Nike ADI Orders Are Few, The World'S Largest Sports Shoes Leader Baocheng More Than 3000 Employees To Pay Unpaid Leave?

The negative effects of epidemic on the footwear industry are increasing.

Affected by the epidemic, Baocheng International Group, the world's largest sports shoe manufacturer, is responding to a comprehensive reduction in spending. In April 20th, media reports reported that the senior executives of Baocheng international group had considered that from June to the end of December, there were 6 days of unpaid leave per person in Taiwan area, with a monthly estimated salary of more than 3000 people. In addition to the implementation of unpaid leave, the chief executive of the deputy general manager, including Cai Peijun, the chief executive of the group, will be reduced by 10%. It will be the first time in the 51 years since the founding of Baocheng international group to pay unpaid leave and pay cuts.

However, according to sources, the above plan is still in the stage of deliberation, and the follow-up must be agreed by the trade union consultation, and the staff sign the consent agreement and so on two levels.

It is reported that Baocheng group has 350 thousand employees worldwide, and the current measures to be taken are confined to Taiwan and related areas. As for Vietnam, Indonesia, mainland China and other production base staff, they are not included in the implementation targets.

According to the results of the financial report, Baoji International Group achieved 59 billion 461 million yuan in operating income in the first quarter, a decrease of 22.4% compared with the same period last year, a record low in the past six years.

The first textile net reporter learned from the financial report that the company's total net operating income amounted to about 1 billion 970 million US dollars as the main body of Yuyuan group as a shoemaking company. In March, the net income of the company's consolidated operating profit, which is equivalent to total sales reduction, sales discount and sales return, was about $672 million. Baosheng, who is responsible for the channel business, accumulated a net income of 4 billion 945 million yuan in the first quarter, down 25.05% compared with the same period last year. In March, the net income of comprehensive operation was 1 billion 519 million yuan, down 35.43% compared with the same period last year.

Gao Xiang, an analyst with state Yuan Securities, said that the new crown pneumonia outbreak in 2020 has brought impact to many industries, and the footwear industry is also in the impact. Like other retail sub sectors, the Spring Festival used to be a peak season for consumption. Therefore, it was suppressed under the line, and it was no doubt that the brand owners and channel merchants who had made early preparations had severe cash flow and performance tests. In addition, the recent outbreak of overseas epidemic, especially for multinational sports brands in Europe and the United States, Asia Pacific sales will have a huge impact.

According to many reports of the current epidemic, Gao Xiang had previously judged that the epidemic in China is expected to be controlled by the end of April. According to this caliber, the first half of 2020 is almost the first three weeks of January and 5, and June will mainly contribute to profitability.

Looking at the performance of each brand, the income distribution in the first half of the year is relatively balanced over the years. Nike, Anta and Lining almost all account for the income of 50% up and down (small floating) in the first half of the year. Therefore, the loss of consumption from 2 to April will affect the direct performance of the brand's annual performance, and the short-term performance is bound to be affected. According to the financial report, in 2019, Nike earned 6 billion 200 million US dollars in China, accounting for 16% of its total revenue. Adidas's revenue in China was 5 billion euros (about 45 billion 500 million RMB), accounting for 26% of its total revenue. The absolute sales amount of two giants in China was equal, but China accounted for a larger proportion of Adidas. The PUMA Asia Pacific region (China and India's main contribution) accounted for the total revenue. 28%, the absolute amount is 1 billion 560 million euros, and China accounts for about 12-13%, which is much different from the two giants.

From the current epidemic point of view, international brands such as Nike and Adi are facing double tests both at home and abroad. The domestic epidemic situation has already reached a peak period and is under control. Therefore, the subsequent restoration of domestic brands will be faster than foreign brands. Under the overall grim situation, we are optimistic about leading domestic enterprises to improve their cash flow and management capabilities and improve their market in China. Share. But at the same time, we should also see that, whether Nike or Adidas, the Chinese market is one of the fastest growing markets of two companies in recent years. If the giants' overseas market is seriously affected, they will not exclude resources or will invest more in the hot market under the background of the overall resource constraints of the company, which will further intensify the competition in the Chinese market.

