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The Rise of Group Buy Bringing Opportunity for China Luggage Leather Industry

What is the most popular thing in the Internet industry in 2010? It is group buy except micro-blogging women garments, the key words of group buy mode are as follows: service products, local ultra-low discount, experiential marketing, social marketing and no logistics, which has created a new service industry--the B2C Blue Ocean market, the author forecasted that the group buy industry will bring a different market for China luggage garment steam leather industry in 2010. Most industry insiders said that with the acceleration of the process of Group Buy, it would form a strong demand for leather luggage market, and bring unlimited business GPS Antenna opportunity.

The group buy may be the development trend of luggage leather industry in next few years. Take good fur boots as an example, currently the ratio of adopting full digital production is about 20%, while the movie adopted the film to shoot considering the details of screen watch display, shooting quality, and production team's shooting habit. But in the production process, the sound effects editing, 3D animation or visual special effect will still use digital production tools. It can be expected that the online purchase proportion of luggage leather industry will significantly increase in the future.

In China, the ratio of online purchase consumption is much higher than foreign countries. According to a website data, until the end of 2010 there are 1726 group buy websites in China, 5.7 group buy websites are born on average per day, the growth rate of the industry website number is higher than other handbag industry's websites, which even has exceeded the SNS and Web Games of those years. The group buy website has become the new darling of the investment community, there are new members entering this market almost every day.

According to industry insiders, the total sales of China group buy market will reach 16.5 billion Yuan in 2011, which is equivalent to 10 times of 2010. It seems that the group buy website will still maintain sustained and rapid development in the near future. Such speed of online shopping can help luggage leather handbags market to develop with added strength, so why not do it.

In the first half of 2011, the major group buy websites will still focus on urban sprawl, they will occupy the position of the city sub-stations at first, and most of group buy websites will pay attention to finding local principals or finding local beauty products agents, at the same time improve their own channel system. For current group buy handbag website, such fast expansion looks very well from surface. In addition, except the buauty tools group buy of luggage leather on the major websites started, many luggage leather cities such as Haining Leather, Xinji Leather, Chuannan Leather and so on which are known as China jewellery Leather City have launched group buy program in order to attract more home textile customers.

For luggage leather jewelry industry, it has achieved the group buy from the early accumulation to the advertising promotion in the later period. This is bound to form a massive surge of leather manufacturers; the home textiles market demand for high quality group also will become more urgent. By then, the competition among the major group buy websites will be very intense, snatching merchants and grabbing customers. In the film "Bodyguards and Assassins", people with lofty ideals from all walks protected Sun Yat-sen, one stepping into the breach as another fell, and ultimately won, the group buy field will also have such an uphill battle in 2011. From the rise to sunglasses popularity of group buy, he who laughs last, laughs best.

Above provided by SelectChina.com, and find more information on China Bag&Handbag Manufacturers / China Bag&Handbag Products.
Distributors of China Sportswear Trade Are Escaping

The fast-growing Chinese sports women garments industry is slowing down the pace, after China Dongxiang Group's orders are lower than domestic same industry and market expectations in the second quarter of 2011, Li Ning's orders in the second fiscal quarter of 2011 are also disappointing, and its growth shows a significant slowdown. Insiders pointed out that, due to the pressure of garment steam distributors and retail sales and inventory, maybe China mainland sporting goods retail industry will step into winter ahead of time next year.

The information recently released by Li Ning shows that in the just ended 2011 Second Quarter Li Ning Brand Products Ordering Meeting, the average retail prices of clothing and footwear products have increased more than 8%, the orders have declined more than 7% and 8% respectively, the total order amount decreased by approximately 6% when compared with the same period last year.

Previously, Kappa’s China operator also handed an awful report card to China Dongxiang shoes Group; the order amount of China Dongxiang Group in the second quarter of 2011 only has increased by only 2.8% year on year, which is far lower than the previous years' growth rate and market expectations. Analysts pointed out that due to the pressure of distributors and retail sales and inventory, the orders of China Dongxiang Group in the third and fourth quarter would not be ideal.

As for orders declining, Mr. Zhang Zhiyong, the CEO of Li Ning said that the retail environment of sporting women garments industry in this year is experiencing greater pressure: on the one hand, the retail operation cost is rapidly rising; on the other hand, excessive reliance on fashion shoes distributors to open a shop and promote the growth, which can not be sustained obviously. He also said that the orders in the next two quarters of 2011 might still be under pressure.

Sports brand over-reliance on wedding dress distributors to promote growth has been part recent two years, the speed of opening shops by bridal dress distributors has decreased obviously. "As far as I know, large-scale dealers have withdrawn a certain brand this year. " Liu Song said, under the double impact that the cost of opening a shop is rising continually and the buauty tools sales revenue slowing down, the number of dealers are showing declining trend.

