The Road Of Prosperity And Decline -- The Epitome Of Jinjiang Brand

Wilderness, cottage, brand, capital, expansion, fall, Jinjiang is away from the "shoes capital", and the rise and fall of del Hui is the epitome of the whole Jinjiang brand.

At the end of December last year, the Fujian sports daily announced a claim package for handling claims, a well-known national sports shoes brand del Hui in the list.

Owing to debts exceeding 600 million yuan, many assets including factory buildings, land and warehouses were auctioned off by listed mortgages.

Del Hui was Jinjiang.

One of the representatives of the brand, the famous slogan of "Deerway, On The Way" and Jay Chou and Nicholas Tse's endorsement, are all telling the brand's past glory.

Coincidentally, in August last year, another well-known shoe manufacturer in Jinjiang, Xi long long, was also publicly declared a bankruptcy reorganization process by the Jinjiang court because of its debt problem.

The bankruptcy of del Hui made the consumers who were familiar with them sob, but in the shoes circle of Jinjiang, they appeared strangely calm.

"In 2011, shoes made in Jinjiang had not been sold for ten years."

A shoe factory owner who once worked in the local shoe business association sighed that for him, the decline of Jinjiang brand shoe enterprises is more like a late implementation ceremony after the final judgment.

Wilderness, cottage, brand, capital, expansion, fall, Jinjiang is away from the "shoes capital", and the rise and fall of del Hui is the epitome of the whole Jinjiang brand.

From foundry to Anta to fight for Jay Chou

Del Hui's hometown, Jinjiang, Fujian, became the main force in the next Nanyang during the Ming and Qing Dynasties. After the reform and opening up, overseas Chinese returned to Jinjiang to find a way to survive.

The boss of a lingerie factory in Jinjiang knew that there was something like brassiere because of the return of her overseas sister, so she pulled down the research and started selling it from three to fifty, and gradually developed to mass production.

This model was later copied to the footwear industry, so the small fishing village on the southeast coast became one of the richest county-level cities in the country after reform and opening up.

In 1982, Ding Mingliang, founder of del Hui, founded a small bag workshop with his fellow townsman, and opened his own way of starting a business. The following year, Ding Mingliang, who discovered the new business opportunity, took 150 yuan with his two younger brothers to formally start shoemaking.

After del Hui grew up, Ding Mingliang once recalled that when he made 6 pairs of shoes on the first day of opening, everyone was excited, not because of making money, but because he finally made his own product, which was the beginning of a new dream.

In 1990, "del Hui" was registered.

Most of the bosses of shoe makers in Jinjiang share similar experiences.

Ding Jiantong, 361 degrees, set up a family workshop with 5 pairs of leather shoes in his living room by two thousand yuan raised by fishing in the field and scattered workers. PEAK Xu Jingnan continued to open sports shoes factory with the money saved by the scooter; XTEP Ding Shuibo and the sworn brothers invested 500 yuan in each other, putting up shacks and making slippers beside the river beside the village.

In 1995, the Zhejiang footwear and apparel enterprise, the American shoe and garment company, quickly rose with the OEM mode of the main brand. But in the 90 years or so, the Jinjiang shoe enterprises started to build brand, but they had long been willing to be the factories of ADI and Nike. Until 1998, under the strong guidance of the government, they began to realize the concept of "brand building market", put forward the idea of "implementing the strategy of regional brand building and occupying the dominant market", and by 2004, the Jinjiang municipal government was still spending about 18000000 yuan to win the previous year's licensing, certification and bidding enterprises to encourage enterprises to go out.

Before and after 2005, a group of shoe owners, who took the lead in laying down the "ideological burden", finally began to roll their sleeves on the road of brand creation.

Among these Jinjiang footwear enterprises with brand awareness, del Hui is a pioneer.

In 2003, they won the competition with Anta, signed Jay Chou for 10 million years, and earlier in 2000, Ding Mingliang also hired experts from Lining to plan experts and why they had to pack their brands for themselves.

