Cage'S Tough Strategy Of Keeping Up The Brand Strategy

Its brand is not only known to people.

2017

。

At present, AOKANG has its own

4 private brands and owns

The right to operate.

Zhejiang AOKANG, one of the largest private shoe manufacturers in China

Limited by Share Ltd (hereinafter referred to as "AOKANG") is now in a predicament of performance.

AOKANG released the three quarter earnings report, AOKANG's overall revenue and net profit attributable to both decline.

Among them, the main brand AOKANG and many brands of revenue have declined to varying degrees.

Although AOKANG agency's Skech revenue has risen sharply, it has failed to boost AOKANG's entire group's revenue.

It is worth mentioning that in 2015, AOKANG signed a strategic agreement with the US sports brand Cage, and promised to open thousands of Cage stores in China in the next five years.

Today, AOKANG has opened less than 150 stores for Cage, far from its previous vision.

In fact, AOKANG's rise in China has also benefited from the rapid expansion of channels.

But now, with

The rise of AOKANG and the branding of domestic and foreign brands made the advantage of the channel fade away.

Net profit decrease

In the three quarter, the overall revenue fell 4.03% to 2 billion 181 million yuan, the net profit fell 10.25% to 172 million 200 thousand yuan, and net profit fell 15.27% to 133 million 200 thousand yuan over the same period.

This is AOKANG's performance decline again this year.

According to the 2018 China Daily, AOKANG's revenue reached 1 billion 573 million yuan, down 1.37% from the same period last year, and net profit attributable to the company fell 4.05% to 167 million 900 thousand yuan over the same period last year.

Looking at the performance of AOKANG since its listing in 2012, as of fiscal year 2017, there were 4 net profit margins in the 6 annual report.

In 2013, AOKANG's revenue and net profit fell by 19.07% and 46.57% respectively, the biggest decline in the past year.

At the same time, AOKANG's performance in the market is not satisfactory.

Beijing Business Daily reporter found that once won the "China famous trademark", "the Chinese leather shoes leading shoes", the first batch of "national key protection brand", "China's leather shoes industry only iconic brand", "National Quality Award" and "Zhejiang provincial government quality award" and many other honors, AOKANG, now in Beijing and other second tier cities have been difficult to find traces.

The reporter called the AOKANG store at San Xi 8 shopping center, and the phone was still unanswered.

A AOKANG store clerk in Dongcheng District said, "I don't know what other AOKANG shoe stores are like, but since last year, the head office has adjusted the shop, although it has opened some new stores, but it has closed many stores."

According to the three quarterly report disclosed by AOKANG, AOKANG brand declined to 594 from the end of 6 this year at the end of 9, and the number of distributors' shops increased from 1269 at the end of 6 to 1271.

Among them, Direct stores opened 24 new businesses in the three quarter of this year, closed 47 stores, opened 47 new stores and closed 45 stores.

However, AOKANG group's brand is not only known as AOKANG leather shoes, but also involved in commercial real estate, biological products, financial investment and other fields. In 2017 AOKANG group brand value reached 19 billion 318 million yuan.

At present, AOKANG has 4 private brands, including AOKANG, Kanglong, beautiful beauty and red fire bird, and owns the Greater China brand ownership and Cage's operation right of Wanli Wei, a famous brand in Italy.

Cage's hard work

Although AOKANG began to layout many brands, AOKANG's brand has dragged down its performance in the latest earnings report.

Among them, AOKANG's main brand business income fell 5.43% compared to the same period, its brand Kanglong's revenue fell 4.01% compared to the same period last year.

However, AOKANG's acting brand Skech showed strong performance, its revenue rose 74.83% compared to the same period last year, and the sales of other brands declined by 39.73% compared with the same period last year.

Although Cage's revenue has soared, it has failed to pull AOKANG's whole group as a "coach".

