The Temptation And Pitfall Of IPO Channel In Leather Shoes Industry

Two years ago, the Red Dragonfly < a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a > industry set the investment plan. < p >

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< p > according to the announcement of the environmental protection verification issued by Zhejiang provincial environmental protection department in April 17, 2012, the Red Dragonfly Footwear Industry intends to issue 80 million shares (Provisional) in the A share market, and raise funds to invest in marketing channel construction projects and information system construction projects.

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< p > < strong > to adjust the marketing mode < /strong > /p >

< p > according to the prospectus, 867 million of the 975 million yuan raised by the Red Dragonfly Footwear industry is used for marketing channel construction, that is, the expansion of the store scale.

According to the plan previously formulated by the company, the company will expand 130 stores after raising funds, including 10 flagship stores and 20 standard stores by way of acquisition, with 6950 square meters of construction area, 20 flagship stores and 80 standard stores by lease, with a construction area of 22000 square meters.

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The profit margin of the Red Dragonfly shoe industry is much lower than that of its peers, with a margin of gross margin of less than 20 percentage points less than P.

The company hopes to change the embarrassment caused by the larger proportion of franchised stores.

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< p > according to the prospectus, at present, the Red Dragonfly shoe industry has more than 4400 stores, but according to its composition, there are not many resources in the shop.

Among them, 3833 are franchised stores, accounting for 86.56% of the total marketing terminals; 545 of the 595 direct terminals of the company are shopping malls, and because of the way of joint marketing with shopping malls or stores, the real control of the shops is in the hands of the shopping malls; only 50 independent outlets are truly controlled by the company itself, accounting for only 1.13% of the total marketing terminals.

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< p > Red Dragonfly shoe industry estimates that the newly raised shops will bring 930 million yuan income and 120 million yuan net profit each year.

As a result, the net profit margin of new stores in the future will reach 12.9%.

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P > financial data shows that the overall net profit rate of the company has never reached such a high level since 2009, and its net profit rate has fallen to 7.98% in 2013 after the company's net profit rate reached a peak of 11% in 2011.

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P, a similar promise, AOKANG international has done it before going public.

AOKANG International's prospectus predicts that the average net profit margin of the newly established sales outlets will reach 23.83% after delivery, but in fact, the net profit margin in 2012 and 2013 is only 14.8% and 9.8% respectively.

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< p > < strong > Direct shop does not necessarily look beautiful > /strong > /p >

< p > from the performance of "a href=" //www.sjfzxm.com/news/index_cj.asp "direct" camp "/a" channel on Saturday, Daphne international and thousand degrees international and other footwear enterprises in recent years, the hope of Red Dragonfly shoe industry is full of uncertainty.

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< p > as of December 31, 2013, the total number of brand chain stores was 2363 on Saturday, representing an increase of 12 over the same period in 2012.

The number of self operated stores was 1868, and the number was 495 in the same period last year. There were 495 outlets, an increase of 12 compared with 2012.

On Saturday, 2013, business income was 1 billion 844 million yuan, an increase of 17.53% over the same period last year, but the operating profit of the company decreased by 38.31% to 48 million 224 thousand and 400 yuan compared with the same period last year. The net profit attributable to the parent company also decreased by 39% to 34 million 20 thousand yuan over the same period in 2012.

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< p > up to 2013 fiscal year, Daphne international operates 6702 sales outlets, a net decrease of 179 over the previous year, including private brand Daphne and shoe cabinet (shoe store) running 6319 sales outlets, and private brand revenue accounted for 93% of the total turnover.

In 2012, 880 Daphne international direct increase outlets reached 5472, and the proportion of Direct stores reached 81% in the 2011 from the end of 2011. The number of franchised stores decreased from 1055 in 2011 to 942 in 2012, with a decrease of 113.

The company's explanation of this increase or decrease shows that the company's focus on expanding its sales network strategy is direct shops.

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< p > after a year's operation, Daphne International's turnover in 2013 dropped slightly from 0.8% to HK $10 billion 400 million, compared to HK $10 billion 500 million in 2012, and net profit of HK $330 million, down 66.7% from 970 million Hong Kong dollars in the same period in 2012.

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< p > Du Yanhong, a researcher in the retail industry of CIC, pointed out that Daphne international has "vigorously implemented Direct stores, but its operation is still not optimistic".

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Let's look at P.

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< p > as of December 31, 2013, there are 2286 stores in the international community.

The company's total number of stores in 2012 was 2166, of which 245 outlets were newly opened to 1556 stores, and 173 to 610 stores were added.

In 2013, the international sales volume reached 2 billion 430 million yuan, down 0.09%, net profit 231 million yuan, or 26.21%.

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< p > AOKANG international is similar to the Red Dragonfly shoe industry.

