"China Shoes Capital" Is No Longer In Sight.

Jinjiang, a county-level city in Fujian Province, has bred in the past 30 years of development.

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Many famous brands such as Hongxing Erke and "noble bird" have been jointly named "China Shoes Capital" by 4 Chinese leather and footwear industry research institutes.

However, the reporter observed that Jinjiang sports brand showed polarization, and some brands have been among the first tier of Chinese sports brands, such as Anta.

Footwear industry analyst Wang Yuran said in an interview with reporters 10, the Jinjiang model is the epitome of China's sporting goods manufacturing industry.

From blind expansion to industry downturn, and then to the Internet and overseas brands, domestic brands have experienced the industry reshuffle.

But at that time, Jinjiang sports brand manufacturers were still in the stage of blindly following the trend and local "pinching" stage, and missed the chance of pformation.

"Survival of the fittest is the normal market, enterprises fall down for Industry reasons, but more is the enterprise's own problems."

Wang Yuran believes that at present, the domestic sports apparel industry is on the whole revival, the industry concentration advantage is obvious, the future emerging sports products will be new opportunities for the development of the industry, Jinjiang sports brand still has the opportunity to break through the development.

Li Jun, Secretary General of Fujian footwear industry association, said in an interview with reporters that 12 of the sports shoes produced in Fujian had occupied "half of China". In 2017, the footwear industry in Fujian province achieved two digit growth throughout the year.

With the development of market segmentation and high-tech intelligence, the whole sporting goods industry is expected to usher in a new round of growth trend.

For enterprises, they can no longer follow the trend of development. They must have a clear market awareness and a sense of urgency in order to avoid being eliminated by the market.

Del Hui listed on the road, debt 636 million yuan to close down

Reporters learned that at the end of 2017, an asset disposal published in the Fujian daily showed that the company owed 636 million yuan in debt, and its factories, land and warehouses were all mortgaged.

The reporter saw that in the Tmall flagship store, the sales volume of its shoe sales was only 939.

In contrast, XTEP Tmall flagship store, which is the brand name of Jinjiang, has sold tens of thousands of sports shoes monthly.

Tmall flagship store staff told reporters that the goods sold must be genuine products of del Hui, and some of them are del Hui, and the new production company is Kay Tian sporting goods Co., Ltd.

Public information shows that Del Hui Limited by Share Ltd legal representative is still its founder Ding Ming furnace.

Kai Tian Sports Goods Co., Ltd. is the legal representative of Tang Mingqiang. At the same time, he is still the legal representative of Shang Feng sporting goods Co., Ltd. and Fujian zero Sports Goods Co., Ltd.

Statistics show that Kai Tian sports was established in December 2016, with a registered capital of 50 million yuan, and its business scope is sporting goods.

Insiders believe that although del Hui assets are being disposed of, their brands still have a certain market.

Kay sports took over the brand of del Hui, perhaps to make it happen again.

According to the world clothing shoes and hats net, del Hui, because of Jay Chou's "do not take the unusual road", has moved from quietly unknown to the second line brand of Jinjiang department.

According to media reports, at the peak, there were more than 4000 stores in the country, but less than 1000 in the middle of 2017.

Wang Yuran bluntly said that in his ten years of cooperation with Jay Chou, del Hui lacked insight into the consumer and missed the opportunity for pformation.

"As a sports fashion brand, a celebrity endorsement for ten years is quite risky."

Wang Yuran believes that the ten years of the rise and fall of del Hui are exactly the ten years that Chinese consumers have undergone profound changes. Chinese consumers begin to move towards rational consumption from the blind consumption of brand recognition only.

As an enterprise, failure to return to the product itself and insight into the change of consumption scenarios is the main reason leading to the final closure of enterprises.

Statistics show that in 2007, del Hui launched the Hong Kong stock listing plan, but suffered financial turmoil eventually.

Subsequently, del Hui moved to A shares, but after a long wait, del Hui submitted a suspension review application to the SFC in July 2014.

Nearly 8 years ago, del Hui paid a heavy price on the way of listing.

From the blind expansion to the survival of the fittest, the "Chinese shoe capital" is no longer the scene.

De del is not the first Jinjiang sports brand, and it is hard to say that it is the last one.

Before del Hui, the US listed company went bankrupt, and Hope Les and Singapore's listed companies lost their wages.

In the past 30 years, the "Jinjiang model", which dominated the shoe and clothing industry and became famous at home and abroad, began to be questioned.

According to the website of Jinjiang Municipal People's government, in 2015, the gross output value of Jinjiang's sports manufacturing industry decreased by 6.3% compared with the same period last year, which was 10.2 percentage points lower than the total industrial profit, and the profit margin dropped by 1.1% over the same period.

Public data show that in the first three quarters of 2016, the economic operation of Jinjiang showed that 369 of the city's industrial enterprises had stopped production or reduced production, and the reduction of production reached 25.2%, an increase of 1.1 percentage points over the same period last year.

Among them, 67 enterprises closed down and closed down, the output value was reduced by 13 billion 487 million yuan, and the output value of pulling the low regulation increased by 4.4 percentage points.

In May 2017, the first Chinese fast moving consumer goods company, NASDAQ, was declared bankrupt.

After pre market financial fraud and post market performance decline, Xi Delun finally delisted in 2014.

Capital chain rupture, homogenization serious, inventory backlog, foreign big card influx, electricity supplier impact......

A series of problems made Jinjiang sporting goods manufacturers go on thin ice.

