Why Did The Shoe Brand'S Net Profit Rise?

Since 2015

The cold winter is still going on.

According to the annual report released by Daphne last month, as of December 31, 2016, the loss reached HK $819 million, an increase of 64.7% over the same period in 2015, while the turnover was further reduced by 22.4% to HK $6 billion 500 million.

At the same time, BELLE also issued the 2016/17 fiscal year profit warning, as of February 28, 2017, net profit will further reduce by about 15%-25%.

According to the world clothing and shoe net, in April 18th, BELLE international suspended its business early in the morning.

It will be sold to the fund for $5 billion 700 million.

Just when these giants were unable to conceal the declining trend and difficult pformation, the net profit of the women shoe operator came back.

On the same day, Guangzhou was created

Footwear Limited by Share Ltd (Stock Code: 603608) issued the 2016 annual report. As at December 31, 2016, net profit from non recurring gains and losses attributable to shareholders of the parent company was 103 million yuan, an increase of 9.22% over the same period last year and a gross margin of 0.68% to 57.19%.

This means that after the decline in net profit in 2015, the creation of the fashion industry increased last year, but still less than 119 million yuan in 2014.

On the scale of sales, although it can not be compared with them, the business income in 2016 is only 1 billion 548 million yuan, but perhaps from what it has done in the past year, we can see some changes in the footwear industry.

The brand of KISSCAT

Acting outside women's shoes, and incubating men's fashion platform

At present, KISSCAT is mainly engaged in R & D, production, distribution and retail of fashionable women's shoes, bags and accessories. It has established and operated four brands of women shoes, including "KISSCAT", "KissKitty", "tigrisso" and "ZSAZSAZSU".

However, only the latter two achieved a year-on-year increase in operating income.

The original and main brand "KISSCAT" accounted for 55% of the total main business revenue, and business income decreased by 5.89% compared to the same period last year.

In the absence of further development of the main brand, Tian Chong fashion is constantly expanding and extending new brands and new categories. It tries to meet the needs of consumers in different life experiences and value pursuit by constructing different brand combinations with different consumption orientation and different styles.

The brand of tigrisso

In addition to the previous acting Spanish shoes brand "Patricia", Tian Chong fashion launched the multi site full category menswear own brand catalog in 2016, and through the investment of Tianjin oba Creative Design Co., Ltd., the sole agent of the Italy trend brand "O BAG".

The operation of these two brands means that the business of entering the fashion women's shoes is officially established.

The newly hatched "catalog" brand is a full life lifestyle platform. At present, the mobile terminal APP has been launched and developed by the Tianjin catalog Internet Technology Co., Ltd., which is invested by Tian Chong fashion.

The catalog also looks at the current demand for men's tailor made, which aims to provide real-time C2B exclusive tailored services for men, and train core customers through online and offline layout strategy.

And the operation of "O BAG" is to help Tian Zhuang fashion to expand the retail business of handbags, braces, watches, glasses and bracelets, focusing on providing consumers with creative participation experience.

However, the experience of many years in the field of fashion women's shoes can help to create new growth points in the new field.

But prior to this, many brands and fields have been successfully verified in shoe king BELLE.

Although shoes do not bring BELLE sustained growth, but from the latest announcement, we can see that its agency's sports apparel business revenue for the first time exceeds footwear, which is 10 billion 940 million yuan, an increase of 14.9% over the same period last year.

Internal efficiency helps gross margin increase

With the continuous weakening of the overall retail market consumption and the change of consumer style preferences, the traditional brand clothing retailers inevitably enter a difficult adjustment period.

However, under the premise of a reduction in annual revenue, net profit and gross profit margin still show a small increase. The creation of fashion is attributed to the promotion of internal business and management efficiency. "SAP is the core of the enterprise information management system integrating financial, business, commodity, logistics and human resources management, and intelligent and digital management is realized in the commodity management module."

At the end of the supply chain, the integrated supply chain mode of self made production, supplemented by external production (including two types of OEM and ODM), was created in the supply chain, and the self production ratio was 68% in 2016.

Similar to the fast fashion mode, Tian Chong fashion will take the comprehensive analysis and judgement of the market trend and consumption demand as the planning premise, and determine the final order style and quantity.

In the specific production process, Tian Chong fashion adopts multi batch and small batch flexible production mode, so that new products can be quickly circulated to meet market demand.

"Intellectualization" is the upgrading of products under the upgrading of consumption.

In addition to its beauty and functionality, today's shoes are more healthy, environmentally friendly and comfortable. The latest trend is revealed in the annual report. Based on a large number of foot type research and research data, the effective improvement of shoe type for different foot type consumers will be the key content of shoe companies.

In addition, the application of automated production equipment and various computer aided equipment also makes the labor-intensive shoe enterprises pform and upgrade to automation and intellectualization.

The advantage of this model is that stocks are greatly reduced.

It can be seen from the annual report that at present, the inventory value of the inventories is about 400 million yuan, accounting for 21.90% of the total assets, which is nearly 70 million yuan lower than the end of last year.

Inventory turnover days were 239 days, down 3 days from last year.

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Full channel operation

From the point of view of the sales mode, Tian Chong fashion adopts the full channel operation mode of "direct camp oriented and electricity supplier subsidiary".

Unlike other fashion brands, through the expansion of the scale of expansion, the main line is the direct store mode. The sales revenue of the main store accounts for more than 75% of the main business revenue, which is basically the same as last year.

As for the mode of joining, because the overall economy and consumption growth slowed down, franchisees took a more cautious strategy to reduce orders accordingly, resulting in a year-on-year decrease in franchise income.

In recent years, the traditional fashion retailing industry is facing fierce competition.

Tian Chong fashion also adjusted and optimized the channel. In the annual report, we mentioned "to enhance the efficiency of single store operation as the core, implement the minimum operating unit organization and management system, accurately locate and expand high-quality shops, adjust, replace and close the shops with low comprehensive efficiency, and integrate resources to cultivate key shops."

At present, the main outlets are mainly high quality department stores in the core business district of the first and second tier cities.

As of 12 years and 31 days in 2016, 1959 of the brand shops of Tien Chong Fashion Co., Ltd., 1266 of them were directly owned, and 693 were joined.

In addition, the e-commerce business is also valued by Tian Chong fashion. According to the characteristics and needs of online consumers, through the analysis of big data, we can quickly respond to the trend of commodities and improve the accuracy of marketing, so as to complement the online and offline product strategies and marketing promotion.

However, the electricity business accounts for less than 10% of the total, and it will take some time to really get through the goods and services of the whole channel.

In the information construction of the whole channel, Tian Chong fashion has now stepped out of the first step: it has created a "new channel retail channel for all retail operations" and a "full channel product life cycle operation platform".

More interesting reports, please pay attention to the world clothing shoes and hats net.