Skech and AOKANG, the two brands that seemed to have huge differences in nature, actually signed a strategic cooperation agreement as early as 2015.

According to the agreement, AOKANG, which has gained the right to expand its management, will open 1000 stores for Skech in the next five years.

At that time,

(10.120, -0.01, -0.10%) Wang Zhentao, chairman of the board, said in an interview that this is a brand new start for AOKANG's shoe market. AOKANG will set up an independent operation team to provide services for Cage's brand marketing, brand promotion, customer maintenance and channel development.

However, Wang Zhentao also clearly pointed out that "AOKANG will not set foot in the production of Cage, we need to do brand operation".

However, this promise is for Skech, who opened thousands of stores in five years, and now disclosed only 145 stores for Cage of.

As of the end of 9 this year, there were 86 shops in Cage's direct shop, 56 in distributors, and 142 in total.

The number of shops has not increased, but has decreased by 3 compared with 145 stores in the mid term earnings report this year.

Cheng Weixiong, general manager of textile and clothing management and Shanghai Liang Qi Brand Management Co., Ltd., said that if AOKANG had a clearer positioning and more practical development mode for Cage brand, it would be difficult to set up thousands of stores in the next two years.

However, an insider who declined to be named has expressed different opinions. If we look at the current development speed, if we want to achieve the established goal, AOKANG will still face a great challenge, because there is a gap between the two sides in the brand positioning, and consumer groups and brand culture are not the same. This will affect AOKANG's judgement of Skech in the Chinese market, or even because he can't finish the target on schedule and split up with Skech ahead of time.

The solution to the problem remains to be solved.

Although it has undergone many changes, it still fails to break through its limitations in development.

This is also a problem faced by Chinese brands. "

Yang Dayun, President of the famous fashion industry investor and Yi Yi International, said that China's local brands also went through three stages of development. In the two development stages, "demand is greater than supply" and "from brand to quality", success has been achieved. But now, in this consumptive stage of pursuit of individuality, local brands lack of innovation and weak performance. This is also the main reason for oversupply of footwear market and market shrinkage.

In fact, AOKANG, formerly known as the Yongjia Olin shoe factory, was founded in 1988.

This 30 year old leather shoes brand has undergone many changes in its development process.

At first, AOKANG was mainly based on the wholesale system. It belongs to the extensive mode of production and marketing separation. However, because of the wholesale mode, the manufacturers can only get low production profits, and at the same time lose the network resources. AOKANG has started two changes.

This time, AOKANG adopted a joint venture system to break the original market system, which provided primitive accumulation for the rise of AOKANG and played a very important role in AOKANG's scale reproduction and brand awareness.

In 1997, with the intensification of market competition, AOKANG's original business model had lost its vitality.

At the same time, AOKANG began to adopt the franchise mode, and set off a boom in chain stores in China.

Although the franchising system has pressed the fast forward button for AOKANG's development, it has gone beyond the general law of market development, which has laid a hidden danger for AOKANG's future.

In addition, the criticism of China's local brands is also reflected in the market performance.

AOKANG Tmall flagship store shows that

The number of fans is 1 million 840 thousand, the highest sales of products are 4456 people, while the top selling of Playboy men's shoes on Taobao is close to 10 thousand payments.

This is also confirmed in the Beijing Commercial Daily reporter's interview with consumers.

One of Mr. Kang said: "leather shoes are a demand for formal occasions, but now, if there is no hard demand, I will rarely buy leather shoes exclusively, and I will choose more footwear products which are more professional, fashionable or comfortable."

With the upgrading of consumption and market segmentation, the traditional shoe brand positioning can no longer meet the needs of consumers.

Cheng Weixiong said that with the higher market segmentation, the audience of leather shoes began to narrow, and people needed more products of life and diversification.

At the same time, he also pointed out, "in the future, if AOKANG

To reinvigorate performance, we should first focus on the development of the main industry, which is also a problem that many Chinese brands should pay attention to.