Wenzhou Shoe Brand Faces New "Crisis"

Between industry and capital, Wenzhou brand is either contradictory or uncertain, or rushing to battle and rushing for success.

This should not be a mature brand performance.

In the past more than 10 years, the steady development of industry has made Wenzhou brand experience a lot of ups and downs, but it has brought solid foundation and beautiful appearance to them. But today, after all, it is a time of capital domination. In the future, it will also be a world of capital management. This is a trend that no one can resist.

Faced with the explosive success of excellent capital operation to enterprises and brands, the traditional Wenzhou brands began to fidget, and they could not resist the alluring capital market.

In fact, in 2000, Wenzhou footwear brand began to prepare for listing.

But because of the backwardness of modern enterprises in management, finance, manpower and information, they have been delayed year after year.

Today, the news of BELLE's sudden listing and great success comes from Hongkong. The shoe brand of Wenzhou is like a hit.

The crisis has emerged.

The crisis faced by the footwear industry in Wenzhou in the last century 80s is a quality crisis that can be seen clearly. But today, the crisis faced by the shoe brands in Wenzhou is an invisible hand.

If we say, after a fire is burned, it will be "spring breeze blowing again", but if it is controlled by this hand, it will be "ashes to ashes".

Because this is called "capital" hand, he comes from the pure market economy.

Although this crisis has been predicted, it is still too fast.

Although we do not see it clearly, we are deeply wrapped up.

The industry is steady but slow in development. Especially in the era of capital operation, any brand or enterprise has to be aware of capital performance. Capital and risk are directly proportional to profits, but the most convenient and scientific channel for enterprises to grow and become strong.

I compare the industry to the capital market, but I have a weak profitability. Comparing capital to stock is risky, but the profitability is strong.

This time, the brand crisis of Wenzhou footwear industry is facing a serious crisis, especially after BELLE has just been successfully launched in Hongkong.

The ability of Anta brands, XTEP and Fujian brands to rush to Hongkong will be more breathless.

As a Wenzhou shoe brand boss worries, if they buy us with 100 billion dollars, do we sell or not?

If those brands in Fujian are listed, they will definitely occupy our stores in the two or three tier market.

Then, where will we go from here?

Yes, where will the brand of Wenzhou go today?

The crisis brought by the footwear companies of Wenzhou and the footwear industry of Wenzhou, which are directly or briefly introduced by BELLE, is not a crisis on the surface of brand, or liquidity, or integration of resources, or core competitiveness. It is a crisis of "survival and death" which has to be faced in the environment of capital market.

If we can not deal with and solve this crisis well, all the advantages of Wenzhou shoe brands such as cost, scale production, industry chain, supply chain, logistics, channel, quality and adaptability will no longer exist. The shoes and brands of Wenzhou shoes will be plundered in the market and brands that have been struggling for many years.

In the capital market, only annexation and annexation are restricted and restricted, without sympathy and no consultation.

In May 23rd, the Belle International Holdings Ltd (1880.HK) was listed on the Hongkong stock exchange in May 23rd, with more than 500 times oversubscribed for the public offering on the day of the listing and the frozen capital of HK $438 billion, which made BELLE international the throne of "the king of funds for freezing" in the Hongkong stock market.

At the same time, according to the opening price of HK $8.40, the total market value of BELLE international has reached HK $69 billion 720 million, and BELLE international has become the largest mainland retail listed company with the market value of Hong Kong exchange.

According to BELLE International's prospectus, after the listing, BELLE will use 27%-31%'s fund-raising funds for various expansion plans, including acquiring company or alliance with strategic partners.

It will also use 24%-25%'s raise funds to open new stores (Kuo Zhang), including increasing its share in the first tier market and expanding its share in the two or three tier market.

It plans to open 1000 new stores a year, renovate the shops every 3 years, and also build more retail sports mall (one-stop shopping plaza).

Expansion, acquisition, cooperation alliance, expanding the two or three line market share, renovating storefront and building city.

Wenzhou shoe brand, which occupies an absolute advantage and market share in the domestic market, will face the reshuffle brought about by BELLE's listing.

We anticipate that BELLE will first focus on many advantages such as channels, brands, talents and so on, and Wenzhou's footwear brand with strong competitive strength in the domestic shoe market will either acquire directly or turn around to cooperate.

Either way, the competition pattern of domestic footwear industry and the survival ecology of Wenzhou shoe brands will be changed.

And the attack on the two or three line market will make Wenzhou brand, which has almost occupied the market, lose more and more opportunities.

Red shoes, dragonflies, AOKANG and other powerful Wenzhou shoe brand executives have expressed pressure on the listing of BELLE on different occasions. On the one hand, they have revealed urgency and worry, and at the same time have accelerated the pace of listing their own businesses.

The meeting announced that the company had all the necessary conditions for listing, and it will be listed in three years. In May 18th, Wang Zhentao made a public announcement on the shoe development forum in Western China, Chongqing, that AOKANG will go to the market as soon as possible in two years. Meanwhile, Hongguo International Holding the "Daphne" wing (Hongkong exchange code: 0210) and Hongkong International (listed on the Singapore Stock Exchange) have all been listed, and Hongxing Erke has also acquired success in Singapore. China and Hong Kong shoes, trends and Anta are also heading to Hongkong, including Kangnai, XTEP, Xi long, PEAK, del Hui, Jordan, 361 degrees, and gold lake, all of which have begun to enter the listing process. In March 26th, red dragonfly worked at the beginning of the group.

"China apparel newspaper" described the capital market of China's footwear industry: the force of capital is already playing a role in accelerating the development of highly competitive and highly competitive footwear industry. Listing may be a good way to achieve breakthroughs in shoe industry with more than 10 years of brand history.

