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    The Real Economy Will Not Adjust Our Thinking To Change The Business Model. Let'S Look At Another Shoe Giant.

    2018/10/5 17:05:00 110

    Red DragonflyDaphneThousand DegreesRichesBELLE

    The real economy will not adjust our thinking to change the business model. Let's look at another shoe giant.

    Have you ever seen a dragonfly logo shoe store in the county or city where you live? Yes, this is the Chinese shoe magnate who once swept the three or four tier cities in China.

    Red Dragonfly

    !

    Today, the dragonfly is no longer flying high, like BELLE, Daphne, and so on. It has encountered the impact of the market environment and faced with the plight of development.

    2014~2016, red dragonfly revenue growth of -2.9%, -5.15%, -3.19%, performance for three consecutive years of decline, performance has always hovered around 3 billion.

    In the first half of 2018, revenue reached 1 billion 491 million yuan, an increase of 2.13%, but profits fell by 8.49%, only 160 million.

    In order to seek development, red dragonfly has taken a fancy to the financial industry.

    In September 18th, the Red Dragonfly planned to invest 383 million yuan in partnership to establish Zhongxin securities and formally entered the securities industry.

    The main business downturn is not trying to save the plight from innovative products and channels, but is thinking of stepping into the financial sector with considerable revenue. This is undoubtedly a "rush to the doctor".

    Since its establishment in 1995, the red dragonfly has a history of 23 years. It is the most famous brand of women's shoes in mainland China.

    In the three or four tier cities of China, it was loved by many young women. By 2014, the number of terminal stores reached 4321.

    Red Dragonfly ranks the third among all leather shoes enterprises, second only to BELLE international and Daphne international.

    China Merchants Securities defines it as "a popular enterprise with three or four line layouts".

    From carpentry to 4 billion 300 million rich people is both their own efforts and the creation of the times.

    Wenzhou, Zhejiang, is a developed city in China's private economy, and also one of the famous shoes capital.

    The people here dare to rush ahead, do business in all parts of the country, have a smart mind and bear hardships and hardworking spirit. Nowadays, there is a Wenzhou street in many parts of the country, which is the result of Wenzhou businessmen's efforts.

    In Wenzhou, there are two famous brands of leather shoes, one is men's shoes, the other is AOKANG red dragonfly.

    AOKANG founder Wang Zhentao and red dragonfly founder Qian Jinbo have two different relationships.

    First of all, the two men were brothers in learning carpentry; secondly, the two were founded together by AOKANG, and later Qian Jinbo went out to establish Red Dragonfly independently. Finally, Wang Zhentao married Qian Jinbo's niece, so Wang Zhentao wanted to call uncle Qian Jin Bo, even though he was only one year younger than his uncle.

    Qian Jinbo, who was born in 1964, did not finish reading after junior high school, and worked with his brother-in-law for 4 years.

    At the age of 18, he went to Wuhan with his brother Wang Zhentao to start selling shoes.

    In 1988, the two returned to Wenzhou and founded the predecessor of AOKANG, Yongkang Olin shoe factory.

    Wang Zhentao

    In charge of marketing, Qian Jin Bo focused on production, and the two partners were doing business.

    However, the two of them eventually split up because of the problem of philosophy. AOKANG returned to Wang Zhentao, and Qian Jinbo took a sum of money to leave.

    In 1995, Jin Bo officially founded the red dragonfly, when he was 31 years old.

    With the past experience and sharp mind, the Red Dragonfly developed very fast. At the age of 32, Jin Bo completed the first goal of Wang Jianlin, earning one hundred million.

    At the beginning of 90s and the beginning of the new century, it can be said that the development of Chinese traditional industries is the best. People's living standards are constantly improving, and the market demand is rising rapidly, so that the industry of clothing, food, housing and other industries has ushered in a dividend growth period. Some famous brands are rapidly distributing in this booming dividend period, pushing the business to the whole country.

