Glory And Destruction: Heavy Warning Of Jinjiang Shoe Enterprises From Prosperity, Development To Decline

In early 2018, a notice of claims disposal in Fujian daily attracted the attention of the industry.

The announcement shows that the total amount of 4 non-performing assets packages of Fujian sports brand, such as del Hui, is 900 million 36 million 754 thousand and 700 yuan, including 4 claims, involving a principal of 800 million 68 million 769 thousand and 500 yuan and a interest rate of 63 million 274 thousand and 600 yuan.

As early as the end of 2017, the "Fujian daily" asset disposal advertisement mentioned above has revealed the final outcome of del Hui: Debye (China) Co., Ltd. and Limited by Share Ltd have debts totaling 636 million yuan, including Dehui industrial and land and warehouses, and the company is now closed.

Del Hui online shop staff said that although the company has been shut down, the brand name has been changed to kaytian sporting goods company last year.

Liu Jinlong, a Kathleen sports worker, told the daily economic news that "the whole sports brand is slipping down, and people are slowly slipping down. We fall off at once."

At the peak, there are more than 4000 stores in the country, and now Liu Jinlong says it's less than 1000.

The announcement of the asset disposal opened up a stunning end to the once brilliant enterprise.

The reality of del Hui is actually a true portrayal of Jinjiang's land today.

Jinjiang has the same legend as Shenzhen. It has leaped from the small fishing village along the coast of Fujian to the "shoes capital of China", where hundreds of sporting goods brands have appeared.

But today, many brands that have been hot are now almost gone.

Ding Shizhong, chairman and CEO of Anta's board of directors, said in July 10, 2017 the 10th anniversary celebration of Anta listing: "ten years ago, no (unknown) enterprises are doing a great job. Ten years ago, a lot of big businesses are gone."

In addition to del Hui, it was listed on the NASDAQ backdoor market in 2009, with the highest price of 13.69 US dollars. In May 9, 2016, it declared bankruptcy. In 2010 and 2011, the turnover amounted to about 3000000000 Yuan a year, and 4000 of the stores reached serious losses, with less than 1000 stores.

This is the outcome of the three Jinjiang sports brands that were once famous.

Founded in the 90 years of del Hui, Jinjiang shoe enterprises began to follow suit. They experienced almost 30 years from prosperity, development to decline and even death. They spent 70 and 110 years old Adidas and Nike at the same time as Japan Zhongtian.

Del Hui has made a good start.

In 1983, Ding Mingliang spent the previous year in partnership with people in a bag workshop to save the so-called 150 yuan.

With two brothers to start a shoe factory, it is said that 6 pairs of shoes have been built on the first day.

At that time, China was on the eve of commodity economy. Material wealth and shortage of commodities were completely buyers' markets. Almost all of them were sold on a low threshold and quick money.

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.

It is interesting that these people, except for Xu Jingnan of PEAK, including Ding Shizhong, who later became the most famous Anta, are all named Ding, and Jinjiang shoe enterprises are also allowed to be called Ding's shoes enterprises.

At present, there is no news to confirm how many years after Ding Mingliang opened the shoe factory, and what he saw publicly was the first year of 90s. Ding Mingliang officially registered "del Hui", which means that as a brand, the enterprise of del Hui began to run.

As for its operation since then, there are no corresponding things in public information at present. What people see is that little Jinjiang seems to be emitting many factories on a flat surface overnight. By the year 2000, there were already hundreds of businesses. Most of them only did one thing, making shoes and selling shoes.

And basically, they are all sports shoes.

Since they are the sports shoes, the spokesmen are naturally athletes. At that time, Chinese football is at its peak. Del Hui also invited Shandong forward Su Maozhen.

But at that time, the Chinese team had just entered the world cup, but the club was disgraced by the scandal. The Pepsi Cola, which has always been the sponsor of Chinese football, has also retired. Therefore, although Mr Mao has just been elected as the Chinese football player, the image of football as a whole in the public mind is too poor to bring the positive demonstration effect of the desire to buy goods.

