Footwear Consumption Market Potential Is Huge, Why Traditional Shoe Enterprises Collapse?

Look up at your face and look down at your shoes.

Maybe there are such a group of young people around you. Every time you see him, they wear different pairs of feet. shoes 。

Recently, Art shopping center K11 China's millennial shoe cabinet is expanding rapidly, with female respondents averaging 24 pairs of shoes, while male respondents are relatively few, with 15.5 pairs, with an average of 21.2 pairs of shoes per person, according to a report released by the thematic group specializing in young consumer trends.

When I saw this data, my first reaction was a bit sad: I also dragged down the average of the industry. But the other job is a little surprised: why is the shoe market in China so much more distressed?

This is really worth pondering.

When the time comes, the profits of the traditional shoe companies are not great.

Before discussing serious industry topics, I will first "play a bureaucratic role":

With the increase of per capita disposable income, people's purchasing power has been increasing, and the sales of China's footwear market has been increasing steadily year by year. According to the Euromonitor International survey, sales of Chinese footwear reached 381 billion 900 million yuan in 2017, up 5.5% over the same period last year. Among them, the sales of women's shoes account for 48%. Men's Shoes Sales account for about 38% of sales, and sales of children's shoes account for 14%. It is estimated that in 2021, Footwear market The scale is expected to reach 487 billion 400 million yuan.

It can be seen that the sales volume of Chinese market is gratifying, whether it is children's shoes, men's shoes or women's shoes, and China's footwear consumption market has great potential. But in the face of the huge market, domestic brand sales are dim.

Next, let me take a look at the inventory.

The crown of Daphne shoe is broken.

Taiwanese background Women's Shoes Daphne has not stopped its declining performance. The losses in the first half of 2018 increased to HK $492 million 600 thousand. Sales of large discounts over the quarter increased and profits decreased. As of the end of June this year, the total sales volume of Daphne core brand stores in the first half of this year recorded a 9.1% decrease.

Generally speaking, Daphne products are divided into two series: "D28" and "D18". The target customers are women between 20 and 45 years old and 15 to 30 years old.

First look at the "D28" series, the main consumer group of this series is mature women, but Daphne's sales strategy is mainly based on parity price, resulting in the product difficult to catch high-end consumers.

"D18" series, the main youth fashion to take the young consumer groups, but once made Daphne proud of the industry chain has become trapped in the pace of the shackles. From product design to production, and then to sales, there are many links and more time consuming. Commodities are losing their core competitiveness.

Besides Daphne, the consumption prospects of veteran women's shoes enterprises such as Qian Baidu and Saturday are not clear enough. It is a reflection of the low consumption market atmosphere of domestic women's shoes brands.

AOKANG stops shop to stop damage, men's shoes are no longer dominant.

"Jiangnan leather factory closed down", the same as the hometown of Wenzhou AOKANG, although not bankrupt, but life is not good.

Public information shows that AOKANG international main men's shoes business, according to the annual report 2016, operating income fell 2.07% over the same period last year, although it picked up in 2017, but the scope is small. From the latest 2018 semi annual report, we can see that business income decreased by 1.37 percentage points compared with the first half of the year.

The slump of women's shoes also sounded the alarm for men's shoes market. AOKANG and Kanglong of AOKANG international closed off 122 Direct stores in 2017 to achieve the goal of stop loss.

Men's shoes are different from women's shoes. Although they occupy a certain proportion of style requirements, they can't be compared with women's shoes. In addition to the impact of the electricity supplier, the men's shoes industry has also been affected by sports shoes to some extent. According to the "panoramic research and development prospect forecast report of the 2017-2023 year sports apparel retail industry of China" released by Chi Yan research network, the revenue of sports shoes brand has increased in general, and the market share has also increased. The consumption ratio of sports shoes to men and women is 6:4, which occupies the share of men's leather shoes industry to a certain extent.

BELLE is old, delisting to find a way out

BELLE, the "shoe king" of BELLE, is also unable to escape the fate of the delisting. BELLE at its peak has had slogans like "wherever women go by, and there must be BELLE." but this year, because of the aging of the brand and the upgrading of the consumer market, BELLE eventually ushered in the fate of the delisting.

In our impression, BELLE shoes are "Mommy shoes". The products launched can not attract young consumers, and the brand aging is serious. As a matter of fact, the consumer group has not changed. The young people of the past, the mothers now, but how can the market share of the purchasing power of mothers nowadays?

The popularity of electricity providers, consumers choose more channels, the choice of space is more extensive, can buy goods from all over the world without leaving home, which makes store sales trend is not. Under the condition of certain purchasing power, the purchase of commodities is seriously diverted, and the decline of performance is inevitable.

In fact, the most important problem is also the commodity itself. BELLE's brand homogenization is serious. It has not formed the brand's own unique style. Although the purchase channels of shoes are numerous now, we can easily find that the golden light can not be concealed. The shoes of the Paris family are a living example. The characteristics of "ugly tide" make them stand out in the same kind of shoes.

In fact, the lack of competitiveness of commodities is the most fatal reason. The same problem appears more frequently in the Chinese women's shoes market, but the styles are not satisfactory. In addition, if the brand promotion method is single, the traditional shoe industry will not be able to turn over again if it is not adjusted.

How to fight well

Does the development of traditional footwear industry stop here? How to find a way out? This is the situation faced by many enterprises nowadays. Maybe we can learn from the development strategy of China's sports shoes industry.

After 2012-2013 years of adjustment, the sports footwear market has entered a strong recovery period. The major sports shoes brand has quickly regained market recognition with functional and fashion elements.

XTEP positioned the brand as "fashion movement" and became the "official designated sports brand" of the new rap program in China. Lining's fashion show in New York in 2018 led to the success of "enlightened series" clothing into the eyes of young people. Anta bought FILA, and signed Wang Yuan as a brand spokesperson in June 2018 to develop high-end sports and fashion market.

All the major sports brands of China aim at the millennial generation, spanforming the sports products into products, changing products from "affordable" to "buying", taking the fashion elements as the starting point, drawing the younger consumer groups, enriching the production line, upgrading the stores, and moving the national tide.

In fact, the traditional footwear industry has also made corresponding adjustments.

AOKANG has long taken a fancy to young people's sports market. In order to make the brand image younger, in 2014, a popular Korean pop star Kim Su Hyon was invited to speak. In 2015, AOKANG announced its hand in the US sports shoes brand, Skech. Wang Zhentao, chairman of AOKANG international, has also said that the whole category, multi fields and fashion movement are the future direction of AOKANG development. Cage's operating income in AOKANG international also increased by 111.69% over the previous year in 2017. This also finds a breakthrough in the spanformation of traditional footwear industry.

The younger generation is the trend of the times. Millennials do not have a lasting loyalty to the present brand, and brand worship has long been weakened. The pursuit of individuality has already taken root in mainstream consumer groups. After all, no one wants to wear a pair of shoes with rotten street. Therefore, how to identify their needs and stimulate new purchasing power has become the top priority of the enterprise development strategy.

In a word, these shoe makers who hope to "turn over" are striving for new vitality in the direction of sports, fashion and youth.