The grand Haining China Leather City. In 2002, the output value of Haining's leather industry amounted to Rmb12 billion, with production at 25 million items of leather garments, a third of the national total.
As leather production bases go, Haining China Leather City has a popular moniker that seems to have struck the right sense of proportion: "leather capital of China". Its leather industry took off in the 1980s, with township enterprises such as Xuebao, Fubang and Kasen forming its pillars.
Construction on the actual Leather City began in 1993, an investment of Rmb50 million. Its central trading area was completed and opened for business in 1994. Following an additional injection of Rmb300 million in 1995 and 1996 to increase the total floor area to 160,000 sqm, the leather city metamorphosed into a giant distribution centre for leather garments.
Linking production with marketing, the City helps to expand Haining's influence, bring about product upgrades and better branding.
Over 2,000 companies operate at Haining China Leather City. Their business network covers the entire country and extends to Europe and America, with annual turnover jumping to Rmb4 billion.
Interior elegance.
Foreign traders regularly do business.
The City leads the country's leather trade, handles a quarter of the world's leather and fur trade, and is China's largest exporter of fur garments and related products.
Members of the Shanghai Aliens Association visit the leather city.
The establishment of Haining China Leather Capital Science and Technology Park in 1999 marked the entry of Haining's leather industry into a new phase of development. This technology development to the northwest of Haining, has a planned area of 4.72 sq km and is divided into a processing zone, a high-tech start-up zone, a business centre and an amenities area. Some Rmb280 million has been injected into the project since development work began.
Up till now, about 45.9 hectares of land have been developed and 26 enterprises have moved into the park. These enterprises with some 5,000 employees have the capacity to produce one million leather garments and eight million leather product units annually.
Leading names in the trade, including Mengnu, Sanxing, Shidanda, Changhong and BLS, have set up production lines in the park.
Evolution of the market
Ground floor sells leather goods and luggage.
Years of effort by Haining China Leather City to implement its branding strategy, image building and upgrading the market have apparently paid off. The City has evolved from a market simply for leather garments into a comprehensive market also for other leather goods, luggage and fur products, incorporating marketing, exhibition and business negotiations.
The premium goods section on the first floor is a display centre for brand-name leather clothing. China's top 10 genuine leather garment manufacturers there are recognised by the China Leather Industry Association.
Leading names from France, Italy, South Korea and Hong Kong are competing side by side with leading local brands. Illustrious names such as Montagut, Wecker, L'Alpina and Tucano can be found in the newly-established premium leather goods and luggage section.
Haining China Leather City is a five-storey complex, with leather goods and luggage on the ground floor, leather garments and goods on the first floor, fur coats on the second floor, and fur and fur accessories on the third floor. The fourth floor is the business centre.
A shop sells raw leather materials.
The leather city has a 100% occupancy rate and shop space is in short supply. Leasing procedures are simple and rentals are fixed according to market demand. The largest shops have an area of over 100 sqm, with annual rentals exceeding Rmb200,000. The smallest shops are only about 10 sqm in size and annual rentals vary between Rmb30,000 and Rmb80,000, depending on location.
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Leather Capital of China
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