Visit AOKANG International: Capital Watch And Breakout Impulse Of Wenzhou Enterprises

As a thousand stones in Yongjia and Yongjia AOKANG Headquarters, Chongqing, Bishan, the three largest shoe manufacturing base of AOKANG, leather shoes are important, but AOKANG insiders also revealed that "the amount of leather shoes is limited, our main direction is to do sports fashion casual shoes, later called AOKANG shoes, not AOKANG leather shoes."

In November 6th, the YongJia Railway Station in Wenzhou was on the rise. It was AOKANG's big billboard.

As the "shoe capital of China", Wenzhou's first shoe-making enterprise in the A share market is "thirty percent". AOKANG International I am experiencing the choice of crossroads.

The other side of the Oujiang River Semir In addition to being a leader in the field of domestic casual wear, it is also focusing on the children's industrial market; another clothing enterprise, the wedding bird, runs towards "smart customization".

The brilliance of these three companies represents the exploration and courage of Wen Shang, and is also the best card of the city of China's private economy.

In the context of macroeconomic structural adjustment and Sino US trade frictions this year, their capital experience has also become a unique perspective to observe the domestic manufacturing ecology.

Based on this background, in recent days, the twenty-first Century economic news reporter visited the three listed companies on the spot to outline the current situation of the real economy, and also to capture the clues of the spanformation of private enterprises.

Scenery and dangerous shoal

"Wear AOKANG, walk the Quartet". AOKANG International The scenery has been seen for all.

According to the report released by China Industrial Enterprise Information Publishing Center (CIIIC), in 2010, AOKANG brand ranked second in the market share of male leather shoes, 5.79%. In 2012, AOKANG brand achieved 6.79% of men's shoes market share, ranking first, and women's shoes market share of 2.35%, ranking eleventh.

Such performance is also reflected in the beating of earnings figures.

In 2010, AOKANG International Net profit of 280 million yuan to the mother, in 2011, surged to 457 million yuan, in 2012, the most popular when listed, maintaining 513 million yuan. However, after 2013, the growth began to slow down. In 2015 -2017, net profit fell to 390 million yuan, 305 million yuan and 226 million yuan for three consecutive years.

The story of spanformation has been staged.

I still remember that in August 8, 2015, when the 27th anniversary birthday was set up, AOKANG international took the Skechers (Cage) general agent in China, and shouted the slogan of "opening 1000 AOKANG brand stores in China in the next five years".

In the 2017 new year, AOKANG international signed a strategic cooperation agreement with Belgian footwear giant Cortina and India outdoor brand Woodland.

At present, AOKANG International It owns 4 private brands including AOKANG, Kanglong, beautiful beauty and red fire bird, and gets the brand ownership of Italy brand Wanli Wade and the operation rights of American sports brand, Cage.

However, in the first three quarters of this year, AOKANG's revenue fell by 4.03% compared to the same period last year, and net profit fell by 10.5%. Specifically, agent brand Skech performed strongly, earning 146 million yuan revenue, up 74.83% compared to the same period last year, but AOKANG's main brand revenue was 1 billion 440 million yuan, down 5.43% compared with the same period last year, Kanglong's revenue was 312 million yuan, down 4.01% compared to the same period last year.

The embarrassing situation was its background. In the first three quarters of 2018, 89 textile and clothing listed companies in Shanghai and Shenzhen had achieved 217 billion 778 million yuan in revenue, up 10.5% compared with the same period of last year. In the overall recovery of the industry, the anxiety of the individual is true.

Semir, with Wenzhou's private enterprise, may have a deep understanding of AOKANG's turn choice.

10 years ago, the Semir dress, which is "what to wear", became popular with casual wear. Twins, Nicholas Tse, Show Luo, Han Geng and other 9 stars became their spokesmen, but there was no two of them.

Perhaps few people know that the clothes worn by volunteers at the first China International Import fair in Shanghai are in full swing. Semir Sponsored.

Like most clothing enterprises in China, Semir's life is not always clear.

With the impact of fast fashion brands abroad and the segmentation of consumer market, in 2012 -2013, Semir The main income of casual wear declined for two consecutive years. In 2012, the main income of casual wear was 4 billion 880 million yuan, down 12.64% compared to the same period last year. In 2013, the main revenue of this sector was 4 billion 683 million yuan, down 4.04% compared with the same period last year.

At the same time, the excessive expansion of stores has become a burden. In 2011, Semir stores increased by more than 1400. By 2012, the number of stores had reached 4420, and the spanformation was forced to start. In 2013, Semir began to close down inefficient stores and closed nearly 400 stores in that year.

As a matter of fact, this garment company, which has impressed the "low end public consumption", has been making a low-key spanformation in the years of experience, extending the multi-dimensional clothing industry cluster of mass leisure, high-end clothing, children's clothing, and so on.

