Traders still to buy into market relocation plan

News that the Beijing Zoo Market, the largest clothing wholesale distribution center in North China, will be relocated has sparked concern among traders about their businesses, with many saying they will quit.

The capital's Xicheng district government confirmed the move on Tuesday.

"The wholesale markets and wholesale business will be removed from the downtown area," Sun Shuo, deputy director of the district, said at a news conference.

With a business area of more than 300,000 square meters and 13,000 stalls, the market is made up of six small wholesale markets — Dongding, Zhonghe, Tianhaocheng, Shijitianle, Tianle and Jinkailide — all managed by different companies.

The market, which lies within the Second Ring Road and dates back to the 1980s, receives about 100,000 shoppers a day and generates an annual trading volume of more than 20 billion yuan ($3.2 billion). More than 30,000 people work there.

However, over the years the market has been criticized for being overcrowded, as well as for posing various safety hazards and causing regular heavy traffic congestion, affecting surrounding residents, Sun said.

He said the relocation of the market is in accordance with the city government's requirement to "break the contradiction of population, resources and environment, and resolutely control the excessive growth of population".

The wholesale and retail business in the market will be replaced by garment retail, exhibitions and modern e-commerce, according to a statement by Xicheng district government provided to China Daily.

Costume designing, technology and finance industries will also be brought in to the area and small booths in the market will be removed and rebuilt to bigger ones to ensure safety, the statement said.

Much of the work relative to the market relocation has just begun and no timeline has been set, according to the statement.

The news has raised concerns among many market wholesalers.

A female wholesaler, who specializes in scarves, who only identified herself as Jiang said she was shocked on hearing the news.

"I thought it was a rumor," the 43-year-old said.

"I don't want to move. My home is just nearby. I have to leave my family and rent a house to live if I move to the new market," Jiang said, adding that many wholesalers have bought homes nearby.

Jiang said the market draws huge crowds because of the convenient transportation.

"I make an order on the Internet for produce from Guangdong province this evening and the produce will be in front of my shop at 6 am tomorrow," Jiang said, adding that transportation and logistics in the new market will not be so convenient.

Although she has been in the garment business for two decades, Jiang said she will quit if the market moves.

Wang Yuehua, 32, disagrees with the planned relocation and said she will rest for a while after the relocation and see if she continues her business.

She said the relocation will make her lose some of her old customers and the inconvenient transportation in the new market will also play a factor.

"Retailing also covers a large volume in my business, almost 50 percent, thanks to convenient transportation," Wang said. "There are many wholesale markets in China now. Many garment dealers will go to wholesale markets in other cities."

The management of Dongding, Zhonghe and Tianhaocheng said they had received no official notice that the market will be relocated, while an administrator at Zhonghe who only gave his surname, Wu, said his market will cooperate with the government and he believes the government will take the wholesalers' interest into consideration and draft a proper plan for the relocation.

Workers at Shijitianle, Tianle and Jinkailide were unavailable to comment as of Monday.

A man, surnamed Wang, from Anhui province added: "It needs time to make a wholesale market prosperous. I started my business in 2004 when the market just opened, and I started to make money only after two to three years."

"It will be the same situation for the new market. Nobody wants to move there waiting for three years to make money."

Wan Sheng, a wholesaler from Guangdong province, agreed and said: “A good market needs a great number of supporting facilities around, like the logistic companies, convenient transportation and so on.

"If the government would like to equip the new market with proper supporting facilities and make effort to promote the new market, I will consider to move to the new market."

Zheng Xin contributed to this story.