China Footwear Industry 2019 Is Winter? Spring 2020?

It has always been a year ahead of us to do business. In 2019, the situation became more grim, and the pressure of industry survival intensified. The trade war seemed to have crushed the last straw. Absorbed? Cross boundary? The negative information of full ears: bird of fortune, bankruptcy of La Natsu Bell, explosion of debt, and loss of 5-10 billion dollars in apparel in the United States, which means that Anta, who has been advancing vigorously, is also selling assets to recover cash. It seems that 2019 is really a great pressure on the industry. The cold winter of 2019 indicates the spring of 2020. Can we survive the crisis? In fact, it is also necessary to sustain enough resources to support the winter.

First, why did the birds come to bankruptcy?

In the 2015 annual performance report, Fu Fu bird pointed out that the footwear industry is still in the bottom stage due to the macroeconomic boom and the development cycle of the footwear industry. It also said that the famous shoes and clothing brands are facing the diversion of e-commerce on the one hand, and on the other hand, they are faced with the competition between international and domestic brands.

In the industry view, external economic factors and industry cycle factors are only one aspect. There are still many inherent problems in some Fujian shoes and clothing enterprises.

Next, we will train franchisees' organization mode and sales promotion mode based on the training of franchised stores. Earlier, the Jinjiang Municipal People's government had published an article pointing out that in the local sports industry sports shoes and clothing, the product homogenization was serious, and no effective differentiation could be formed, resulting in intensified competition and declining profits. In fact, such problems still exist in the entire Fujian style clothing. At present, many brands of shoes and clothing in Fujian are still homogeneous, and marketing channels, business methods and promotion methods are all similar. If we do well in the previous scale, we may survive. Otherwise, input-output will not be directly proportional. Once the capital flow is not good, bankruptcy will become inevitable.

Many enterprises have also actively tried to expand the business outside the clothing industry, until now, cross-border diversification is still continuing. Rich birds also own their own mineral company. In addition, there are more than 10 enterprises in Shishi under the banner of Fu Ping, chairman of the company.

Shoes and clothing enterprises have lower gross profit and longer investment cycle. Many traditional enterprises want to enter the highly leveraged financial sector. The reasons behind many enterprises are not fully known by the public. Some of them are not the main businesses, but the problems outside the main business affect the operation of enterprises.

It is worth mentioning that Ding Hui, chairman and chief executive of Fujian, lost contact with the former chairman of the board of directors. The representative of his supplier once said: there is still a phenomenon of "big gambling" market and credit becoming popular in Fujian clothing brand. Some brands have to expand blindly, exaggerate the consumption of suppliers, and default on payment. Many companies in the capital chain tension, over 50% of the payment can not be paid on time, but through the acceptance of bills of exchange, letters of credit and other means of delay.

Against this background, the failure of the rich and precious birds is not the beginning nor the end. In the future, shoes and clothing brands will encounter normal debt problems or even bankruptcy. This is not just a problem in the clothing industry. What enterprises need to do is to grasp the time and focus on the development of the main business and realize transformation.

Two, La Natsu Bell burst warehouse

1) shops:

La Natsu Bell has nearly 10000 stores across the country and has low efficiency. In such a depressed market, he will continue to raise funds to invest in channels. There are hundreds of ZARA shops in China, and the performance is roughly the same as that of La Natsu Bell's nearly 10000 stores. It can be seen that La Natsu Bell urgently needs a single store to enhance its efficiency.

2) many brands:

The more than 10 brands of La Natsu Bell's women's clothes are mixed together. There are men's clothes and women's clothing, but they don't show much difference to the consumers. It seems that the collection shop is actually under the sign of La Natsu Bell's women's clothing.

3) inventory:

Since La Natsu Bell's women's wear came on the market, the inventory problem is the most troublesome problem for La Natsu Bell's women's clothing. The diversification and direct operation of the channel have not completely solved the inventory problem. Instead, the stock has increased with the expansion.

4) more discount:

Consumers reflected that La Natsu Bell's women's wear was more frequent discounts, and compared with the benchmark ZARA, there was still some problem in commodity management. The discounts at the end of ZARA would not be one size fits all, but some discounts. Similar discounts for La Natsu Bell's women's clothing were more fierce. It was evident that La Natsu Bell's commodity planning, listing rhythm, marketing activities, price planning and so on still did not learn the essentials, and the product life cycle remained at the level of making decisions.

Three, expensive people are trapped in debt whirlpools.

The "noble bird" has been on the brink of the second tier of the domestic sports brand, and even slipped to the third tier. The main reason is that the main energy of the noble bird was not in the main industry, but on the development of "Pan sports". In recent years, the development of many brands and multi-channel has not been effective. In fact, the popularity of A in the A-share market is much better than that of other sports brands listed on the Hong Kong stock market, but it is clear that the birds have not been able to make good use of them. At the same time, the birds have also fully relied on market driven growth, causing the "malnutrition" of the birds.

The choice of birds in the past has been helpless. There are two main reasons, including internal and external factors: the internal cause, compared with the Anta, the seven wolves and other enterprises, the main industry's plate is obviously not enough, and the positioning is slightly embarrassed. In the short term, only the expansion of the domain can be exchanged for the same growth opportunities as other brands. In terms of external factors, the retail industry has been sluggish in recent years, and the market's confidence in the shoe and clothing industry is in a doldrums. It needs to rely on acquisitions to enhance the value of the enterprise, thereby giving enterprises more room for development and capital.

