The Disadvantages Of Traditional Footwear Industry Are Manifold.

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Recently released the first quarter of the 2016/17 fiscal year China's domestic retail operations data show that as of the end of May, the first quarter operating data show that

Sales in the same store decreased by 16%.

It is surprising that BELLE, who is known as the "shoe king", has been dragged behind by the footwear business.

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.

In fact, except for BELLE,

Hasen, Crocs and other footwear brands are also facing similar decline in performance, or even close shop problems.

What is the reason why traditional footwear brands are in trouble?

Analysts believe that the "maladies" developed in traditional shoes are many aspects: first, product design is a competitive imitation, homogeneity is serious, lack of original ability; two, in warehouse pportation and order processing, long period, high stock, long capital turnover period; three, overstaffed channel, the heavy burden on the enterprise on the back; four, high operating costs in the manufacturing and sales links.

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.