Wuhan Haining Leather City Opened Nearly 3 Years Ago And Has Not Yet Got Rid Of Its Losses.

The reporter went deep to visit the Haining Leather City in Hanyang District of Wuhan, and found that the rental situation of the shops was not optimistic.

Most shops in the mall are in a vacant state. The entire two floor is less than ten shops are still operating normally, and the entire third floor has not turned on the lights, and there are few shops.

Conservative and rough calculation, at present, the vacancy rate of the whole shopping mall is more than 7, and many shops are filled with notices of sublease and pfer.

Sun Yumin, deputy general manager of Haining Leather City company and Secretary of the board of directors, said in an interview with reporters that the main reason for the vacancy of the shops was that it was the off-season of fur business. Some of the shops had already been withdrawn to Haining. On the other hand, some shops were in the stage of renovation or decoration due to the adjustment of battalions.

Recently, the reporter in-depth investigation found that, in addition to the first floor of Haining, Wuhan Leather City, some bags and clothing shops are still in normal operation. Most of the shops in the mall are in a vacant state. The entire two floor is less than ten shops are still operating normally, and the entire third floor has not turned on the lights.

Conservative and rough calculation, at present, the vacancy rate of the whole shopping mall is above 7.

Reporters at the scene saw that many shops were filled with notices of sublease and pfer.

There were not many customers in the mall, and some shopkeepers chose to close the store until 5 p.m.

In August 2015, Haining leather city officially took over the management and operation of Haining Leather City in Wuhan, but the continuous loss of shopping malls did not improve. The actual occupancy rate of the shops dropped from 93% to 65%.

"The company took over the management of the leather city of Haining, Wuhan, and began to re sign the leasing agreement with the shop tenants in July 2015.

There has been a drop. "

Haining Leather City company explained that according to the company's own market operation situation, Wuhan Haining leather city rental rate decline is temporary.

It is understood that the leather city of Wuhan in October 26, 2013 officially opened to the outside world in October 26, 2013. After nearly 3 years of operation, it has undergone many changes in its main business, and has not yet been able to get out of its predicament.

Statistics show that the Haining leather city of Wuhan was initially developed by Hubei Jin Lian Min Sheng Holdings Limited (hereinafter referred to as Hubei golden Union), and the Haining leather city was operated in the form of brand franchise.

According to the agreement, the Haining Leather City company sends the operation director and other personnel to guide the investment management and daily marketing activities of the Wuhan management company. However, due to the failure of the parties to agree on market management and marketing strategy, six months later,

The company withdrew relevant personnel.

Opened less than a year, with the overall downward trend of the national economic situation and the leather industry down, and in Hubei Province, especially in Wuhan, there are many market competition of leather market characterized by "Haining leather city". Wuhan Haining leather city immediately plunged into huge crises and difficulties.

As the rental level of the shop is low, the market

Worse, Wuhan Haining leather city did not generate excessive returns from brand affiliate.

Up to now, Hubei Jin Lian company has only paid the brand franchise fee in 2013, and the brand accession fees in 2014 and 2015 have not been paid yet.

Haining Leather City company frankly, judging from the current operation situation of Haining Leather City in Wuhan, brand franchise business mode is not sustainable.

Haining Leather City company said that the company has already sent a team of rich management experience in leather industry to take charge of the management of Haining Leather City in Wuhan, and gradually introduced the management advantages and customer resources of the company to Wuhan Haining leather city.

In view of the question of brand franchise mode, Sun Yumin said in an interview with reporters that the franchising mode introduced by the company is not a problem in itself. This is the premise, but the brand franchise mode has not achieved the desired effect in Wuhan.

Sun Yumin said, the main reason is Hubei real estate development as the main business, the management team is not professional, management and management can not keep up with the company's major shareholders' financial strength is also a problem.

In addition, a number of counterfeit Haining leather cities in Hubei and Wuhan have led to chaotic competition.

But Sun Yumin stressed at the same time, "this also shows that the consumption of leather leather market in Wuhan is very large."