Shocking! On Saturday, The Two Shoe Companies In The First 1 Years Of The Shoe Industry Lost 7 Years Net Profit.

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In the summer of 2002, Zhang Zemin and his wife Liang Huaiyu founded the shoe industry Co., Ltd. in Foshan, in the summer of 2002.

At that time, department stores were the mainstream high-end shopping places.

Zhang Zemin quickly launched a chain store in the department stores around the country, and was promoted to the top three in the Chinese women's shoes industry through the rapid expansion of brand and channel on Saturday.

On Saturday, 2009, (002291, SZ) landed on A shares and became the "two city shoe industry first stock".

However, it never occurred to me that after 7 years' time, the "first shoe market of two cities" broke out, but the net profit was 352 million yuan, which was equivalent to the sum of net profit before 7 years.

Why did the star shoe industry collapse? How will the company turn down its performance loss? The daily economic news reporter launched a series of investigations.

After its listing in 2009 on 2009, the company's revenue increased steadily, but profits began to fall rapidly in 2012.

In 2009, the operating income of the company was 880 million yuan on 2009, and the net profit was 112 million yuan. After 7 years (2016), its revenue rose to 1 billion 484 million yuan, but the net profit fell to 18 million 853 thousand and 800 yuan, less than 1/5 in 2009.

In 2017, a revised announcement was made on Saturday. In 2017, earnings in advance turned into a huge loss of 352 million yuan, equivalent to the sum of net profit before 7 years.

The depreciation of stock and the impairment of goodwill are the fuse to detonate Saturday's performance landmines.

Stock fall loss 197 million

In February 28, 2018, the 2017 year performance report on Saturday said that the company achieved 1 billion 538 million yuan during the reporting period, up 3.6% compared with the same period of the previous year, and the net profit of returning to the mother was 24 million 942 thousand and 600 yuan, up 19.69% over the same period.

But in less than two months, Saturday's performance suddenly changed.

On April 25th, a revised notice on the 2017 annual performance bulletin was released on Saturday, which adjusted the operating income to 1 billion 505 million yuan. The net profit from the parent company was substantially revised to 352 million yuan from the profit of 24 million 942 thousand and 600 yuan, while the total net profit from the previous 7 years (2010 2016) was only 369 million yuan.

In the 2017 annual report on Saturday, the reason for the big loss is that the company has made a large amount of assets impairment loss due to the company's impairment of the goodwill, inventory and accounts receivable at the end of the reporting period.

For the impairment of stocks, the company dealt with some inefficient brands at the end of March 2018. However, when preparing the 2017 performance report, it was not fully prepared for the partial inventory. Therefore, after the audit, the final inventory depreciation reserve amount totals 197 million yuan.

On Saturday, He Jianfeng, director of trade, told the daily economic news reporter that the low efficiency brands that deal with inventory at low prices mainly include "69", "RIZZO" and "SEBASTIAN". At present, these brands have not set up independent stores, and will gradually terminate the operation of the above-mentioned brands. Therefore, the company has made a centralized disposal of these brands' stocks.

The handling of inventory can be said to be hard to get back to.

The daily economic news reporter contacted a dealer who specializes in handling inventory for the brand. She mentioned that she was selling a batch of stock on Saturday and Febe Lil's women's shoes recently, with a balance of 150, which amounted to several thousand pairs.

Reporters learned that the sale price is only ninety percent off of the original price, for example, a pair of suede sheep leather high heeled sandals on Saturday, the original price is 1029 yuan, and the current price is 89 yuan.

He Jianfeng told reporters that the manufacturing cost of a pair of shoes in general is not less than one hundred yuan, if it is dozens of blocks, more than 100 pieces to sell double shoes, so clear inventory can not return to this.

Therefore, because of this factor, the company only has to reduce the value of the low priced inventory.

Crazy scale expansion has little effect.

After listing in 2009, a new round of scale expansion was launched on Saturday.

Along with shopping malls and shopping malls sink, new channels began to enter two or three line cities on Saturday.

Meanwhile, a multi brand strategy was launched on Saturday, and new brands such as Sophia and Febe Lear were set up. The brands also expanded on existing channels.

On Saturday, 2011, it began to develop non proprietary business and network sales channels, with a total number of stores reaching 1961.

A shoe listed company secretaries said that in the past 10 years, the rapid development of women's shoes industry, many high-end fashion shoes brand through the implementation of multi brand strategy, group operation, grab the line of traditional retail channels, so as to achieve rapid growth in scale and performance.

Saturday is the case. The multi brand strategy and scale expansion have made it full of money. According to Saturday's earnings report, its operating income in 2009 ~2010 was 880 million yuan, 1 billion 143 million yuan and 1 billion 348 million yuan respectively, and the net profit was 112 million yuan, 98 million yuan and 101 million yuan respectively.

Market share is also squeezed into three or four sectors.

But by 2012, the scale expansion was no longer effective, although the number of self stores increased by 555 on Saturday, and the total number of stores reached 2351, but the performance declined sharply. The net profit was only 55 million 303 thousand and 700 yuan, down nearly half of that in 2011.

In response, He Jianfeng explained that the funds raised by the listed companies were mainly used for the opening of stores. After a few years after the listing, the number of stores actually increased significantly, and 90% of the stores were opened in department stores, because the main selling channel of domestic high-end consumer goods was the 100 cargo company.

