AOKANG International Creates Evergreen Brand To Promote Intelligent Manufacturing

2017 is the shoe industry.

A challenging year.

On the whole, the domestic footwear market still maintains that foreign brands occupy the high-end market, Hong Kong and Taiwan joint venture brands and a small number of domestic brands occupy the middle market, and many domestic small and medium enterprises occupy low-grade market.

But with the continuous development of online retailing and mobile Internet, the rapid rise of new brand and business mode, the brand premium and the offline channel advantage that the enterprises occupy the middle market are weakening.

Guan Dian Chao, the same store sales decline, profit decline, passenger flow shift has become a common crisis facing most footwear enterprises.

In this situation, the AOKANG shoe Limited by Share Ltd in Zhejiang has made a breakthrough in its new steps by actively distributing all channels and retail terminals under the online and offline channels, creating different brands, accurately positioning and subdividing the market, developing "fans economy", and building smart stores.

In April 26th, the AOKANG shoe Limited by Share Ltd of Zhejiang released the annual report in 2017. The report pointed out that the business income of AOKANG shoes rose by 0.36% over the same period last year, which is not easy in the overall downturn of the industry.

However, net profit attributable to shareholders of listed companies decreased by 25.8% and total assets decreased by 3.81%.

In 2017, the total sales cost accounted for 16.62% of the current operating revenue, an increase of 19.93% over the same period last year.

Among them, the main reason for the increase of staff salaries, amortization and depreciation costs is that the company has speeded up the expansion speed of the collection stores, resulting in an increase in terminal marketing costs; a 38.14% increase in commission and group buying service charges, mainly due to the increase in group buying sales and business commissions in 2017, and advertising fees increased by 59.48%.

The 2017 annual report of AOKANG shoe industry shows that the main sales channels of the company include the three party platforms such as Taobao, Tmall, Jingdong, vip.com, and the self built online shopping mall and WeChat store.

Online sales accounted for 13.06% of sales revenue in 2017.

In addition, in 2017, AOKANG shoes East China logistics center was officially launched, which realized the intellectualization of the whole process from warehousing, replenishment, picking, distribution and outgoing, greatly reducing the time of goods leaving the warehouse and speeding up the integration process between online and offline.

With the accumulation of years of experience in sales and operation, the AOKANG shoe industry has also realized that under the general trend of consumption upgrading, different development channels of different regions need to adopt different strategies.

From the perspective of regional consumption and development, the development of economy and consumption in front-line, new front-line and second tier cities is more stable, and consumers' acceptance and consumption ability of emerging things are higher.

The three or four tier cities in the central and western regions have witnessed a rapid growth in consumption in recent years, and the rapid development of shopping center channels. AOKANG is actively developing such shopping mall channels through solid cooperation with large commercial developers.

In 2017, AOKANG shoe industry speeded up the pace of entering 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.

Up to the end of the reporting period, there were 3086 terminal stores distributed across the country, and the terminal operating capacity was gradually improved.

AOKANG said that it will continue to adhere to the "big store strategy" in 2018, and firmly expand the store with large area, good image and excellent service.

Build "evergreen brand" and "fashion platform"

In August 2015, AOKANG announced that it signed a strategic cooperation framework agreement with Guangzhou Kai Jie Commercial Co., Ltd.

The latter is the United States footwear brand Skech's distributor in China.

But from the point of view of income, AOKANG and Kanglong still occupied most of the business income in 2016, which were 2 billion 111 million yuan and 446 million yuan respectively, while Skech was classified as other brands. The income of other brands was 206 million yuan, down 5.72% from the same period last year.

In early 2016, AOKANG footwear industry released the new strategy of "doing well 135, achieving two doubling".

According to the new strategic plan, AOKANG classified its brand as the two platforms of Changqing brand and fashion platform. Among them, AOKANG and Kanglong brands were included in the evergreen brand, and Skech, INTERSPOERT and other brands were classified as "fashion platforms", with a view to focusing their respective market segments through platform division.

Among them, AOKANG brand is committed to providing high-end business fashion products for target customers of 25~35 years old. The price is concentrated between 299~699 yuan. Kanglong brand is more prominent in fashion and leisure, with young consumer groups as the main force, the main product prices are concentrated in 399~599 yuan, and Si Kai odd brand products cover children over 3 years old and adults, including sports shoes, clothing, accessory products and so on, the main price is 399~899 yuan.

The company's brand positioning is clear and accurate, and the brand products can complement each other to meet the needs of different consumers.

In addition, the AOKANG shoe industry focuses on the development goal of the "fans economy". With the help of information system, it improves the depth of member management, further develops consumer preferences and consumer demands, and achieves personalized precision marketing, which is in the national region in 2017.

27 marketing campaigns for members have increased consumer awareness and consumer stickiness.

Expand overseas market and promote intelligent manufacturing

In recent years, the shoe industry of AOKANG has made great efforts in products, brands and channels. To a certain extent, it is ready for fierce competition ahead of schedule.

AOKANG shoe industry recently issued a commentary on the management of the board of directors in 2017, pointing out that the existing channels of AOKANG shoe industry cover street stores, department stores, shopping centers, third party mainstream e-commerce and self built electronic business platform, and 3086 stores under the domestic line.

At the same time, the company continues to expand overseas markets, and has established terminal networks in Vietnam, India and Kuwait.

AOKANG said that in 2018, the AOKANG footwear industry will focus on the long-term strategic development goal of creating an excellent footwear ecosystem, and actively promote strategic pformation and strategic landing. The following five main areas of work should be done: strengthening independent innovation, enhancing R & D capability, creating intelligent workshop, improving production efficiency, improving marketing methods, promoting inventory digestion, achieving full channel marketing through online and offline, updating store construction and upgrading shopping experience.

In addition, in 2018, AOKANG shoes industry will actively explore C2M mode, and create offline intelligent stores. By introducing cloud storage, face recognition, RFID recognition system and other technologies, it will provide consumers with more diversified services and experience.