AOKANG And Nine Xing Holdings In The Medium Term Downturn, Looking Out Of Difficulties And Looking For Pformation

In recent years, shoe companies BELLE delisted and Daphne withdrew, and once the shoe giants went into trouble.

China Industry Research Institute data show that China's footwear market is huge, and it is the largest leather shoes producer and exporter in the world, and is the largest footwear consumer in the world.

In 2018, more than half of the footwear companies that we know are doing well. Is the industry out of the cold winter?

August 16, AOKANG released the 2018 semi annual report, the first half of the financial report

Revenue was 1 billion 570 million yuan, a year-on-year decrease of 1.37%, and net profit attributable to shareholders of listed companies was about 170 million yuan, down 4.05% from the same period last year.

As of June 30th, AOKANG's total assets amounted to 4 billion 900 million yuan, down 8.01% from last year.

AOKANG has also been a shoe manufacturer in the forefront of the trend. With many loyal consumers, AOKANG's situation is worse every year.

It is understood that AOKANG's medium-term performance has declined for three consecutive years: in 2016, it fell 1.51% year-on-year, down 0.49% in 2017, and net profit attributable to 17.25% to 175 million yuan.

More and more brands of shoes and clothing poured in.

Domestic

Competition is getting more intense.

In the first half of this year, AOKANG actively pformed, and comprehensively promoted product planning, product design, and purchasing group products.

It is worth noting that AOKANG also joined Alibaba and Jingdong in the strategic cooperation of "new retail" and "unbounded retail", upgrading and upgrading the stores, introducing the brand media matrix mode, and joining hands with Jingdong to create an "old change new green action" campaign to enhance the brand reputation; and at the "618" celebration, AOKANG created the first "mid year shopping Carnival IP" through the way of brand roadshow and net red live broadcast.

Although AOKANG has done a lot of activities and publicity in the first half of the year, it is also trying to innovate its products. But at present, AOKANG still has a long way to go to reinvigorate its performance.

Nine Hing Holdings: medium term earn less than 19.5%

During the reporting period, the total income of nine Hing Holdings was 739 million 300 thousand yuan, down 3% from the same period last year. The proportion of fashion shoes income was 33.8%, the proportion of footwear shoes and fashion sports shoes accounted for 31.1% and 32.1%.

The retail business contributed 3% of the revenue. If the Chinese market was removed, the revenue increased by 0.8%.

According to China's clothing network, nine of the holdings of the group held less than 19.5% of its profit in the middle term because of fluctuations in the RMB exchange rate and the bankruptcy protection of key customers.

But it is worth noting that in 1-6 months, nine Hing Holdings shipments rose moderately, from 27 million to 29 million double, an increase of 7.4%.

The demand for fashion shoe products continues to rise, the number of casual shoes on seasonal orders increases, and the stability of orders for fashion sports shoes products becomes a major factor.

Through the earnings report, we can see that nine Xing holdings have adjusted their prices, the average selling price in the period dropped by 6.4% compared to the same period last year, from $26.6 to $24.9.

The decline in prices is bound to cause a decline in gross margins. In order to raise profits, nine Hing Holdings said it would adjust the product mix on the basis of product demand and continue to reduce the average selling price.

Throughout the recent disclosure of local sports brands, Anta, XTEP, and Lining have made brilliant achievements, and Anta is ranking the top 10 billion.

Specifically, these brands have been driven into the eyes of young people.

With the strategy of multi brand, full channel and single focus, Anta keeps up with the trend and attracts a large number of young consumers.

As a sports brand, Anta signed Thompson to open the market for Chinese young players in the basketball market, and entered the Desente series.

The competitiveness of products has been greatly improved.

In the first half of the year, another high-profile Lining came to the international fashion week in a high-profile fashion. He brushed two times in the fashion industry, so that many young people in China rushed to buy it.

With the rise of the younger generation,

The pformation is mainly based on youth and trend.

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To improve the brand, we still need more efforts to tap the market and penetrate into the consumers.