Footwear Consumption Market Is Weak, Shoes Listed Companies Want To "Younger" Pformation

Throughout the performance of footwear listed companies in 2018 and this year, there is still a general slowdown, indicating that the industry has not yet come out of the doldrums.

In this situation, shoe companies intend to make more adjustments and adaptations to changes in consumer demand on brands and channels.

AOKANG's international performance decline, layout of young fashion shopping channels

AOKANG international 2018 annual report shows that the company achieved revenue of 3 billion 43 million yuan in 2018, down 6.70% compared with the same period last year, and the net profit attributable to shareholders of listed companies was 137 million yuan, down 39.53% compared with the same period last year.

The annual report shows that the company currently implements the multi brand operation mode which is mainly based on "AOKANG" brand, and "Kanglong", "Cage" and "Puma" and other brands. The main sales area of the product is the national 123 line shopping mall, shopping malls, stores and so on.

Among them, AOKANG brand provides high-end business and fashion products for the 25-35 year old target customers. The main price is between 299-699 yuan. Kanglong brand positioning is fashionable and casual, with the young consumer group as the main force, the main product price band is concentrated in 399-599 yuan; the Cage brand product covers 3 plus years old children and adults, including sports shoes, clothing, accessory products and so on, the main price band is 399-899 yuan; Puma brand products are mainly leisure and sports series, involving running, football and other fields, the main price band is 499-899 yuan.

AOKANG International said that due to the overall weakening of the footwear market in 2018, competition continued to intensify, leading to a 7.01% year-on-year decline in main revenue.

In 2019, the company will enter the community business superstores such as big RFD and Suguo, and complete the channel layout with street stores, department stores, shopping centers and otter Les, and build a new generation of "AOKANG life Pavilion" terminal, and layout young and fashionable shopping channels.

AOKANG international 2019 quarterly report shows that the company achieved a revenue of 736 million yuan in the first quarter of 2019, down 15.23% compared with the same period last year, and the net profit attributable to shareholders of listed companies was 79 million 139 thousand and 200 yuan, down 33.68% compared with the same period last year.

The loss of main birds and the decrease of main brand revenue

The 2018 annual report shows that the company achieved a profit of 2 billion 812 million yuan in 2018, down 13.52% compared with the same period last year. The net profit attributable to shareholders of listed companies was -6.86 billion, down 536.01% compared with the same period last year.

The annual report shows that the company currently owns brands including "noble bird", "AND1" and "PRINCE". The main business of the main holding subsidiary shoes store is the operation, agency sale and distribution of the famous brand sports products of the international and domestic front-line brands. The sports brands currently selling agents include Nike, ADI, UA, CONVERSE, NewBalance, Lining, new brun, Cage, Arthur, DC, PUMA and so on.

AND1 and PRINCE are newly launched international brands. AND1 currently has only 5 direct outlets, and the production is mainly outsourcing. PRINCE has not yet introduced specific products to the market.

By the end of 2018, the number of retail outlets of the brand was 2873, mainly in the three or four line city market.

The main reason for the loss of the company's performance is that the annual sales revenue of the brand is reduced, and the two is that the company buys the market and sales channel resources for the dealer of the noble bird brand, and the price is included in the current sales expenses. The additional cost to the dealer's sales rebate is 122 million yuan, resulting in a substantial increase in the final sales expenses; three, the pfer of the 50.01% stake of the company's holding of the company, resulting in a loss of 112 million yuan in the company's investment; four is the preparation of the goodwill allowance for the acquisition of the acquired shoe base, 93 million 203 thousand and 200 yuan; five is the increase in the stock price caused by the sharp increase in inventories resulting from the increase in the stock price, which is 64 million 10 thousand and 400 yuan for the provision of the stock price drop of the inventory, which is caused by the increase in the inventory of the acquired shoe store. The three is that the sales cost of the company is pferred to 112 million yuan.

A quarterly report shows that the company achieved a revenue of 522 million yuan in the first quarter of 2019, down 37.40% compared to the same period last year. The net profit attributable to shareholders of listed companies was 13 million 918 thousand and 100 yuan, down 83.66% compared to the same period in 2019.

Red Dragonfly performance decline, products to "younger" pformation

Red Dragonfly 2018 annual report shows that the company achieved revenue of 3 billion 41 million yuan in 2018, down 6.29% compared with the same period last year, and the net profit attributable to shareholders of listed companies was 196 million yuan, down 48.61% compared with the same period last year.

