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Vigilance: The Pain Of "Going Deep" In The Market Of Shoe Companies

2008/10/18 9:59:00 23

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Business news October 15th, the new century, the great temptation of the capital market has made shoe companies scramble for it.

Following the steps of Lining sports, Anta sports, BELLE international, wing en international, Yongjia international and China's trend of Hongkong listing, Hongxing Erke and international sports and other small and medium enterprises have been listed in Singapore, feeling the thrill of capital situation. Red dragonfly, AOKANG, Golden Lake, Jordan sports, 361 degree, Conway and so on have all entered countdown listing.

The capital market is a coveted bunch of grapes, which has great temptation to traditional manufacturing oriented shoe companies.

But listing is also a double-edged sword. Once the shoe enterprises are listed, though they have achieved the purpose of financing, they will "strip off their clothes and let the world see clearly".

At the same time, it still faces a difficult problem. Is it to deepen the development of the industry, or to diversify the track of development?

Some people say: "do not put eggs in the same basket", because capital is like eggs with fragility, can not be capital in the traditional footwear industry, must diversify.

But how many successful industries are there in traditional manufacturing?

Not to mention that the dispersion and speculation of capital are huge risks. Let's imagine how many masters of traditional manufacturing management have grasped the pulse of capital diversification.

If we want to take advantage of diversification after listing as a means to accumulate wealth, we will often lose money and be eaten up by the lion that has been growing up rapidly in the capital market.

Therefore, after the listing of shoe companies, some companies have chosen to "deepen".

After listing in Hongkong, BELLE successfully incorporated Hongkong Mianli brand and FILA China Trademark with a huge sum of money. BELLE group president Sheng Bai Jiao made a bold statement to "become a leading enterprise in the global women's Shoe Retailers".

In November 2007, at the cost of 1 billion 600 million yuan, he bought the assets of the company, the group of leather shoes manufacturer, which has occupied the throne of China's first men's shoes brand.

After the merger, BELLE officially intervened in China's men's shoes market, and its footwear brand increased to 11.

However, "this year is probably the most difficult year for China's economy". Unfortunately, it was said by Premier Wen Jiabao.

The snow disaster in the south, the Wenchuan earthquake, the rising cost of raw materials and labor, and the appreciation of the renminbi are like a backbone in the shoe industry. In the trend of many small and medium-sized enterprises in bankruptcy and pformation, BELLE and other listed shoe enterprises "go deep into" also face risks and face "the most difficult year".

In 2008, BELLE's early founder and major shareholder Deng Yao, together with 3 other major shareholders, sold a total of about 10% and pumped 5 billion 500 million yuan.

Zhang Huarong, chairman of the Asian Footwear Association, has said that getting rid of external dependence, stepping out of independent research and development and creating world brands are the only way for the sustainable development of China's footwear industry.

Long Yongtu also pointed out that the "made in China" breakthrough bottleneck must have four main elements: to achieve international standards, to enter the international market, to grasp the international pricing power and to have international brands.

As a matter of fact, Chinese shoe enterprises are suffering from the Antidumping of EU and so on. Although they gradually become familiar with the international rules of the game, they begin to change the high and middle grade routes to cope with the long-term barriers. However, the image of Chinese "high class goods" and "low-grade goods" in the international market does not disappear overnight. The upgrading of the value of Chinese shoe brands needs time to temper.

Of course, many listed companies are constantly innovating and innovating in internal management, technology research and development, and channel management. They dream of breaking through the bottleneck that restricts the development of Chinese shoe enterprises, but the risks and costs of pformation are obviously increasing, and they can not effectively enhance the competitive quality of China's footwear industry. The core technology and design of shoemaking are mostly controlled by multinational corporations.

The comparative advantage of Chinese shoe enterprises has not been pformed into competitive advantage.

A sharp contrast to this is that the reality of investing in shares to make quick money has made many listed shoe companies lose confidence in "deepening" and no longer feel comfortable doing the industry.

Hesitating and self confidence once again poured cold water on the listed Chinese shoe companies.

According to statistics, the output of footwear industry reached 14 billion 700 million in 2007.

Experts predict that in 2010, the output of shoe industry can exceed 15 billion.

Therefore, Chinese shoe enterprises are facing an embarrassing situation that the number of listed companies is increasing and the capacity of market expansion is limited. This will inevitably hinder the pace of the deepening of the listing of shoe enterprises.

No doubt, at present, the temptation from the capital market is vigorously pforming the strategic direction of the domestic footwear industry.

Under the trend that the stock market has been overshadowed but surging, the weakness and embarrassment of "deepening" highlights the labor pains of shoe companies.

In fact, shoe enterprises rely on the footwear industry in the stock market.

Therefore, regardless of whether the pain or not, the shoe enterprises must go deep into the market after listing, because only by irresolutely upgrading the competitiveness of the footwear industry can we prescribe the right medicine and cure the pain of going deep into the market.

(Jia Xiao)