What Is The Reason Why Traditional Footwear Brands Are In Trouble?

It's a big surprise.

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Unexpectedly

Business has dragged on.

Its latest financial report shows that sales of footwear businesses continue to decline.

In fact, apart from BELLE, many footwear brands such as Hasen, Crocs and so on on Saturday are also faced with similar decline in performance or even close shop.

BELLE and other traditional footwear brands

Scenery no longer

BELLE international recently released the first quarter of the 2016/17 fiscal year's domestic retail operation data released in the first quarter of fiscal year 2016/17 shows that as of the end of May, the first quarter operating data showed that footwear sales in the same store decreased by 16%.

This is not the first time BELLE has reported the decline in sales.

In the past fiscal year, BELLE international revenue was 40 billion 790 million yuan.

Sales of footwear business decreased by 8.5% to 21 billion 74 million yuan over the previous year.

In the first quarter, the two quarter, the three quarter and the four quarter of the 2015/16 fiscal year, the sales of BELLE footwear business decreased by 7.8%, 7.7%, 10.4% and 16.5%, respectively.

Reporters learned that BELLE group's Belle (BELLE), Teenmix (Teenmix), Staccato (Staccato) and other brands once monopolized the domestic women's shoe counters in the major department stores.

But as traditional department stores and footwear "business" become more and more difficult, BELLE began to decline in the same store sales in the 2013 fiscal year.

However, the decline of BELLE footwear business is not a case.

Earlier, Daphne, Hasen, Crocs, and many other domestic and foreign footwear brands also reported news of declining profits, shrinking performance or even closing stores.

Reporters in the recent visit found that in Xi'an East Street and some other business circles, in addition to the store closures of Daphne, there are stores hanging BELLE brand stores to empty.

Multiple malady

Consumer brand preference weakened

BELLE has been known as "shoe king" by the outside world. What is the reason why traditional footwear brands are in trouble?

Market participants say that the disadvantages of traditional footwear industry are manifold: first, the homogenization of product design is serious, and the lack of originality; the two is the long cycle and high inventory in warehousing and order processing; the three is the operation and labor cost in manufacturing and marketing sectors.

Li Zhiqi, chairman of Beijing Consulting Group, believes that the problem of traditional footwear brands lies in the industrial chain, and the impact of the electricity supplier is nothing more than a straw that has crushed the camels.

Another reason is the change in domestic consumption preferences.

Bain told a report at the beginning of this year that the loyalty and enthusiasm of Chinese consumers to brands have been reduced. They no longer believe in advertising and commercial endorsements, but pay more attention to user experience and word of mouth.

As a result, the attractiveness of many traditional brands has begun to decline. Some young consumers prefer experiential luxury products, such as designer cooperative brands.

"Traditional footwear manufacturers need to do more than just channels."

Zhu Lin, chairman of Shaanxi classic commercial real estate management Co., Ltd. believes that the boundaries of the online and offline industries will become more and more blurred in the next few years.

The electricity supplier can open the physical store, the traditional retailer is also moving toward the line unceasingly.

In the future, the competition for consumer goods will no longer be derived from models, but will begin to return to the essence of Retailing: who will be able to provide consumers with more efficient products to meet their needs, and who will be able to capture the market faster.