Don'T Women In China Buy Shoes Now?

With Chinese traditional local

The 2015 earnings report of enterprises has been released in the near future. The performance of a few of these listed women's shoe companies is almost falling.

Offline tradition

The competition is basically around 1:10, because there are only a dozen competitors in the mall, so as long as the above ten hands are ready to break through, it will be possible for 1:1000 and even 1:10000 to compete on the line, because tens of thousands of businesses may also be online.

BELLE international also closed 418 stores in the first three quarters of 2015.

In August 2015, the BELLE shoes of its same name, the BELLE brand, closed the last store in Hongkong and was seen as leaving the market.

The development of electricity providers at the same time drastic reform and optimization of its business model, from the franchise mode to direct mode.

At present, the proportion of Daphne franchises is less than 10%.

The adjustment is quite modest.

You know, in the initial stage of Daphne, its franchise was about 80%.

During the season, due to the size and color of shoes, the first single shop needs to reach the 70%~80% of the season sales.

To ensure production meets the demand for production, production needs to start 6 months in advance.

During this period, the brand owners also need to convene the regional centralized companies to set up the order meeting, and then advance the 3~5 months for sample research and development.

After ordering, the order and trial production will be rearranged, so that a process will take about 9~12 months.

"Men who work in Wall Street even pay 100 thousand dollars a year, but they often wear only two pairs of shoes a year.

One pair is business leather shoes at work hours, and the other is gym shoes.

So two years ago, when he created "hot social women's shoes", Kong Jing Fu chose the shoe industry as a matter of course. "Women love to buy shoes."

However, as China's traditional local women's shoe enterprises' earnings in 2015 have been released in the near future, the performance of a few of these listed women's shoe companies is almost falling.

Is it strange that women in China do not buy shoes now?

Industry turn cold

Daphne (00210.HK), which is biased towards parity in mass consumption, has a turnover of HK $8 billion 379 million in 2015, a decrease of 19.1% over the same period last year.

The profit attributable to the company's owners is HK $379 million, a sharp decline of over 300% over the previous year.

This is Daphne's first loss in nearly ten years.

On Saturday, the 002291.SZ and BELLE International (01880.HK) had no specific annual reports, but according to the results of the two companies' performance, the former's operating income was 1 billion 642 million yuan, down 6.60% compared to the same period last year. Net profit was 22 million 530 thousand yuan, down 37.32% compared with the same period last year. The latter is also not optimistic. BELLE warned that because of the continued shrinkage of footwear business and the continued weakening of footwear business and the increase of expenses, the company's profit attributable to the year ended February 29, 2016 will be reduced by about 35% to 45% over the same period last year.

The slowdown in domestic macroeconomic growth is a cliche problem, which is applicable to any weak consumer company performance.

"The market demand continues to slump, the company's sales and profits have dropped sharply, and the rising cost of rents and labor has reduced the profit margins of the company."

In the light of Zhu Qinghua, a researcher at CIC light industry, there is another reason for the decline in the performance of the above-mentioned brand shoe companies.

CEO Zheng Tao of Guangzhou Tian Tao shoes industry Co., Ltd. began to enter the women's shoes industry 20 years ago. "Just beginning to do wholesale business, BELLE and I are still in a shoe city."

But soon, Zheng Tao found that the advantage of wholesale is that it can quickly expand the popularity and market share of the brand, but there are many disadvantages. The biggest dealer can control the manufacturers by means of channels.

He still wants to do the business of women's shoes, but he intends to do something else.

In 2002, Zheng Tao went to Italy to register a brand of women's shoes called Amy high and turn to retail.

At its height, Amy's stores opened to over 200 stores nationwide.

But in 2012, Zheng Tao found the situation was not very good.

"All costs are soaring.

For a 60 square meter shop, the pfer fee will rise from 500 thousand to 1 million 500 thousand.

Zheng Tao said that the rent of factories and retail rentals at that time were at least three or four times higher than that of the retail outlets. Besides, the number of buckles in shopping malls increased, but the bigger trouble was that the customers who came to the shops did not have as much as they used to.

Zheng Tao spent more than half a year in clearing the line.

He was determined to close all the physical shops under the line, "only about 20000000 yuan will be paid to dealers alone."

At the same time, he also shut down a factory of more than 700 people that he originally owned. "Labor costs are too high to bear."

At the end of the settlement, Zheng Tao paid a total of about 80000000 for this decision.

"Heartache, why not heartache, is the real gold and silver paid out."

In January 2013, Amy's Tmall flagship store was formally launched.

In pricing, the original 1000 yuan shoes now sell 500 yuan online shop, but different from the previous entity shop, online almost no discount.

Zheng Tao said that the profits of the two are almost the same.

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Amigo is a complete case from offline shop to online business pformation.

Zheng Tao did not regret his decision.

According to his judgment, in today's weak market, small and medium-sized enterprises are very difficult to make entities in addition to the large scale companies that are strong enough to support them.

Relative to Zheng Tao's small and medium-sized companies, the market is sensitive, "not so good" happens in those listed women's shoes companies often postponed.

