Domestic Shoe Enterprises "Internal Strength" Insufficient Lead To Decline In Performance?

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And other well-known women's shoes enterprises announced the latest performance report on Saturday. In addition to the 6.1% increase in the first half of the year, many other shoe companies did not fall into the same situation of revenue and profits.

A sharp decline in performance and a challenge to the women's shoes Market

The decline of Daphne, the first brand of women's shoes in China, is hard to recover.

Daphne International Holdings Ltd recently released its first half results. Its revenue declined by 22.3% to HK $3 billion 400 million. In the first half of this year, the net profit was HK $163 million 600 thousand, or about 140 million 370 thousand yuan.

Gross profit fell by 29% to HK $1 billion 884 million 200 thousand during the period as inventory inventories increased.

Daphne group issued a profit warning report to investors, as of June 30, 2016, the company's first half sales in the first half of 2016 fell 11.7%, and the number of sales points decreased by 450, including 400 Direct stores and 50 franchisees.

Sales center is also in the four to six line cities.

Daphne said that the consumption demand in the Chinese market continued to be weak. The group will continue to invest more in the second half of the year in order to increase sales.

BELLE International's 2015 fiscal year report released in early July showed that the company's net profit during the reporting period was HK $2 billion 934 million, down 38.41% from the same period last year.

As the core business of BELLE, the sales of footwear business in the same store dropped by 8.5%, while the number of mainland shoe retail outlets decreased by 366.

The 2016 half year report released on Saturday showed that the company achieved a profit of 709 million yuan during the reporting period, down 16.09% from the same period last year, and realized a total profit of 28 million 397 thousand and 100 yuan, a decrease of 24.66% over the same period last year. The net profit of the shareholders attributable to the listed company was 20 million 156 thousand and 500 yuan, a decrease of 25.41% compared to the same period last year.

The first half performance data released by 1000 International Holdings Limited showed that in the first half of the year, the income of the group reached about 1 billion 503 million yuan, an increase of 6.1% compared to the same period last year, and the group equity holders should make a net profit of 90 million 412 thousand yuan, down 18.5% from the same period last year.

Group shoe business self operated retail store and third party retail store were reduced by 21 and 11 respectively, while same store sales decreased 12.4% compared with the same period last year.

Lack of innovation awareness, it is difficult to meet consumer demand for upgrading

In the announcement on Saturday, the domestic economic situation in the first half of the year was in the doldrums, which had a great impact on the retail industry.

In the first half of the year, the total retail sales volume of 50 large retail enterprises decreased by 3.1% over the same period last year, down 4.2 percentage points from the same period last year.

The company continued to adjust and optimize the channel structure in the first half of the year, so that the number of self operated stores and distribution outlets in the first half of the year decreased compared with the beginning of last year and the same period last year, resulting in a year-on-year decline in operating income.

Daphne group said that apart from the economic weakness and reduced sales point, the weather impact is also the main reason for the decline in profits of shoe companies.

The drop in sales was mainly due to a reduction in sales point. In the first half of this year, the group closed 450 stores.

Frequent rainstorms and floods occurred in many provinces and cities in China in the two quarter, and adverse weather further hit shop traffic.

Daphne also mentioned that consumer behavior has changed more rapidly than ever before, as Chinese consumers have increased their knowledge and experience through more travel, coupled with the increasing urbanization, smart phones and other innovative technologies.

Insiders said that the domestic economic downturn is the main reason leading to the performance and profits of women's shoes enterprises.

But the deeper reason is that the domestic women's shoes' brand "internal strength" is insufficient, the market reaction and innovation consciousness are deficient, unable to meet the domestic market demand under the upgrading of consumption.

In recent years, the brand of foreign women's shoes and the original domestic design brand have occupied a certain market share by virtue of personalized design, pursuit of detail work and so on.

Weakening the main business pformation and exploring new directions

Frequent shopping of female consumers is not difficult to find that the domestic women's shoes brand discount more and more.

In addition to promotions at 38 women's day, Valentine's day, eleven golden week, Spring Festival and other important nodes, double eleven or even weekends will offer frequent discounts.

A number of women's shoes brands also set up discount counters or enter the outlets of domestic outlets, focusing on seasonal products.

The intensity of discount is also increasing.

There are also some women's shoe brands that turn online channels into disguised discounts.

A brand woman shoe franchisee Lee told reporters that Tmall flagship store is mainly used to deal with inventory, the new main is to sell online.

Frequent discount sales led to a decline in gross margin, and many domestic women's shoes enterprises could not escape this fate.

Insiders revealed that a few years ago, the gross domestic product price of domestic brand shoes reached 60%-70%.

But in recent years, in the face of a continuous downturn in the market environment, many shoe companies have shaken their stance on the price, and discount sales are becoming more frequent.

"Although discount sales will bring down gross margins, facing the increasingly fierce competition in inventory and competition, this is also a failure."

Faced with the continued decline in performance, domestic women's shoes enterprises have tried to pform.

Judging from the performance of the past two years, there will be more new attempts to expand the channel to the Internet.

At present, many shoe companies begin to seek survival outside the main business.

On March this year, the company name was changed from "Foshan Saturday shoe Limited by Share Ltd" to "Saturday Limited by Share Ltd" on Saturday. It intends to weaken the main business footwear industry and facilitate the adjustment of the strategic direction of the company.

In the 2016 semi annual report on Saturday, we mentioned that we will gradually build up an innovative fashion ecosystem with the core of "fashion IP", the joint media social platform, the incubation operation platform and the collective sales platform.

Some shoe companies have chosen sideline businesses which are almost completely irrelevant to the main business.

Industry insiders believe that in the increasingly severe market environment, the attitude of traditional shoe enterprises to take the initiative to pform is worth affirming.