A Generation Of "Shoe King" Defeated! Why Is Shoe Business So Hard?

Rich bird was once a well-known brand of shoes in the country. However, since its listing in the HKEx in 2013, the fortune bird continued to lose money and announced its suspension in 2016.

After struggling to save themselves, the rich birds still can not escape the fate of the delisting. On the 25 day, the birds of fortune officially withdraw from the Hong Kong stock exchange.

Rich birds officially withdraw from the Hong Kong Stock Exchange today.

According to the announcement of the fortune bird, the Stock Exchange announced that the listing status of the lucky birds will be abolished in accordance with article 6.01A of the listing rules from 9 a.m. on November 25th.

Prior to that, in August 9, 2019, the stock exchange sent a letter to the fortune bird that the final listing date of the company's shares will be August 23, 2019 and the listing status of the shares will be cancelled at 9 a.m. in August 26, 2019.

But the rich bird did not willingly lose its listing status, and immediately launched its own rescue, and submitted it to the listing Review Committee for further and final review. However, before waiting for the date to review the hearing, in August 26th, the bird of fortune announced that it had ruled by the Quanzhou intermediate people's court that it would reject the application of the governor's approval of the draft reorganization plan and terminate the bird's reorganization process, declaring that the bird of fortune was bankrupt.

Ren Jinlong, general manager of Cci Capital Ltd, Shenzhen Golden Phoenix Tree: some competition from the electricity supplier comes from the competition of the big international brands. It should be said that the fortune bird company is weak in transformation. Some transformation attempts have not been effective, and the profits of the birds are negative, and the financial situation is very bad.

The fall of the birds of fortune

Founded in 90s, the "bird of wealth" has won the honor of "China genuine leather shoes king" and "famous brand products of Fujian province".

In 2011, when the company was founded 20 years ago, the dealer outlets of rich birds increased to 3026. This has quickly lifted the company's performance.

From 2011 to 2013, the revenue of rich birds rose from 1 billion 652 million yuan to 2 billion 294 million yuan, while net profit rose from 254 million yuan to 444 million yuan.

Reporters learned that in 2013, fortune birds listed on the Hong Kong stock exchange, but the development of the company was not smooth after the listing. After 2014, the performance of fortune birds declined in a straight line. In 2016, the decline of fortune birds performance was further expanded. In 2017, the net profit of rich birds was changed from profit to loss, which was about 10 million 890 thousand yuan loss. In September 1, 2016, the bird died for three years.

Why are traditional shoe enterprises no longer in sight?

After three years of suspension, after the effort to save themselves, a generation of "shoe king" rich birds still can not escape the fate of the Hong Kong Stock Exchange's delisting. Xu Shuze, a special observer in the financial channel of Shanghai, analyzed why the traditional leather shoes enterprises are no longer in sight.

Buffett's biggest failure was planted on shoes.

The most expensive investment in Buffett's career has been on shoes. Making shoes is not easy today, because it is difficult to focus and streamline, because selling clothes usually have large, medium and small sizes, but shoes are sold from 35 yards to 46 yards, and every different number has different styles, each of which has different colors, so that tens of dozens of items are counted, which results in that it can not be simplified and the production cost will be very high.

Scale pipeline is a masterpiece in the industrial age.

In the industrial age, a great invention was called steam engine. In fact, Taylor's scientific management and TOYOTA's lean manufacturing were more important than it was. It is on a large scale production line that you can reproduce the same thing in batches, but every shoe is different, and the cost will be high.

Why is it best to sell 79 yuan a pair of shoes?

Big data show that the best shoe is a pair of shoes of 79 yuan, because many girls buy shoes only wear one or two times, more than 100 yuan, everyone will think about it, so cheap is very important. Shoes are sold cheap, production costs are high, and gross margins are not high.

Fashion trends make business overnight.

The shoe business is also faced with a difficult problem, that is, the trend of fashion. For example, in the past few years, the streets were full of "leather king" and "leather shoes king". Today, men, women, old and young wear sports shoes and running shoes, because now is the trend of national health. If we focus on the track of leather shoes, stock will start to soar and stock turnover will start to rise.

Ten crises, nine levers

The shoe business also has a negative effect, because there are many stores on the line. The business is special because it has to rely on the lower shops, because shoes need to be tested on feet, for example, the high walking height of high heels is appropriate. Therefore, in the past, when these enterprises had a good trend on the draught, thousands of shops in the country expanded to borrow a lot of debts. But after the fashion trend, they had to close the stores. The stores were all negative assets, and the inventory was also reduced together, so the total assets were shrunk, but the debt remained unchanged. So this is called the fall time, the more the levers were falling, the bigger the leverage, the more unpaid night debts, the billions of debts. At that time, P2P was also done. So, in the end, it did not die of innocence. It died of innocence and did not concentrate on its industry.

Tip: first, concentration is very important, but watch out for changes in the market and stay resilient. Second, ordinary people simply don't touch leverage.