How Should The Liuhua Business Circle Break Through?

Here world

The small weave of the net introduces to you how the traditional mode is becoming smaller and smaller.

Standing on the flyover of Liuhua bus station leading to Guangzhou Railway Station, you can see this scene: bustling crowds are like ants, some carry big bags, others drag small trucks, and move one step at a time.

Here is the nationwide famous Guangzhou Liuhua clothing wholesale business circle.

In the early 90s of last century, Guangzhou, as the forefront of reform and opening up, has become a hub for the sale and purchase of many commodities.

And the "flow of time, place, interests and harmony" of the Liuhua business circle is regarded by many insiders as "earn no money".

Today, Liuhua Road, South Station Road, people's North Road and other Liuhua clothing trade main road is still shops, merchants gathered.

According to statistics, this area across Yuexiu, Liwan and Baiyun three area, 2 kilometers, covers an area of about 1.5 square kilometers of small areas, gathered 34 professional clothing market, business area of 1 million 500 thousand square meters, more than 30 thousand merchants, annual sales exceeded 40 billion yuan, the annual volume of pactions accounted for 1/3 nationwide.

Liuhua clothing business circle is still prosperous, but in the eyes of many professional market and old business people, business is becoming more and more difficult: the increase of quantity brings more competition, the migration of factory labor force causes the loss of location advantage, and the new business mode of e-commerce and so on is in the ascendant.

All these make the traditional business model fade away. The garment market has to pform and upgrade and explore a new way out.

Glory and worry

"Warm boiled frog" behind the crazy expansion

"The goods we entered were sold out by customers, and we had to rack our brains every time to leave behind a few boxes and leave them for sale."

Recalling the glorious years of the 90s of last century, Jin Yanzhi (a pseudonym) was delighted.

In 1992, Jin Yanzhi came to Guangzhou from Shantou's hometown to engage in wholesale clothing business, and became the general agent of a sweater brand in Guangdong.

In the same year, when the white horse mansion was completed, Jin Yanzhi rented a 60 square meter berth in the white horse clothing wholesale market. At that time, it could be regarded as a "big pavement".

At that time, Liuhua business circle quickly entered a period of rapid development. With the opening of Kangle cowboy town as the starting point, the clothing market in Liuhua district began to enter the room.

White horse, red cotton, BBK, golden horse and other wholesale clothing market mushroomed, have risen, Liuhua clothing business area has ushered in the golden period of more than 20 years.

Jin Yanzhi's clothing business is at its best, and the white horse has been booming rapidly in just half a year.

According to her recollection, every morning, the white horse door is all black and dense, and all peddlers gather in front of the door eagerly.

At 8:30, the white horse opened the door, and the peddlers came in and saw the goods.

By 3 p.m., the store will have to brake, or even the samples will be taken away.

At that time, the clothing market was cash, spot and spot "three present" trading mode.

Hundreds of thousands of dollars of business, even the contract is not oral agreement, cash in hand.

Jin Yanzhi's clothes were very popular, and a few customers from Xinjiang came to Guangzhou, then took the purse and went straight to her stalls. They signed hundreds of thousands of them to the shop's safe, signed a number, took a little less goods, and ran out with a bag of money.

"At that time, even the pfer of bank cards was unheard of, not to mention the subsequent electronic payment."

The popularity of clothing business makes it difficult to find a shop for professional clothing wholesale market.

From 1995 to 1996 and two, many people were queuing up for the white horse overnight.

In view of the hot business, in 1995, the white horse launched its first large-scale expansion since its opening, adding seventh floors, upgrading the hardware facilities such as elevators, and equipped with a 1600 kilowatt generator.

Three years later, the white horse invested 100 million yuan in the second expansion, and the white horse established the leading position of the wholesale market in Guangzhou.

The renovated white horse berth is approaching 2000 at most.

After the expansion of the adjacent wholesale cotton market, there are nearly 3000 shops.

Less than ten years ago, around 2000, the professional market of Liuhua clothing business circle was nearly 20, and the number of merchants was around 2.

With the demonstration effect and guidance of white horse, Liuhua clothing business circle has been booming, and more than ten wholesale markets with similar categories have sprung up.

Little wonder, a financial storm is coming.

In 1998, the Asian financial crisis broke out, although it did not cause a substantial blow to the domestic market oriented Liuhua clothing trade circle.

The crisis of rapid expansion appears at this time.

Zhang Jin, deputy general manager of Guangzhou Baima Property Management Co., Ltd., said that more and more markets and shops have made the clothing market almost saturated, and the era of short supply is coming to an end.

Bu Xiaoqiang, general manager of red cotton international fashion city, admits that many clothing businesses and professional markets in the circle are innate.

"Clothing business threshold is low, anti risk ability is insufficient.

If we suffer another economic crisis, we will lose everything. "

At that time, most of the merchants in Liuhua clothing trade circle did not realize the risks in the future, and they still rely on the "bulk" business.

Besides expanding the scale, the professional market also maintains the business mode of "selling real estate, subleasing stalls".

Predicament and preliminary exploration

Exploring a new model is "crossing the river by feeling the stones".

In 2008, a financial tsunami spread all over the world. For the first time, Liuhua business circle felt the severe cold brought by the economic crisis.

