Core Insights - The discussion focuses on the current issues and opportunities facing the fashion wholesale market in China, particularly using Puyuan as a case study [4][5]. Group 1: Current Market Situation and Challenges - The wholesale market in China is experiencing a decline, primarily due to changes in channel dynamics and profit distribution models, which have led to a reduction in market share for traditional channels [6][8]. - Puyuan's woolen sweater market has a long history, dating back to 1976, and has evolved from simple trading to a large-scale wholesale market [6]. - Despite the overall decline in wholesale market data, Puyuan's market is still growing, particularly in high-end woolen sweaters, although it faces challenges in originality and brand value [8][18]. Group 2: Puyuan's Advantages - Puyuan is strategically located at the intersection of three major economic zones, providing significant geographical and transportation advantages [10][11]. - The cost of doing business in Puyuan is significantly lower compared to other markets, with rental costs for commercial space being ten times cheaper than in Shanghai [11]. - Puyuan boasts a complete industrial chain for woolen products, allowing for efficient sourcing of materials and quick problem resolution during production [13]. Group 3: Market Operations and Trends - Puyuan has over 5,000 registered businesses, with a notable increase in customer traffic and transaction volume, ranking first nationally [17]. - The market's profitability is low, with net profit margins around 5-6%, and the trend is shifting towards faster inventory turnover and reduced stock levels [20][21]. - The introduction of live-streaming sales has alleviated inventory pressure for manufacturers, leading to a more dynamic market environment [20]. Group 4: Design Capabilities and Future Development - Puyuan's original design capabilities are relatively weak, primarily due to a lack of specialized talent and communication barriers with foreign designers [24][25]. - The local government is actively working to attract talent and promote original products, but there are challenges in integrating with new media and e-commerce platforms [25]. - The future development of Puyuan's fashion industry is promising, as it is still in a "blue ocean" phase, with significant potential for growth and innovation [25].