Since 2014, several major brands have been shut down.

BELLE International's "crazy shop" strategy, which once opened a new store for two days, began to "stop abruptly" in that year. Compared with the huge volume, there are not many one hundred or two hundred outlets, because the annual increase in the number of shops can offset these cuts.

But in 2015, the "cold winter" in the footwear industry continued to spread and expand.

Last year, Daphne closed 827 retail stores throughout the year.

Another BELLE international has 418 stores in the first three quarters of 2015.

In August 2015, the BELLE shoes of its same name, the BELLE brand, closed the last store in Hongkong and was seen as leaving the market.

Flames of war spread to the Internet.

Comar Nick, the founder of women's shoes, Lin Shuangde, previously engaged in footwear related industries. In 2010, Ke Mani Ke Mani established the brand of e-commerce shoes.

According to him, its company grew rapidly at an annual rate of over 200%.

In April 2015, kurany was awarded investment in IDG capital such as Baidu and Ctrip, but they did not disclose the specific amount.

"E-commerce channels are growing rapidly, online brand products update faster, more fashionable, cost-effective, and diverted a large number of traditional retailers' passenger flow."

Lin Shuangde began to start her own business without thinking of being offline. At that time, judging from the business, the Internet industry was the sunrise industry, and the women's shoes industry was on the rise.

He became one of the first Tmall merchants.

In order to avoid the large number of low price customers on Taobao, he positioned Comar Nick in the middle and high end.

But don't mistake the online business to do well.

Lin Shuangde said, compared with the traditional retail market, the online market is more differentiated and more competitive.

"The competition of traditional brands is basically around 1:10, because there are only a dozen competitors in the mall, so as long as we do well in these dozen hands, we can break through, but when we go online, the competition will be 1:1000 or even 1:10000, because there may be tens of thousands of merchants Online."

Lin Shuangde is right.

Since last year, after several years of brutal growth, the whole business environment has changed.

More and more traditional brands are entering the electronic business platform, and the internal competition of category is becoming more and more intense.

Before this, many of the business companies that had made a thrived business disappeared in the year.

In the two years after the pformation, Amy's sales increased significantly, "in 2014, more than 200%, but last year's growth was somewhat lower, but still more than 100%."

Zheng Tao expects this year to be even lower, at around 70%.

The prevailing view is that the Internet has taken away customers from offline retail outlets.

According to the National Bureau of statistics, retail sales of clothing, shoes, hats, needles and textiles in 2015 1~12 were 13484 billion yuan, up 9.8% over the same period last year.

Among them, the online retail sales of these apparel products increased by 21.4% over the same period last year.

Aren't those traditional women's shoes enterprises with experienced and huge retail networks not seeing such a trend? Of course not.

Whether BELLE international or Daphne or other shoe companies started online early or late, online and offline channels began to merge.

BELLE international is the brand of women's shoes that intervened early in the Internet.

In July of 2011, it invested $200 million to set up an excellent purchase network. But before and after 2013, Xu Leihe, senior vice president of the purchase network CMO, resigned from the company. In 2013 July, Zhang Xiaojun was pferred to COO.

Executives have to leave the industry is considered to be excellent purchase network has not reached the BELLE electricity supplier expectations.

Since then, the excellent purchase network has not announced the annual sales of the main station. It only revealed in 2014 that its annual total volume of third party platforms reached 2 billion yuan.

In addition, in Tmall, Jingdong, Dangdang and other platforms, BELLE shops are also found.

Look at Daphne again.

This company develops the electricity supplier at the same time, drastically reforms and optimizes its business mode, will change from the affiliate pattern to the direct battalion mode.

At present, the proportion of Daphne franchises is less than 10%.

The adjustment is quite modest.

You know, in the initial stage of Daphne, its franchise was about 80%.

One of the advantages of the adjustment is that the business in the future can be at the same price as the same.

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Is it difficult for a ship to turn around?

But all of this seems to have little effect on the enterprises.

"I chose to close the shop because I couldn't find the balance point on the offline line.

In fact, no retail enterprise has found such a balance.

Online and offline operating costs are different. "

Zheng Tao believes that the problem Daphne may face is that the brand has always been positioned in the middle and low end, but with the rise of the Internet, such prices are everywhere on the Internet, so they lose their advantages.

He felt that BELLE, the largest female shoe company in China, had no major problems in terms of supply chain management or business mode. The problem was in the market, and the market was changing too fast, but big companies could not catch up with the pace of change.

The normal commodity circulation of traditional brands under the line is: during the season, when the size and color of shoes are more, the first single shop needs to reach the 70%~80% of the season sales.

To ensure production meets the demand for production, production needs to start 6 months in advance.

During this period, the brand owners also need to convene the regional centralized companies to set up the order meeting, and then advance the 3~5 months for sample research and development.

After ordering, the order and trial production will be rearranged, so that a process will take about 9~12 months.

This process is the same both at home and abroad.

"Abroad, at least 16 weeks, more than 8 months."

By contrast, the advantage of online brands is faster reaction.