The annual report shows that the company designs, develops, produces and sells Red Dragonfly brand adult shoes, bags and leather goods, as well as e-commerce and children's products business. There are 4175 existing stores, including 363 Direct stores and 3772 stores. In 2018, the sales of Red Dragonfly electricity suppliers was about 563 million yuan.

Red Dragonfly said the company increased its efforts to expand shopping centers in 2018 and opened 55 Mall stores.

Red Dragonfly said that in 2018, the demand for domestic footwear market slowed down, and competition intensified. The company's operating income and operating costs decreased by 7.66% and 8.05% respectively compared with last year, of which leather shoes revenue decreased by 5.92%, leather goods business income decreased by 16.43%, and the sales of children's products decreased by 28.61% as a result of overall strategic adjustment.

Red Dragonfly said, the company's product structure began to be younger, fashion and sports pformation.

Men's shoes will be adjusted to young sports, urban leisure and high-end products; women's shoes will enhance the development of fashion and professional women's shoes; leather goods will be adjusted to young sports, urban leisure and leather bags.

In 2019, the company will focus on promoting the development of young sports, urban leisure, high-end products, and the pformation of new production lines. The company will close some of the small and scattered stores, continue to increase the strength of shopping center channels, and attract younger customers with new store images and young fashion products.

Red Dragonfly 2019 quarterly report shows that the company achieved a revenue of 804 million yuan in the first quarter of 2019, a decrease of 3.63% compared with the same period last year, and the net profit attributable to shareholders of listed companies was 73 million 89 thousand and 800 yuan, a decrease of 20.80% compared to the same period last year.

Daphne has expanded its international deficit and continued to close its stores.

Daphne international 2018 annual report shows that the company's turnover in 2018 was HK $4 billion 127 million, down 20.8% compared to the same period last year. The net profit attributable to shareholders was HK $-9.94, compared with HK $-7.34 in the same period last year, and the deficit expanded.

Daphne International said the decline in turnover was mainly due to the decrease in the number of stores in its core brand business from 26.2% at the end of 2017 to 26.2% at the end of 2018, and the same store sales fell, leading to a decline in its sales.

The group accelerated the closing of the loss shop. On the other hand, the group also tried to increase its market penetration through the sales channels of the more fashionable shopping centers. The group closed 1016 sales outlets in 2018. By the end of 2018, the group had a total sales point of 2820, including 2648 core brand business outlets and 172 sales outlets of other brand businesses.

Daphne International said that in 2018, the e-commerce business continued to increase its contribution to the group's turnover and maintain profitability. The group launched more funds for online sales and strengthened cooperation with emerging e-commerce and social platforms.

Daphne International said that the group carried out pformation in 2017 and 2018, including clearing up the seasonal inventory and closing the loss shop. In addition, it continued to adjust its brand marketing strategy to enhance the proportion of young people in its customer base, and the flow and sales volume of young customers increased gradually.

For the future pformation plan, Daphne international plans to increase investment in product research and development, focusing on fashion and comfort.

The group will continue to enrich its product mix with more fashionable products and sports shoes. Apart from the introduction of new products, the group will also expand its product mix.

Saturday's turnaround, continue to open brand store

Saturday 2018 annual report shows that the company achieved revenue of 1 billion 532 million yuan in 2018, an increase of 1.87% over the same period last year. The net profit attributable to shareholders of listed companies was 8 million 933 thousand and 600 yuan, which was -3.5 billion yuan last year, turning losses into profits.

The annual report shows that the company currently owns "ST&SAT" (Saturday), "D:FUSE" (Diffs), "SAFIYA" (Sophia), "SATURDAYMODE", "FONDBERYL" (Febe Lil) and other private brands.

The company has set up a brand collection store, selling its own brand, agent brand and three party brand shoes, bags, accessories and other fashion products. Besides, it has acquired the controlling rights of fashion new media company such as fashion front, Beijing and so on.

In 2018, the company acquired a digital marketing company's look ahead network, which has been incorporated into the consolidated statement of Saturday as a subsidiary since March 2019.

On Saturday, it said that in 2018, the company continued to set up the brand collection store "Saturday Mode" and closed some department store brand chain stores.