The spokesman changed from the then domestic football star Su Mao Zhen to Jay Chou, an entertainment star in Hong Kong and Taiwan. It not only marked the vision of creating a national brand, but also changed the sporting goods to leisure sports products.

Subsequently, the original brand of Jinjiang, like del Hui, began to fully exert itself and suddenly rose overnight.

In 2005, XTEP 8 million bid for the sponsor of the Nanjing National Games. It was not thought that MIZUNO had taken 10 million half road to kill. Ding Shuibo who just left Nanjing immediately returned to raise the price to 15 million. In the same year, PEAK 4 million became a sponsor of Yao Ming's NBA team, Houston rocket home TOYOTA center.

In the 2006 World Cup in Germany, 25% of CCTV5's advertising came from Jinjiang brand and was ridiculed as "Jinjiang channel".

Despite the awakening of brand awareness, in this group of "avant-garde" bosses, some characteristics of Jinjiang businessmen remain.

A practitioner who has served as an executive in several shoe enterprises in Jinjiang has concluded that compared with Zhejiang businessmen, Jinjiang businessmen's family concept is more important. After growing up, the living environment of professional managers in enterprises is not as good as that of Jiangsu and Zhejiang, and Jinjiang businessmen are not as fond of holding together as Zhejiang businessmen.

A local shoe business owner who once did the middle scale recalls that PEAK Xu Jingnan, like everyone else, has suddenly become larger after the listing, compared with the rest of the company.

For those shoe makers who build national brands, the boss thinks "it's not a big deal."

At that time, the brand awareness of Jinjiang footwear enterprises rising rapidly, but the root cause of barbaric growth also loomed.

For example, the "Jordan" brand, founded in 2000 in Jinjiang, relies on the edge ball with the name "Jordan" of the United States, which has created different brand image and market position.

In 2012, Michael Jordan sued Jordan, China. After three years of lawsuits, the Beijing high court failed to win the final judgment in 2015. Jordan, who refused to accept the appeal, continued to appeal to the National High Court and finally won the lawsuit at the end of 2016.

However, in July of last year, because of sponsoring the National Games in Tianjin, Jordan, a defeated Chinese lawyer, once again received a letter from the US attorney Jordan. The "stubborn" Chinese Jordan counterclaim lawyer infringed his reputation right and claimed 1 million 100 thousand of the other party's claim.

"As with Jiangsu and Zhejiang, bosses in Jinjiang can endure hardships and learn well, and one can earn money by selling shoes, and others are also rushing to the top."

A local shoe factory owner described this, but he also believes that unlike Zhejiang businessmen, the businessmen in Jinjiang are more colorful. "They will not go to the bottom of the house like Wenzhou people, and they are not good at making use of finance. They are generally conservative, and the development of enterprises is usually not very warm. There is nothing particularly good and nothing particularly bad."

The turning point of del Hui and the whole shoe enterprises in Jinjiang is their full exposure to financial capital.

After that.

Shoes capital of Jinjiang

The two failed to take the lead in listing.

In 2005, Hongxing Erke was listed in Singapore. In 2007, Anta landed at the Hong Kong stock exchange. Around 2009, many well-known brands including XTEP, PEAK and 361 degrees went into the capital market.

In the area of 2 million people, there are more than three points in the shoe manufacturing industry chain, and Jinjiang shoe enterprises have entered the peak period.

Compared with them, Dell's listing is rather bumpy.

In 2007, Anta, which had always been on the same side with Anta, was also planning to go public on the Hong Kong stock market. But on the eve of the listing, it suddenly exposed the false account disturbance. It was rumored that the chief financial officer of del Hui was jumping off the floor because he was doing false accounts. Although he had explained the truth of the incident after the fact, he had made financial arrangements for himself. The company was punished by the police for lack of qualification. In the process, some employees tried to escape and accidentally fell, but the first IPO failed.