This makes the image of del Hui as a brand always at a low temperature, and it needs to be changed.

In 2000, Ding Mingliang dug up a planning expert from Lining, why he was a special assistant to the vice president and CEO of del Hui brand.

Why do you find that other manufacturers are asking sports stars to do endorsements, and the Del Hui has no advantage. He decided to try another way. He first invited Nicky Wu to be the spokesman for about 1000000, and extended the advertising position from the CCTV-5, which is mainly the older sports fans, to the young people's attention to more Hunan satellite TV. At the same time, they also sponsored some local entertainment programs that young people like to watch.

Since then, del Hui has embarked on the leisure sports route from the previous pure sporting goods.

However, if we want to firmly establish our iconic status in this line, we must have the leading figures in this industry. This is undoubtedly a little out of date by Nicky Wu, who is famous for the tigers in the early 90s. If we want to achieve this goal, we must keep a close eye on the stars who have great appealing power. Jay Chou, who is on the three sides of the two sides of the Taiwan Straits, is undoubtedly the best candidate.

In the fierce competition between Anta and its rival Anta, del Hui spent a lot of money and finally won the right of endorsement.

Del Hui, onmyway, by Jay Chou's own mouth of the slogan, catchy, popular in the major media in the country, become the memory of the 80 or even 90 early crowd, del Hui has not announced the specific price of Jay Chou endorsement, but one thing can be sure, it is Jay Chou's endorsement, will push del Hui to the peak, become the trend of the young people's brand.

After a series of advertising campaigns in the Quanzhou sports brand, del Hui invited Li Guangdou to change the brand name from "DEERHUI" to "DEER-WAY". The slogan was changed from "my personality" to "ONTHEWAY". At the same time, Xu Gehui, the host of Phoenix TV, was employed as her public interest cultural ambassador, who was endorsed by gymnastics champion Xiao Qin, thus making up for Jay Chou's lack of sports gene.

Since 2003, Jay Chou has endorsed del Hui for more than 50% consecutive years of sales growth. It is Jay Chou who has pushed to the top of the brand influence. From the history of shoe industry, it is del Hui's first sports entertainment. Since then, the footwear industry in Jinjiang has moved from simple sports products to sports leisure series.

The success of del Hui has made a good start. The Jinjiang shoe companies, which originally concentrated on sports, have been turning around. They have been engaged in sports and leisure activities. Anta grabbed Elva Hsiao, JJ Lin, Aaron Kwok and XTEP at 361 degrees, and won Willber Pan, Jolin and SHE at a stretch. The stars were not enough. The youth idol of the two generation was completely wiped out.

In 2002, sales of del Hui exceeded 350 million yuan. In 2004, the sales volume of Xi Long lung was 620 million yuan. In the same year, Anta's sales volume also reached 311 million yuan.

Jinjiang shoe enterprises have entered the peak period.

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".

Struggles between missing and losing

In 2005, when the production and marketing of del Hui, a shoe industry, was flourishing, it was reported that its regional sales department had proposed to Ding ming to open flagship stores in major cities and to add clothing products to the footwear industry.

Because it requires a lot of money to be rejected, it loses the best opportunity to gain profits at the best time.

Later, when he realized that he needed to expand his stores to expand his scale, he didn't have enough capital. Lining took the lead in entering the capital market. The huge flow of funds brought by him to Jinjiang Shoes Companies, such as brand spokesmen, TV advertising hours, channel operators, and so on, had been jealous.

In 2007, Anta became the first public offering of sporting goods in Jinjiang. Other shoe companies were like morphine. Before and after 2009, many Jinjiang brands including XTEP, PEAK and 361 degrees went together to enter the capital market.

This year, del Hui, who started the entertainment and Leisure Road, is also almost ready. He always plans to go public with Anta on the Hong Kong stock market.

But on the eve of the listing, it suddenly exposed a false account storm. It was rumored that the chief financial officer of del Hui was jumping off the floor because he was doing false accounts. Despite the fact that he had been explaining the truth of the incident afterwards, it was said that the company that had made financial arrangements was investigated and punished by the police because of its incomplete qualifications. In the process, some employees tried to escape and accidentally hurt themselves, but then came the negative reports.

