Sports Shoes And Clothing Enter The Golden Age Of Cost Growth

The Olympic craze has just passed, but Gym shoes The cold winter of the industry can not see the margin.

Since the sports shoes industry began to enter the "double high" development mode with high cost and high growth in 2003, after 4 or 5 years of rapid development, this relatively short-sighted strategic mode began to show its fundamental defects. The high cost and high growth gradually evolved into "high cost, low growth and low efficiency". The impact of this evolution on the sports shoes industry is devastating. We should know that in the past few years, due to the expectation of the future high growth, most enterprises have overly optimistic overdraft in the next few years, and have developed large scale financing in various fields such as production, channels and promotion. This comprehensive and rapid development brings about the expansion of operating costs.

In the short span of three or four years, the operating cost of most sports shoe enterprises has expanded ten times or even tens of times. Of course, sales are also increasing at the same time. However, the growth of cost is increasing year by year, and the growth of the market scale has begun to enter the strange circle which has been shrinking year by year. In this way, the sports shoes industry began to say goodbye. Grow up The golden period has entered "cost growth". golden period "Collective clenched teeth bear the high cost of this mountain.

In the high growth stage of the market, the marginal revenue brought by the expansion of the scale can barely support the cost of this huge expansion, and can also cover up the operating pressure brought by the cost growth. After the shrinking market crisis, this contradiction began to sharpen.

High operating costs, such as Taishan, have made sports shoes enterprises breathless, and finding money in the whole world has become one of the focuses of their work. The initial pressure has been solved by the bank financing and private lending of enterprises. However, the archaic language of "blessing is not the only thing that does not come singly" is once again playing a magic role. In the second half of 2007, especially since 2008, with the tightening policy brought about by the national macro-control, the "Alibaba wealth gate", which has just been opened up by sports shoes enterprises, has been largely closed.

This is not the worst. With the stock market crash since the end of October 2007, the channels for private financing suddenly disappeared. Even after the monthly interest rate soared from 1% to 10% or even 15%, there was no way to borrow money. A large number of capital cost gaps of enterprises are not solved by labor and loan before they are supported by partners.

However, a series of events since July 2008, even the only "life-saving straw", have been mercilessly sinking to the bottom of the sea. The market left the sports shoe enterprises with the most helpless self-reliance and self-sufficiency. Obviously, this is the most difficult way to go.

Today, the plight of the sports shoes industry has already hidden trouble many years ago. The low level and homogeneous development of a single development mode is like a thousand armed forces who are brave in crossing a single log bridge, and are destined to be the success of a few.

Such a high cost, high growth mode of development, if there is no mature team, mature system in the initial stage of the rainy day, is doomed from the beginning is a kind of short-sighted strategy. What's more, the development mode of the whole industry can only drag the whole industry into the competitive Red Sea with the greatest risk, the most consumption of resources and the lowest efficiency. Under this circumstance, it is not surprising that the outcome of a hundred thousand bones will be withered.

In the industry can not find a solution, turn to other industries, open vision, positive reference may find the final way out. The development of the sports shoes industry is closely related to the garment industry.

In fact, the clothing industry also encountered similar problems in the sports shoes industry at the very beginning. The high cost and high growth monopoly mode made the garment industry go all the way. But soon the development of the garment industry has entered a vicious circle of high cost, low growth and low efficiency. Because of the low profitability of clothing, the sustainable growth of enterprises has encountered strong resistance without exception. At this time, a large number of clothing brands were plunged into a low operation, and their performance was declining. After encountering the crisis, we can learn from the bitter experience. After a long period of grinding, the garment industry has successfully found four development models beyond the brand monopoly, which has changed the future development path of the garment industry to a certain extent.

The huge volume of sales (2 years of super shirts, YOUNGOR), which was created by the three party joint venture, led by Hai Lan home, made a positive exploration and initial success in the integration of resources and the best return on investment in the apparel industry. ITAT, the rising star, made the most of the multi brand scale advantages of the clothing department store and was well appreciated by the international capital. While the ZARA and H&M from Europe were overturned by their traditional thinking of product development, the higher frequency of product promotion and more brand value added services (popular fashions) had won the popularity of many fashion pursuers. The direct selling mode led by PPG has brought a new impact to the clothing industry.

take the reverse into consideration Gym shoes The industry, apart from the huge brand monopoly mode, can not see any second mature development models. Therefore, we must solve the present problem thoroughly. Gym shoes Industry crisis, we should learn from the clothing industry, combined with industry and enterprise's own resource reserves, development stage, brand core value, find the most suitable Golden Road, and get out of the Red Sea at an early date.

Editor: vivi