The Decline Of The Noble Bird, The Bankruptcy Of Hilton, The Loss Of Alligator Wright 30 Year History Of Jinjiang Shoe Enterprises

a new force suddenly rises

For Jinjiang shoe enterprises, the 1980s can be called the starting point of the whole "shoe making movement".

Collective entrepreneurship is not accidental. In October 1983, driven by the new economic model, Lin tuqiu, the later founder of alligator Wright, founded the yangdai shoe and hat factory to make it. He knocked out his first pair of sports shoes in the dilapidated stone house and made 80000 yuan in the first year.

It's in the town of Daiyang, but the story of Chen XiMao is not fast. In the same year, Ding Jiantong, who lived by farming and fishing, pooled 2000 yuan to establish Huafeng shoe factory, the earliest predecessor of 361 ° and in 1989, Xu Jingnan used the money saved by pulling a scooter to establish Fengdeng shoe factory, later peak, which laid the foundation for the prosperity of Jinjiang Sports Goods manufacturing industry.

In the following 90's, more than 3000 shoe and clothing factories, including Jinlaike, Luyou, Xide dragon, Anta and Tebu, rose one after another in the bullet market of Jinjiang, and tens of billions of sports shoes were born. It is this group of "grassroots" who believe that "love to fight will win", which has turned the whole Chinese sports shoe market upside down.

However, the Southeast Asian financial crisis in 1997 was like a heavy blow. Overseas orders dropped sharply. It became a difficult problem for many Jinjiang shoe factory owners to continue to engage in OEM or develop their own brands, which also opened the prelude to polarization in the future.

In 1999, Anta, as a "game breaker", signed Kong Linghui, who had just won the world champion of men's table tennis, as the spokesman. In 1999, Anta lavished 3 million yuan in advertising bombing in the golden section of CCTV, thus breaking the 300 million mark in sales.

Seeing Anta shot and red, the villagers watching the fire from the other shore heard the wind and moved. In the war, Guo Yineng and Zhang Yining won a lot of fame. In just a few months, more than 1400 brands have sprung up in Jinjiang. CCTV-5 was once nicknamed "Jinjiang channel".

After entering the year 2000, the successful bid for the Olympic Games, the appearance of the men's football team, and China's accession to the WTO These good news is like a needle "cardiotonic", stimulating Jinjiang shoe enterprises to keep running.

In 2005, hongxingerke took the lead in listing in Singapore; in 2007, Anta landed on the Hong Kong Stock Exchange and its market value soared to HK $20 billion, becoming the fifth largest sports brand in the world; in 2008, it was listed on the Hong Kong stock exchange, and the founder Ding Shuibo was worth more than HK $5 billion. Around 2009, many brands such as Xide dragon, peak and 361 ° entered the international capital market, and Jinjiang shoe enterprises entered their heyday.

At this stage, Jinjiang brands are in full bloom and each has its own merits. It not only firmly locks in the middle end seats in the sports brand market, but also has the spare power to encroach on the higher-end level. At the peak of the market, the spring and autumn ordering meeting, which was held twice a year, was urgently changed to four times a year because of the shortage of supply.

After listing financing, Jinjiang shoe enterprises with more confidence began to increase their power to expand their scale. In 2011, the number of Tebu stores increased from 3000 to 7596; the number of 361 ° stores increased from 4632 in 2008 to 7682 in 2011; while peak achieved nearly 8000 stores in two years on the basis of 6000 stores in 2009.

In the same year, the national economic and Trade Commission released data of 6 billion people in the same year. In 1978, it took only 23 years for the poor county, which was still living on the state's "relief", to the economically developed and world-famous county-level city. It took only 23 years for Jinjiang to attack, which has become an insurmountable myth in China's shoe and clothing industry.

With the continuous development of the giant ship, the total economic volume and industrial scale of Jinjiang continue to expand rapidly with a huge inertia. They are unaware of the turbulent undercurrent under them, or they are more willing to anesthetize themselves under the appearance of success.

Fall of the king

After climbing the highest point of the parabola, the next second is falling.

The "sports craze" brought about by the 2008 Olympic Games lasted only two years, and the situation suddenly turned straight down, "shortage" turned into "surplus". The inventory of major sports brands in Jinjiang has been huge, and the unsalable predicament has become a mountain pressing on the top of the head, and everyone is in danger.

With the rise of labor costs and the appreciation of RMB, a series of attacks have come one after another. The capital chain is broken, the homogenization is serious, the inventory is overstocked, the influx of foreign big brands, and the impact of e-commerce Many small and medium-sized enterprises have fallen first.

The shoe enterprise that takes the lead in making the plate bigger through the listing is also doomed. In 2011, hongxingerke was suspended from trading on the stock exchange of Singapore for suspected financial fraud. In 2014, the noble bird, who worked hard to squeeze into a shares, made a performance change in the first year. The revenue and net profit decreased by 20% and 26% respectively compared with those before listing. The boss of norch and alligatorite chose to run away in this year; In 2010 and 2011, Jinlaike, with an annual turnover of more than 3 billion yuan, suffered serious losses, with only a little interest left. By 2016, the net profit of 361 ° had dropped to 400 million yuan, and peak sports was delisted in the same year. In 2009, hind dragon, which was backdoor listed with a share price of up to $13.69, declared bankruptcy on May 9, 2017; in January 2018, Delphi left the market with a debt of RMB 636 million.

Under the internal and external troubles, the former glory is gone forever. The rapid change of the market has accelerated this process, but from the beginning, the decline of Jinjiang shoe enterprises is more due to its own factors.

It is difficult to manage the family

In the early days, the shoe enterprises in Jinjiang started from "family joint production and manual workshop". They had a strong family concept and strong exclusiveness. Even though the business grew more and more popular in the following decades, the influence from the root did not disappear.