Del Hui can not find a way to clarify himself, and the frequent appearance of the chief financial officer is useless.

In desperation, Ding Mingliang and why he rushed to Hongkong to terminate the IPO process.

Del Hui's first IPO failed.

The listing process was suddenly cut off, and the impact on del Hui could be fatal.

The agent who had already had two hearts suddenly pressed del Hui, and 17 mutiny of the 23 agents had been comforting. Finally, only 6 agents, del Hui, began to build a direct battalion system.

Its sales system is quite different.

Those friends and relatives who had given financial support to him had no chance to see the listing, and the expectation of making a profit after the listing was hard to succeed. So many of them began to draw a line with Ding Mingliang.

The biggest problem comes from the big loan banks' demand.

They originally hoped for the listing of del Hui and had a financing channel to repay their debts. Now it is impossible to see the listing impossible, and debt repayment may be at risk.

However, in order to pay close attention to the repayment of loans, there is no way to do so.

The big promotion did win the money quickly, avoiding the debt crisis caused by the bank's debt raising.

But also because of the promotion of the price, so that the huge cost of the celebrity Jay Chou endorsement and the formation of high-end consumers in the minds of the fashion, the image of Delhi gradually disappear, which is the long-term quality of delhui mold has undoubtedly resulted in fatal and delayed.

In order to speed up the repayment, apart from the sale price reduction, the product quality of del Hui has exposed many problems. In July 2008, the Wenzhou industrial and commercial bureau announced that the Deerway brand hooded sweater was detected unqualified, and the unqualified items were "logo identification, color fastness and fiber content". In January 2012, Guangdong Quality Supervision Bureau announced that "del Hui" round neck sweater was detected out of fiber content unqualified; in July 2012, del Hui added "black list".

According to the results of the inspection of Anhui industrial and commercial bureau, a del Hui light running shoes manufactured by del Hui is not qualified, and the unqualified item is "appearance, folding resistance and wear resistance".

When Jay Chou endorsed the bonus to be released, the brand of del Hui failed to win popular support. Instead, the brand image was greatly reduced due to various quality problems.

It can be said that the choice of Jay Chou's endorsement by del Hui is a very wise decision, but in the end it ignores the foundation of the enterprise -- the quality of the product, which is not worth the candle.

In fact, the product quality of del Hui at the beginning of its founding and development is also excellent. Ding Mingliang, chairman of del Hui, once said in public that the product quality is life and will pay close attention to product details.

(signing Jay Chou for 10 years, now he is in debt 600 million declared bankrupt, the failure of del Hui and the revelation of sports industry ecosystem 18-01-1214:39)

But in the face of severe repayment pressure, in order to repay as soon as possible, del Hui had to speed up production, and naturally gave up the quality of products.

It can be said that Del Hui has completely lost the future.

Since then, the original sports and Leisure Road, in the minds of consumers in the high-end high-end fashion brand, began to fade slowly, until there is no two with the stalls.

The hanging of del Hui

Jinjiang's other footwear industry has not stopped, but in 2005, after Hongxing Erke's successful listing in Singapore, Anta listed in Hong Kong in 2005. In June 3, 2008, XTEP was successfully listed on the Hongkong stock exchange. In June 30, 2009, 361 degrees was listed on the main board of the Hong Kong Stock Exchange, PEAK went on sale in 2009, and the most popular bird was listed in January 24, 2014.

At this time, listing is not only a financing channel, but also an important label for the success of Jinjiang shoe enterprises.

Jinjiang shoe companies that have invested in the market have begun to expand.

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 recalls that building more factories and opening more stores is the inertia thinking of Jinjiang bosses.

Why did he fail to turn the oil on the screen? A list of reasons for the failure of 2018-01-10.

Del Hui has made preparations for the second IPO.

Del Hui launched a series of changes. After two years of adjustment, the year 2011 also ushered in the most structured and staffed year, with an order volume of about 3500000000 yuan.

