Zhejiang AOKANG Shoe Limited By Share Ltd: E-Commerce Is In The Firing Line.

AOKANG shoe Limited by Share Ltd said that through the pformation of information system and the purchase of automation equipment, we can speed up the logistics pfer link, shorten the product pport cycle and speed up the turnover of products and funds.

And the e-commerce operation center is located in the company's location, and it can enjoy the relevant policies of the local government to support e-commerce.

It is the first listed male shoe enterprise in China.

Limited by Share Ltd (603001) has landed in the industry since April 26th this year.

In June 7th not long ago, the AOKANG shoe Limited by Share Ltd of Zhejiang, which had already completed the fund-raising task, announced that the company intends to use the over raised fund of 90 million yuan to increase its capital to AOKANG AOKANG Footwear Sales Co., Ltd. (hereinafter referred to as "sales company"), which is used by the sales company to invest in e-commerce operation projects.

Analysts generally believe that this increase in capital has positive significance for the company to develop new marketing channels and increase the competitiveness of the company.

Sure enough, the news came out immediately, showing a positive effect on the formation of AOKANG shoe Limited by Share Ltd in Zhejiang, and the stock price rose slightly in the second day.

In the announcement issued by AOKANG shoe Limited by Share Ltd in Zhejiang, 10 million of the 90 million yuan was included in the registered capital of the sales company, and the remaining 80 million yuan was included in capital reserves.

After the completion of the capital increase, the registered capital of the sales company will increase from 51 million 800 thousand yuan to 61 million 800 thousand yuan.

With regard to the plan and budget for the capital increase, the announcement disclosed that the capital increase is intended to be used for land acquisition and building construction by the sales company. The land and building are located in the thousand stone industrial area of Huang Tian street, Yongjia County, Zhejiang Province, covering an area of 8302.7 square meters.

The company plans to upgrade the buildings to electronic commerce operation center, voice call center, modern storage and distribution center, brand direct sales hall and so on.

The company said that through the pformation of the information system and the acquisition of automation equipment, the logistics pfer link can be accelerated, the product pport cycle shortened, and the turnover speed of products and funds quickening.

And the e-commerce operation center is located in the company's location, and it can enjoy the relevant policies of the local government to support e-commerce.

At the same time, we can use the existing resources of the company to establish the image of the company's e-commerce faster and better, and promote the rapid and steady development of the company's brand and achieve the company's strategic goals.

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Through the implementation of this investment project, the company will improve the operation system of e-commerce, and lay a solid foundation for the sustainable development of the company.

The AOKANG shoe Limited by Share Ltd in Zhejiang is also increasing the intensity of E-commerce while keeping the company's other operations in line with each other.

The company disclosed in June 6th that it intends to invest 50 million yuan to set up AOKANG International (Shanghai) Footwear Co., Ltd., and intends to purchase CB-201202004 site of Jinshan District ting Lin Industrial Zone (East) in Shanghai to build East China logistics center.

The project aims to expand the scale of operation of the company, further enhance the overall strength of the company, consolidate and improve the company's position in the industry.

Zhejiang AOKANG shoe Limited by Share Ltd has its advantages in dislocation competition.

From the pricing point of view, the main price in the range of 300~500 yuan effectively evaded the competition of "pseudo ocean brand"; from the brand point of view, adhering to the strategy of the first brand of the local shoe industry, taking the Beijing Olympic Games leather goods supplier as an opportunity to enhance brand promotion and brand image; from the perspective of channel layout, with the upgrading of brand image, gradually shifted from the focus of the three or four line layout to the two or three line, based on East China, and developed to other parts of the country.

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Up to now, the space is vast.

Zhejiang AOKANG shoe Limited by Share Ltd currently owns four private brands, AOKANG, Kanglong, beautiful beauty and red Firebird, and successfully acquired the brand ownership of the Greater China brand of Italy famous brand VALLEVERDE (Wanli Wei), forming a vertically integrated business mode.

Data show that as of the end of 2011, there were 4512 terminal channels for AOKANG men's shoes, of which 316 were direct store stores, 161 were direct outlets, and 4035 were distributors.

Ping An Securities analysts believe that AOKANG's brand revenue now accounts for about 60% of the total, and the latter will be mainly based on stable growth. The strategy of "small shops for big stores" will also help further expand the growth space.

Other brand development will become a bright spot for the company's performance growth. As a high-end beauty and Wanli Wade, it will be expected to enter the shopping mall channels to raise gross margin, and the growth rate of Kanglong and red bird will be as high as 50%.

Ping An Securities analyst also believes that the direct expansion of the company will ensure that the gross profit margin will steadily increase.

The company will increase investment in direct store construction. On the one hand, it will help to further enhance gross margin and performance as the best profitable direct investment in stores. On the other hand, direct store construction helps to enhance brand image, drive dealers to open shop enthusiasm, and further improve market share.

In addition, the establishment of strategic partnership with suppliers, the support of suppliers and the purchase of designated raw materials will also help to further reduce costs and raise gross margins.

In view of this, Ping An Securities gave Zhejiang AOKANG footwear Limited by Share Ltd "recommended" rating, because they optimistic about the concentration of men's shoes industry has greater room for improvement.

At the same time, the company's development strategy is expected to make AOKANG one of the largest leather shoes brands.