Domestic Shoe Enterprises Are Facing Great Challenges. Why Do Traditional Women's Shoes Fall?

Recently, domestic

On Saturday, Limited by Share Ltd released the 2016 annual report of Limited by Share Ltd (hereinafter referred to as Saturday), showing that the company achieved operating income of 1 billion 484 million yuan, representing a decrease of 9.61% over the same period last year.

During the period, a total of 466 stores were closed on Saturday, while the department store stores were converted into brand collection stores.

But judging from its performance, the operation effect of the reformed stores is not obvious.

The results showed that the company achieved 1 billion 484 million yuan of operating income, a decrease of 9.61% compared with the same period last year, and realized a total profit of 29 million 281 thousand and 400 yuan, a decrease of 11.86% compared with the same period last year. The net profit attributable to shareholders of listed companies was 20 million 839 thousand and 600 yuan, a decrease of 7.52% over the same period last year.

Before that,

In the performance Bulletin released on Saturday, the decline in performance on Saturday showed that the company's performance fell first because the downward pressure on the domestic real economy still existed in the 2016, which had a great impact on the retail industry.

In addition, due to the closure of some department stores and the company's initiative to optimize the channel structure, the number of self operated stores and distribution outlets decreased in 2016, resulting in a year-on-year decline in operating income and a reduction in profitability.

It is worth mentioning that recently, BELLE international, known as "China shoe king", has been selling at a low price of 5 billion 700 million US dollars, and its market value has shrunk by 2/3 compared with its peak.

At the same time, several other listed local women's shoes enterprises are also in deep mire.

Insiders say that the whole industry has reached a life and death moment that has to be pformed.

BELLE International released 2016/17 retail business data and earnings warning for the fourth quarter of fiscal year, announces the first consecutive 10 consecutive profit decline.

According to the announcement, BELLE international declined 6.2% in the same quarter sales in the fourth quarter of the 2016/17 fiscal year ending February 28, 2017, and the board expects that the profit attributable to the holders of the financial performance will be reduced by about 15% to 25%.

For the 2016-2017 fiscal year, profits continue to fall sharply, BELLE international will be attributed mainly to the continued weakening of footwear business, resulting in impairment of related business goodwill, while other intangible assets are expected to be impaired. Besides, footwear performance weakness, gross profit and operating profit have declined year-on-year.

BELLE international also said that the decline in profits was related to the adjustment of management incentive plan implemented by the group in May 26, 2014, and the related expenses increased considerably in the last fiscal year.

As a local retail giant with a revenue of 40 billion, BELLE has always been a leader in domestic shoe companies, but its performance in recent years has not been satisfactory.

In fact, not only is BELLE, but in recent years, the traditional brand of women's shoes is not easy.

Due to the impact of sports and leisure wind, channel layout, electricity providers and so on, Daphne, Lies Dan, and so on all had different degrees of influence.

Daphne's performance can be described as tragic.

In March 28th, Daphne released the 2016 annual report. The group lost a total of HK $819 million 100 thousand for the whole year, a 2.16 times net loss of HK $378 million 900 thousand in the same period last year.

According to the announcement, the decrease in turnover was mainly due to the sharp decrease in the number of sales outlets and the negative growth in same store sales, leading to a decline in core brand business turnover.

In addition, gross margin declined to 50.9%, mainly due to the increase in sales of heavily discounted goods over the past quarter, leading to a decline in gross margins.

According to the announcement, in 2016, the group accelerated the integration of stores and reduced 1030 sales points. In December 31, 2016, the total sales point of the group was 4900, including 4598 sales outlets of core brand businesses and 302 sales outlets of other brand businesses.

On the evening of April 17th, the Guangzhou women's shoes brand KISSCAT parent company launched its first performance report after the launch.

The report shows that the company achieved operating income of 1 billion 548 million yuan in 2016, down 5.07% from the same period last year.

In addition, the 2016 annual results released by the company showed that, as of the end of December 31, 2016, the company's revenue was 3 billion 207 million yuan, an increase of 5.3% over the same period last year, and the profit margin of the company's shareholders was 206 million yuan, down 19.9% from the same period last year, and the gross profit margin was about 60.4%, down 0.7 percentage points from the same period last year.

The announcement shows that in 2016, the retail and wholesale revenue of the company was 2 billion 332 million yuan, a decrease of 11.8% compared with the same period last year. The main reason for the decline in retail and wholesale revenue was the decrease in the same store sales and the closure of inefficient shoe shops.

Lies Dan released unaudited retail business data and operating results in the fourth quarter ended 3 months in February 28, 2017, showing that total retail sales fell by 17.2% and sales in the same store decreased by 15.3% compared with the same period last year, while e-commerce sales fell 41.3% year-on-year.

According to the announcement, in February 28, 2017, the group had 796 retail outlets in mainland China, Hongkong and Macao, a net decrease of 100 compared with the same period last year.

These include 717 self operated shops located in the mainland of China, Hongkong and Macao, and 79 franchised stores located in the mainland of China.

In addition, the board anticipate that the combined profits of the group in the 2016/17 fiscal year may be reduced by about 35-40% compared with the same period last year, due to a significant drop in retail sales in the fourth quarter.

Looking at these domestic shoe brands, they are more or less trapped in the doldrums.

Well,

Why does the brand fall? Because traditional women shoes only focus on sales, ignore modern people's pursuit of fashion, and have no unique design style.

More importantly, there will be more and more peers. If we want to blot out a distinctive product in such a fierce competition, we should highlight, fashion and make it unique.

The emergence of new women's shoes has made an unprecedented reshuffle for the shoe industry.

In the future, how to restore the consumer's heart and let the performance go against the trend has become the main problem faced by these brands.

For more information, please pay attention to the world clothing shoe and hat net information report.