AOKANG International Steady Growth, Domestic Leather Shoes Market Has Huge Room For Improvement

The company focuses on leather shoes And the leather brand operation, the implementation of the "AOKANG", Kanglong, "red bird", "beautiful beauty", "Wanli Wei" brand as a subsidiary of the multi brand management strategy, around the different consumer needs of different needs to meet the principle of differentiation, through differentiated brand style, product design, price positioning and other initiatives and marketing activities to meet the needs of the market segments.

Price positioning is in line with consumption habits and has wide customer base. According to research, 200-500 yuan leather shoes are most popular among consumers. Families with an annual income of less than 200 thousand yuan, on average, more than 50% will choose to buy 200~500 yuan leather shoes. Families with annual income of more than 200 thousand will have nearly 30% of the people who choose to buy 200~500 shoes. The company's main brand AOKANG and Kanglong, whose main price is 300~500 yuan, is the most popular leather shoes price band in China, and the potential consumer is widespread.

Domestic leather shoes consumption growth is fast, there is still room for improvement. In 2001 -2011, in the past ten years, the composite growth rate of leather shoes consumption in China was about 21.79%. Domestic consumption has become the main driving force for the growth of China's leather shoes industry. China's average annual footwear consumption per capita is 1.9 pairs, while the developed countries in the United States, Japan and Europe are 7.3 pairs, 4.9 pairs and 4.8 pairs respectively. There is room for improvement in the domestic leather shoes market.

The leading position of men's shoes has absolute competitive advantage. At present, the sales channels of men's shoes in China are mainly street stores. AOKANG, the company's main brand, is in an absolutely dominant position in the competition of men's shoes. At present, the market share of AOKANG and San Da brand is 5-6%, while the market share of the third ranked brand is only about 3%.

Women's shoes should be differentiated to avoid strong competition. BELLE Group women's shoes are currently in a strong position in the industry, and no one can compete with them. At present, the company's 5 brands, the main brand in the consumer age, style and sales channels are different from BELLE positioning, avoiding its positive competition. Daphne Street store development is better, but Daphne style focuses on fashion, mostly for PU leather, and also has differences with company style positioning.

Epitaxy, endogenous two pronged approach, improve corporate profitability. At present, there are 332 prefecture level cities in China and 2860 in county-level cities. The company's brand positioning is moderate, the price is moderate, and the company has strong sinking ability. If conservative estimates, each prefecture level city opened 5 shops, county-level cities opened 1 stores estimated that AOKANG's single brand store space is at least 4500. With the increase of the average area of the shops and the steady increase of the gross profit margin of the company, there is huge room for the growth of the company's endogenous growth.