Is It The Way Out For Leather Shoe Star Brands To Embrace E-Commerce?

According to the World Clothing, Shoes and Hats Network, in recent years, the "Popular Shoe King" brand in the eyes of consumers in the past has lost its popularity and has fallen into decline. Behind this, there are profound changes in consumption trends, goals, and scenarios. If it is difficult for these "late comers" to turn around quickly, they will not keep pace with consumers.

Belle delisted from Hong Kong shares at a low price last year, and Daphne's performance has suffered losses for three consecutive years, Men's shoes brand The corporate bonds of Fuguiniao have plummeted recently

　　 It's difficult for leather shoe star brand

Fuguiniao used to be the third largest brand manufacturer of business casual shoes in China, and the sixth largest Brand shoes Product manufacturer, listed in Hong Kong in 2013. On March 1, "14 Fuguiniao", a corporate bond traded by Fuguiniao in the mainland, resumed trading 18 months after the suspension, and the price once plummeted from 100 yuan to 8 yuan. As of last Friday, the latest price of "14 Fuguiniao" remained at 19.45 yuan. Guotai Jun'an, the trustee of "14 Fuguiniao", said that the scale of interest bearing debt of Fuguiniao grew rapidly and the pressure on repayment increased.

Behind the debt crisis lurks the decline of business performance. The financial report data shows that the company's performance has declined year by year since 2015. The net profit in 2015 was 392 million yuan, a year-on-year decrease of 13.09%. The net profit in 2016 was 163 million yuan, and the net profit loss in the first half of last year was about 10.887 million yuan.

Daphne, once the "shoe king of the public", also suffered a similar fate. Daphne International Holdings Co., Ltd. recently announced that it is expected to lose money in 2017, which means Daphne has lost money for three consecutive years. Another well-known brand BELLE It is also worrying about the development prospects. In July last year, Belle International officially delisted from Hong Kong shares when its market value declined significantly.

Other well-known brands, such as Saturday and Qianbaidu, have also fallen into the predicament of declining performance in the past few years. Lu Hua, director of the Footwear Committee of the China Leather Association, told the reporter that the shoe industry has experienced serious differentiation in recent years, with a substantial increase in sports and leisure. However, the brands originally distributed in the leather area of department stores have entered a downward cycle in the past few years.

The transformation can't keep up and is abandoned by consumers

After delisting last year, Baili Group CEO Sheng Baijiao once issued a letter to employees saying that the crisis was that the market situation had changed fundamentally, and consumer behavior had changed fundamentally, while Baili failed to adapt to the situation in a timely manner. Specifically, such as the lag of brand construction, product homogenization, lack of understanding of consumers, lack of independent marketing ability, and the slow pace of research and development. In addition, the huge changes in the retail environment have had a great impact on the footwear business model with department stores as the main channel. At the same time, consumers' demands for cost performance, convenience and personalization have rapidly increased, and Belle has not been able to effectively meet them.

Although the reasons for the downfall of each brand are different, Luhua believes that, on the whole, it is a common problem that these brands failed to keep up with the consumption trend in time. Today, the "post-80s" and "post-90s" have accounted for about 40% of the whole consumer group. Compared with five or six years ago, the consumption purpose, mode and scene of these consumer groups have changed significantly.

He believed that the growth of leather shoes performance was largely due to the last round of consumption upgrade. At that time, consumers were still envious of leather shoes. In the context of the new round of consumption upgrade, consumers had a relatively obvious style change, and they were more interested in sports and leisure shoes. It is not surprising that the leather shoes market was cold.

In addition, e-commerce consumption is booming, and these brands turn slowly, which also brings some impact to these traditional brands.

　 Embrace e-commerce and personalized customization is the way out?

Belle said that after privatization, the company can no longer focus on short-term performance returns and concentrate on the most urgent transformation problems. Some analysis points out that the consortium led by Hillhouse Capital will start with e-commerce and big data to build a new consumer retail enterprise that truly focuses on consumers.

According to Lu Hua's observation, opening up online and offline and carrying out digital operations has been a hot trend in the past two years. From the perspective of various sales rankings, including the "Double 11", traditional big brands have gradually adapted to the new approach in the Internet era after adjustment. Taking Belle as an example, 12 brands under Belle Group, such as Belle, Scarlett, and Tianmeiyi, all opened their own flagship stores in JD, and last year's sales increased 308% year on year. However, although the path of e-commerce is the easiest to start with, it is not easy to walk. For example, Daphne, Saturday, etc. have all opened flagship stores in Tmall, but most of the responses have been flat.

In addition, personalized foot measurement customization also appears more and more. Belle has launched such customized services recently. Consumers scan their feet with a 3D foot gauge in the store to obtain foot shape data reports. They can place an order to purchase customized shoes, which will be mailed to consumers by express. For this new way of playing, Lu Hua believes that on the one hand, it is for consumers to choose shoes more reasonably and cultivate customer loyalty. More importantly, enterprises can develop and design products based on the collected foot type data. However, foot measurement customization has not formed the mainstream of sales promotion at present. "The market is small, and we haven't seen the node of the outbreak yet," said Lu Hua.

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