In 2016, its leisure apparel returned to the level of 5 billion 600 million revenue, and the children's clothing sector shoulder to shoulder, achieving 5 billion yuan revenue.

This year's three quarterly report. Semir To achieve revenues of 9 billion 764 million yuan, an increase of 21.41%, net profit of 1 billion 272 million yuan, with an increase of 25.66%, the double-digit growth of revenue and net profit is not easy.

Transformation path AB surface

Under the tide of history, every spanformation has its own logic behind it.

"The whole category, multi domain and fashion movement is the future direction of AOKANG". AOKANG chairman Wang Zhentao once mentioned that AOKANG wants to do a "shoe industry ecosystem".

This is quite different from Semir's choice. Semir clothing, which runs the philosophy of "small rivers and big rivers", chooses another completely different route under the mode of "virtual operation".

Semir insiders briefed reporters on the twenty-first Century economic report. Semir adopted the "virtual operation" mode, which is mainly responsible for the R & D design and brand operation of clothing, and the front end production links to suppliers, and terminal sales to agents.

Holding the adult casual wear represented by the "Semir" brand and the children's clothing represented by the "balbala" brand, Semir apparel has been playing a frequent role in the children's industry in recent years.

This is related to the different industrial bases of the two industries.

For AOKANG, who owns three shoe making bases in Yongjia, Yongjia, Chongqing and Bishan, leather shoes are important, but AOKANG insiders also say, "the amount of leather shoes is limited. Our main direction is to make sports fashion casual shoes. Later we will call AOKANG shoes, not AOKANG leather shoes."

On the one hand, AOKANG International hopes to focus on building AOKANG's single brand Changqing platform. In 2017, it launched a laser foot measuring instrument for measuring the foot of a customer in 15 seconds. It hopes to customize "10 million foot data" with C2M, and on the other hand, focus on developing the fashion platform dominated by Cage and Kanglong (AOKANG's own fashion casual brand).

Undoubtedly, these two directions still focus on the story of "shoes".

In the evening of October 9th this year, Semir clothing announced that through the wholly owned subsidiary Semir International Group (Hongkong) Limited, with about 110 million euros (about 844 million yuan) acquisition of French Sofiza SAS100% equity, the matter has been completed in October 1st, and then get all the assets of Kidiliz group.

Kidiliz group is a European children's wear brand, headquartered in Paris, France, the world has 8 subsidiaries, has 11000 sales outlets and 829 stores, sales in 2017, 427 million euros.

"Investing 844 million yuan to acquire Kidiliz, the largest children's clothing company in France, is based on the goal of the new five year development plan of Semir. By 2023, the "Semir" plan will achieve the industrial goal of 80 billion yuan. In order to achieve this ambitious goal, we need not only the spanformation of Semir's development pattern and development momentum, but also the engine role of the children's industry, "Qiu Guang, chairman of Semir apparel, said.

The Barbara brand, founded in 2002, has become the first market share of children's clothing in China. In addition, this year, the brand of Barbara's children's clothing has been stationed in Hongkong, and plans for the layout of 20 to 30 stores in Hongkong in the next 3 years.

In March this year, Semir reached a long-term strategic cooperation agreement with The Children 's Place, the largest children's clothing brand in North America, jointly developed the domestic market, and opened its first store in Shanghai in September.

Semir's impulse to get out of sports and leisure is obvious.

　　 Wedding bird Like AOKANG, they are more focused on "suit" business.

In the first half of 2016, the loss was as high as 97 million yuan. After experiencing the first loss since the launch in 2007, the wedding bird who made the suit went into the high-end customization field.

In November 7th, in Yongjia, North Wedding bird The intelligent production workshop of the park, in twenty-first Century, saw by the economic report reporter, accepting the custom tailored order from the whole country through the investment of over 100 million yuan "cloud wing intelligent manufacturing" system, the production data of each garment is automatically recognized by the equipment and displayed on the electronic display screen in front of the workstation, and the material is automatically spanmitted between each process through the hanging system.

The reporter told reporters that compared to the traditional tailors 1 people 3 days to make a custom suit, smart pipeline to create the "smart tailors" can achieve 1 workers 1 days to do two sets of tailored suits.

It is worth mentioning that the price of the same custom suit is the same as that of the ready made suit.

In 2017, the news birds achieved 2 billion 601 million yuan in revenue, an increase of 29.5% over the same period, and a net profit of 25 million 930 thousand yuan.

Story outside story

Where do different stories go? Guess the beginning, but it's hard to guess the end.

According to reporters, in order to better operate Cage, AOKANG has been sponsoring the Wenzhou marathon for two consecutive years since 2015, and Skech has also become the designated brand of Wen ma.

The latest report shows that Cage has opened 145 stores, although there is still a gap between the target of 1000 stores in five years, but in the view of AOKANG insiders, "how to pursue the balance between the number of shops and management efficiency" needs to be solved.

