Shoe Enterprises Listed Hot And Card Wave

At present, China's footwear industry, on the one hand, has been closed down by shoe companies. On the other hand, there has been a large merger of listed companies, and there has been a wave of shoe market listing and wave of cards.

The export tax rebate rate lowered in July 1, 2007 has a great impact on leather, clothing, footwear, sporting goods and other industries. The export growth rate has dropped significantly. The export of general trade mode in these industries will be seriously affected, which will directly lead to the loss of competitive advantage with neighboring countries.

Continuous rising price of raw materials has also become a bottleneck for many industries. In the short term, the trend of rising prices of raw materials is difficult to reverse.

There are many difficulties for shoe and leather enterprises to pfer costs to downstream industries by raising prices. The market structure of shoe leather industry determines that shoes and leather enterprises do not have the pricing power.

This is a great disadvantage for the domestic shoe companies, especially small and medium-sized shoe and leather enterprises, who are addicted to price slaughter.

As for the enterprises close to bankruptcy, a large proportion of them are speculative, low price or poorly managed enterprises, but the impact of labor shortage, rising production costs and the national threshold for raising business is obvious.

In addition, the new labor contract law, which began in January 1st this year, will also bring about an increase in the cost of manpower for most shoe manufacturers that are not yet very standardized. With the appreciation of the renminbi continuing to rise, it is estimated that the overall cost will increase by more than 10%.

If the above factors are the "hidden danger" that causes domestic shoe enterprises to shuffle again, the impact of listing on the whole industry is nothing more than a new "fuse" of Xian card.

In May 23, 2007, BELLE international listed on HKEx and its market value soon exceeded HK $100 billion, and became the largest mainland retail listed company in Hong Kong stock exchange.

Amateur looking at the bustle, professional look at the door, BELLE's listing means that the footwear industry from the industrial economy to the capital economy pformation, but also greatly stimulated the expansion of other domestic shoe brands desire.

Since capital operation is the market behavior of the most advanced economy in modern economy, according to relevant regulations, the huge funds obtained after listing and financing can only be invested in the operation of the industry. This means that the listed companies can quickly merge the brands in the industry through mergers and acquisitions, equity participation and joint ventures, and then integrate the brand in their own pocket to squeeze out any single brand or enterprise's Big Mac, seize the market share through various sales channels, and deprive the survival space of other enterprises' brands.

When it has developed to a certain extent, many brands will not only wait for the fate of being bought, but eventually give up their ineffective resistance, fail or die on their own, or become a licensed manufacturer (OEM) of the listed brand, and earn a little processing fee.

In recent years, some shoe and clothing enterprises in China have tried to replace the original single brand store business with their own multi brand integrated stores (also known as hypermarkets). The benefits of such a one-stop diversified marketing idea are positive, but the excessive cost of camping is difficult to sustain only by their own capabilities, so the huge funds brought by listing financing can solve these urgent problems.

Shortly after the listing of BELLE, it bought 1 billion 600 million of the brand assets of the famous domestic group. BELLE's plan to increase 1000 stores a year has made the shoe market fiercer than before.

It is revealed that BELLE will also pay a considerable amount of money to open new stores. At this time, some people even speculate that BELLE will raise 1/3 funds to buy enterprises to eliminate competitors and replenish product categories, so as to increase market share and expand market share in the two or three tier cities, from high-grade to mid-range, from occupation to leisure, from fashion to sports.

Coincidentally, in July 2007 and October, the trend of Anta group and China was listed on the Hongkong stock exchange in succession, and they were subscribed more than 100 times.

All this seems to be telling people that the "spring and autumn and Warring States era" of domestic shoe brands is going to be over. The new round of shoe integration and shuffling has come in the capital age.

It is foreseeable that in recent years, more footwear brands will be listed and run capital, and the trend of collectivization and centralization of shoe brands will be irreversible in the future.

In the context of capital operation, China's footwear industry is facing a new game situation. If we want not to be merged with similar brands, we must constantly sharpen our own "claw" and make ourselves a strong wolf. No matter how the situation changes, strong capital strength, first-class brand teams and sharp market smells will be a powerful magic weapon to win the market and have the future.

At the same time, only by upgrading or pforming the industry, strengthening technological innovation, improving traditional sales methods, increasing the added value of brands, enhancing their core competitiveness, and defending the domestic market at the same time, we will fully operate the brand with international influence. This is perhaps the way out for the domestic shoe enterprises to "make in China".