Slower Growth Forced Shoe Companies To Extend Their Layout

In the first three quarters of this year, retail industry was generally not performing well and was listed on the market in the first quarter of this year.

It is difficult for enterprises to be independent.

A few days ago, the listed footwear enterprises released the three quarter operation data, and the same store sales growth slowed down is an indisputable fact.

In order to deal with this situation, the listed shoe enterprises have taken all measures to develop strategies, such as increasing publicity and promotion, adjusting shop opening mode and digging up market potential.

Growth slowed, stock increased

Recently,

Daphne international and Millennium released the three quarter operating data.

The bulletin shows that sales growth in the same store has declined to varying degrees. Among them, Daphne international has seen the largest decline, from 23% in the same period last year to 5%, and 100% from 15.8% in the same period last year to 6.3%. BELLE's international footwear business also slowed sharply from 2.8% in the previous quarter to 2.8%.

Slow growth in the same store is not just the current situation faced by these shoe companies, but also the risk growth of China Merchants Securities to AOKANG international, which has just been listed in the first half of this year, will be further slowed down.

Why did the growth of the listed footwear enterprises grow sharply? Tao Wensheng, a vertical partner of Peking University, said that the purchase rate of consumers declined due to the macroeconomic environment, so the growth of same store sales slowed down and had no bearing on the environment of consumption.

Yu Yihua, an enterprise operator of shoes and clothing business, believes that there are factors that influence e-commerce and the impact of new brands. Some women also pay more attention to the factors of style and color when they buy shoes.

On the one hand, it is due to a higher base in Hongkong, but on the other hand, the average selling price of products has dropped due to the clear inventory promotion activities.

It is undeniable that the slow growth of same store sales is undoubtedly exacerbated by the shoe companies with high inventories.

In fact, in recent years, the stock pressure of several shoe companies has increased significantly.

BELLE international has been on the high side since its sharp rise in inventories in 2010. The stock in the first half of 2012 was still 6 billion 518 million yuan, a slight increase from last year.

Daphne's stock in the first half of the year amounted to HK $2 billion 370 million, an increase of 13.2% over the end of last year, up 54.3% from the end of 2010.

In addition, the stock turnover days of several shoe companies are also at a high level in recent years. The turnover days in the first half of the year are as high as 239 days, and the turnover period of Daphne international has risen from 149 days to 202 days.

In addition, BELLE's first half of the world's footwear turnover in the first half of the world is still more than 200 days for 200.4 days, and shoe enterprises' inventory crisis is beginning to show.

In order to reduce the inventory pressure, in the first half of the year, the announcement issued by shoes enterprises has many such expressions as increasing sales promotion and long promotion cycle.

In the announcement, the sales and distribution expenses in the first half of the year were 479 million yuan, up 33% from the same period last year.

BELLE international also said that this year's discount sales efforts were higher than the same period last year, because the stock is too large.

A few days ago, BELLE Beijing Jin Yuan shopping center shop clerk told reporters that at present, the whole stadium in addition to the limited amount of money to participate in 15% off promotional activities, and another 1000 yuan to send another 100 yuan.

This is rare in the history of BELLE.

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Daphne International's sales promotion this year has never been interrupted. There are many promotional activities ranging from 79 yuan to 99 yuan.

Even in October 20th, the Daphne Beijing Ding Hui Qiao shop is still launching 40 percent off promotional activities of the new product.

In addition, strengthening the distribution channel construction is also considered to be a good medicine for inventory.

Daphne International China Daily reported that it is necessary to strengthen distribution channels such as e-commerce and special stores, thereby improving the high inventory level.

Yu Xiongping, Secretary of AOKANG international board, said that besides the AOKANG mall, which is mainly focused on displaying its brand image, AOKANG also has third party network platforms, such as Tmall and Jingdong mall, which have a certain contribution to the growth of the company's business.

BELLE, the leader of the industry, launched its online shopping website on the website last year.

Discarding joining the company

As a matter of fact, Daphne international has launched a large scale sales promotion campaign. The meaning of "Xiang Zhuang dance sword" is very strong. It is not only to reduce inventory, but also to adjust the business strategy, because it will be the focus of its development.

It is worth noting that in Daphne's previous annual report, we can see its tendency to join.

Daphne International 2010 annual report shows that the growth rate of the franchisee is as high as 25%.

By the end of 2011, the growth rate of franchised stores was only 6.7%.

While Daphne's three quarter data reflected more clearly the behavior of its rejoining franchisees, while the number of outlets increased by 209 in the three quarter, the number of franchisees decreased by 29.

As of the end of September, the number of franchisees was reduced from 74 to 981, with 6148 of the total outlets and 84% of the total outlets.

Ma Gang, an independent critic of shoe and garment industry, believes that at present, the consumption of retail terminal is weak. Many enterprises begin to plan carefully, and extend to both ends of the industrial chain is the main way.

Some increase their profits indirectly by building factories themselves.

Others extend from the wholesale price difference of the franchisee to the money that makes the final consumers.

Daphne is no exception. The direct channel will be the ultimate goal of its channel development.

