The Diversified Pformation Of Women'S Shoes Enterprises Is "Multifarious".

domestic

Several leading enterprises in the market

Daphne, Qian Baidu, Saturday and so on have all encountered bottlenecks in development. Judging from the recent 2015 financial year reports, their performance is generally not satisfactory.

Shoes are hard to sell. Companies are seeking breakthroughs in pformation. Some sell jeans, others sell toys, others have to build.

Are these diversified pformation actions reliable?

Last year, shoe companies generally failed.

Daphne has suffered its first loss since 2002.

According to its earnings report released in March 29th, Daphne's revenue last year was HK $83.79, a decrease of 19.1% compared with the same period last year, and net profit loss of HK $379 million, a sharp decline of over 300% over the same period last year.

This reality is even more severe than Daphne's previous expectations. In January, Daphne issued a full year profit warning, saying that the same store sales of core brand business in the fourth quarter of 2015 had a 20.2% decline, so it is estimated that the annual core brand store sales will be 18.5% down.

In the earnings report, Daphne explained that the reason for the sharp decline in performance was due to the adverse weather conditions, such as the delayed summer and unusually warm winter, the rising operating costs, the negative leverage effect, and the increase in expenditure caused by prudent inventory, shop, factory and personnel integration.

In fact, Daphne has made internal optimization through the way of closing stores and shrinking. Last year, it reduced net sales by 827 points, while vigorously developing e-commerce business, but with little success.

Not only Daphne, but also the decline of the footwear business in the 5% quarter and the fourth quarter of the same quarter. BELLE also issued a profit warning in March 29th, saying that the net profit of 2015/16 in February 29, 2016 will be reduced by about 35%-45% as of February 29, 2016.

In the early March, the annual results released by the company showed that although sales and profits had increased, the same store sales grew by 0.7% over the same period last year. The company also adjusted 33 self operated retail outlets and 65 third party retailers with poor performance.

The performance Bulletin released on Saturday showed that revenue was 1 billion 619 million yuan in 2015 and net profit was 24 million 550 thousand yuan, down 7.94% and 31.72% respectively.

BELLE's overweight clothing business sells jeans.

In the face of the recession of footwear business, BELLE has already started the process of diversification, including agency brand, clothing business, etc. in 2013, BELLE acquired 31.96% of its Baroque fashion group and set up a joint venture with China to expand its apparel business.

After several years of development, by the middle of 2015, the revenue of BELLE's sports and clothing business was almost equal to that of footwear business.

BELLE CEO Sheng hundred pepper once said at the shareholders' meeting that the sports and clothing business has gone through a downturn in the past few years, the market has finished the inventory, the performance is better, and the profit margin trend is benign.

In the near future, BELLE has made further changes in the layout of clothing business.

Recently announced the acquisition of Italy Cowboy brand Replay parent Fashion Box SpA 29% equity, to become its second largest shareholder, and will establish a joint venture with its brand in the Greater China market operation.

Reporters learned that Fashion Box SpA, besides Replay, has children's wear brand Replay&Sons and high-end Cowboy brand We Are Replay, which has 5000 sales outlets and 220 retail stores worldwide. In 2014, the group's revenue was about 204 million euros, of which 87% came from the international market.

BELLE said that the reason for choosing Replay is not only that it has all kinds of dress lines, but also that Replay's overseas market can help BELLE widen its way in overseas markets.

In addition, due to the rise of high-end tannins, Replay has a very strong advantage in terms of its focus. This will add more to BELLE, which currently has only two Japanese fashion brands, Moussy and Sly.

The diversified pformation of women's shoes enterprises is "multifarious".

BELLE is looking for a diversified pformation, as well as women's shoe makers in Foshan on Saturday.

Earlier this year, the announcement on Saturday changed the name of the enterprise from "Foshan shoe Limited by Share Ltd" to "Saturday Limited by Share Ltd".

The announcement explained that the reason for changing the company name is mainly for the company's future development strategy considerations, and gradually create a diversified brand operation on Saturday, and "online fashion" under the integration of online and offline resources.

In fact, in order to get rid of the image of "selling shoes", a new collection store which is different from the single brand shop of women's shoes has been opened in shopping centers in Beijing, Shanghai and Xi'an on Saturday.

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This pluralistic thinking on Saturday has long been traceable.

In December 2014, on Saturday, it invested 9 million yuan in the stock market of 15% billion shares. The reporter learned that billion mobile is a major fashion player for women players and social networking mobile phone manufacturers.

On Saturday, July 2015, it invested nearly 80 million yuan to set up two acquisition funds to undertake equity acquisition and investment in enterprises such as culture, sports, entertainment, innovative consumer services, and fashion emerging industries. We hope that through the fund, we can diversify the layout of her "fashion ecosystem", widen the company's industrial structure, enrich the product chain, and create the channel of her fashion industry in the consumer goods industry.

Another women's shoe manufacturer's diversified road is more "cross-border", taking advantage of the two child policy's full liberalization of Dongfeng to enter the toy market. In October last year, it bought Hamleys, a famous toy store in Britain, and plans to make its love like the Chinese market.

Diversification also needs to form synergy with the main business.

According to the current situation, the difficult period of footwear industry will continue.

The previous Fourth International Summit on footwear industry sustainable development showed that in 2015, China's footwear industry operation index was below 90, which was in the colder index area, and the current loss threshold of footwear industry broke out.

The industry has the view that the continued impact of the electricity supplier, and the footwear market is saturated, product demand is weak, coupled with the increase in physical operating rents and labor costs, which brings greater pressure to the entity business.

In the next 3 years, it will enter the stage of survival of the fittest in the industry. Therefore, seeking new growth points in pition has become an inevitable choice.

On the one hand, in the case of declining sales of physical stores, footwear brands have been pforming their power providers, including BELLE to invest in the construction of e-commerce sites. Daphne has reached strategic cooperation with Tmall to extend marketing channels to e-commerce platforms.

On the other hand, diversified development has also become a common choice for footwear companies to maintain performance.

Zhu Qinghua, a light industry researcher at CIC, thinks that as most enterprises encounter "ceiling", diversification will become the trend of footwear industry in recent years, which will help to increase the profit point of enterprises, thereby supporting the continued growth of performance.

However, the industry also reminded that footwear enterprises need to pay attention to the fit between new business and main business in diversified development, and synergy effect is needed between businesses. Otherwise, they will only take care of one another.