These brands are now reaching a critical stage of upgrading and breakout, which involves product development, channel control, information system construction, brand culture building, sound corporate system, management capabilities and resource integration capabilities.

The most powerful capital, the market competition, has changed the brand of Wenzhou's footwear industry.

This powerful predator is likely to be the "BELLE" that has raised about 10000000000 capital just listed. It may also be the Fujian sports brand that is likely to be listed in the near future, and it may also be other unknown competitors in the capital market.

In short, all capital markets can see and invisible hands, and there is a strong market for Wenzhou's footwear brand, which is likely to be robbed of everything.

The common feature of these predators is that they are listed companies, and they have far stronger capital strength than Wenzhou shoe companies. They are deeply interested in the market share, channels, brands and talents of Wenzhou shoe brands in the two or three tier market in China. They want to divide up the largest share of the market.

The wisdom of choice and decision is expected in the past three years.

We expect that if the Wenzhou shoe brand can not take effective measures before 2010 to enter the capital market quickly and steadily, and raise the funds needed for the expansion of enterprises, it is likely to lose itself, along with its channels, brands, talents and interests.

The crisis faced by the shoe brands in Wenzhou is by no means a single enterprise crisis. If we neglect it slightly, we will lose the best time to leap, and it is possible to affect the interests of the whole shoe industry in Wenzhou.

In fact, we have observed that the development of Wenzhou shoe brand in recent years is a slow and profound process.

Since 2002, the industry competition pattern of Wenzhou footwear industry has been very obvious. The first tier is mainly red dragonfly, AOKANG and Kangnai. The second tier is mainly led by Japanese Thai, spider king and Gil, and the third tier brands are very large, such as DESAY dilun, Aaron, Tong bang, top pie, race King, Jay Ho and so on.

At present, the first tier of shoe brands in Wenzhou are mostly in the main aspects of modern enterprise management, information technology, internationalization, affiliate brand operation and so on. The second tier is mainly engaged in the initial stage of terminal image, market development, product development and so on, and the third tier mainly focuses on the establishment of brand, or foundry, or foreign trade, or channel construction.

It is the biggest mistake for Wenzhou shoe brand to reflect slowly on the important strategy of entering the capital market.

This directly led to a huge change in the market structure of China's footwear industry.

Originally, the Chinese footwear industry (leather shoes) competition pattern is that the high-end shoes are mainly dominated by foreign brands and BELLE, the market share is stable and obvious, and the intensity of competition is relatively low. The middle class shoes are mainly dominated by red dragonflies, AOKANG, spider king, and so on. The market ranking is basically stable, but the competition in the two or three tier market is still very intense. The low grade shoes basically have no brand, but it is the largest consumer market, accounting for about 70% of the total consumption of footwear.

The whole market competition is relatively coordinated, there is no monopoly brand, and there is no control market.

But now, with the successful listing of BELLE, she will further encroach on the market share of the two or three line, and be able to acquire or combine some shoe enterprises with market, channel and brand advantages.

The competition pattern of China's footwear industry will change dramatically.

With the growth of BELLE, all kinds of industrial resources, media resources and government resources will be automatically closed to them. Some enterprises without competitive strength of industry or industry will only gradually serve as their OEM suppliers or supplement their products and markets.

Success in the two or three line market will also be defeated to the primary market.

This will lead to a comprehensive change in the competitive pattern of China's footwear industry, and the market share will also be significantly unbalanced.

A few years later, it is possible to disappear some of the Wenzhou brands that once rang out from the market.

The most direct crisis - the loss of terminals and talents - first reflects the loss of sales terminals.

Recently, when I was researching the market in Changsha, Hunan, I found that in the busiest pedestrian street - Huang Xing South Road Pedestrian Street, all the shops which were regarded as the best location, the biggest store, the best space and the doorway were all occupied by sports and casual wear brands.

Of the 43 shoe franchised stores on this street, there are only 9 shoe stores, and many well-known shoe brands in Wenzhou are familiar with only one red dragonfly, but they occupy 3 facades.

But in addition to the red dragonfly, Wenzhou also has many well-known shoe brands, such as AOKANG, Jill, Kangnai, Japan and Thailand.

Is it that other shoe brands in Wenzhou do not want to enter this commercial street?

Don't they want to rent a good store?

Is there no market here?

Obviously not.

In the face of so many good stores, Wenzhou shoe brand appears somewhat helpless.

I found that not only is Changsha, but also in Nanchang, Hangzhou, Wuhan, Taiyuan, Changchun and many other first tier cities, and even more and more two or three tier markets, Wenzhou shoe brands are losing more good stores.

Once a good storefront is lost, it is possible to lose a market. Once the market is lost, it loses its development opportunities. Even if there are more good stores, it may not be able to recover the losses that have already been made.

The competition of sales terminals is actually a battle to seize the market.

At present, the main sales terminals of the domestic brand "BELLE" are distributed in the domestic primary market, mainly in the economically developed cities, such as large shopping malls, shopping plaza, and exclusive stores. However, with her successful listing, BELLE will likely go to the two or three tier market in China, and at the same time, a large number of stores will be added to the busy sections.

Because all aspects of the conditions are ripe: first, with the rapid development of the national economy, the residents' income and consumption capacity have been greatly improved.

In the two or three tier market, the consumption target group of BELLE's main brand and subsidiary brand has been formed. As long as the terminal is in place, the market share is not the brand of Wenzhou. Secondly, after the listing of BELLE, a large amount of cash will bring strong support for expansion.

Even if the main brand of BELLE does not sink, she can take the newly created one for the two or three level.