The "bird of honor" epitaxy the M & A tentacles, reflecting the swing of the strategic direction, and thus missed the great development opportunities of the two or three line sports shoes and clothing brands brought about by the upgrading of consumption over the past two years.

In recent years, with the improvement of people's living standard, the upgrading of domestic fitness and sports consumption has become a trend, and the sports industry has become a new draught. According to the "opinions on speeding up the development of sports industry to promote sports consumption" issued by the State Council in October 2014, the average annual growth rate of sports industry output in China is above 20%. By 2025, the total value of sports industry in China will reach 5 trillion yuan. There is no doubt that the current sports industry is in a golden period of rapid development, and is an indisputable pie.

In the face of such a huge market opportunity, shoes and clothing enterprises should focus on the main business instead of blindly crossing the border in the absence of the main industry. Returning to the main business is not just a return to manufacturing, but rather based on the upgrading of consumption market and the "new retail" ecosystem.

Figurative speaking, it is through scientific and technological means to achieve the PC end, mobile terminal, end end docking of the physical end, thoroughly solve the consumer experience and comfort into the brand, product, price, service and other multipolar, truly achieve the retail experience mode of the whole channel. While doing vertical and depth, and then sink to cover a more low-level market, deep plough long tail demand, perhaps is the true development of shoes and clothing enterprises.

However, the development mode under the new ecosystem demands higher operation efficiency and enterprise machine efficiency. The process of transformation is too laborious, so it is easier to take shortcuts and merge. Therefore, most of the listed footwear enterprises choose the way of merger and acquisition. Therefore, we often say that to do well in the main business, the current domestic brand must return to the beginning. This is not a slogan but a necessary practice in the critical period of transformation.

Four, the United States has lost 5-10 billion clothing.

The founders decide the future direction of the enterprise.

Mr. Zhou Chengjian's character may have something to do with the background of his own growth. In my book "do not go the unusual way: I am in Metersbonwe thirteen years", there is a special chapter on Mr. Zhou Chengjian's interpretation. Mr. Zhou is a perfect person. He has high demands on the people around him.

Mode choice

Zhou Chengjian's Smith Barney costumes first developed from Wenzhou, and then developed into Nike's franchise mode. Today, the United States has been directly engaged in fashion and affiliate mode. Especially after the listing period, Mr. Zhou's clothing has changed from the brand to ZARA and UNIQLO.

Brand diversity

Before the listing, Zhou Chengjian, the US bond maker, resisted loneliness and resisted temptation. He remained unwavering in the Metersbonwe brand. In the 08 years, the United States and costumes were listed in a hurry to launch the high-end brand ME&CITY of the United States brand. The direction of brand selection is undoubtedly very correct, but it is still a loss on the basis of the same product supply and store operation of the popular brand Metersbonwe.

After listing

After the listing, there are several changes in Zhou Chengjian's American dress. It is worth studying: first, when money is rich, Zhou Chengjian really blitz; and secondly, the top teams in American Apparel are almost the same; third, Mr. Zhou is more proud, almost listens to opinions, and needs to know more about the Internet than the clothing and clothing enterprises. He knows more about clothes than the Internet companies, and thinks innovating one after another. Instead, he thinks that shop opening and shop management are outdated. Zhou Chengjian's US state clothing franchise system once occupied most of the territory and supplied a large amount of positive cash flow. But during the years of natural growth, today, when we want to sink the market, the income of the United States has been greatly reduced.

Over innovation

In 2016, Smith Barney almost pulled out of the market, but today, in order to achieve higher profits, Smith Barney's measures in recent years seem to be desperate. From the Internet, to the sale of subsidiaries, and to the shopping mall channels under the Tropic of cancer, the United States has always wanted to prove itself, but the result is just the opposite. Any transformation or upgrading is accompanied by certain risks, which means uncertainty and high investment and long profit cycle. In a certain channel has not yet been stable, eager to change, resulting in a direct proportion of investment and income; 2019, the United States and apparel in advance of 5-10 billion, can the United States and the state of clothing can make a comeback? The future is coming quickly, and the result of changing the operation of enterprises is not only the market but also the team. The heroism of enterprises is gone forever. In the new normal market of consumption upgrading, the perfection of modern management structure of enterprises is called for.

Five, Anta is also selling asset recovery cash.

The market value of Anta has reached the same value as Nike and ADI. Is Anta really surpassing it? Or overvaluation? Or does the Chinese market, Chinese brands, Chinese enterprises and Chinese capital bring unlimited expectations to investors? But all of the value of the company ultimately needs to be reflected in the business performance, and the domestic market is not far ahead. Under such circumstances, this worry and risk are not simply the market value of Anta's stock price. What more needs to be done by Anta who wants to scale up and internationalize? Opportunities exist forever, and it is more realistic to live than to grow up. The rapid growth of Chinese enterprises really needs slower growth.

Anta's move to sell assets and shares also reflects the tightening of capital flows and tightened financing in the domestic sporting goods industry. Anta hopes to get more cash flow by selling non core assets or part of its equity, in order to cope with the winter of the market.

summary

Through the above case analysis, it is not a hyperbole, but a fact that no matter how cruel the cold winter is, no matter how cruel the winter is, the clothing demand for food, clothing and shelter is still just needed. This is the function that any new technology, new technology and new tools can not replace. It is not a cutting-edge technology to make a good clothes and a good clothes. It is not the complexity of launching missiles or satellites. The spirit of craftsmen who sticks to the core of the brand and pays attention to the industry is still on the road in the winter. It is not only the chance of spring, but also opportunities in spring, summer, autumn and winter.