The Shoe Market Was Sluggish. In 2017, AOKANG International Worked Hard, But It Was Very Skinny In Revenue 3 Billion 260 Million, And Net Profit Fell By 25.8%.

In 2017, the challenges and opportunities of China's footwear industry coexist, and the decline of sales and sales, the decline of profits, the homogenization and the pfer of flow are the life and death crises of many footwear enterprises. But AOKANG international has mixed feelings.

According to the latest annual report released in 2017, AOKANG international revenue in 2017 was 3 billion 260 million yuan, an increase of 0.36% over the same period last year, and net profit of 226 million yuan, down 25.8% from the same period last year.

In 2017, BELLE was quietly delisting, Daphne lost 1009 stores in 730 million, but in 2017 it was "cool" year for AOKANG international. The reason for the cool is all kinds of efforts, but net profit is decreasing.

Awkward: very hard, but profits are falling.

1, stick to the "big store strategy", and firmly expand the collection store.

In 2017, AOKANG international speeded up the pace of commercial real estate channels through strategic cooperation with Wanda, Huarun and other brand commercial real estate developers, and gradually improved the layout of the channel.

It is understood that AOKANG International's existing retail channels include street stores, department stores, shopping centers, third party mainstream e-commerce and self built e-commerce platform, as of the end of 2017, the number of stores under the domestic line reached 3086.

2, dig deep consumption demand.

In 2017, AOKANG international further excavated customers' consumption preferences and consumer demand, and launched 27 marketing activities in the national regional market.

3, cooperate with giant

Last year, AOKANG international promoted the development of sports category through strategic cooperation with Belgian shoe and clothing giant Cortina, India famous outdoor brand Woodland and INTERSPORT (Yichang sports).

AOKANG International said it will continue to expand its overseas market in the future, and has explored for nearly ten years on the international road. How will AOKANG International's road go and let the market verify it?

4, full channel marketing

AOKANG international through the help of Jingdong Tmall and other giant platforms, "double 11" and other node marketing line, online and offline frequent linkage, and further promote the integration of the whole channel.

5, intelligent manufacturing

In 2017, AOKANG international realized the intellectualization of the whole process from warehousing, replenishment, picking, distribution to warehousing, shortening the time of goods leaving the warehouse, and speeding up the integration process between the two lines.

During the reporting period, the sales of men's shoes maintained a steady growth; leather goods sales increased by 8.81%; leather goods gross margin increased by 5.92 percentage points, and a series of high value-added products, such as CEO series pull rod boxes, were introduced. The increase of gross profit rate of women's shoes was mainly based on enhancing the added value of products, while reasonably promoting sales activities and digesting certain stocks.

However, AOKANG International's net profit has dropped unexpectedly, and the feeling of "cool" is growing.

Mode: multi brand operation

According to China apparel net, AOKANG international is mainly engaged in R & D, production, retail and distribution of leather shoes and leather products. Its products mainly include business shoes, casual shoes, sports shoes and other footwear products, as well as leather accessory products, which are mainly used to meet the increasing functional and fashionable demand of consumers' footwear and leather products.

AOKANG international is currently implementing multi brand operation mode supplemented by "AOKANG" brand, Kanglong, Cage and other brands. The main sales areas are 123 national shopping centers, shopping malls, stores and so on.

AOKANG brand is committed to providing high-end business for 25-35 year old target customers.

The main price of the product is between 299-699 yuan. The Kanglong brand is more prominent in fashion and leisure, with the young consumer group as the main force, the main product price band concentrates on 399-599 yuan, and the Cage brand product covers over 3 years old children and adults, including

The main price is 399-899 yuan for clothing, accessory products and so on.

It is easy to see that AOKANG international brand positioning is clear, and each brand product can achieve a certain degree of complements, the product quality is good, the price is more close to the people, can meet the needs of different consumers.

Breaking the situation: meeting diversified consumption needs

A variety of product categories, brand new design concepts and experiential services can meet the diversified needs of consumers.

Set up a store in 2017 has become a lot of shoe and clothing enterprises attach importance to brand strategy, AOKANG international is no exception.