But then it was hit by new channels such as shopping centers and electricity providers, and the flow of people and businesses in department stores declined and sales declined accordingly.

"Although the decline of performance is related to the impact of the channel, the more important thing is that the competitiveness of products is declining. On the one hand, the strength of high-end and even light luxury brands in the international market has a strong impact on the market competition pattern. More importantly, compared with the traditional women's shoes brand, the online brand updates such as" Amoy brand "and" net red brand "are fast and cost-effective.

When the commodity, price and channel are not dominant, its performance will only slide down. "

Ma Gang, an independent observer of footwear industry, told reporters.

The inventory ratio is much higher than that of the competitors.

It is worth mentioning that in 2012, on Saturday, the number of stores increased significantly and the sales volume did not reach the expected level. The company's stock began to increase, and the proportion of inventory accounts for 39.43% of total assets.

On Saturday, 2013, it continued to expand, increased the number of non self operated shops, and reached the peak of 2363 stores. Its inventory also increased again, accounting for the first time that the total assets accounted for more than 40%.

However, on Saturday, it said in the annual report that the company's stock management is appropriate.

Tang Xiaotang, founder of fashion industry research and consulting organization No Agency, told reporters: "a lot of traditional women's shoes are very slow at the beginning of the impact of the electricity supplier, though they are on the extension line, but many of them are clearing inventory through the electronic business platform."

By 2014, the proportion of inventories rose again on Saturday, reaching 47.8%. At last, Saturday realized the seriousness of inventory problems, and began to readjust store structure, reduce self run stores, increase distribution outlets, and reduce overall scale of stores.

Data show that in 2015, ~2017 decreased more than 200 stores a year on Saturday.

In addition to reducing inefficient department stores, Saturday also began trying to enter the shopping mall in the form of brand collection stores and vigorously expand the channels of e-commerce.

But in 2016, after implementing inventory management and reducing the number of stores, inventories accounted for 50.61% of total assets on Saturday, that is, half of Saturday's total assets were inventories.

According to the annual report, when the company sold 5 million 590 thousand pairs of shoes, the number of shoes was up to 12 million 680 thousand pairs. In other words, even if the company no longer produced new shoes, the inventory would take more than two years to sell out.

In addition, in 2017, the inventory rate of 197 million yuan was 43.32%.

In response, He Jianfeng told reporters that on the one hand, due to the recent impact of new channels such as electricity suppliers and shopping centers, some department stores closed down, forcing the company to close many stores passively. On the other hand, the company took the initiative to close some inefficient stores to optimize sales channels.

Because each store probably needs 300 thousand of the goods, and even inefficient stores have certain sales capabilities, so the number of self operated stores has declined sharply in recent years, and the stock is growing.

In 2017, the company's main competitors were BELLE, Tian Chong fashion, and 100 billion companies on Saturday.

The daily economic news reporter found that in 2016, BELLE, Tian Chong fashion and 100 thousand stock accounted for 24.8%, 21.9% and 23.1% of the total assets respectively, while the stock rate on Saturday was 50.61%.

In 2017, the inventory rate of Tian Chong and 100 thousand were 14.75% and 20.96% respectively, while the stock rate on Saturday was 43.88%.

"The business models of the above companies are indeed similar to those of our company, and they are also our direct competitors. However, each company has its own particularity, because the product composition, business segmentation and total assets of each company are different. The inventory level is relatively high on Saturday.

But over the past two years, the company has gradually reduced its inventory level by expanding the collection channel of shopping centers.

He Jianfeng mentioned.

Traditional women's shoes lack creativity.

Starting from 2011, the distribution network sales channels on Saturday, and sales volume of network sales channels also showed a continuous growth trend.

By the end of 2017, net sales revenue was 192 million yuan on Saturday, accounting for 12.77% of revenue.

"Saturday's net sales account for more than a dozen percent is not high, the whole shoe and clothing.

The electricity supplier's penetration rate reaches 30%, that is to say, 100 yuan of shoes and clothing consumption, 30 yuan is online consumption.

The net pin is so big.

The traditional brand of women's shoes is not competitive at all. Like the annual double eleven or shopping festival, the participation of women's shoes is not high, and sales share is not high.

Ma Gang said.

As mentioned above, when traditional brands are hit by new channels such as electricity providers, the layout of online channels is mostly used to clean up inventory, and not timely and actively develop their own brand online influence.

Besides, tradition

The ability of product innovation is relatively scarce.

Tang Xiaotang mentioned that, like BELLE, Saturday, commodities and marketing did not rely heavily on online channels, and the frequency and cost performance of products were not as good as those of online brands. Therefore, there was no significant brand influence in emerging consumer groups.

Reporters visited Shenzhen's imperial court and Maoming department store on Saturday for several times to learn that the price of their sandals and single shoes in summer is between seven hundred or eight hundred yuan and one thousand yuan.

Consumers, Ms. Chen told reporters that because the brand was not big on Saturday, the appearance was more popular, and one thousand yuan and a pair could not wear the feeling of brand grade.

If you want to buy it in 44% off, its quality and comfort are good.

The dealer who handles the inventory for the brand told reporters that Febe Lear and women's shoes on Saturday were very fast at the low price, because many eighty or ninety yuan can buy sheepskin shoes, the price performance can be very high, while the price of eight hundred or nine hundred yuan, one thousand yuan to buy a pair of shoes, consumers are more willing to choose the style more.

The new light luxury brand.