"Shrinkage" Or The Key To Breaking Away From The Shoe Industry In 2012

February 23rd dispatch, 2011, China

Contraction front can effectively control high inventory of shoe enterprises

All along, the inventory problem is the key to restricting the development of footwear enterprises, and effective control of inventory is not a simple matter, the market situation is difficult to predict the controllability, production and sales is difficult to reach the absolute same. In September 30, 2011, the United States stock up to 2 billion 982 million yuan; to June 30, 2011, XTEP inventory of 887 million yuan, an increase of about 92%; and Lining in the first half of 2011 inventory of 992 million yuan; only listed sports and leisure brand China annual sales of more than 130 billion yuan, according to the cost of bad inventory of more than 15 billion.

In addition, PEAK, 361 degrees, Anta and other Fujian sports shoes enterprises also broke out serious inventory problems.

In February 16th, XTEP International announced that the order volume of the first quarter and the two quarter of the company in 2012 was 9% and 5% respectively compared with the same period last year. In contrast, the volume of orders in the first quarter of 2011 was 23% higher than that in 2010, and the pressure on inventory was highlighted.

The famous brands, such as Anta, XTEP, 361 degrees, PEAK, which rely on the "Min faction" industrial cluster tree, develop faster with the annual growth rate of over 20%. After the Beijing Olympic Games in 2008, they brought more business opportunities to them. However, the low demand of the post Olympic Era and the potential phagocytosis of the financial crisis are still fermenting today.

After analysis, it is easy to see that the fundamental problem of high inventory of shoe enterprises is rapid expansion. Nowadays, the specific forms of competition are diversified, and they can be published in the supply chain, sales, terminals and so on. Therefore, they remain in the early stage of pursuing the "atmosphere" of shops and blindly pursue the single level of rough expansion.

Eventually, enterprises are becoming empty shells. With the increasingly fierce competition in the footwear market, shoe companies should focus on elaborately managing inventory management, and closely link with procurement, production, logistics and other links, and strive to create a sound supply chain development channel, so as to boost corporate brand to compete in the market to stand out.

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Steady and steady way to get out of an unbeaten road.

President Coolidge once said: business is our business.

However, in recent years, the virtual economy and the excessive self circulation and expansion of real estate have made many companies in the manufacturing industry "get rid of the virtual reality", which has helped the virtual economy to "virtual fire" while drawing the blood of the real economy.

"The real economy is dead!" the pessimist even threw such a conclusion.

From this we can see that in 2012, shoe companies can only reduce risks by stabilizing themselves.

It has been concluded that China's footwear industry is taking the road of "rural encircling the city".

Indeed, this strategic layout of "rural encircling the city" has made the domestic sports brand stand firmly in the two or three line city with great development space.

Even in the period of global financial crisis, sports brands in China can win the favor of China's huge consumer market with high performance price ratio.

For example, at the end of 2009, PEAK's 6000th stores settled in Shanghai, urging the whole sports industry to enter the "6000 level", marking that the market competition of China's sports brand channel entered a mature stage, and at the same time, it achieved an annual year-on-year growth of 51.6%.

In 2010, PEAK had planned to set up 100 basketball theme stores in the country to occupy market segments.

The Chinese footwear brand seeks to march to the first tier cities. The international famous brands are beginning to extend the market to the two or three line city. In fact, the development trend also means that the local "grass root" brand and the international brand start a new round of "more force".

After careful study, we find that at every relevant footwear exhibition, Adidas, Nike and other brands can come to the exhibition one after another, which not only verifies the adjustment of international famous brand marketing strategies from side to side, but also enables the Expo to have local brands competing with international brands.

From OEM to self created brand, from the copy to the self integration, the Chinese footwear industry has gone out of a distinctive development path.

What needs to be clear is that market share is not equal to product quality. The strength of capital is not equal to the development prospect. There are still many things that local brands need to learn and learn from in the competition with international brands.