With the removal of those intermediate links, the women's shoes of the Internet can quickly enter the new process of R & D, design, processing and production after capturing the most popular styles of the season. "The whole process is usually completed in only 8 weeks."

Kong Jingfu said.

On average, the flow of online women's shoes is much shorter than that of traditional women's shoes, which can save 7~10 months compared with offline brands.

These companies are running the "fast fashion" flexible supply chain mode: information support, faster response, more flexible to meet the needs of multiple batches and small quantities.

Lin Shuangde gave a more specific example. His company achieved more than 500 new products every quarter, and sold 1800 new products online, two new times a week.

The traditional brands are generally around 100~300 in each quarter, while online sales are only about 300~500.

The issue of "homogenization" of traditional women's shoes is a serious criticism.

People walk from this shop to another shop, and find that the shoes are of the same type, and the brand logo is almost the same.

"The competitiveness of domestic women's shoes is weakening, and it is difficult to compete with foreign brands in terms of quality and design, and the price advantage is not obvious."

Zhu Qinghua believes that the influx of foreign women's shoes brands has a great impact on the domestic women's shoes brands.

Another important point is that consumer tastes are changing.

Tian Yina, a senior operator of Tmall footwear and footwear, has observed that people's consumption trends are more diversified. They are not confined to old fashioned varieties. She noticed that in addition to heels (including traditional heels, middle heels, low heels), board shoes, happy shoes, sports running shoes and so on, there are more and more new varieties coming out, and people's consumption choices are becoming wider and wider.

Lifestyle changes consumption habits

Yi Shu, a Hongkong woman writer, said in an interview many years ago, "it is not the age of war. What sports shoes do girls wear?

That's the main idea.

She may feel that girls can only be elegant and respectable when they wear high heels.

Dong Peiqian remembered that when he graduated from University, he used to pretend to be dressed up in high heels to apply for a job. At that time, she looked forward to being a woman walking on stilts and walking on the street.

She also remembers a roommate who worked as an intern in a 4A advertising agency. When she returned from the activity, she just kicked her 7 centimeter high heel shoes on her feet and showed her the wound.

But for shoes, women are still buying and buying.

But after all, the times are different.

"In addition to some special occasions, such as company dinner, friends wedding banquet and so on."

Most of the time, Dong Peiqian is not wearing high heels anymore.

"How do you feel comfortable?"

Dong Peiqian said.

Such people are not in the minority.

The change of consumption concept of these people seems to have affected the whole market of footwear consumption.

On the contrary, BELLE, Daphne and Saturday were sporting goods companies mainly selling sports shoes, such as Adidas, Nike and even local 02020.HK, 01361.HK (361) (01968.HK) and so on. Their performance rose in 2015.

Gao Jiali, managing director of Adidas group Greater China (ColinCurrie), is optimistic about the whole industry.

He predicts that by 2020, Adidas Greater China will grow at an average annual rate of 10%, while the average growth rate of the whole industry is expected to increase by a single digit.

The popular sports craze is considered to be a major reason for the sales of the industry.

People's way of life has changed.

"Now, in my 10 pairs of shoes, 5 pairs are all kinds of sports shoes."

Dong Peiqian has been running a marathon for two years, speaking of fitness and spirits. "Healthy life, I'm going to invite a private tutor to slim down!"

Lin Shuangde said that the popular sports and leisure style on the market has become popular since 2014.

"Paris fashion show originated from a luxury brand."

He recalls, "the model of the show was dressed in gowns and sports shoes.

The leading role of the brand has led to a more casual style throughout the fashion industry.

This show is said to let different brands start competing to imitate shoes produced and sold.

"You need to change the structure of products according to fashion, for example, we later made fashionable fashionable casual shoes, which are between sports and traditional women's shoes."

This proportion accounts for 50%~60% in Kerrey.

In Ai Mei Gao, the above fashion casual shoes even account for 70%~80%.

There is no doubt that there is only one reason: sell well.

"Compared to offline, our online brands need to cater to the market and consumers' preferences more often, otherwise they will be easily eliminated."

Zheng Tao thinks, electric business is easy to change product quickly.

"It's difficult to change traditional retailers now.

After all, there are so many big plates, so many people.

Change is also coming slowly and step by step.

Zheng Tao made a comparison. Our annual sales volume is three or four billion, and BELLE has at least two zero.

It is obviously easier to change the former.

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Tian Yina and her colleagues also noted this trend.

"Online shopping is changing very fast.

We will also urge e-commerce providers to adapt to changes in the market, give their opinions and suggestions to do some popular explosions and try different styles.

In her view, the industry will be divided into two kinds in the future. Those entities who have existed for twenty or thirty years are changing their business models and stabilizing their own sites.

But once these giants could not stop, the "shoe market" that was originally controlled by them was being shunted out.

Other brands of pure electric shoes will become "small and beautiful" stores. "Because of their distinctive style, they will have their own fans."

Tian Yi Na said that today she wanted to invite some designers to make brand small shoe salesmen, "the younger generation of people is too personality, they always want to wear something different from others."