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< p > 2013, AOKANG international estimated the number of shops was 4800, of which direct and affiliate were about 1300 and 3500 respectively.

In those days, AOKANG international achieved 2 billion 796 million yuan of operating income, down 19.07% compared with the same period last year, and realized net profit attributable to shareholders of listed companies 274 million yuan, down 46.57% compared with the same period last year.

This data did not improve in the first quarter of 2014, while AOKANG's international business revenue fell 11.21% and net profit fell 30.3%.

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< p > only the shoe industry BELLE international has a relatively prominent performance, and its net profit increased by 3.2% in 2013.

However, the mainland retail data for the 3 months from December 1, 2013 to February 28, 2014 (excluding Hongkong, Macao and Taiwan) showed that footwear sales fell by 2.7% in the same store.

In 2013, 13183 BELLE international footwear outlets were directly managed by the company.

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< p > obviously, increasing the number of Direct stores is not only a shortcut to boost performance, but also may result in higher costs due to the continuous pushing costs of Direct stores.

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< p > < strong > the confusion of the channel < /strong > /p >

< p > > "channel is king", "get a href=" //www.sjfzxm.com/business/ "> channel < /a > get the world", the shoe industry's motto has become loose, at least from the attitude of every footwear enterprise to treat stores can see this change.

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Li Peng, Secretary General of the Asian footwear industry association, said in an interview with the media that the pressure of manufacturing costs continued to exist, which is one of the reasons for the general decline in the profits of the footwear industry. But the key is that the stock of footwear industry has been increasing. In the case of the market is not ideal, many shoe companies are still expanding in pursuit of performance. P

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< p > but due to the opening of various footwear brands, the market outlets are basically saturated and the competition is fierce. In the same time, sales and profits are falling, but the cost of each footwear enterprise has increased sharply, and the inventory has been seriously overloaded.

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Less than P, the continuous decline of sales and closing stores seem to be the main characteristics of several footwear brands at this stage. Although many footwear companies have announced that the rapid expansion of channels at the beginning of the listing will bring huge returns to investors.

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< p > as AOKANG international, which is the most comparable to the Red Dragonfly shoe industry, its prospectus shows that as of December 31, 2011, the company had 4512 outlets nationwide.

And the 876 million yuan in the fund is also used to open 348 stores, including 168 Direct stores and 180 store stores, with 139 opening in 2011 and 209 in 2012.

The prospectus also says AOKANG international has 5800 outlets in 2013.

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By P, by 2013, AOKANG international estimated the number of shops to be 4800, not only far from the idea of listing at the beginning of the listing, but only 400 stores closed in 2013 alone, and 520 repurchase of the loss shops. This behavior will continue in 2014.

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< p > 2013, the number of 120 stores increased to 2286, while the number of new stores in 2012 was as high as 418.

However, as of the end of March 2014, the total number of shops in the company decreased by 54 to 2232 at the end of last year, while the number of self operated retail outlets and the three retail outlets decreased by 34 and 20 respectively.

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< p > 2013, Daphne international operates 6702 sales outlets, a 179 decrease from last year.

In the first quarter of 2014, the total number of sales outlets of Daphne international core brand decreased by 53, including 12 closed outlets and 41 franchised stores.

By the end of 3 2014, there were 6266 stores.

In 2012, the company increased 767 stores.

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< p > on 2013, there were only 12 stores with a net increase in 2013, which has shrunk considerably compared to the 390 increase in 2012.

On Saturday, it said that the strategy will continue in 2014, and that shops will not be added purely in the future.

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< p > while slowing down growth or even reducing stores, all shoe companies will aim at O2O.

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On Saturday, P said, in 2014, it will try to build a new O2O mode in the shopping center to build brand experience shop.

Last year, the company's electricity revenue reached 165 million yuan, an increase of 54.73% over the same period last year.

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< p > May 19th evening, AOKANG international issued fixed increase plan.

The company intends to raise 401 million 700 thousand yuan (including issuance fees) for AOKANG International Pavilion project.

It is said that the International Pavilion is a multi brand and multi category large-scale integrated retail platform based on footwear, and more importantly, it supports quality services such as O2O consumption and advanced customization.

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< p > industry analysis, AOKANG international is so anxious to layout International Pavilion construction projects, to a large extent, from the pformation of China's retail industry.

With the rise of electricity providers and the rising cost of rents and labor, the business environment of China's retail industry is undergoing fundamental changes. The development of traditional retail stores is facing enormous pressure.

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< p >, as the behind the scenes trader of BELLE brand on the Internet, the Hong Kong footwear industry of BELLE international has differentiated BELLE's network channel from traditional channels.

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< p >, then how will the Red Dragonfly shoe industry that has lagged behind in the capital market reflect its investment value in the channel? < /p >