The Present Situation And Existing Problems Of Fujian Shoes And Clothing Enterprises Have Aroused Renewed Concern.

In Fujian, Jinjiang

Well known, while stone lions are famous for men's casual wear.

That's one of them.

According to the world clothing shoes and hats net, recently, the old shoe and clothing giant has been investigated by the SFC on suspicion of information disclosure and illegal use of bond raising funds.

Not long ago, it was also a shoe and clothing brand from Fujian.

Also because of debts hundreds of millions of dollars to close down.

For a time, the survival status and problems of Fujian shoes and clothing enterprises once again aroused concern.

In addition, as early as 2014, Ding Hui, who belonged to Fujian style clothing, came out with the chairman and chief executive officer, who lost money in connection with the loss of money.

In the view of the industry, there are many reasons for the financial problems of these garment enterprises. However, an indisputable situation is: in many subdivision areas, the adjustment of the entire garment industry has not yet ended, and the industry reshuffle is still continuing.

In the future, enterprises that blindly diversify, do not manage meticulous in the main industry, and lack innovation and pformation will still be eliminated.

Business has not yet fully recovered.

For a long time, there seems to be no definite definition of "Min Pai" clothing. Many points of view can be interpreted as a clothing culture school formed by the so-called pan Quanzhou clothing plate, such as Shishi, Jinjiang, Nanan and other related brands in Southern Fujian.

Among them, Shishi and Jinjiang are the main producing areas, mainly producing casual wear, especially men's casual wear.

After the 2008 Olympic Games in Beijing, Jinjiang's first sports brand was in a predicament because of its blind expansion, serious homogenization, lack of innovation and R & D.

In the past two years, this subdivision has gradually revived.

In contrast, the issue of Min style casual wear, especially men's wear, was late, especially in 2015 and 2016.

Fortune bird, an old clothing company listed on the Hong Kong Stock Exchange in 2013, has fallen into decline since 2015.

According to the financial report, the net profit of fortune birds in 2015 was 392 million yuan, down 13.09% from the same period last year. Net profit in 2016 was 163 million yuan, a decrease of about 59.16% compared with the same period last year.

Net income in the first half of 2017 was about 412 million yuan, down 48.09% from the same period last year, and net loss attributable to the fortune bird owners was about 10 million 887 thousand yuan.

Like rich birds, the more famous brands in Fujian style clothing include tiger capital, CABBEEN, Li Lang and seven wolves.

Take 2016 as an example. At that time, the profits of the tiger were reduced by 36.7% to 1 billion 186 million yuan, while the net profit of the group decreased by 54.4% to 132 million yuan.

CABBEEN's earnings and annual profits declined by 14.4% and 36.8% respectively.

In addition, the net profit of Li Lang and seven wolves declined in varying degrees.

In terms of performance alone, some of the Fujian clothing enterprises are now recovering.

For example, the 2017 performance Bulletin released by the wolves at the end of 2 showed that the company had changed its net profit for the past four years.

However, the reporter noted that some enterprises' profit performance is still not optimistic, for example, last year's net profit was a loss.

In addition, the adjustment of some brands in stores and so on continues.

According to public figures, CABBEEN had 845 retail outlets in mainland China at the end of last year, a decrease of 54 compared to the same period last year. The tiger had 1273 retail outlets as of the middle of last year, with a net decrease of 53 compared to the same period last year.

Cheng Weixiong, general manager of Shanghai Liang habitat Brand Management Co., Ltd., told reporters that Fujian style clothing represented by men's clothing is undergoing structural adjustment, and the so-called warmer needs some time.

"From a certain point of view, men's clothing is facing changes and restructuring of the entire consumption structure, and the lifestyle of consumers is changing, and the existing men's clothing product structure does not match it."

The independent observer of garment industry Ma Gang believes that the shuffling period of men's wear area will be longer than that of sports brand, because the number of enterprises involved is more, and its market positioning is mostly convergent.

"The market can not accommodate so many brands. There are bound to be some brands that will be high-end or go to parity or do something else, and adjustment needs a process."

Some enterprises are affected by diversification.

In the 2015 annual performance report, Fu Fu bird pointed out that the footwear industry is still in the bottom stage due to the macroeconomic boom and the development cycle of the footwear industry.

It also said that the famous shoes and clothing brands are facing the diversion of e-commerce on the one hand, and on the other hand, they are faced with the competition between international and domestic brands.

In the industry view, external economic factors and industry cycle factors are only one aspect. There are still many inherent problems in some Fujian shoes and clothing enterprises.

Earlier, the Jinjiang Municipal People's government had published an article pointing out that in the local sports industry sports shoes and clothing, the product homogenization was serious, and no effective differentiation could be formed, resulting in intensified competition and declining profits.

In fact, such problems still exist in the entire Fujian style clothing.

Cheng Weixiong believes that at present, many shoes and clothing brands in Fujian are still partial homogenization, and marketing channels, business methods and promotion methods are all similar.

"If we do well in the previous scale, we may survive. Otherwise, input-output will not be directly proportional. Once the capital flow is bad, it will become inevitable."

Many enterprises have also actively tried to expand the business outside the clothing industry, until now, cross-border diversification is still continuing.

According to the China business newspaper, the rich bird also owns its own mineral company.

In addition, there are more than 10 enterprises in Shishi under the banner of Fu Ping, chairman of the company.

In Cheng Weixiong's view, shoes and clothing enterprises have lower gross profit and longer investment cycle. Many traditional enterprises want to enter the highly leveraged financial sector.

"The reasons behind many enterprises are not fully known by the public. Some of them are not the main businesses, but the problems outside the main business affect the operation of enterprises."

It is worth mentioning that Ding Hui, former chairman and chief executive of Fujian, lost contact with the chief executive, when a supplier representative told reporters that there was still a phenomenon of "big gambling" market and credit becoming popular in Fujian clothing brand.

Many companies in the capital chain tension, over 50% of the payment can not be paid on time, but through the acceptance of bills of exchange, letters of credit and other means of delay.

Ma Gang said that not only these problems exist in Fujian clothing, but also exist elsewhere.

Against this background, Cheng Weixiong said that the rich and precious birds are not beginning nor ending. In the coming period, the shoes and clothing brands will encounter a debt problem or even go bankrupt.

This is not only a problem in the clothing industry.

What enterprises need to do is to grasp the time and focus on the development of the main business and realize pformation.

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