As of December 31, 2018, the company has set up 168 brand stores in the country, an increase of 19 compared to 2017, began to change the collection shop in the early stage to direct the main mode, and gradually increase the proportion of franchise stores.

As of December 31, 2018, the number of brand chain stores was 1378, which was reduced by 211 from the end of 2017.

A quarterly report on Saturday 2019 showed that the company achieved a revenue of 427 million yuan in the first quarter of 2019, an increase of 18.29% over the same period last year, with a net profit of 21 million 382 thousand and 700 yuan attributable to shareholders of listed companies, an increase of 11.15% over the same period last year.

Tian Chong fashion performance growth, plans to increase the proportion of sports and leisure products

The 2018 annual report shows that the company achieved a profit of 2 billion 52 million yuan in 2018, an increase of 18.37% over the same period last year. The net profit attributable to shareholders of listed companies was 242 million yuan, up 28.87% over the same period last year.

The annual report shows that the company's main business is divided into two parts, one is fashion shoe clothing accessories business class plate, the two is mobile Internet digital marketing section.

The company has six brands of women's shoes, including five high-end brands, including "KISSCAT", "ZSAZSAZSU", "tigrisso", "KissKitty" and "KASMASE".

In addition, the company launched the menswear own brand "catalog MUST HAVE", acting as Italy fashion creative brand "O BAG", and participating in the international designer brand United Nude (UN).

The company's mobile Internet digital marketing business is mainly for the small technology business, including mobile application distribution and promotion, and mobile Internet advertising program.

According to the annual report, there are a total of 1925 brand stores in the offline market as of December 31, 2018, including 1377 direct battalions and 548 stores. Compared with the shops at the end of last year, there were 91 new outlets and 93 outlets.

The company has upgraded its production line and launched the first large-scale intelligent production line in 2018 and has been put into operation.

In 2019, the company plans to increase the proportion of sports and leisure products, and develop a user centered community operation mode.

In 2019, a quarterly report showed that the company achieved a revenue of 491 million yuan in the first quarter of 2019, an increase of 4.52% over the same period last year. The net profit attributable to shareholders of listed companies was 38 million 352 thousand and 100 yuan, a decrease of 48.87% compared to the same period last year.

Hua Shang observation: footwear companies listed on the performance of general downturn, want to "younger" pformation

Throughout the A and Hong Kong listed footwear companies, their performance in the first quarter of 2018 and 2019 remained low.

Gliding, the first quarter of 2019 continued to show a downward trend, the results of the first quarter of 2019 continued to show a downward trend, the performance of the birds in 2018 was greatly reduced, the Daphne 2018 deficit expanded, the Saturday and the sky made the trend in 2018, the profits were relatively good, but the profit margin was smaller than before, and the absolute profit was smaller than before. The growth rate of revenue and net profit of the footwear companies increased, but the growth of shoe business revenue was basically flat. The net profit of the first quarter was down compared with that of the first quarter. The two companies all had the thickening performance of the diversified sectors. In addition, the listed companies of shoes listed by Hasen shares and 1000 degrees also recorded losses, Hasen shares lost 62 million 374 thousand yuan, and the loss was 387 million yuan. The company recently announced the sale of its British toy store Hamleys. In the six shoe companies mentioned above, AOKANG international and red dragonfly revenue and net profit in 2018 were year-on-year.

The current performance of these shoe companies reflects the weakness of the footwear consumption market as a whole.

Internal and external factors such as the impact of macroeconomic environment, changes in consumption market demand, changes in market competition environment, and the specific conditions of operation and pformation of enterprises themselves have "created" the current performance of shoe companies.

However, we can also see that footwear companies are still adjusting and adapting to the main business.

For example, many shoe companies are adjusting their product styles and brand positioning, moving closer to the "younger" style, adding sports and leisure style product lines to cater for the increasingly personalized and subdivided needs of young consumers who have already become the main force of consumption, and actively adopt the "new retail" means such as social service providers, and so on. In the channel development, they use more integrated contraction action to create a fashionable young style collection shop, and closer to shopping centers.

In general, if footwear companies with declining performance can adapt to changes in consumer market demand in terms of brand and channel adjustment, it is possible to get out of the pition stage faster and usher in reversal and recovery in performance.

Author: Xiaopeng