The Development And Change Of Shoe Industry

Part one: has the business environment changed? The discussion on the listing of BELLE listed in the industry has brought us another view that the capital market is so close to us.

Brand has a more far-reaching significance for shoe enterprises. It is the only way for enterprises to become bigger and stronger through integrating the resources of the brand, reorganizing the industry, and attracting capital to go public.

After the listing of BELLE, Anta and the news birds, the capital soared. According to the financial reports, the YOUNGOR group Limited by Share Ltd and Binbin group made up 2007 of the clothing market in the first half of the year, earning 20 billion in the capital market. Wenzhou local enterprises AOKANG, red dragonfly, CHINT and Metersbonwe are preparing to go public.

From commodity to brand to capital operation, the three step of enterprise development has become increasingly clear. The development thinking based on production, brand and capital operation is leading the enterprise to the right way.

In recent years, the pfer of capital, property, stock and fund market has gone all the way. In the reality that the operating cost of the retail market of the footwear industry is increasing day by day, the profit is getting smaller and the rate of return on investment is decreasing day by day, the terminal merchants, regional distributors and manufacturers gradually pfer funds and energy, which directly leads to the decline or steady progress of sales. Because of the rising prices and higher living expenses, the investment of consumers' personal funds to the real estate, stock and fund markets further leads to a decline in the purchasing power of retail sales.

According to statistics from relevant state departments, compared with the same period last year, the national economy grew by 11%, but the consumption index dropped by 9%.

With the increasingly fierce competition in the market, the increase of middle class, the maturity and homogenization of consumers, the more and more serious homogenization of core competitiveness, the more important the product's style, technology, style and operation details are.

Therefore, the competition in the footwear retail market from the initial product competition to the commodity competition to the brand competition and the return to the essential details competition, that is to say, under the condition that the serious core competitiveness of the homogenization is not obvious, the enterprise can only provide better products, lower prices, more practical services to serve the market, and win the market by essence in the links of production, marketing and operation through detailed management.

The two level differentiation is becoming more and more prominent along with the listing of first-line brands. The polarization phenomenon of footwear enterprises is becoming increasingly prominent, the stronger are stronger, the weaker is gradually marginalized, and the shoe market pattern has been formed.

One, strong type - Olive shaped, two pointed, large in the middle.

The shoe enterprises represented by the first tier strong brands, because of their large scale and abundant capital, are well known for their brand awareness and reputation. The number of single brand orders is large, the management is perfect, the foundation is solid, the profitability is stable, and there is a large number of industry resources, and the prospects for development are promising.

On the one hand, they make use of the advantages of brands to require upstream suppliers and OEM OEM manufacturers to provide cheap and beautiful products and raw materials, and strictly stipulate the delivery time.

Due to the large quantity of single products and strong brands, the cost of upstream suppliers has been reduced accordingly, and the delivery time of receivables has been lengthened, which has earned more profits for brand shoe enterprises: on the other hand, they have promptly withered the market policy of agents and downstream terminals.

In the calculation of advertising fees, the increase in the price of goods, the profit margins in the retail industry, the management of the receivables is becoming more stringent and up-regulated, which has reduced the cost and profits in the interior.

Through the means of listing and financing, the footwear enterprises have carried forward this advantage, avoiding the pressure of capital and interest expense caused by the tightening of money, and better integrating the social capital resources.

Two, awkward type dumbbell shaped, two large, small in the middle.

Shoes enterprises represented by two, three, and four line brands are limited by their own scale, capital, resources, brand reputation, reputation, quantity of single products, market volume and market management capability.

On the one hand, upstream suppliers and OEM OEM manufacturers will be required to pay higher costs, pay in time and pay cash in cash because of inadequate volume.

This will directly lead to increased cash flow and interest expense, which will eventually lead to higher costs and lower profits. On the other hand, the general agency and the terminal business association will continue to demand the container donation, decoration subsidies, year-end rebates, broad fees, lower wholesale prices, and arrears and other conditions, so as to further reduce the profit margins of enterprises.

The enterprise was caught in a dilemma and eventually formed two large dumbbells with small middle size.

According to the strength of the shoe market environment, great changes have taken place in the market environment. The market is becoming more mature, consumers are becoming more rational, the operating cost of enterprises is getting higher and higher, and the rate of return on investment is getting lower and lower.

Therefore, the chain brand operation mode that line brand has implemented in the past few years is becoming more and more difficult to operate.

With the increasing demand for funds, the level of professionalization of the team is getting higher and higher, and the requirement of resource integration is more and more comprehensive. Compared with the previous years, the time and cost advantages are completely absent.

Therefore, if two or three or four line shoe enterprises want to implement branding operations, we must carefully consider the current situation and financial capability of the enterprises, and then do their best.

Part II: where will the shoe industry go in pition?