As of September 30, 2018, AOKANG international has opened 26 distribution stores in Vietnam and Kuwait, and has worked with India's well-known outdoor brand Woodland, and has opened 60 brand swap outlets.

On the other hand, Semir, a dream town in the Semir group for children's amusement and education, opened in 2015. Semir also put the early education brand FasTracKids (genius baby) and FasTracEnglish (small earth) into the bag with over 100 million yuan.

Wu Zhize, chairman of the wedding bird bird, said in public many times that it is very optimistic about the private custom business launched by the wedding bird.

"On the one hand is looking for exports for the spanformation of enterprises, for example, if the garment manufacturing industry has 10 million of output, it often has 4 million of inventory, and the rate of clearing is not high; on the other hand, it is designed to fit Chinese clothes. With my experience of making clothes for many years, 2 people in China need 10 tailored clothing sizes. What we need to do is to let these two people not dress and serve more people," Wu Zhize said.

At present, Wedding bird It is also building multi brand strategy, including (including agent) brand including high-end business clothes BALDASSARI, TOMBOLINI, Solosali, mid and high-end business clothing, wedding bird, flangton, young fashion business dress Saint Angelo, middle and high-end casual wear HAZZYS, high-end professional wear BONO and top customization brand CARL BONO.

The latest financial report shows that the first three quarters of 2018 reported a 2 billion 99 million yuan gain in the first quarter of 2018, an increase of 24.59% compared with the same period last year. Net profit was 70 million 620 thousand yuan, which turned out to be a year-on-year loss. The net profit in 2018 was 80 million 380 thousand yuan -9334 million, an increase of 210% to 260% over the same period last year. The increase in the number of brand outlets increased from the same period last year and the franchisee buyout system (that is, the recognition of income and allowed a certain proportion of returns). The proportion of cooperation mode increased, and the sales revenue of the news birds, the agent brand Haggis and other brands increased. Meanwhile, the government subsidies increased.

Of course, this is not the whole story. After lurking for 14 years, another "trump card" of AOKANG group began to show itself: Chengdu Hong Wah Biological Products Co., Ltd. The wholly owned subsidiary of AOKANG, founded in 2004, is located in No. 182 Beijing Road, Chengdu economic and Technological Development Zone, Sichuan. Its "human diploid rabies vaccine" has been listed and profitable.

Judging from the latest disclosure of the official website of Sichuan securities regulatory bureau, Hong Wah bio and Minsheng securities signed a listing guidance agreement in July 30, 2018, ready to sprint the A share market.

A story is told by the local people in Wenzhou.

In the same way as Wenzhou shoe making enterprise, Limited by Share Ltd, which has a thirty year history of Zhejiang's Thai footwear industry, although it has won the list of Zhejiang's "invisible champion" cultivation enterprises in 2017, it has not been listed yet, and its body mass has a big gap with AOKANG.

"Zhejiang Thailand" may have more profound feelings about the timing and courage of spanformation.

Annual performance spurt

Against the backdrop of Sino US trade friction this year, AOKANG's revenue in the 1-9 month's export sector dropped by 47%.

However, AOKANG insiders stressed that the impact of Sino US trade friction is relatively small, and will focus on the export market in Southeast Asia later.

Whether we can reverse the net profit decline in the first three quarters, whether export or domestic sales, all need to be more vigorous.

When reporters visited, it was only two days away from "double eleven", and all enterprises were busy preparing for the "double eleven" activities.

It is the five major move of AOKANG's new retail channel to start its membership operation, layout AOK-MART, enable the East China logistics center, expand the sports sector, create the whole category of footwear industry and strengthen the supply chain.

"Through online and offline comprehensive access, truly realized consumption mode reverse traction production spanformation. In the face of changing market environment, AOKANG must continue to explore new ways in the process of exploration. AOKANG executives summed it up as a new retail "deformable meter".

In 2017, "double eleven" won 821 million 900 thousand yuan of total sales of Semir electricity providers, and is looking forward to further breakout this year.

Behind the online shopping craze, two announcements formed a contrast.

In July 18th, the wedding bird ended with no owner.

Holding 9.64% of the shares, Wu Tingting (Wu Zhize's daughter), after accumulating a total of 2 million 360 thousand shares, shares 252 million shares with the largest shareholder Wu Zhize and Shanghai Jinsha Investment Co., accounting for 20%, becoming the controlling shareholder of the wedding bird.

In the evening of August 31st, the controlling shareholder of AOKANG international, AOKANG Klc Holdings Ltd and Wang Chen, a shareholder of concerted action (son of real controller Wang Zhentao), announced that it would sell 15% shares in 625 million yuan.

AOKANG investment and Wang Chen only said that the spanfer is based on their own capital needs. At present, the specific use of this fund is unknown.

It can be imagined that on the way of guarding industry and docking capital market, these leading enterprises must have more feelings to tell. (Zhu Yiyi)