The Jinjiang Municipal People's government admitted in its 2016 Jinjiang sports industry development research that Jinjiang's sports industry development is not mature enough, its technology content is not high, its innovation intensity is not strong, and its homogenization is serious.

The article points out that the flagship leading enterprises in Jinjiang's sports industry are few. Although sports industry enterprises exceed 5000, they are generally small and medium sized enterprises. The enterprises with a small scale and less than 10 billion yuan in output value are more than 10 billion yuan.

Industrial structure is single, product homogeneity is serious, and effective differentiation has not been formed, resulting in intensified competition and declining profits.

Jinjiang official said that the processing capacity of Jinjiang enterprises and the operation of the market were in sharp contrast. In Jinjiang, the structure of products, the construction of the market and the operation of brands were at the initial stage of development. Jinjiang footwear and other sports manufacturing enterprises generally adopted the way of celebrity endorsement to enhance brand awareness, which was copied by enterprises, but the effect of brand publicity became the same. Simple plagiarism made Jinjiang shoes and clothing industry suffer heavy losses.

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Official data show that since 2004, Jinjiang shoe enterprises have invested more than 6 billion 500 million yuan in CCTV and local satellite TV only.

At the same time, the market is changing.

Wang Yuran pointed out that the "Jinjiang model" is the epitome of China's sporting goods manufacturing industry.

From 2005 to 2006, the amount of sports apparel brand financing increased sharply, and the domestic sports production enterprises appeared a blind expansion of production and enclosure movement.

After 2008, the market supply and demand imbalance, coupled with the rise of the electronic business platform, sporting goods store performance began to decline.

At that time, most sporting goods manufacturers in Jinjiang were still in the stage of blindly following the trend and local "pinching". They did not see the changes in the market, so they missed the best opportunity for the Internet pformation of enterprises, and did not produce the synergy effect of regional integration development.

Excellent enterprises are breaking through with the current trend and looking for market segments.

Survival of the fittest is the common practice of soldiers.

Under the Jinjiang mode, there are also many enterprises going upstream and occupying the right to speak in the market.

The Anta brand, the "Jinjiang Department", is now among the first tier of Chinese sports brands.

Today, Anta's market capitalization has exceeded 74 billion yuan, with more than 9500 stores, and Nike, ADI and Andemar joined the world's four largest sporting goods company.

In the view of chairman and CEO Ding Shizhong of Anta sports director, the "pformation from brand wholesale to brand retailing" put forward by that year has become an important strategic choice to change Anta's trend.

First of all, in the low tide of the industry, the first growth rate is in the low tide.

In the 2012 industry downturn, Anta took the lead in becoming a leader in the industry.

Nowadays, if a company relies on a single brand, it will not be able to compete with overseas brands such as Nike and Adidas.

Ding Shizhong sees that only by implementing multi brand strategy can we create more possibilities.

According to the 2017 China Daily, the revenue of FILA has reached 20% of Anta group, and FILA is a clothing brand purchased by Anta in 2009, which is HK $600 million. Now it has become an important driving force for Anta's growth.

In addition, in September 2017, Anta was charged 60 million Hong Kong dollars to acquire Hongkong's high-end brand "Xiao Xiao Niu", aiming at 150 billion of children's wear market.

In addition to some of the business, sports brands are also investing in many fields such as professional soccer equipment retailers, sports fitness technology applications, electric competition anchors, professional team brokers, and women's sportswear brands.

Dozens of investment projects, involving an amount of nearly 5 billion yuan, to seek the development of their own brands.

Semir, seven wolves, Anta, Lining and so on have opened up the market of new retail trillions.

There is no bad environment, only the enterprises that are not suited.

In Wang Yuran's opinion, being the best and the best is the foundation for an enterprise to survive.

The Jinjiang model is changing, and every enterprise is looking for market segments to find its own strength.

Narrowing the gap with international brands, emerging sports or opportunities for development

As a county-level city, Jinjiang has nearly 40 listed companies, and it has become China's county-level city with the largest number of listed companies.

In the first half of 2017, the results showed that during the reporting period, in the comparison of operating income, Anta and Lining, who surpassed the two or three place in the industry, and the 361 degree of sales revenue, except Anta's decline in revenue and net profit, Anta, Lining and 361 degrees achieved stable growth in performance.

Overall, from 2012 to now, gross margins of Anta, Lining and 361 degrees are rising, of which Anta's gross margin is over 50%.

"The sports shoes produced in Fujian have occupied half of China's economy." during the interview, Li Jun was proud to say that in 2017, the footwear industry in Fujian province achieved two digit growth throughout the year.

Li Jun pointed out that with the development of market segmentation and high-tech intelligence, the whole sporting goods industry is expected to usher in a new round of growth trend.

In Li Jun's view, the sporting goods manufacturers must change their market position in the traditional manufacturing industry. With the arrival of the era of intelligence and big data, the footwear industry has changed from functional to intelligent, and the sports manufacturing industry has already contained many scientific and technological content.

Products should be strengthened in terms of manufacturing technology, product functions, marketing channels, business models and other new angles to upgrade the production and manufacture of footwear industry.

Wang Yuran believes that after years of development, the gap between product quality and foreign brands is shrinking.

In terms of channels, domestic brands have more geographical advantages, especially with three or four line city market advantages.

Wang Yuran suggested that sporting goods manufacturers could continue to maintain the existing "battle array" on the one hand while strengthening product development in special sports events, such as skiing and water sports, to break through the high-end market in the first tier cities.

Future emerging sports products will be new opportunities for industry development.

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