40A few years ago, there were many vendors selling cloth and wool under the Haiyin Bridge in Guangzhou. Later, during the city renovation by the government, these vendors were moved to a cloth market. Because it was near Sun Yat-sen University, this market was collectively called the Sun Yat-sen University Cloth Market.
Starting from 2015, my country’s export trade “Textiles and Clothing Agreement” has been terminated, and textile and clothing quotas have been completely cancelled. Whether they are state-owned enterprises or private enterprises, no matter how small they are, they can do foreign trade business. Guangzhou’s textile industry has gained unprecedented development opportunities. A large number of clothing foreign trade companies, wholesale stalls, and clothing processing factories have sprung up like mushrooms after a rain. pop up.
In the dividend period of industrial development, time is money.
The reason for the rise of the Zhongda cloth market is that it shortens the factory’s procurement process and greatly improves production efficiency. If you are a clothing buyer, you can basically purchase all the raw materials and accessories for clothing at the Zhongda Cloth Market. At the same time, some fabrics ordered on the same day can be delivered in the afternoon.
The explosion of demand in the textile industry, efficient trading model, and strong supply chain have gradually made Zhongda Cloth Market a global fabric trading center.
National textiles look to Guangdong, and Guangdong textiles look to Zhongda. If the most congested road section in Guangzhou is selected, Ruikang Road in Zhongda Cloth Market will definitely be on the list. 1.5The market with an area of square kilometers has more than 100000 varieties of products and 10More than 200people in related industries, and the annual transaction volume exceeds 2000Billions. Zhongda has also become the most expensive wholesale market in Guangzhou. For some stalls in good locations, the annual rent even exceeds 100 million.
10Zhongda Cloth Market was a magical place 10 years ago, which created many wealth myths. But now “There is no money to be made in the first half of the year, and there is no money to be made in the second half of the year” is a self-deprecating comment by many bosses of medium and large markets. Why has business become difficult to do? You must understand For this reason, we need to look at the changes in the textile industry environment in Guangzhou and even China from a higher perspective.
From the perspective of national development, the climbing path of late-developing countries is basically the same. They all start with labor-intensive processing in the early stage, slowly accumulate capital, earn more money, and then invest in more profitable industries to achieve industrial upgrading. Textile processing is a typical example. In the early stages of development, labor, land and other factors are relatively cheap, and the technical threshold is low. China’s exports of clothes have a certain price advantage.
Although Guangzhou is on the front line in China, there is a lot of cheap space and labor around the Zhongda Cloth Market, such as Kangle, Lujiang, Datang, Longtan and other urban villages. These urban villages have gathered a large number of small clothing processing workshops. Production raw materials are provided by Zhongda Cloth Market, processed by surrounding garment factories, and then distributed to Shahe, Baima, Shisanhang and other clothing wholesale markets, forming a complete industrial closed loop. With the development of the city and the upgrading of industries, labor and land prices in Guangzhou are also rising.
30We used 8 800 million shirts to exchange for a Boeing plane. Now we are definitely not happy to do this. , 20 years ago, the monthly income of a worker in a garment factory was only 2000yuan, and he had to work every day10More than 10 hours. Now in Guangzhou, I just work for Meituan. With a little hard work, my monthly income is more than 11It’s a lot Common things. If the garment factory cannot afford higher prices, then workers will naturally choose other industries. This is determined by the market.
In addition to the increase in labor costs, land rent in Guangzhou is also getting more and more expensive. For example, some time ago, the two most expensive renovation projects in Guangzhou were in Kangle and Lujiang Village near Zhongda University, with investment funds of up to span>346 billion. The rents in these places had been rising before, but after the renovation, land became even more expensive, and only more profitable industries could move in. It is obvious that the former garment processing factories and small workshops cannot afford the high rent after renovation.Yes, they can only continue to survive by moving further away. Some people even choose to change careers directly and leave the industry.
On the other hand, other developing countries are also starting to learn from China, especially Southeast Asian countries. Although the quality of their population is not as good as ours, they cannot stand up to their cheap labor force. A piece of clothing costs so much, whoever has the most money will take the order. In recent years, many garment companies have chosen to set up factories directly in Southeast Asia. As time goes by, I believe Southeast Asia will also develop their own fabric wholesale markets.
The rising production costs of Guangzhou’s garment industry and intensifying overseas competition are the difficulties that the entire Guangzhou garment industry will face in the future. Let’s talk about China. In fact, the domestic clothing market is roughly divided into offline and online. Needless to say, offline physical stores, everyone knows how miserable these years have been.
As for online, it has also promoted the rapid development of the Zhongda cloth market. Currently, Guangzhou and Hangzhou are the most famous clothing e-commerce companies. Many of the raw materials for online clothing in Guangzhou are also purchased from the Zhongda Cloth Market. However, with the fierce competition among e-commerce platforms, especially the rise of Douduo and live broadcast, the cost of clothing has been directly driven to the floor price.
Interestingly, in recent years, many Comrades Puning and Tianmen who are engaged in clothing e-commerce in Guangzhou have chosen to return to their hometowns to start businesses and produce simple basic styles locally, thus bypassing the Zhongda Cloth Market, Guangzhou garment processing factories and clothing wholesale stalls. , further reducing costs. I believe that more cloth wholesale markets will be developed in the local area in the future. Although the scale and type cannot compete with the Zhongda cloth market, diverting customers from the Zhongda cloth market is a foreseeable future.
What will happen to the Zhongda cloth market in the future? In fact, it can be roughly divided into three categories.
The first category is the industry leaders who stand at the top. They are often the source manufacturers themselves and have strong R&D capabilities. They basically have the pricing power of some products. Ordinary people cannot enter their field to compete with them. After all, this is a capital-intensive industry with very high barriers to entry.
The second category is innovative merchants who develop corresponding products based on market hot sales. They usually make adjustments in materials and printing, but they are very tiring. If product innovation is successful, making money for 2 years is not a problem. Once 2 years pass, you must transform, because The competition among peers and the popularity of styles only last about 2 to 3 years. The myth of getting rich in one year It is most likely to appear among this group of people, but this requires smoke from the ancestral graves and great luck.
Third, there are traditional service-oriented merchants. These merchants generally provide whatever customers need. Their R&D capabilities are basically 0 and they will sell whatever is easy to sell in the market. Just copy anything, or even adjust the goods, and make a price difference of one piece of information, which will probably turn into a twist later. Many times, when a merchant provides good service, the customer fails for no apparent reason. In fact, this is related to the industry trend and requires a little luck. After all, if the customer fails, it will be useless even if you serve him to the sky. So, in addition to doing For good service, merchants must burn more incense for customers every day. The market may eliminate many people in the future. For this kind of merchants, it would be good if they can transform into the second type of merchants. If they cannot, maybe every year in the future, It was the worst year in the past ten years and the best year in the next ten years.
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