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    Shoe Industry Electricity Supplier Is Difficult To See Last Year'S Scenery, Shoe B2C'S Plight.

    2012/5/9 10:24:00 13

    Shoe BusinessB2CHas Low Profits.

      

    Shoe business

    This year it is difficult to see the scenery of last year.

    Reporters recently learned that since the beginning of this year, the footwear vertical field B2C has been in danger in terms of supply, inventory, gross profit and so on. Apart from almost all of the extensive advertising dropped, even the profit plan has been postponed. According to people familiar with the matter, the average gross profit margin of the industry is less than 10%. It is possible to raise the index to 25%-30% if we want to achieve profitability.


      

    profit

    The plan is forced to postpone.


    "From the current situation, Le Tao is likely to achieve this year's profit plan, but we do not insist on this. The focus of this year's industry is to control cash flow," Chen Hu, vice president of Le Tao, obviously valued the survival of enterprises.


    As for profit, the attitude of excellent shopping is equally unhurried. Its CMO Xu Lei told reporters: "we will follow the established strategic planning and development. We expect to make profits after 2-3 years online. We will not rush to success. At this stage, we should maintain healthy scale expansion and balance of profits and losses.

    Meanwhile, according to Li Shubin, CEO, "our goal this year is not to blindly pursue profits, nor to radically expand".


    In fact, all the footwear business operators are conservative in their profit plans. When asked about the obstacles to the profit plan, they said that the low profit margins forced the industry's profit plan to be postponed.

    For the current situation of footwear B2C, insiders expressed their worries. This year, footwear B2C is still fighting price, and the situation is more passive than last year.


    Huge inventory pressure orders empty high


    Last year

    Footwear B2C

    By price war, different families have had more passive and helpless ingredients this year.

    Reporters learned that, as the industry chain upstream inventory is serious, brands have to borrow online channels cheap goods, PEAK CEO Xu Zhihua publicly said, "this year is clear inventory year".

    At the same time, people familiar with the matter also revealed that, in order to quickly clear the warehouse, the brand sometimes even had a price per day, which forced the footwear B2C to lower the price for shipment.


    As a matter of fact, brand dealers have shown anxiety about inventory in the latter half of last year. "At that time, many brands rushed to deliver to us, and the warehouse was full. I was worried that so many goods could not be sold, but the brand told me that he could not sell it again, because he was selling goods without paying the money," said B2C, the head of a footwear company.


    Although footwear B2C can solve the pressure of part of the inventory fund through the mode of real warehouse sales, but because many websites have slashed marketing investment this year, the pressure on obtaining traffic volume is larger, and the order volume has shrunk considerably compared with last year.

    Chen Hu told reporters that last year's monthly orders for each website were 1-2 odd, but this year's peak sales of 5000 units would be great. There was a high volume of orders in the industry.

    However, according to the excellent purchase network, its daily average orders have exceeded 6000, and the peak order has reached 10 thousand.


    Industry gross profit margin is only 10%.


    In addition to the pressure and flow scarcity in the upstream industry chain, gross domestic product is still a headache for all.

    According to industry sources, in general, the gross profit margin of online sports brands is around 20%, and almost half of these 20% are purchase costs, so that only 10% of them are counted, and 10% of them cost logistics, warehousing, labor costs and so on. Footwear B2C simply can't earn much money.


    How much is the gross profit margin to stop the loss? Analysts believe that 25%-30% must be achieved.

    For this figure, the colleague also acquiesced.

    It is understood that in April this year, it announced that CEO, a net that had achieved a balance of payments, was known as Tao Rong. Its sales volume exceeded 150 million yuan last year, and its gross profit margin remained above 25%.


    Faced with the plight of footwear B2C, Chen Hu said frankly, "at present, the whole industry has not touched the scale profit point of footwear B2C".

    However, at this time, with the strength of capital and goods, the footwear business will win more in this year's contest.

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