At that time, the higher the production cost of labor and rental, the more difficult for many garment enterprises to continue.

At the same time, there is also unfair competition within the market.

In order to clear inventory, the price war between merchants is done; in order to attract merchants to enter, the wholesale market also has a price war.

Not only that, in order to reduce production costs, fashion design has copied each other, homogenization is serious, products are unmarketable and inventories are soaring.

The splendor of the flowing flowers is gradually fading away, and the clothing market is facing unprecedented difficulties.

But in Zhang Jin's view, with the relocation of production areas and the diversion of clothing buyers, the predicament of Liuhua clothing business circles has already appeared, and the economic crisis has only added fuel to the fire that was originally ignited.

Wuhan Hanzheng Street, Shenyang five love and other mainland garment wholesale market suddenly rises, the location advantage of Liuhua business circle is gradually losing.

"Now the clothing wholesale market in the mainland is everywhere, and clothing procurement is no longer concentrated in the Pearl River Delta or the Yangtze River Delta, but it is diverted to all parts of the country."

Zhang Jin told reporters that the size of the clothing market in Liuhua business district has been expanding. However, the diversion of garment buyers has made the orders of garment manufacturers in the business circle much less than before.

But Zhang Jin feels that the economic crisis is also a good thing.

"A lot of small businesses are sold out, and the crisis has allowed more manufacturers and professional markets to recognize the current situation of the clothing market and help them improve their brand awareness and upgrade them."

In this side, the economic crisis has just passed, and the economy has gradually recovered. In that area, e-commerce is surging, and the traditional business model has been affected. The clothing market of Liuhua business circle is facing another challenge.

The era of relying on a loud name, designing a beautiful logo, developing several new products and beating the world is gone.

This time, the Northeast boss Lin Fei of the Liuhua clothing business circle (a pseudonym) feels the most profound.

Lin Fei, a northeastern man, came to Guangzhou 9 years ago to make a clothing business and run a women's clothing brand.

Because of its retro style and low color, she described her brand as "minority dress".

Even in 2008, Lin Fei's brand women's wear sales have always been ideal, and individual styles even "explode".

Around 2010, Lin Fei began to feel "business is not doing well."

"At that time, Taobao was very popular, and most merchants didn't recognize Taobao as their lips, but they still wanted to give it a try."

Seeing the rise of e-commerce business, Lin Fei spent millions in 2011 to set up his own network sales team and sell clothes on Taobao.

Due to his lack of knowledge of online promotion and marketing, Lin Fei's first "on-line" ended in failure.

In the second year, Lin Fei's clothing sales fell by 10% over the previous year, the first decline since Lin Fei's job.

"At first, I didn't care. I thought the client was too critical."

Because of the confidence of his own brand, Lin Fei right when this slide was unexpected.

But clothing sales continued to decline in 2013 and this year.

In the first half of this year, the decline has reached 30%.

"Materials, design and investment are much more than before, but sales are constantly sliding."

Lin Fei felt very aggrieved, but she did not give up trying.

This year, her clothing sales came to Tmall again.

"The environment is not good now, but e-commerce is a trend after all."

Remodeling and thinking

Who will set up a platform to attract talents for local creation?

"The future of clothing is brand, bulk distributors and agents will eventually be eliminated by the market."

After more than 10 years of clothing wholesale agents, Kim won the decision to leave the white horse at the best time of business.

In 2000, in the face of opposition from peers, Kim won the sales, production and marketing rights of a French dress brand in China in one fell swoop.

Nowadays, this brand has become a famous brand of women's clothing in China.

Jin Yanzhi's early acting brand sweater has been left behind by his own brand.

At the same time, white horse, cotton and other clothing wholesale market timely put forward to do "brand incubation base", and not only limited to the role of wholesale clothing market.

To this end, the major markets continue to carry out internal optimization, some of the roasted goods, the lack of strength of businesses have been eliminated.

Zhang Jin told reporters that after optimization and upgrading, Baima clothing wholesale market has been optimized from more than 1500 to more than 1100, while the red cotton shop has been optimized from nearly 3000 to more than 1500.

"The quantity is reduced, but the quality of the market has been greatly improved.

The white horse also helps businesses promote brand promotion through exhibition fairs and networks, expand sales channels, and upgrade and upgrade services.

Zhang Jin said that with the diversified development of the wholesale market, the wholesale market construction is also moving towards the "shopping center" pformation.

The pavement has changed the traditional professional market "rat street, lattice shop" image, to the flagship Flagship Exhibition shop pformation.

"Future clothing should be called" work "instead of" product ".

Bu Xiaoqiang said that clothing enterprises should be stripped from the production and processing of raw materials and put into the creation and innovation of brands, which is the long way for the development of the industry.

Liu Yueping, President of the Guangdong apparel and apparel industry association, believes that Guangdong is the "source of Chinese fashion" and is China's first major producer of clothing. The future garment industry should take the road of brand pformation and upgrade from "local manufacturing" to "local creation".

However, Wang Xianqing, director of the Institute of circulation economics of Guangdong University of Business, points out that the creation of local brands requires a group of innovative design talents and brand management people with strategic vision.