At the same time, there are also insiders believe that Daphne's de franchising is from the reduction of inventory considerations, Tao Wensheng said that Daphne's top priority is to accelerate the digestion of inventory, but through the franchisee to digest inventory is almost impossible to achieve, because the chamber of Commerce has a lot of losses, so inventory must be used to direct stores to achieve, reduce the franchise is inevitable.

However, this strategy was not implemented smoothly by Daphne. In September this year, it even made it fall into the vortex of public opinion.

According to media reports, Daphne has aroused strong dissatisfaction among franchisees because of its promotional activities lower than the supply price, not renewing the franchise contract, and stopping the supply in some areas. Among them, there was a six day long time when Hubei Xiaogan franchisees blocked the local direct shops, and joined with some of the franchisees to join Daphne headquarters in Shanghai to protest against their actions.

As we all know, joining is the weight of rapid expansion of enterprises, but it also increases the difficulty of management, and even has some negative effects on brand image.

A few days ago, the reporter found in the interview that the Daphne store in the three layer of the EPO outlets in Beijing began to sell shoes with brand name as creative show, but its shop assistant introduced two brands at a very early time, not a strategy to deal with Daphne.

"As the development of enterprises has matured, the market layout has been completed, and the difficulty of management and control is bigger and bigger. Therefore, many enterprises begin to choose the mode of direct operation.

Although in the short term, brand going to join will cause some harm to itself, but in the long run, it is more conducive to brand building and strengthening core competitiveness.

Tao Wensheng said.

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If direct battalion is a trend, then interest will always be the key to solve the problem of franchising.

In fact, as long as we take care of the interests of franchisees and adopt appropriate means, conflicts between franchisees can be strangled in the cradle.

Prior to that, BELLE, the shoe boss, was able to get a 51% stake in the franchisee after the listing premium through the way of equity purchase before listing.

Whether an enterprise is a franchise or a self run company is mainly related to the market characteristics. It is also related to the channel strategy and the maturity of the management system.

At present, the proportion of thousands of franchisees is still on the rise, from 25% last year to 26.5% in the three quarter.

AOKANG accounted for 89% of the 4373 shops in the first half of the year.

Yu Xiongping said that the survival mode of every enterprise is different, some of them are developed by electronic commerce, some are developed by department stores, and are also developed by OEM foundry production. AOKANG's advantage is Street store, which is determined by the company's characteristics and resource conditions.

The future will still be based on its own advantages to develop.

Lay down your body and extend your layout.

When Daphne was planning to join in the alliance, BELLE, the leader of the industry, was developing the market.

Although BELLE has been developing in the middle and high-end market, but this year it put down its posture and began to touch the low-end market. It also stepped into the field of children's shoes, and the extension trend of its product line layout is very obvious.

In February this year, BELLE launched its first fast fashion women's brand 15MINS for the low-end market, with a monthly salary of around 3000 yuan, and the selling price is basically two hundred or three hundred yuan a pair.

At present, 67 stores have completed 67% of the year's target.

15MINS and previous brands such as Belle, Teenmix, Tata, Staccato, Senda, Basto, Jipi Japa, Millie, s and so on, own brand and the agent brands such as, ",", ",", "," and "etc." constitute a huge BELLE shoe family.

However, at present, there are many brands in the low-end market, including Daphne, AOKANG and so on. Why is BELLE going into this field? Tao Wensheng said that the middle and low end women's shoes market is more dispersed and has no obvious leading brands. BELLE group has obvious advantages in entering the middle and low end market as a leading industry.

In addition, BELLE's high-end brands, both in terms of market share and market overall business scale, are in the leading position in the industry. Among them, the market share is even in a monopolistic position.

At the same time, the development of the industry has matured and the growth has begun to show signs of slowing down.

At this point, BELLE's performance growth will inevitably encounter bottlenecks. Finding new business growth points is inevitable.

Yu Yihua, an enterprise operator of shoe and garment enterprises, also said that resources such as supply chain, management, operation and channel are all the guarantee for BELLE to enter the low-end market, and its advantages are obvious.

No doubt, BELLE's entry into the middle and low end market will definitely break the original pattern. How will the existing brand rooted in the low-end market respond? Yu says that there are many definitions of fashion, any group has fashion, AOKANG brand is positioned in business fashion, and red Firebird is positioned in young fashion.

Although there will be coincidence and competition, there is still hope in the market segmentation.

In addition, AOKANG's channel is completely different from BELLE's.

In terms of market segmentation, all shoe companies are developing casual shoes besides fashion shoes.

The annual report shows that in August 2011, the sun dance was launched for its young customers.

AOKANG international has also been committed to building Kanglong, its leisure shoes brand.

At present, after acquiring the two largest children's brands Hello Kitty and Disney of Guangzhou Yili Lai Group, BELLE has extended its tentacles to the field of children's shoes.

In addition, BELLE international semi annual report also shows that it is already embarking on the development of independent children's shoes brand, laying the foundation for the long-term development of children's shoes business.

With the diversification of people's consumption demand and the change of consumption concept, market segmentation will be a trend.