Above provided by SelectChina.com, and find China Apparel Manufacturers / China Apparel Products.
China Textile and Garment Industry Will Accelerate to Eliminate Backward Production Capacity

Ministry of Industry and Information Technology announced the women garments enterprise list of 2010 eliminated backward production capacity in 18 industries to the public early this month, involving 2,087 enterprises. The backward production capacity of these garment steam enterprises must be closed before the end of September this year. In the published list, the industries related to textile and garment industry include printing and dyeing industry and chemical fiber industry, which both involving a large number of enterprises. Among them, there are 201 printing and dyeing enterprises and 25 chemical fiber enterprises.

This time the government takes great efforts to eliminate backward production capacity, and the measures can be called iron hand. They not only published the particular and big list in full detail with 2,087 enterprises name, eliminated production lines (equipment) type, quantity and production capacity, but also will rigorously punish women garments enterprises that don't eliminate backward production capacity within the allotted time.

Mr. Li Yizhong, the minister of MIIT, said that according to the State Council documents, the discharge permit of enterprises that don't eliminate backward production capacity within the allotted time will be revoked, and the banking financial institution shall not provide any form of additional credit support, investment management wedding dress department shall not examine and approve new investment projects, land and resource management watch department shall not approve new land, related management department shall not handle the production license, the production licenses and safety production licenses that have been issued must be withdrew according to the beauty products law. Mr. Sun Huaibin, the director of China Textile Economy Research Center and spokesman of China Textile Industry Association, said in an interview that, in the past 2009 China's economy has achieved a beautiful V-shaped reversal curve, the growth performance is gratifying; but the keystone of this year's economy is to adjust the structure, that is, change the economic development mode. For the textile and bridal dress field, it involves two key industries --printing and dyeing, and chemical fiber.

To eliminate backward production capacity also is a clear target of "the home textile industry adjustment and revitalization plan". As for printing and dyeing and chemical fiber industry, the plan especially request that it must eliminate 7.5 billion meters printing and dyeing capacity that with high energy consumption, high water consumption and low technology level in 2011, eliminate 2.3 million tons backward chemical fiber production capacity and accelerate to wash out the backward cotton spinning, wool spinning production capacity.

It is noteworthy that from the area distribution of the textile industry sunglasses enterprises published by MIIT, the areas that have heavy elimination task and involve a large number of companies are concentrated in Zhejiang, Jiangsu, Guangdong and other developed textile and home textiles industry areas, rather than central and western regions. When eliminate backward production capacity in iron hand, another point that the government should issue corresponding support policies is also important needs to be regarded. In the process of eliminating backward production capacity, inevitably, it will come down to the problem of the jobs loss and labor reemployment, which also requires corresponding policy support from government.

Above provided by SelectChina.com, and find China Textile Manufacturers / China Textile Products.
The Paradox of Chinese Shoe Industry: Orders Increasing, But Profits Declining

Under the influence of labor costs increasing, RMB appreciation and many other factors, the shoe industry is sliding into a vicious circle that orders continue to increase but profits decline continually. Since 2010, China's export market has been booming. According to statistics of General Administration of Customs, in September China's shoes gross export value totaled 144.99 billion U.S. dollars, with an increase of 25.1% compared with the same period of last year; in the first three quarters, China's exported footwear products reached 26.44 billion U.S. dollars, representing a year-on-year increase of 26.6%.

As the former stock has been digested basically and the European and American markets are gradually recovering, a lot of shoe enterprises said this year's orders are sharply increasing. Mu Sa, who has engaged in fashion shoes trade in the Middle East for many years, told the reporter that part of some watch enterprises he co-operated with have closed down, and he must find a new supplier, so he is busy in participate in a variety of footwear show in China since this year.

In 2009, the impact on the whole world by financial crisis is spreading gradually, the export-oriented traditional wedding dress industry stood in the breach. In 2009, China exported 8.17 billion pairs of shoes, worth 26.57 billion U.S. dollars, with a decrease of 0.8% and 5.5% compared with the same period of last year. The footwear output of China in 2009 up to 11 billion pairs, in which the total annual production of Guangdong, Zhejiang, Fujian, the three main bridal dress production areas accounted for 80% of the jewellery national total amount. 80 boxes shoes are made in China in every 100 boxes sunglasses that sell to the United States, said Zhu Yulun. At present, the recovery of overseas shoes markets, particularly European and American markets are far from the level of 2008, and the consumer sentiment is still not high. Wang Wei has factories in Zhangmutou, Liuzhou and Nantong, he began to transform toward domestic market in 2002, and he said that his company will strive for pulling the ratio between domestic garment steam sales and export sales to 50:50 this year, in his view, the downturn in overseas markets will not really recover until 2012 at least.

