 200 million yuan, no suspense to refresh the record.

On the other hand, Cheap Road's business is beginning to fade.

Fan Degui has sold 8 of the 10 berths over the years.

In 2008, he felt

The sales volume began to decline, so the last two women's wear berths were also rented to others. They rent a bunk for men's wear on the five floor of the market.

"Compared to women's clothing, men's clothing sales are not high but high profits, style renovation is not so fast, do not squatting in Guangzhou, do not worry about inventory backlog."

In recent years, Fan Degui is no longer interested in his clothing business.

Fan Degui, the wife of the five floor, is mainly in charge of his wife. He is now in Shanghai chamber of Commerce.

"If business is good, I will go to the store to help, but there is no need now."

Men's clothing business itself is not more lively than women's clothing, plus the general trend is not good, now a day is also up to thousands of pieces of water, basically retail.

"This is a sunset industry, twenty or thirty years ago (clothing wholesale) is the mode, and now this pattern, no change, now earn hard money."

Fan Degui smiled and said that his children did not continue to engage in wholesale clothing business.

Depression is not just a booming clothing market.

"In the past, the daily traffic volume in Cheap Road may be 100 thousand, now five thousand or six thousand."

Lu Qiang said.

The market, which opened at 6:30 in the early morning, did not begin to recover until 10 a.m.

In the recent fortune of the Tiantong subway station, only 32 customers can be seen occasionally.

Lian Fu has just been renovated last year and rehired in August this year. Although the rent of the eight or nine square meter store has dropped to 100 thousand yuan a year, nearly half of the shops have not yet been rented out.

And not far away, the two floor of the white horse high clothing market, many shops have been reduced to warehousing.

(underground traders in Lian Fu market)

Cheap Road has also tried to pition online, but it has not been successful.

"They have become accustomed to making wholesale, making electricity providers to spend money to invite people to make pages, do customer service, this product has just been linked to the Internet, maybe it will be taken away by someone else."

Lu Qiang's market also has an online trading platform, but now the paction has basically stagnated.

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The birth of Taobao not only robbed the retail business, but also destroyed the agency business of Fan Degui: "what agent does the manufacturer want, set up a Taobao store, and deliver the goods by itself."

"The Cheap Road bosses hate the most is Ma Yun."

Lu Qiang said with a smile.

On the one hand is the impact of the electricity supplier, on the other hand, the market is diverted.

"Now there are too many markets, there are Hangzhou schools in Hangzhou, Wuhan has Han faction, Changshu relies on factories to set up wholesale markets, Shenzhen now has some high-end clothing wholesale market."

A clothing store owner in Shanghai said.

Hangzhou and Changshu, which are close to Shanghai, because of their own manufacturing industry chain support, the cost is even lower, coupled with the support of the local government, the wholesale market has developed rapidly in recent years.

The retailers in Jiangsu, Zhejiang, Anhui and Shandong, who sold goods from Fan Degui in early years, now have clothing wholesale markets at their own doors, and do not have to go to Shanghai anymore.

Double troubles of leather capital

Apart from more than 100 kilometers southwest of Shanghai, Haining, China's leather capital, has the same worries as Cheap Road.

Miss song, who has worked in Leather City in Haining for more than 10 years, has complained about her current business: "people are more at weekends, but fewer people are buying."

And five years ago, "at that time, we could sell more than 100 fur coats a day. All the people came here to buy it. The people who came here now buy less, and you see them..."

While talking, two male customers walked into the shop. They saw a 3200 yuan leather jacket before, and the counteroffer was 1300. Miss Song did not reply to them again.

"Now the shipment is slow, the price is still bad, and it can sell more than 10 pieces a day in the peak season. It's already good. In the past, a man's single skin can be sold for 1500-1600 yuan. Now only about those who have the brand can sell the price, all the others are eight hundred or nine hundred yuan."

The business is not good, so does Aunt Zhang in the wholesale building of leather bags.

As the owner who moved from the old market in 2005, Aunt Zhang enjoyed the rent concessions of the leather city property, but she and her wife are now too lazy to put more energy into the business. "When the business is good, we have five or six more than 100 square meters of warehouses, and now a warehouse is useless, and the shop is going to be a bit of a turn, so we are ready to retire."

Pei Shuang came from Dongguan in 2004 when he inviting foreign investment in Haining leather city.

She jokingly said, "I looked at it (Pi Jicheng) from small to large, and now...

It's coming from big to nothing. "

This year, in order to save costs, she no longer provides customers with free bags.

(Haining leather merchants wait for customers to come)

The rental market is a barometer of market business.

Li Jihong opened a fur factory in Haining and opened a store in Leather City, but now he is not in Haining most of the time, but sells for everywhere.

He has a deep understanding of rent changes: "five years ago, 100 square meters of shops rent more than 2 million, and now it will take four or five hundred thousand.

In the past, people from all over the world traveled to Haining by train or by train to buy fur. Now a telephone or WeChat can be fixed with express delivery, and fewer people go to the market. Sometimes there are more employees in the store than customers.

Pei Shuang feels that Haining Leather City business is not as good as five years ago, it is related to Haining leather city itself to open wholesale markets across the country.

The leather city of Haining began to expand in the whole country in 2009. At present, there are chain markets in Liaoning, Jiangsu, Shuyang, Henan, Xinxiang, Sichuan Chengdu, Hubei Wuhan, Wuhan, Hubei, and so on.

"The cake is divided."

Pei Shuang said that when the leather city began to split up in Haining, she was very happy as a wholesaler. "We are going to eat cake."

But when the market became more and more, she found that was not the case.

