Footwear Headquarters Marketing Center Will Move To Guangzhou On Saturday.

The footwear industry of Foshan listed companies announced on Saturday that the provisional shareholders' meeting of the company adopted the "proposal to set up a marketing center in Guangzhou". According to the content of the motion, the footwear industry will spend 69 million 193 thousand and 700 yuan on Saturday to move the headquarters marketing center to Guangzhou, most of which will be used to purchase the office property of the marketing center, and the total cost will be allocated from the company's excess fund.

Since the official listing last September, less than a year later, "Saturday" moved the headquarters marketing center to Guangzhou. What does this move mean for Saturday? Will the South China Sea cause the loss of excellent corporate resources?

Slow expansion of shops leads to expected benefits

It is understood that this Saturday shoe industry new headquarters marketing center is located in the Pearl River New Town, Guangzhou. The independent director of the company evaluated the decision, saying that this is in line with the needs of the long term development strategy of Saturday and will help the company absorb talents, acquire fashionable information and enhance its brand image.

Such a decision is inseparable from the development situation after the listing on Saturday. In fact, after the completion of the listing in 2009, "Saturday" announced in the announcement that it would raise funds for the expansion of women's shoes sales chain stores, the expansion of women's shoes production lines, the logistics distribution system and the construction of four projects for R & D center technical transformation. One of the most important investments is the expansion of chain stores, and plans to set up 900 women's shoes self marketing stores in the department stores of major cities throughout the country in two years.

However, the development of "Saturday" in 2009 was lower than expected. The company's 2009 annual general meeting resolution announcement (hereinafter referred to as the "bulletin") shows that in 2009, the annual operating income reached 879 million 890 thousand yuan, an increase of 14.43% over 2008, and the growth rate was lower than the company's expectations.

The main reason for the announcement is that the consumer market performance in 2009 was lower than originally expected, based on the consumer market in 2009, which has slowed down the pace of shop expansion, the proclamation said. Affected by this, the average gross profit margin of the main products on Saturday increased by 4.17 percentage points over the previous year. However, due to the slow development of shops and the two factors of increasing store stockings in the four quarter, the stock of Saturday increased by 50.52% in large numbers, and the operating cash flow was -6725.86 million yuan in 2009. {page_break}

Conducive to better development of enterprises themselves

Obviously, the slow down of consumer goods market in 2009 and the slow development of chain stores are an important reason for Saturday's lower than expected profit. According to the report, "Saturday" will take measures to deal with the crisis, including adjusting the opening shop plan, controlling the pace of opening the shop, and paying attention to the quality of the shop. Meanwhile, it adjusts timely the self operated stores with some unsatisfactory performance and optimizes the store structure.

When shop expansion and channel construction become the focus of work, it is reasonable to move the headquarters marketing center to Guangzhou on Saturday. Statistics show that footwear production in Guangdong now accounts for 1/2 of the country's total and around 1/3 of the world's total. The output of Guangdong shoes has surpassed the total of five Asian countries, including India, Indonesia, Vietnam, Thailand and Pakistan, among the ten largest shoe making countries in the world.

At present, Guangdong has the largest and perfect footwear industry chain in the world, forming a cluster of leather products, shoe materials and other special industries with Guangzhou as its center. Guangzhou has become the manufacturing center of leather and footwear industry in the whole country and even the world. It is also the most important trade center, design and development center, information center and brand center.

It can be said that the relocation of the marketing center of "Saturday" headquarters is understandable. However, will the relocation of the South China Sea and Foshan even be a drain on the resources of an excellent enterprise?

In this regard, Foshan trade and Investment Advisory Management Co., Ltd. of the relevant industry believes that the relocation of headquarters marketing center is purely corporate behavior, as long as headquarters remain in Foshan, and will not affect the local excellent enterprise resources.

"I think this is an improvement. If an enterprise has the ability to successfully transfer headquarters marketing center to New York, it will be better." According to the analysis, the development of enterprises needs a global perspective and development can not be too narrow. Foshan is the center of the manufacturing industry. We now want more companies to keep their headquarters in Foshan, and most of the revenue is still in Foshan. For the relocation of marketing center to Guangzhou, it is in line with the development path of the enterprise itself, and is more conducive to the development of enterprises.

Sales network will further expand

As the third place of women's shoes manufacturers in China, the contrast between "Saturday" and BELLE and Daphne is inevitable. Statistics show that in June 30, 2009, the "Saturday" marketing network covered 29 provinces, autonomous regions and municipalities directly under the central government, and managed 1311 chain stores through the headquarters marketing center and 12 regional marketing centers. By the end of 2009, the "Saturday" chain had only grown to 1409. Such a growth rate is obviously too slow.

The 2009 Annual Bulletin of BELLE showed that as of December 31, 2009, the total number of self operated retail outlets was 9798, with 681 new year-round. The sales revenue of BELLE group footwear business in 2009 was 117 million 332 thousand yuan, an increase of 21.4% over the same period last year. According to the analysis, the main driving force is the endogenous growth, that is, the expansion of shop network and the promotion of same store sales.

In contrast, the low expected earnings on Saturday are also related to store expansion. It can be said that in 2010, the expansion of shops has become an important part of "Saturday". In order to increase the market reaction speed, "Saturday" has decided to build a 3 tier management structure of headquarters marketing center, 12 regional marketing centers and chain stores, and realize the data management and data sharing of product information through the three subsystems of ordering system, marketing management system and terminal sales system.

In fact, "Saturday" has been insisting on building its own channels since its inception. Yu Hongtao, vice chairman of the Saturday, said in an interview with reporters: "the company's proprietary store covers almost all the central cities in China, so that we may have the first time to understand the market information so as to promote our new brand. At present, Saturday's main task is to speed up the expansion of women's shoes chain stores.

Rooted in the department store, the "store in store" mode is the main selling form of "Saturday". Although the "store in store" mode is facing the problems of the department store's discount points, the delay in accounts, and the pressure of funds, Yu Hongtao thinks that the "store in store" mode can help the sales of shoes with the help of the shopping mall's passenger flow and popularity, which is even more popular than the roadside store.

In recent years, BELLE has been sitting firmly in the chair of the Chinese women's shoes market, which is closely related to its huge sales network. Daphne, the second largest female shoe operator in China, is also expanding its sales network, temporarily lagging behind BELLE and Daphne in its sales network and sales volume. After successful listing and financing, Daphne must also catch up quickly. The relocation of headquarters marketing center is an important step in its strategic measures.