Shoe Makers Are On The Market: Who Will Be The Next BELLE?

As the largest private shoe company in China, AOKANG produced about 17000000 pairs of shoes last year, and the sales of individual brands have won the national championship.

"The growth rate of AOKANG shoe industry is 20%~30% every year, but the pressure is increasing. In the past, when people thought about private capital adequacy, and thought about making products, they wanted to go public. In 2001, the company had already completed the share reform, but it was very early and late."

After more than 10 years of thinking, listing has become one of Wang Zhentao's most urgent ideas.

In his view, the era of shoe integration has arrived. Only by making use of the capital operation of listed companies can enterprises grow and strengthen in order to survive in the market.

And behind AOKANG, several big Wenzhou shoe companies such as Kangnai and red dragonfly are already on the market.

Who will be next?

As the first brand of mainland women's shoes, BELLE's listing can stir up the pattern of the mainland women's shoes market.

In May 14, 2007, BELLE International's offer ended with a price of HK $6.20, frozen over HK $433 billion 700 million, breaking the record of HK $415 billion 600 million, which was launched by the ICBC.

This round of IPO, BELLE international raised HK $8 billion 660 million, the market value of HK $50 billion on the day of listing, Gome, which is worth more than HK $38 billion 600 million, is strongly praised by Hongkong media as "the king of the mainland's retail market value".

"May 23rd is a watershed. It has changed the history of China's footwear industry."

Wang Zhentao, President of AOKANG, said to everyone.

This day, BELLE International's listing on HKEx has stimulated almost all the domestic shoe enterprises' nerves.

China's clothing shoes and hats were formerly synonymous with high quality and low price.

In the past three years, BELLE international has been doing well in the capital market.

In the first half of 2010, BELLE group achieved sales revenue of about 11 billion 150 million yuan, an increase of 19.8% over the same period last year, and the growth rate of net profit exceeded the growth rate of sales revenue.

In the first half of this year, BELLE has more than 1 stores, an increase of more than 700 over the end of last year.

Overall, BELLE's performance in the first half of the year exceeded the management's expectations.

Data show that BELLE group owns BELLE, Teenmix, real beauty, Staccato and other 15 footwear brands, but also Nike, Adidas in China's largest sports distributor.

The listing of BELLE means the pformation of footwear industry from industrial economy to capital economy, which greatly stimulated the expansion desire of other domestic shoe brands. The first-line brands such as AOKANG, red dragonfly, Kangnai and so on in domestic shoe enterprises all have the conditions for listing, because they are strong in terms of brand awareness, product research and development, production capacity, quality, channel control, sales network, terminal image, capital, talent pool and profitability.

"Red Dragonfly now has 17 million pairs of annual sales, the number of single brand sales is the first in the industry, and the number of stores is more than four thousand, which is more than before BELLE's listing. It's not very difficult to want to go public."

But under pressure, turning around the capital market always puzzled Qian Jinbo, and in his conversations with reporters, his worries about capital were always beyond words.

"Capital makes money too fast, and brand cultivation is too bitter.

After listing, will I be "corroded by capital", attracted by various investment opportunities, and farther away from my brand dream? {page_break}

Calm in the tide of listing

"Listing and financing" is to promote better development, stronger and bigger enterprises.

But not all enterprises need to go public. If they do not follow the actual situation blindly and follow the trend, they will die faster for listing.

Chen Mingyue, chairman of Kang Tai shoe industry, said in a conversation with reporters.

He believes that listing can certainly bring a lot of money to enterprises and accelerate the pace of enterprise development.

However, the double-edged sword of "listing" may also bring adverse effects to shoe enterprises, especially for those enterprises whose conditions are not mature and their strength is relatively weak.

Listing is only temporary "self redemption", and the road after listing will be even more difficult.

The era of shoe integration has arrived. How to make a bigger and stronger self with the help of the listing society's capital operation and how to jump off the traditional path to seek better survival is the inevitable direction for the shoe enterprises to innovate.

At present, the upsurge of the market boiling shows that the subdivided Chinese footwear market will face a round of shuffling, the relatively low industrial economy in the homogeneity is turning to the capital economy full of heat. At the same time, the trend of wealth concentration in the domestic shoe market is becoming more and more obvious.