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    How Will The Traditional Women'S Shoes Industry Begin To Shuffle?

    2016/4/1 10:31:00 72

    Electricity SupplierDaphneBELLEWomen'S ShoesSaturday100 DegreesHigh-Heeled ShoesElectricity SuppliersLeather ShoesTmall

    although

    Daphne

    (00210.HK) vigorously developing

    Online retailers

    Business, but this can not offset the negative effects of the dilution of its physical stores.

    On the evening of March 29th, Daphne announced its year-end results as at the end of last year, while its turnover decreased by 19.1% to HK $8 billion 379 million. Its owner's share of losses was HK $379 million, a sharp decline of over 300% compared with last year.

    This is Daphne's first loss in nearly 10 years, and it goes back to 2001.

    Like Daphne, it includes

    BELLE

    ,

    Saturday

    Several major domestic companies

    Women's Shoes

    At present, enterprises are experiencing bottlenecks in growth, shrinkage of stores, and decline in same store sales.

    People in the industry have said that because of the fact that the rental and labor costs of physical stores are rising, and the footwear market is saturated and demand is weak, the footwear brand stores will face a shuffle.

    First annual loss in recent ten years

    In January, Daphne issued a profit warning for the whole year: "in the fourth quarter of 2015, the same store sales of group core brand business decreased by 20.2%.

    Therefore, the growth rate of core brand sales in the same year in 2015 is -18.5%. "

    And sales decline together with net profit.

    In its annual performance report released in the evening of March 29th, Daphne said that the group's performance worse than expected was affected by the following factors: adverse market conditions, erratic weather including delayed summer and unusually warm winter, operating costs rising with inflation and increased negative leverage.

    In the second half of last year, due to further deterioration of market conditions, many measures have been taken, including closing down shop, streamlining personnel, moving factories and tightening up inventory levels.

    In stores, Daphne cut 827 sales points last year.

    For the shop, the independent critic of the shoe and clothing industry, Ma Gang, has previously said that in addition to the bad environment, a large number of store closes are also the result of internal optimization.

    Reviewing the performance reports of Daphne over the past decade, it is noted that this is the first loss since its turnaround in 2002.

    However, in 2013 and 2014, the owner of the company has accounted for a sharp decline in two consecutive years.

    In addition to Daphne, China's women's shoes market structure of the "big card", Saturday, BELLE's situation is not very good.

    The 2015 earnings Bulletin released at the end of last Saturday showed that its operating income was 1 billion 619 million yuan, down 7.94% compared to the same period last year, and net profit was 24 million 550 thousand yuan, down 31.72% compared with the same period last year.

    In recent years, BELLE has also fallen into a predicament of declining performance.

    According to its earnings warning notice issued on the evening of March 29th, due to the continued weakening of footwear business and the increase in costs, the profit attributable to the company's equity holders in the year ended February 29, 2016 (2015/16) will be reduced by about 35% to 45% over the same period last year.

    It also announced its annual performance in March 15th.

    Despite the growth in revenues and profits, net sales of 33 self operated retail outlets and 65 third party retailers last year were reduced.

    Is the electricity supplier's impact the biggest reason?

    According to the CPI (consumer price index) released by the National Bureau of statistics, the average cumulative increase in clothing category was 2.7% in 2015, of which shoes rose by 2.8%, much higher than the average increase of 1.4% in CPI.

    On the one hand is the rise in the consumption price of shoes and clothing in China. On the other hand, the profits of brands are becoming less and less. What is the problem? Do Chinese women no longer like shopping for high-heeled shoes?

    "The shoes in the mall do not do activities. I basically do not look at them. The price is too high. A pair of women's shoes is always two thousand or three thousand. I have enough to go abroad to buy this price."

    Zhang Yu loves high heels, but she says frankly that she can't accept the high price of domestic brands.

    Consumers do not buy, let the discount become the norm, but the fact is that the discount price is still not cheap in some consumers' minds.

    In terms of pricing strategy, enterprises are also working hard.

    Take Daphne as an example, its new pricing strategy aims to reduce the emphasis on discount as a way to attract customers.

    However, the new price structure has prompted the average sales price of core brands to decline, with a annual decline of about 4.6%.

    Shao Ligang, general manager of the nine Consulting Group, said that the overall market consumption of clothing is on the rise. The problem is that the sales of brands themselves are decreasing and the proportion of market share is decreasing.

    "There are many reasons for this. First, the new brand has become more and more contention for the market, leading to a decline in the share of these original brands.

    In addition, the nature of brand launch and its location groups do not match, leading consumers to choose other brands.

    Another is that they do not match the commodity structure of the terminal and the market demand structure.

    He pointed out that it is becoming more and more easy for Chinese people to go shopping at the moment, so it does not exclude the impact of part of their consumption abroad.

    In the view of the industry, apart from its own pricing and innovation problems, as an external factor, the electricity supplier has also hit the development of the industry.

    "The main reason is the continued impact of the electricity supplier.

    Moreover, the footwear market is saturated, and the demand for products is weak, coupled with the increase in the rents and labor costs of physical operations, which brings greater pressure to the entity business. "

    Xiong Xiaokun, a light industry researcher of CIC, is a supporter of the impact theory of electric business. In his view, the extensive development mode of women's shoes simply goes on the scale and combines production capacity with cost reduction.

    The industry believes that the electricity supplier to take a low-cost strategy, the relative advantage of the price.

    For consumers who like to be "cheap", it is common to go to the store to see the style and choose products on the Internet.

    However, Shao Ligang said that compared to clothing, the impact of electric shoes on shoes is relatively small.

    In particular, leather shoes are not easy to buy online, and consumers are more willing to make choices after experiencing physical stores.

    Large layout of electricity providers in order to pform

    As the industry continues to slump, there is a view that now is the time when women's shoes shop is concentrated on the outbreak. In the next 3 years, women's footwear industry will enter the stage of survival of the fittest, and the pformation to seek new growth points has become an inevitable choice.

    Therefore, despite the different opinions on the "electricity supplier impact theory", for the brand, the electricity supplier is a competitor or a channel to help the brand to spread and sell.

    Xiong Xiaokun pointed out that in the case of declining sales of physical stores, the footwear brands are now pforming their businesses to make electricity providers. BELLE has invested heavily in the establishment of an e-commerce website, while Daphne has reached strategic cooperation with Tmall to realize the integration of online and offline businesses.

    In the latest performance report, Daphne also said it would increase its exposure to major online shopping platforms and expand its sales network to the new online shopping platform.

    However, in Shao Ligang's view, the electricity supplier has only added a p regional shop to some extent, relying solely on the layout of the electricity supplier can not really solve the problem.

    "If they (enterprises) do not really enhance their management, this downward trend is simply irresistible.

    Even if the market is better, it will not come up. When the market improves, it will not change its operation management, design management, nor will it be able to go up.

    New brands are constantly entering, and the increased share will be taken away by all these new brands.

    Therefore, in the industry shuffling process, how to refine management is what they should consider.

    Shao Ligang finally analyzed.

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