Recently, the two brands Daphne shoes and thousands of Baidu have announced a quarterly operating conditions .
In the case of last year’s sales and profits Heavy industry , the situation in the first quarter of this year is still not optimistic. In addition to these two companies are the same -store sales there was a substantial decline , the stores are shrinking : Daphne net decrease of 53 core brands , thousands of Baidu net decrease of 54 .
Combined with previously announced results for the first quarter of Belle data point of view, there is no brand shoes sales improvement . Analysts pointed out that the market is saturated , the electricity supplier under the impact of sustained , large-scale brand shoes to walk alone , to fight down the cost of production model has been difficult to sustain. And in the frequency of consumption has not increased, the footwear brand to have a big development has been more difficult.
Same-store sales decline /
According to Daphne ‘s announcement of its first quarter fiscal year 2014 unaudited operational data show that during the quarter , core brand business same-store sales by 9.5 percent year on year decline . As China ‘s first shoe retailer listed in Hong Kong , thousands of Baidu ‘s same-store sales are compared to a decrease of approximately 8.6% over the same period in 2013 .
For stores and sluggish sales , thousands of Baidu did not specifically cause. Daphne side, said earlier this year the Spring Festival , so that before the Spring Festival season shortened compared to last year , is the main factor affecting the performance of the first quarter sales . In addition, the company actively cleaning up quarter over quarter inventories to improve the overall stock portfolio , thus making the margin pressure . Meanwhile, Daphne noted signs of the coming of spring in late March and the weather gradually under good circumstances , it has improved the sales .
In addition to the decline in same-store sales , closed shop is another common denominator of these two brands . “Daily Economic News” reporter noted that a quarter of the total number of points Daphne core brand sales net decrease of 53 , which included a net close 12 outlets and 41 franchise stores . As of the end of March 2014 , a total of 6,266 of its stores ; thousands of Baidu first quarter compared to a net reduction of 54 stores, including self- end retail outlets compared to a net reduction of 34 to 1678 , third-party retail outlets are net off store 20-554 room.
Right now, the continued decline in sales and closed stores seems to have become the main features of several major footwear brands stage . According to previously announced annual results , the last year , Daphne same-store sales drop 10.4% , reducing the 50 core brand points of sale ; thousands of Baidu same-store sales fell 6.9% , reducing the 36 third-party retail outlets.
Leading Belle ‘s performance relative prominence last year’s net profit increased slightly by 3.2%. Last year it managed retail outlets footwear business in the Mainland about 13,000 , a net increase of 1,093 , an increase of 9%. However, a quarter ( December 1 to February 28 ) data show Belle footwear business same-store sales fell 2.7%.
In addition to weak sales , falling profits brand shoes are also a major problem currently facing . Brand shoes Saturday released this month report shows that last year, its net profit fell by nearly forty percent .
Brand Enterprise ” self-help ” /
In the industry view , competition is more fierce footwear industry , the impact is particularly evident by the electricity supplier . Further, since the development of the industry after a long period of time , the base of each enterprise in more developed markets are saturated state , and the frequency of the immediate consumption does not increase, a large development of the brand have been more difficult.
Investment Advisor in the light researcher Xiong Xiaokun told the ” Daily Economic News” reporter , brand shoes still sluggish first quarter , the industry’s collective deep discounts tend to lead to the decline in gross profit margin , many stores negative growth.
It is worth noting that, under the industry situation downturn, brand companies are actively taking measures to ” save themselves .”
Recently, Daphne replace the brand ambassador , and with the star to shoot directed advertising , can be described as a masterpiece. UBS pointed out that last year, Daphne realized investment in brand building is low , it will be this year’s marketing budget doubled. UBS estimates that it will spend 180 million yuan on marketing and promotion. In addition , thousands of Baidu is represented in the 8th announcement to $ 4.3 million subscribed UnitedNudeInternational25% of the share capital , in order to promote bilateral business cooperation possible long-term strategy , UnitedNude focuses on upscale women’s footwear .
Xiong Xiaokun said shoes brand competition , you want to be aiming to break the needs of consumers , and consumers only just ” to taste” , consumers will buy it. Thousands of high-end women’s footwear Baidu is committed to improve the comfort women’s shoes ; Daphne hyun and other endorsements are invited to take advantage of the “fans economy” , no doubt from the needs of consumers .
An industry source told reporters that the shoe to ensure growth in net profit , gross profit margin decline is necessary to avoid blindly expand production capacity not only unable to use ” hunger marketing” , but also reduces the competitiveness of their products , once the new products introduced to the market , in the capacity After the case has not yet digested , other brands will launch similar models impact sales. ” Therefore, enterprises should strictly control the production and demand from the consumers , production quality , not just the items, in order to obtain higher returns .”
