Quanzhou Children'S Products Industry Began To Pay For Blind Expansion Before.

3 billion accounts receivable are not recycled, reflecting children's products.

A certain Jinjiang

In the Quanzhou children's products industry, Mr. Zhu's experience is not unique.

Reporter from

Whether the high accounts receivable has not been recovered is a problem in the way of operation of children's products enterprises in Quanzhou, or is it just like what the industry has said, this is the "painful period" that every industry must develop. It is necessary to expand the terminal market and give support to various agents without considering it. Is this competition mode really suitable for the development of children's products enterprises? With various thoughts, journalists have visited the industry recently.

3 billion the number of accounts receivable is amazing.

Mr. Zhu has a headache, and the agent is unable to repay the money, which makes him feel very sad at this year.

Originally wanted to unite 5 enterprises to use joint insurance to lend money to banks to ease the financial strain. How can enterprises not trust each other and how to get together 5?

Reporters learned that in Quanzhou children's products industry, there are so many business owners.

According to authoritative sources, this year, some of the bigger Jinjiang brand children's shoes manufacturers were defaulted on accounts receivable accounts for more than 200 million yuan at least 5, while other small businesses were more or less owed tens of millions of dollars by agents.

Mr. Zhu told reporters that most of the companies in the industry had the phenomenon of arrears.

"The annual bad debt ratio is determined according to the time of the enterprise's collection. If the money is collected during the collection time, it will not be regarded as a bad account.

Generally speaking, enterprises that are controlled within 10% are good operations, and the profits are considerable. But if they are over two years, they will be bad debts.

Mr. Zhu said, but this year because of the big environmental factors, coupled with a lot of desperately expanding the terminal to "plate" brand business crazy investment, crazy shop, let the market inventory rate is higher and higher, only then makes the whole industry agent repayment strength weaker and weaker.

"Many enterprises are in arrears, not only the children's shoes industry, but also the development of a relatively mature sporting goods industry. At present, this problem still exists, but the adult shoe industry has higher profits than children's shoes, and the market is more mature, so they are more stressed at present."

Xie Jiasheng, Secretary General of Fujian children's shoes industry association, said that accounts receivable of 3 billion yuan is not a small sum. Now it can be said that the children's shoes industry is entering the shuffling period. It will depend on how many children's shoes enterprises can survive this year.

Products of the battle for terminal resources

In the view of Xie Jiasun, the reason why huge accounts receivable is not recovered is related to the lack of operational capacity of children's products industry.

"Since the children's shoes industry began to implement the integrated operation of shoes and clothing, most of the enterprises in the industry could not keep up with the operation.

In the past, children's shoes enterprises only sold shoes wholesale, and the level of management of enterprises was not so high. Now brand children's shoes enterprises are starting to do chain stores, taking monopoly mode, but the level of operation of enterprises has not kept pace with the development of enterprises, just rushing to the market blindly, and now it will return such a problem.

Xie Jiasheng regarded such huge accounts as the inevitable "labor pains" for the rapid development of the industry.

In fact, in the eyes of many people in the industry, the huge accounts receivable is not recycled. It is more like the Quanzhou children's products industry is paying for its blind expansion.

"How can we not be owed by agents, we are all crazy to support the agents, and rush to deliver goods, to the shelves, to rent, to shop rentals, few entrepreneurs think seriously about whether their terminal market has such digestion ability."

Mr. Huang told reporters that, because of the scarcity of terminal resources, in order to seize the terminal, find more powerful agents and attract more partners, Jinjiang children's shoes enterprises have launched various preferential policies, and even appeared the phenomenon of "full distribution" and "let dealers store Zero".

In fact, the whole children's shoes industry in Quanzhou has had a great impact on other industries, and the whole children's footwear industry is forced to "unite with others".

Such a move has played a key role in the development of the brand. Many city centers have been occupied by the brand of Quanzhou children's shoes. At the same time, many other industries, such as adult shoe and clothing agents, have been fighting or extending to the children's market.

In the short term, it can help children's brands quickly occupy the market, but it also causes a large number of funds to be occupied by enterprises, and various arrears occur frequently, which seriously restrict the development of enterprises.

What is more noteworthy is that recently, some venture capital companies have injected funds into children's shoes and clothing enterprises to make more Quanzhou children's shoes and clothing brand enterprises more crazy.

In the words of Mr. Huang, "they are not at all beginning to think about whether they can digest the goods so much. They just want to make the market bigger and think that they can expand their terminals with the money injected by the venture capital. They never thought that although it could attract more agents at a time, it would be a dangerous move for" not to succeed ".

If their purpose is only to expand the channel and make a big market, then the consequences are unthinkable.

Xie Jiasheng did not completely deny such a view.

But he also said that in fact, most of the venture capital companies are "thunderstorms and heavy rain", and many children's shoes and clothing brand enterprises disregard market profit margin, and how the agent's credibility is competing for terminal resources. This also makes the whole competition pattern subtle change.