In June 28, 2011, with the regret of not getting rid of the teacher, Ding Mingliang, founder of del Hui, died of cancer, and his younger brother Ding Minglu took over the company.

In 2012, del Hui submitted the IPO application to the SFC, seeking to be listed again in A shares, but at this time, the entire Jinjiang footwear industry and the whole sports shoes market had undergone tremendous changes.

At the beginning of large-scale listing, Jinjiang shoe enterprises went to the top again.

In the two years after the listing, the revenue reached 5 billion 500 million yuan, an increase of 30% compared with the time when it was launched in 2009, and net profit from 900 million to over 1 billion 100 million. It passed the one billion threshold; XTEP International (01361.HK) only received 2 billion 800 million yuan when it was listed in 2008, the highest peak in 2012 reached 5 billion 500 million yuan, and the net profit also went from 500 million yuan to 1 billion yuan in 2011. In 2011, PEAK sports (01968.HK) also gained 4 billion 700 million revenue and 800 million net profit in 2009.

But at this time, small-scale shoe enterprises have begun mass failure.

In 2011, Hongxing Erke was suspended on the Singapore Stock Exchange on suspicion of financial fraud, marking the beginning of the dilemma of Jinjiang's big shoe companies.

The former store of del Hui

After the listing of Jinjiang shoe enterprises, it can come out of the trend of the whole shoe industry in Jinjiang. It has benefited greatly from the listing and financing, and has a rapidly expanding capital. This expansion is concentrated on the number of shops.

According to the Hong Kong stock earnings report, in June 2008, the number of retail outlets authorized by 331 degrees reached 4632, reaching 7681 in mid 2011, an increase of 66%. In 2011, XTEP also rose from less than 3000 stores to 7596, while PEAK reached nearly 8000 in two years on the basis of 6000 stores in 2009.

"At that time, we all compared each other, who opened more stores, thousands of new stores a year, the government is also very supportive, then there is the official competition ranking, see who can compare who, we are proud of this."

A shoe factory owner in Jinjiang recalled to Tencent prism that building more factories and opening more stores is the inertia thinking of Jinjiang bosses.

Relying on the purely vertical development expansion mode, of course, it is weak. Under the beset of electric shocks, consumption upgrading and overcapacity, the tactics of expanding stores will be falsified soon.

As of 2016, the net profit of 31st degree has dropped to 400 million yuan, less than half of the time when it was listed; XTEP international 500 million yuan net profit returned to the same level when it was listed; PEAK sports delisted from Hong Kong stock in 2016; 603555.SH pushed hard into A shares in 2014, and its performance changed in the first year, and its revenue and net profit fell 20% and 26% compared with that before the listing.

When the shoe companies in Jinjiang are still expanding, there is research report analysis that the convergence of Jinjiang brand positioning and operation mode leads to their respective lack of characteristics, and the ability of enterprises is not very different.

The enterprises in the early stage are familiar with the way of success of the leading enterprises, so long as they can grasp the growth opportunities of the industry, they can catch up quickly.

When the industry enters the adjustment period, the competition pattern is solidified, which makes it difficult for these brands to produce a real breakout.

A former foundry factory executive who worked on OEM for a number of listed shoe makers said to Tencent "prism" that for them, listing and opening shops were only superficial. At that time, a large number of shoe companies had problems with their capital chain, and only a few of them were healthy. Even if they were listed companies, they would not allow credit.

In 2014, IPO failed again, and finally went to the closure in silence. However, its final decay is not the same as those of Jinjiang shoe companies that have already been listed.

At the peak, del Hui owns 4000 stores in the whole country, and the listing fails to provide less financing channels. It only lets it fall into a desperate situation in the context of blind expansion and overcapacity.

Who will be the next del Hui?

