Hangzhou Apparel: Operators' Capital Chain Is At Stake.

In the first half of this year, Hangzhou

Business in the market is bleak.

Hangzhou industrial and commercial bureau yesterday announced the operation of Hangzhou commodity trading market in the first half of 2012. The famous Hangzhou Sijiqing clothing characteristic block, sales in the first half of this year were 3 billion 852 million yuan, down 8.07% compared with the same period last year. The sales volume of the Hangzhou hang Pai boutique clothing market in another provincial key regional market was 259 million yuan, a decrease of 77 million 760 thousand yuan from the same period last year, a decrease of 23%.

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The sharp contrast in the recession is the turnover of Hangzhou's major steel products, hardware and electrical machinery. The data show that the turnover of these markets reached an all-time high of 133 billion 600 million yuan in the first half of this year, an increase of 48.44% over the previous year, reaching a record high. However, although the sales volume is booming, the overall situation of the steel market is not optimistic.

The costumer's capital chain is at stake.

By the end of the year or the middle of the year, ultra low price clearance has become the norm of Hangzhou's clothing market in recent years.

But for business operators, the pressure this year is bigger than ever.

Ms. Wang, who has been in the clothing business for many years, is also an investor in the clothing market. She can rent a shop from the market or the landlord and make a profit at the beginning of the year.

But last year, Miss Wang's shop, which had been able to eat the 6 year rent through a loan, has been unable to get rid of it this year. "A good market basically has been stolen from a shop, and this year the price is cheap or it can't be rented out."

Miss Wang said that the rent of the market in the past is going up every year. In order to facilitate the increase of the rent, investors generally sign a contract in the first year when signing contracts with the merchants. "But at the beginning of this year, in order to retain the merchants, some investors took the initiative to reduce the rent. As far as I know, some of the sharp drop has dropped by almost 1/3."

Mr. Zhang, a clothing market employee in Sijiqing clothing District, Hangzhou, said that sales of clothing declined significantly and profits declined this year.

Several clothing markets in Hangzhou are quite popular this year except for a few people.

"An important reason for the huge inventory is that the investment threshold of clothing is relatively low. In the past few years, a large number of investors from other industries have been gathered, making money in those two years of good situation, so they have invested more capital in production.

Clothing has deviated from its original attributes and become an investment product, resulting in a large number of stocks.

Mr. Zhang's clothing market has such investors.

But in the Hangzhou Clothing Industry Association brand women's clothing branch secretary general Chen Shengyao looks, this year Hangzhou women's clothing production enterprise's life is also not good.

In addition to the decline in sales, the rapid rise of labor costs is also a great challenge for garment enterprises.

Hangzhou family

Mr. Zhang, deputy general manager, said that in the past few years, many brands of women's clothing in Hangzhou had invested heavily in the establishment of branches in the whole country, causing great burden on enterprises.

"Unlike the agent's order, the stores must sell their own goods, and the risk is greater than joining or acting."

According to the ratio of clothes, Mr. Zhang said, in order to provide customers with enough size and color, generally speaking, the inventory of a garment is about 1: 3 or 1: 4.

However, in some industry circles, this year's overall clothing inventory ratio has been as high as 1: 10, "this is the main reason for the current industry rumors that clothing inventory can be sold for three years."

The relevant person in charge of the market department of Hangzhou industry and Commerce Bureau said that the clothing market is bad, such as weather, inventory and so on. On the one hand, the continuous rainy weather at the beginning of the year will affect the overall market sales. On the other hand, because of the increase in raw material prices and the increase in labor costs, the upstream garment manufacturers will therefore raise prices, resulting in no price advantage in the hands of dealers, and the overall economic downturn and the decline in consumption. Therefore, this year's spring and summer outfit is very strong, coupled with the backlog of winter clothes in the previous two years. The inventory of Hangzhou's clothing market this year is higher than that of previous years.

"Now many clothing dealers are very pressed for funds. In order to enable them to run normally, some markets are also helping operators to think of ways, such as market guarantees, stalls and collateral, to get some small loans, hoping to pass the 'cold winter'.