Gao Xiang believes that although the international brand has been positioned in the middle and high-end position, domestic brands are more inclined to price performance, but the subdivision of products is more and more. New concepts and new categories are constantly being created and developed, which can keep up with or even create continuous keys, and this form of competition is the same running line for all brands, so it can be used in the future. The brand will grow continuously with vitality, new flow rate and continuous conversion rate.

Gao Xiang believes that in the future industry, the overall strength will determine the share, because the times have changed, content is king, and consumers will get the world. The epidemic is a common uncertainty facing the industry. This year's test will be a chance to stand out or the stronger the stronger. Therefore, during the epidemic period, some enterprises will establish a better quality model on the Internet and establish a deeper connection with consumers, which will result in the flow of high-quality brands.

In the short term, in the first half of the outbreak, the short-term performance of the industry will be affected: according to the sales funnel formula, "revenue = flow * conversion rate * customer price * * repeat purchase rate", where the flow side will be subject to major impact, and online can not fully compensate for the lack of line traffic, so short term performance will be directly affected; at the same time, quality companies will continuously improve online efficiency and brand. Influence, strengthen the deep fit with consumers; 3) domestic market competition will continue: the outbreak of overseas epidemic will have a greater impact on international brands, but the Chinese market is one of the fastest growing markets of international brands in recent years. In addition, China's epidemic control situation is relatively good, so the resources of giants will be invested or will continue, so the domestic industry will continue to compete.

CITIC Securities researcher SK Kun also said that the most direct impact of the epidemic on sports shoes and clothing is that the flow of shops under the brand line has obviously decreased, and shops in some areas are temporarily closed, which will have a greater impact on the consumption of the inside line. Some of the offline consumption is transferred to the electricity supplier, which can make some remedied, but the overall negative impact is expected to be larger in the first quarter. After the end of the epidemic, it is also in line with physical retailing and clothing retailing. Sports shoes and clothing will usher in delayed and compensatory consumption; besides, unlike casual footwear, The epidemic has further deepened the health awareness of the whole nation, and further strengthened people's demand for physical exercise, physical fitness and physical immunity, which is expected to enhance the enthusiasm of social sports and speed up the expansion of sports customers, so that the consumption of sports shoes and clothing can be improved.

Public information shows that Taiwan Baocheng International Group, a listed company in Taiwan, mainly produces wholesale casual sports shoes, clothing and accessories. It is the largest group of sports shoes and casual shoes in the world. It is Nike, Adidas, Reebok and New. Balance, Asics, Timberland, Converse and Rockport surpassed 50 famous international brands in the world. They are widely distributed in Taiwan, mainland China, Indonesia, Vietnam, the United States and other regions. They produce over 170 million pairs of sports shoes in the year. The global market share of famous brand sports shoes and casual shoes exceeds 15%, and the average of 5 pairs of sports shoes in the world is 5. 1 pairs of shoes are made by Baocheng group.

According to public information, Baocheng International Group has Guangdong, Jiangxi and Hubei factories in mainland China. Among them, Dongguan Baocheng Shoes Co., Ltd., located in Dongguan Town, Guangdong, Dongguan, was founded in November 21, 2012. It is a group company which produces Adidas, REEBOK, SALOMON and other world brand sports shoes. Since its construction in 1988, Gao has invested in three industrial parks in low rise, slightly pond and upper Jiangcheng. After more than 20 years of development, the company has reached tens of thousands of people, providing professional production services for more than 30 famous footwear companies worldwide. It is the largest production base of NIKE, Adidas, REEBOK and SALOMON, and a global model factory and strategic partner.

However, reporters today through the enterprise to check the open data that Dongguan Baocheng Footwear Co., Ltd., the current size of the staff of 7000-7999 people, the insured number of 7465 people.

Italian (Macao offshore commercial services) Limited holds Dongguan Baocheng Footwear Co., Ltd., while the controlling enterprises include Dongguan Yuyuan shoes Products Co., Ltd. and Dongguan Jia Yuan shoes Products Co., Ltd.

Dongguan Yuyuan manufacturing plant was founded in November 21, 2012, located in Yuyuan Industrial Zone, Gao Gao town, with a staff size of 600-699 people and a total of 696 insured persons.

Dongguan Jia Yuan shoes Products Co., Ltd. was founded in November 21, 2012, located in Yuyuan Industrial Zone, Dongguan town. It has a staff of 50-99 people and a total number of 59 insured persons.