"Del Hui's circle knows that they later feel that the shoe industry can not produce much value. The boss's mind is no longer on the shoe making. In comparison, taking part of the money to make real estate, taking part of the stock investment is more attractive, and wants to make money with money instead of making money with products.

If there is a problem in the shoe making industry, there will be a short circuit of capital. Then we will borrow money, private lending and bank loans. We can borrow money from all aspects, and we will not fill it up until we finally fail.

A professional manager who has worked for many years in Jinjiang's large shoe enterprises and now has traveled to three shoe factories in Hebei has gone back to Tencent's "prism" to recover the road of bankruptcy.

Deviating from the main business of shoemaking and being obsessed with diversification and capital is the crossroads of many Jinjiang shoemaking people.

In fact, in the golden age of sports shoes, the economy of Jinjiang is also undergoing pformation.

In the "13th Five-Year plan" of Quanzhou, the automobile and IC industry has been developed as a key industry in the future. "Jinjiang Municipal Economic and social development statistics bulletin" in 2016 shows that the total output value of the region is 174 billion 400 million yuan, and the output value of footwear industry is 100 billion 900 million yuan, accounting for 58%. In 2012, this figure is 70%.

"For the big Brand Company, the government has been supporting and supporting, do not want them to go bankrupt, but now the government has no ability and no need to do so. The failure of del Hui and" Xi Long "can not blame anyone, the aftermath is being processed, and the bosses are also looking for new ways out.

Lv Qinghua, director and doctoral tutor of Fujian business research center of Huaqiao University in Quanzhou, told Tencent prism that after several years of pformation, Jinjiang's economy can be said to have got rid of its dependence on shoemaking industry.

Del Hui collapsed, and those shoes companies that are still alive are still struggling in Jinjiang.

At the beginning of 2015, at the XTEP ordering meeting, Ding Shuibo put forward the slogan of "returning to sports from fashion movement" in 3000 XTEP dealers. He always favored XTEP, an entertainment star such as Nicholas Tse and Han Geng. He hoped to turn from a leisure sports brand to a professional sports brand. He invested in the Nordic outdoor sports brand ONE WAY and built 361 degree children's clothing to professional sports.

When the bird was listed in 2014, it tried to invest in many assets, including sports games, sports insurance, sports media and so on, hoping to build a whole sports concept by relying on sports clothing. After the PEAK, it also expressed the need to establish an industrial ecosystem including sporting goods, physical education events, sports big data and media.

In fact, "diversification" and "all sports" already have forerunners.

The professional outdoor sports Pathfinder (300005.SZ) was forced to enter the business of air tickets, ski resorts, outdoor tourism online platforms and expand business categories in 2013, but no fundamental changes were made.

In the second half of last year, the Pathfinder announced a focus on outdoor sports equipment.

The concept of "full sports" and "ecological circle" is not a magic drug. In the shoe market of Jinjiang listed companies, the stock price has almost been cut off since 2011.

To some extent, Anta Ding Shizhong may be the only person in Jinjiang shoe enterprises who really jumped out of the thinking of "township entrepreneurs".

In 2004, Ding Shizhong, who was not short of funds, saw Lining's success, decisively broke the concept of family business, decided to let the company go public, and in 2009, Anta acquired the international brand "FILA" and began to multi brand strategy.

After the fall in 2012 and 2013, Anta sports (02020.HK) had a 13 billion 400 million revenue in 2016 and a net profit of 2 billion 400 million, twice as much as in 2012.

Its share price has risen from the lowest HK $3 in 2012 to the latest 38 yuan Hong Kong dollar / share, becoming the only group of Jinjiang shoe companies.

Approved samples.

"The most glorious period for the once barbarous growth of Jinjiang shoe enterprises has long gone by. It is necessary to have its own characteristics and excels, which can be understood as their industrial adjustment and pformation, but the shuffle will continue. The elimination is still doomed to be eliminated, which is normal."

For the future of Jinjiang shoe enterprises, Lv Qinghua made such comments.

Who is the next del Hui?