At the critical moment of sprint, Ding Mingliang, founder of del Hui, was knocked down by illness, and died of cancer in June 28, 2011. His younger brother Ding Minglu took over the company.

Even though they could not be listed, they were unable to show their weakness. They all opened shop, and I could not pull them down. When other shoe companies approached 7000 or 8000 stores, they opened more than 3000 stores in the country.

If we want to keep pace with our peers, we must get through the financing channels.

Hongkong listed frustrated del Hui began to seek listing in the mainland.

In 2012, after submitting the listing application, it failed to mention the 2007 "storm" in the prospectus, leading to major underreporting.

Del Hui has changed the securities business.

But at the same time, as the number of enterprises queuing up IPO has increased sharply, the SFC audit has become increasingly stringent.

In order to seek listing, del Hui even changed the sports fashion idea that he spent a lot of money and hard accumulation in these years. Instead, he chose to give up his sports style and pform it directly into "fast fashion" brand. He changed the brand logo to blue "Deerway" in July 2013, and even invited a supply chain management personnel in the fast selling industry.

But all this did not let the SFC relax, and del Hui could make all the moves. The way of listing is still far from being expected.

I wonder if the relevant financial expenses make del Hui overburdened, or del Hui has completely lost confidence in the listing.

In July 2014, del Hui, who spent more than 2 years on the IPO long road, was finally unable to stop. He submitted a suspension review application to the SFC and stopped the domestic capital market.

The announcement was hoped to be pferred to Hongkong again.

However, the Guanyin Mountain Building in Xiamen, as a IPO investment project, has been sold after the termination of IPO.

Seeing that Del Hui's listing is hopeless, the already disloyal agent is even more arrogant. Its slower and slower returns, like the noose, have a little bit of the throat of del Hui, and finally exhaust the last breath in silence and despair.

But the fall is not just del Hui.

According to the 2016 earnings report, 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, and A pushed the shares into the first place, and its revenue and net profit dropped 20% and 26% compared with that before the listing.

Re examining Jinjiang shoe enterprises

Del Hui's owner, Xi De Long's bankruptcy and golden lake's noise can not help but wake up. The consumer's wardrobe shoe cabinet is saturated, and the choice of products will be more rational and demanding. The time when goods can be sold is long gone, and the market is overlooked.

(who is the leader of the shoe and clothing industry today? Who is the alarm bell? 2018-01-31 source: Chinese clothing network: Zhong Meng)

Whether BELLE in 2017 or del Hui, Xi De Long and Jin Lake in 2018 are all saying that the footwear industry is in a downturn, but in the final analysis, it is always inseparable from the crux of their unclear positioning, keeping in step with the past, missing opportunities for development and blind expansion, hoping that these "defeats" will give some warning to the latecomers.

Jay Chou has been invited to speak for 10 years. The fire has spread all over the country, and now he has over 600 million debt. Chief brand officer 2018-1-10

Now we go back and forth to del Hui and the way that Jinjiang shoe companies have gone through. Perhaps it is most appropriate to generalize with a swarm of bees.

The fastest way to win fame is to advertise on TV stations, so that everyone goes to the TV station, especially CCTV5, and finally becomes the "Jinjiang channel". Seeing that sports shoes are good enough to sell, people rush to scramble for entertainment stars, see who sells stalls, and how much time they sell, so they all rush to open stores. After seeing who will have more money to shop, they will go to the market on a regular basis. Everyone will change their clothes together to fight against counterfeiting. When clothes are taken off, they can hardly see the difference. They do not know who I am and what they want to do, only to see that they do so, so I have to do so. See that shoemaking shoes, especially sports shoes, are low in value and fast in money, so everyone is rushing to make shoes.

Li Guoqing, Dangdang, said: "business scale is not equal to competitive advantage and competition threshold.

If you want to become a market leader, you need to have characteristics and unique advantages first, and at the same time set up industry barriers to prevent other competitors from entering.

(ID:lanxionglanqiu) Jinjiang's 30 year defeat: remember the names of del Hui, Xi Dalong, and golden lake? (author: Wu Chenpiao)

On them, it is basically difficult to see the clear strategy of modern enterprises, the complete standardized operation management system, and the implementation of the effective team, not to mention the technological content behind it.