First, look at this year's market environment, shoe sales are weak, and the following three aspects of the situation are obvious. 1, because of the influence of the investment market, the tightening of the national macro-control, the increase of interest rates, the increase of operating costs, and the weakness of the market, the funds are tight, and the terminal operators of the footwear industry are below the provincial level agents. The receivables of the provincial agents are less and less, and the proportion of the bad debt accounts is getting higher and higher. The risk of instability is getting bigger and bigger, and the profits of the enterprises are becoming more and more obvious. The bad receivables become a triangle debt, which has a great impact on the pfer of the enterprises, and even the serious ones even affect the survival of the enterprises. Are these receivables all backlog in the stock of commodities?

Are they in debt?

No, most of them go to the investment market.

The retail terminal business, the provincial general agent, on the other side, owes the company's money, and the other side says that the business is not good, turns the money to deal with the investment market, such as real estate, stock, fund, and ultimately all the accounts payable is borne by the enterprise, which eventually leads to the problems of the enterprise capital chain, and brings serious crisis and influence to the survival and development of the enterprise.

2, in the era of meager profits, due to the continuous rising of operating costs, the increasingly fierce competition, the increasing amount of receivables, the rising proportion of bad debts, the tightening of monetary policy, the increase of bank lending rates, the slow down of capital turnover, the sluggish sales and the low added value of products, the profits of shoe enterprises are becoming more and more small.

According to the reliable data, most of the shoe enterprises are in the 6%-7% rate of total sales, and the net profit has been much lower than before. The shoe market has really entered a meager profit era.

3, the status quo of the road, 80%, in the low-end competition, almost 80% of the shoe enterprises are mainly supermarkets, shoe city, hypermarket and miscellaneous shop. Through the original wholesale, they sell the goods to the terminal. So many shoe companies in the country, each province has thousands of shoes stalls, almost all sold through this mode.

Because the advantages of this mode are low management requirements, simple and convenient access to channels, the disadvantage is that large receivables, slow recovery, poor stability, weak control and the need to spend a lot of time and money to maintain the feelings of terminal providers in order to maintain sales, and these network management primitive, poor image, single service, basically low-end consumers, and low-end consumers are mainly affordable, so the price is the deciding factor, and then the style, and the brand role is not so obvious.

Therefore, the low-end market consumer men's shoes can accept the price of about 200 yuan, women's shoes are mainly leather shoes.

Two, 15%, in the middle end competition, with the economic growth and the increase of income, some consumers have entered the middle class.

Because of the improvement of quality of life, there is higher demand for consumption.

Therefore, consumers will basically choose to buy mainly from the exclusive stores, because the shopping atmosphere, product mix, convenience, brand value added and after-sales service can bring value for money, but the brand monopoly requires high operation capital, high management requirements, and the ability to integrate the resources of the industry because of the high cost of operation. With the growing maturity and stability of the market environment and more intense competition, most brands can only be disappointed and frustrated, but the advantages of the brand monopoly are strong control, timely collection of receivables, high network quality and strong stability, but cutting into the operation of the brand monopoly requires strong funds, professional teams and abundant resources.

Three, 5% in the high-end competition 5% in the high-end competition, and this part of the market's terminal network is mostly shopping malls, especially in the Guangdong women's shoes brand as the representative, these brands are clear positioning, terminal quality, management professional, fashionable fashion, high profits, deep brand added value and competitiveness, consumer groups are mainly high-end, such as white-collar workers, civil servants, small boss, elite class.

In the entire retail industry, sluggish sales and sluggish sales have directly led to difficulties in production enterprises, such as the loss of workers caused by the lack of production, difficulties in capital turnover, tightening of state regulation and control, high interest rates on loans, continuous rising of operating costs, the introduction of new labor laws, labor shortage, and increasingly small profits. On the other hand, the form of investment market is very good.

The production enterprises are facing the crisis of survival and development. And now, the pure manufacturing companies in the market will have a hard red sea. If we want to win in this competitive environment, we must innovate, then magnify our own advantages and make them stronger, stronger and bigger. Moreover, during the period of accelerated economic pformation, there is no less chance than before. The key lies in whether you can find opportunities combined with their own characteristics and be determined to achieve them.

In this pition period, I think the footwear industry should take into account the following three points as reference during the pition period: 1, the network channels of the retail market of the shoe market, the market segment and the high-end market, because of the 80% competition in the low-end market, which leads to congestion, poor quality, excessive supply, low brand value, low core competitiveness, large receivables, and low profit margins, and struggling in the Red Sea. And 15% of the brand monopoly market is too high to be cut because of the high demand for capital, resources and management, and the continuous high operating costs. The 5% share of the high-end market is mainly shopping malls, which has almost covered the national shopping mall channels. Have a clear judgement

Therefore, shoe enterprises should cut into the footwear retail market. The following three ways are worth considering.

1) the Guangzhou women's shoes, which are located in the high-end market, are located in high-end, fashionable and popular brands and operate and manage with branding. The domestic market of high-end street stores still has great market potential to be excavated. At present, no strong and monopolistic brands have been formed. Moreover, the high end stores operate with branding, and the terminal quality is high, the added value and the gold content of brands will gradually improve, which is more suitable for the future listing of enterprises.

2) market segmentation