The pressure of the costs rising has touched women garments enterprises' nerves. The profit margins are not great originally, now with the RMB appreciation, the profit is more minimal, said Ling Dong. The merchant, Mu Sa, who also has the same feeling said that shoe enterprises' offers of this year is 10%-20% higher than last year, intermediaries should bear pressure form both sides and they are more sad than shoe enterprises. Since 2010, the RMB has appreciated nearly 3%; most outdoor furniture enterprises told reporters that their profit margins are further squeezed. Although Chinese shoe enterprises have increasingly paid attention to brand development, but they are still in the low end of industrial chain because of their low price and large quantity, and the homogenization is serious, price competition guides export market. In 2009, the average price of China's exported footwear is only 3.3 U.S. dollars per pair, which decreased 4.8% when compared with 2008.

But in Wang Wei's sight, the pressure of RMB appreciation is far less than the pressure of labor costs and raw material costs. RMB has just appreciated by 3%, but the labor costs has increased at an average of 20% -40% every year since the implementation of the new labor law, said Wang Wei. In addition, the soaring prices of raw materials also are disadvantages for shoe enterprises. Since October, the prices of adipic acid (mainly for shoe soles fluid and PU liquid slurry) are rising continually, which has increased to 19,200 yuan / ton from 17,500 yuan / ton in the beginning of October, with an increase of 9.7%. In this case, part of shoe enterprises has turned their attention to domestic market. But the difficulties for them to transform into domestic sales from export sales are considerable, it not only requires large investment and the period of investment return is long, besides they also should face competition from domestic and foreign brands. So now a lot of shoe enterprises are sustaining their own brands by OEM. To build an own brand needs a long-term process, therefore, Chinese shoe enterprises should achieve breakthrough by design and innovation when facing the mature domestic and foreign shoes brands.

Above provided by SelectChina.com, and find more information on China Shoes Manufacturers / China Shoes Products.
The Quality of China Outdoor Sports Wear Is Uneven, The Market Needs To Be Standardized

According to China Outdoor Products Market Investigation Report of 2009 recently released, from 2006 to 2009, the sales of China outdoor industry has maintained the growth at more than 30%. In 2006 the sales of China outdoor products is only 15 billion Yuan, but it reaches nearly 50 billion Yuan in 2009, it is expected to exceed 70 billion Yuan in 2010 and break through 100 billion Yuan in 2011. From this we can see that the minority people's outdoor sports wear has already been favored by the masses. Since the state doesn't have uniform standards for outdoor sports wear, so the clothing quality is uneven, and some even are not marked with safety standards.

As for the reasons of the Jackets' hot sell, experts think that, actually the Jackets are not only outdoor enthusiasts' favorites, many common consumers also use them as the first choice for warm clothing. Compared with expensive down filled garment, the sandwich Jackets positioning between 150-300 Yuan may be a better choice. But in many outdoor garment steam brand counters of large shopping malls, the price of a single layer Jacket is between600-1000 Yuan, some sandwich Jackets are more than 2000 Yuan, which are undoubtedly expensive for ordinary people. Not just in the real store, when the reporter entered "Jackets" in Taobao, the relevant search results are more than 280 million. The reporter browsed it roughly, in which there is procurement service of counter products, its price is basically more than one thousand Yuan and is relatively high; it also has trade goods, the price is between 150-300 Yuan, which is relatively cheap. The price gap is so big, and it is really difficult for people who don't know the performance of Jackets to distinguish their quality.

Take the Jackets of counter brands as example, the manufacturers name, implementation standards and other information on the brand are all-sided. However, the product quality of some network market is not satisfactory, for example, the price of a certain brand Jacket that sold by a Beijing Internet seller is 150 Yuan, but it is surprised that there isn't label on it. People can’t know the production information about the product. On the label of another 200-Yuan Jacket, it only has a brief introduction about fabric, but it does not mark the manufacturer information and the safety categories. Mr. Liu, who has bought a certain brand Jacket told the author that, he spent 120 Yuan to buy a Jacket just because it was cheap, as a result, it can protect against wind when wearing it in the rain days, but he obviously felt that its breathability is not good and it can not quickly scatter the beauty products. He considered that the wind resistance of fabric did not reach the unification with the breathability, what he has bought just is a women garments with not well functionality. The instruction of fabric is in the garment, but what specific standards does the instruction refer to and what they are are the problems that outdoor wedding dress enthusiasts concern, however, he can't find anything from this Jacket.

From the test of comparing the mountaineering buauty tools (Jackets) of 10 brands that recently sampled by China Consumer Association, it is found that the quality of mainstream brands are more reliable, but individual products are still not satisfactory, the problem that the products mark lacking information is the findings from this test. In the interview, the women garments reporter learned that outdoor sports wear are getting more and more attention in consumers, but currently there are still no national standards of outdoor bridal dress, and the outdoor sports wear market is not standardized. Many outdoor clothing refer to the standard of ordinary apparel products, the professional standards which consumers are most concerned about are missing. Industry insiders suggested that relevant standards should be carried out as soon as possible in order to make outdoor sports wear market develop healthily and orderly.

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