In a small shoe factory with dozens of people and more than a dozen pairs of shoes a day, it is hardly a problem. However, when the company has become a large enterprise with sales of more than 100 million or even several billion, the lack of modern management system has become a time bomb.

The data are enough to explain the problem. Jinjiang government admitted in 2016 "Jinjiang Sports Industry Development Research" that although there are more than 5000 sports industry enterprises, there are few enterprises with an output value of more than 5 billion yuan, and there are no enterprises with an output value of more than 10 billion yuan. They are generally small and medium-sized enterprises, and they are not willing to introduce professional managers.

For the collapse of Delphi, senior employees once denounced its store management as disorderly, the channel manager did not act, and had no sense of doing things, which undoubtedly exacerbated the plight of Delphi.

This accumulated disadvantage is particularly prominent during the listing period. Because of the family operation, people who are not extremely trusted can't touch it. As a result, the funds of Jinjiang shoe enterprises are complex and their accounts are gray, which makes a lot of intermediary evaluation agencies headache. Due to its failure to pass the audit, the company abruptly terminated its listing 10 days before IPO and failed.

Seemingly unimportant problems are often chronic poisons, like unnoticed rust. Even if the body is cast with iron armor, it will eventually be eroded and collapsed.

2. Floating on the surface to seek scale, do not want to become abandoned children

The boss of Jinjiang dare to work hard and have a strong learning ability. However, in terms of the pattern of vision, he is really limited, so that he often loses a good situation.

Jinjiang shoe company, which started to establish its brand in the 1990s, has long been willing to act as a substitute factory for ADI and Nike. It was not until 1998 that it changed under the strong guidance of the government. However, until 2004, the Jinjiang Municipal government still spent 18 million yuan to award brand-new enterprises.

Before the outbreak of the inventory crisis, Jinjiang shoe enterprises had a "comfortable" life. Before that, Jinjiang department was positioned as a "brand wholesale company". As long as the goods were successfully delivered to the dealers, even if the sales were completed, it would be good to make money if the goods were sold more or less, and how to sell them. It gradually formed a fatal delay, and finally was unable to resist in front of the cold wave.

In the circle, "building more factories and opening more stores" is the habitual thinking of Jinjiang bosses. Enterprises have been fighting each other year round to develop distributors and channels. At that time, they even made official competitive rankings to see who can compare with whom.

At that time, the market was changing dramatically. As a result, the popularity of sports products is becoming more and more popular in the world.

Facing the new demand brought by consumption upgrading, the transformation of retail mode is imperative. However, some enterprises not only did not start the retail reform, but also stayed in the past experience and made strategic mistakes. In 2012, Hongxing Erke, noble bird and other enterprises proposed to transform to life and leisure clothing, and the business proportion of this category once reached more than 50%. However, the competition in the fast fashion industry is more cruel, and the inventory and cash flow crisis of enterprises become worse. However, Tebu did not begin to transform until 2015, and 361 ° is still on the way of exploration, so it has lost a lot of opportunities.

Go public and ignore the risk

In 2007, Jinjiang and fengjiang became the only big enterprises to be listed on the stock market.

In fact, more and more enterprises do not follow the law of value creation, but have the psychology of speculation and comparison. Financial fraud, capital movement, even delisting and switching to other markets are tacit operating practices among some Jinjiang enterprises.

The price of blind listing is painful. What is not well known to the outside world is that the financing cost of listing is very high, and the funds raised will not be paid immediately. In order to whitewash the financial statements, enterprises need not only to make up the tax, but also to pay a "planning company" fee, which is generally in the tens of millions to hundreds of millions of yuan, and the packaging fee is at the level of 100 million yuan.

Delphi, which had a good momentum, was, to a large extent, dragged down by its eagerness to go public. After nearly 8 years of financial fraud, founder's accident, and halberd IPO, Delphi company, which has failed to fulfill its wishes, has been in a vicious circle, its brand and business have plummeted, and its assets have been mortgaged and auctioned off.

Aftershocks are still there. In 2018, Jinjiang footwear enterprises were accused by GMT, which claimed in its report that among the 16 sports goods listed companies in China, 9 have been proved to be "cheaters" in recent years, and among the remaining 7 companies, the financial data of Anta, Tebu and 361 ° are similar to those of these "cheater" companies, which makes the industry clamour.

Listed and then delisted, Jinjiang shoe enterprises to glory on the stage, but ended in a state of embarrassment, early knowledge of today, why the original.

Where is the way

From showing its rudiment to draining the yellow sand, the current Jinjiang shoe industry, in addition to several domestic first-line brands occupying the throne of sports brands, once the second and third line sports brands of Jinjiang have been basically wiped out. While Adidas and Nike are still shuffling.

After Jinjiang's market reform, the shoe industry is in the process of going public again.

In 2009, Anta purchased the Italian high-end sports brand FILA with HK $600 million. At present, it has become an important driving force for Anta's performance growth. According to the 2017 interim report, the revenue of FILA has reached 20% of Anta Group.

Besides the strategy of internationalization, it is also a new brand. In recent years, noble bird has invested in many fields, such as professional football equipment retailers, sports fitness technology application, E-sports anchor and professional team broker.

In terms of innovation and R & D, 361 ° is also catching up. The Research Center for human factors and efficacy of sports equipment and the research and Development Center for functional sports equipment are very representative among peers. Even in terms of lifestyle and sports concept, they have begun to carry out research.

30 years of Hedong, 30 years of Hexi, everything is far from the focus. There is still a lot of space for China's sports industry. It remains to be seen whether Jinjiang shoe enterprises, which are reborn from the ashes, can recreate a new legend.