"When we go to the foreign market, we also need to invest manpower and financial resources, but input and output are not directly proportional."

Now, although the number of agents under her has increased, the total volume of wholesale has not increased, but it has been reduced.

"For example, before I have 10 agents, they sell 300 pieces a year, and now there are 30 agents, but each person can only sell 100 pieces a year, and the agent business is not good enough to do, and then slowly quit, then my total amount will come down."

As a developer of Haining Leather City, Haining's Leather City (002344, SZ) has also been significantly affected by the market.

The third quarter earnings report just released showed that the operating income of the quarter was 344 million yuan, down 22.4% from the same period of the same year. Net profit was 47 million 891 thousand and 300 yuan, down 54.12% from the same period last year.

Haining leather city has said in the China Daily that in the first half of this year, property leasing and management revenue reached 592 million yuan, down 16.91% compared to the same period last year. The reason is "to maintain the prosperity and stability of the mature market, and let the partial reduction of the rental price of some market shops."

Clothing city at the crossroads

With the newly closed batch, data show that the annual turnover is about twenty billion yuan and the daily average passenger volume exceeds 100 thousand.

Today, there are less than 10 thousand people in the dynamic market, and since 2014, Beijing has implemented the catalogue of new industries prohibition and restriction.

The main reason for the relocation of the moving batches is that their location as a logistics and distribution center has already caused burdens on Beijing's urban environment and conflicts with Beijing's urban environmental governance.

Compared with the already listed Haining leather city and the moving batches that have already been withdrawn, Cheap Road garment wholesale market, located in the center of Shanghai, is more confused than ever before, and it seems to be more incompatible than ever before.

The Cheap Road area belongs to the Su Hewan core area of Jingan District, which is adjacent to the upscale overseas Chinese town Suhe Wan, and is the Bvlgari hotel of the global Top Class Hotel.

Most of the markets on the seven Pu Road still retain the old and dirty images more than 10 years ago.

"Demolition, ten years ago, said," every seven Pu Road people now have no panic on demolition, "can not tear down."

The reason for this is that most of the more than 10 shopping malls in Cheap Road are mainly small property rights.

Take the new seven Pu market as an example. Most shops were sold when they first opened, and last four storefront shops were sold to small owners last year.

Hundreds of thousands of stores purchased in the early years have now appreciated to millions of dollars. "Many people's lives are in it. How do we remove them?"

(Cheap Road's metal fence is considered to be artificially limiting many businesses).

Just because of the decentralization of small property rights, the pformation power from top to bottom is becoming weaker and weaker.

Near Cheap Road, there will be a metal fence every few tens of meters.

People who go to wholesale clothes can only carry a trolley to pass the fence, which is considered a human obstruction.

In the early years, the bus was not allowed to enter the market surrounding roads, but no one was in charge of it. Now the vehicle management is very strict, and the business is even lighter after the bus has completely disappeared.

Fan Degui said that he was not a typical Cheap Road boss. Many of the bosses in Cheap Road were Wenzhou people. Most of them were family members. They used to work hard in difficult times, and even helped themselves in pformation.

Xue Liye and Zhang Yuan of Wenzhou came to Cheap Road in 2006.

Now, in order to attract guests, Xue Liye invited two pretty girls in the shop as models to show the upper body effect for the customers. The clothes sold by Zhang Yuan in Cheap Road came directly from her sister's clothing factory, and his family's younger brother also sold clothes in other markets. They would discuss the fashion design and the latest fashion together, hoping to adapt to the market changes directly through the direct mode.

Shopping malls as property owners are also trying to change.

In 2013, St. and Saint changed, and the triumphant city was renovated in 2015.

Qin Jianyun, who works in the operation Department of Lian Fu clothing market, understands that the development of Cheap Road's market is inevitable. "No pformation will die, no one will be willing to buy things in a dirty market."

But no one knows about the success of pformation.

After the opening of triumphal city last year, the market name was changed to "Seoul fashion center". Now the main hits are young and fashionable, and the rental rate has reached over 90%.

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In the same way, the saints and saints who have been pformed into Korean Pavilion have gained a wave of "Korean wave", but now they still face the bottleneck of further development.

(Korean Pavilion holy and Holy)

In August this year, saint and Saint opened a shopping mall in the 3 floor, hoping to attract more designers to enter by zero rent.

Zhang Liwei, deputy general manager of Saint and sage, said, "we sell designer brands by selling points, so that designers can be in our holy and holy best position at zero threshold."

These designers are not confined to South Korea, but also from local designers.

But it must pass 3 months' assessment period, otherwise it will be eliminated by the market.

Saint and Saint hope to expand the direct store to the external market in the future so as to realize the pformation again.

"In the future, Cheap Road will no longer be a distribution center for cheap goods and wholesale goods 10 years ago, but a comprehensive consumption life space for Suzhou Hewan, which combines fashion creativity, leisure entertainment and integration."

Zhang Liwei thinks this road is more suitable for Cheap Road's development.

But Wenzhou businessmen Xue Liye and Zhang Yuan feel that that is not the wholesale clothing market in Cheap Road, they will not go to such a shopping mall.

Their worries are not groundless.

In another clothing wholesale market in Beijing, Dahongmen, the old market, Tianya women's clothing and new Century Towers have completed pformation and upgrading, forming a new format mode featuring creative design, fashion publishing and Internet plus experience shopping center.

After the pformation and upgrading, the number of merchants in the two markets was reduced by more than half.

The wholesale clothing market has accompanied the Chinese cities through the tough times, but no one can tell clearly where their future is.

More interesting reports, please pay attention to the world clothing shoes and hats net.