It is understood that as of December 31, 2017, AOKANG international opened 16 distributors in Vietnam and Kuwait.

What is the difference between AOKANG International's collection store? Its collection store supports O2O (online to offline) consumption and high quality customization services, providing consumers with convenient, fashionable and international consumption experience. It is an important carrier to create "excellent footwear ecosystem", and its collection stores include International Pavilion, AOKMART, leisure Hall and so on.

Last year, AOKANG international made a lot of efforts in order to escape from the plight of the industry. Its sales volume was also good, but why did net profit decrease significantly?

Worry: inventory turnover improved significantly, advertising fees increased by 59.48%

Last year, AOKANG international increased its inventory turnover significantly, except for the net profit margin. The stock amount was 849 million yuan, down 18.21% from the same period last year, 1 billion 37 million yuan, and the inventory turnover time was 163 days, which was 12 days shorter than the 175 day of last year.

AOKANG said that the speed of product integration was accelerated, and the turnover of inventory was improved.

AOKANG international is no longer worried about inventory problems, but advertising fees are still a big expense.

In order to promote the brand, AOKANG international can be quite willing to invest in advertising. The CCTV national brand plan is the exclusive sponsor of Xingguang Road, with advertising costs up to 8000, representing an increase of 59.48% over the same period last year.

The goal of AOKANG is to build national brand and brand promotion to choose traditional TV advertisements.

In the era of Internet +, the target group of 25-35 years old targeted by AOKANG international is not likely to choose to know its brand information through TV programs. Instead, social networking platforms and new self media platforms are easier to link consumers.

With the upgrading of consumption, consumers are changing and consumer demand is more diversified and personalized. Therefore, brand promotion is best done in a comprehensive way, rather than spending a lot of money and manpower on a carrier.

Goal: excellent footwear ecosystem

Along with the rapid rise of new brands and new retail business models, AOKANG International's overall development ideas are: innovation and change, courage and commitment, and all efforts to promote the strategic landing of "creating excellent footwear industry ecosystem".

In the future, AOKANG international plan will build "excellent footwear ecosystem" as a medium and long-term strategic development goal, adopt the evergreen brand + Fashion platform mode, establish flexible organizational platform, open and integrated resource platform, and win-win cooperation capital platform, implement brand strategy, business strategy, channel strategy, retail strategy and supply chain strategy, break the bottleneck of enterprise development, and then promote AOKANG.

Transformation and improvement of comprehensive competitiveness.

"Unmanned convenience stores", "virtual shopping" and other ways of exploring new retail mode exacerbate the competition in the retail industry.

In addition to this grand goal, AOKANG international has its own tactics for new retail: update the shop building and improve the shopping experience.

In 2018, AOKANG International Association combined the construction of offline intelligent stores with the promotion of C2M mode. By introducing cloud storage, face recognition, RFID recognition technology and other technologies, the company focused on the needs of consumers, aiming at improving consumers' shopping experience, product experience and service experience.

Despite the improvement in inventory in 2017, AOKANG international adopted a "foresight" attitude towards digestion inventory.

AOKANG International believes that if product design research and development can not quickly adapt to consumption changes and mainstream trends, it will easily lead to unsalable products and bring inventory turnover pressure.

In this regard, AOKANG International said that in the future it will continue to enhance commodity planning capabilities and speed up the supply chain response so as to respond quickly to changes in consumer preferences and effectively meet consumer demand.

In addition, by opening up all channels under the online and offline channels, we will speed up the turnover of inventory and accelerate the expansion of outlets to reduce backlog.

According to China's clothing network, AOKANG international revenue in the first quarter of 2018 was 868 million yuan, down 1.55% from the same period last year, but net profit rose 4.75% to 119 million yuan.

AOKANG international always seems to refresh our recognition of our unexpected performance: revenue increased in 2017, net profit declined, Q1 revenue declined in 2018, and net profit increased.

Current domestic

The market is still dominated by domestic footwear products, and foreign brands dominate the market.

In the two quarter, how will AOKANG international make a report card to the fashion industry in such a surprising way?