    In the same period, BELLE, Daphne, thousand degrees and so on can be said to enjoy the best dividends.

    Red dragonfly is no exception, with the imitation of foreign styles, good workmanship, and the sinking of channels, the growth of the number of stores and the growth of the promoters.

    Red Dragonfly jumped to become a famous brand in the country. In June 2015, red dragonfly landed at Shenzhen Stock Exchange. The listing of enterprises made Jin Bo worth more than 4 billion 300 million yuan.

    Domestic shoe industry continues to slump, orders are "disappearing".

    Due to the influence of channel change factors, the overall business environment of footwear industry has not been improved significantly in recent years, and the overall performance of the leather footwear industry is still in the doldrums.

    Under the influence of bad market environment, the orders of domestic shoe giants are "disappearing" and are carved up by the high imitation brands of small and medium-sized shoe factories.

    There are several reasons for this.


    First, the shoe industry has entered the era of shopping and killing. The dividend period that has enjoyed nearly 20 years is disappearing.

    Second, the rise of the electricity supplier has caused a great impact on traditional channels, and people's shopping habits have undergone great changes. At the same time, the abundance and variety of online products have made these traditional well-known shoes brands become unfashionable, old-fashioned and unpopular with young people.

    Third, small and medium-sized factory orders are reduced, forced to make independent brands, and high imitation threshold is reduced. These emerging brand shoes are selling well in platforms such as Taobao, Tmall, Jingdong and new media. Sales of shoes like Putian undoubtedly rise under the development of e-commerce.

    A footwear industry analyst believes that the downward trend in the performance of domestic shoe giants is irreversible.

    In addition to the impact of the electricity supplier channel, the entry of foreign brands will also be further divided into the domestic market, just like in the clothing industry, such as the global fast fashion brands such as UNIQLO, Zara and H&M.

    As this goes on, shoes will also face this crisis.

    Therefore, for the red dragonfly and other shoe giants, if they want to survive, they must make adjustments and changes. Otherwise, they may not be able to get up again, like brands like Baleno.

    BELLE, Daphne, 1000 degrees, rich birds, footwear industry is facing crisis.

    "Old style, young people do not like it, suitable for middle-aged and old people, but the elderly are not good enough to wear, shoes are thin, and give you a high heel and who to sell!" so the good days of traditional well-known shoe brands are gone forever.

    BELLE, China's real "king of women's shoes", has ranked first in the sales of Chinese women's shoes for 12 consecutive years, and has opened more than 20 thousand outlets throughout the country. Now, from the Hong Kong Stock Exchange's delisting, at its worst, it has closed 3 stores on average.

    Daphne has the reputation of "the king of Volkswagen shoes". At its most brilliant time, Daphne had a total of 2 sales outlets, and almost every five pairs of shoes sold in the mainland came from Daphne's factories, and the first brand of mainland women's shoes for 5 years.

    However, in 2015~2017, nearly 3000 stores were closed in three years. In 2016, it lost eight hundred million and is now in a "quagmire" of losses.

    Market capitalization also dropped from 17 billion to 800 million.

    Saturday, 2017, a huge loss of 352 million yuan, a year's loss is equivalent to the previous seven years of total profits.

    In the first half of 2018, it was expected to lose 20 million, and its market value was down by more than half.

    In 2013, the fortune bird came into the market, but its performance in 2015 began to decline.

    By the end of 2016, the rich birds had 2247 retail outlets, while the number in 2014 and 2015 was 3144 and 2960 respectively.

    In 2016 alone, the number of stores fell more than 700, of which 976 closed, and almost two or more stores were closed almost every day

    This is exactly what is happening in the domestic women's shoes industry.

    For red dragonfly, cross-border financial investment is helpless. The industry is very cold in winter. "Only if you can live, can you talk about innovation with qualifications and capital". At the moment, for red dragonflies, it is obvious that ensuring profits and profits is the top priority task.


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