What we see is more, a big star, a slogan, and the size and media of the day and night of the fatigue bombing, this is the Del - Hui's road to Jinjiang shoes.

We must say that in the era when they came out, there was no problem in doing so.

In a commodity buyer's market, they have no need to consider others.

And once this era has passed, their demographic dividend has gradually disappeared, plus the influx of foreign sports brands such as ADI, Nike, fast moving brand Zara, H&M and so on. What they can do is to cut prices, reduce prices, and reduce prices again. When prices can not solve the problem, they can only be defeated, one second line can not be sold, and then to the three or four tier cities, the three or four line can not be sold, and then retreat to small towns and rural areas until finally nobody cares.

"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 shoe enterprises in Jinjiang, people familiar with the matter made comments on Tencent's prism.

Adidas told us.

As for the shoe industry, because its threshold is relatively low, it can be described as the most competitive industry in the world. Even powerful, such as ADI and Nike, has suffered great problems and serious doubts.

Take Adidas as an example. In March 5, 2015, Adidas released its 2014 annual report, which surprised people.

Adidas group net profit fell 27%, from 773 million euros in 2013 to 564 million euros in 2014.

Because the previous year was the 2014 World Cup, and Adidas invested heavily in the Brazil World Cup, people thought that the year of ADI would be a bumper harvest year.

No one would have thought that this would be the case.

The surprising decline of Addie's earnings has indirectly led to Herbert's 14 years of CEO post. Adidas, under his leadership, has been leading a sporting and recreational trend since 2002 and has been developing steadily for 10 years.

And in his hands, contributed to Adidas and chemical giant BASF cooperation Boost technology.

In 2012, Adidas began to apply Boost technology to the field of running shoes. According to official data, Adidas sold 6 million 500 thousand ~700 million pairs of running shoes with Boost technology in the world in 2014, and Adidas NMD, which uses Boost technology, has become the most popular sneakers in the past few years. It sold 400 thousand pairs a day in March 17, 2016 alone, and triggered a bid increase.

Adidas, which suffered heavy losses in its performance, launched the new 5 year plan "CreatingtheNew" in March 26, 2015. The global strategic framework focuses on enhancing brand attractiveness and achieving strong sales growth and strengthening profitability.

On the basis of this, Roth, the successor, further identified five major concerns: corporate culture, digitization, a Adidas, North American market and brand portfolio.

In an interview with China's finance and economics weekly, he said, "there are two special concerns for our" new strategy ": Digitalization and talent.

Regarding digitalization, he believes that the key is to facilitate consumers and meet individual needs of consumers.

At the same time, through direct interaction with consumers, understand their preferences, so that Adidas can better grasp the development trend and trend.

According to Aki, there is a 3C principle in Adidas's corporate culture, that is, Creativity (creativity), Collaboration (collaboration) and Confidence (Xin Xin).

On the basis of the 3C principle, 3 years ago, the Ministry of Human Resources launched the TalentCarousel plan according to the needs of sales and brand departments. It called on employees from all over the world to offer themselves, and 20 people were selected to work at headquarters for 18 months each year.

(Adidas's self redemption "financial weekly" Zhou Chang Xian 2017-8-15)

There has never been an ultimate solution to the competition in shoe industry.

Here are so detailed examples of ADI's case. I just want to give Jinjiang shoe enterprises around del Hui, and the Chinese shoe enterprises behind them to provide something that may be worth thinking about. Shoes sell well depends on the attractiveness of the brand, and the attraction of the brand is far from star, advertising and price cuts.

Adidas tells us that we should build a relatively stable moat based on technology and the perfect combination of tidal current and technology.

Efficient and constantly updated management systems at all times maintain maximum barriers to decision-making and maintain financial health.

It is on this basis that the firm culture of consumers and brands has gradually formed. With the loss of time and the gradual injection of consumers into the minds of consumers, the trust of generations of generations has continued to evolve with the changing times.