Those who want to say that women earn well, it is estimated that on Saturday, Limited by Share Ltd (next Saturday's) chairman Zhang Zemin will be the first to stand up against it.

As one of the main women's shoes, the company owns ST&SAT and other brands of shoes under the flag, watching the warehouse pile up tens of millions of double stock shoes every day, Zhang Zemin often wants to cry without tears.

After selling shoes for more than 10 years, you should never feel that business is so hard on Saturday. 10 years ago, though the scale of the company was not very large, less than 800 million of the revenue was harvested every year, but it could gain about one hundred million net profit.

In 2009, when the company went public, with the continuous expansion of the sales network, the scale of revenue increased, but it entered the vicious circle of "selling more and earning less".

In 2016, Saturday, we seek to transform to create a "fashionable IP ecosystem" in an attempt to win the "net red economy".
However, with the termination of a 800 million increase plan, we should not know what to do to achieve our ambitions on Saturday.

Deformed stock

From 2011 to 2016, stocks continued to rise on Saturday, and the ratio of stock to total assets was always high, and there was a continuing deterioration in data. Know the domestic apparel enterprises inventory pressure is generally large, estimated to be so much like Saturday stock who did the.

It is clear from the table made by zebra consumption that after 2013 the ratio of the company's stock to total assets continued to remain above 40%, and even more than 50% in 2016.

What does it mean? Let's take a simple example: we have a reputation in the village. Everyone else says they grow lots of Chinese cabbage every year, and they should have quite a lot of money in their homes. But, the bitterness of the hometown only knows. Chinese cabbage did grow quite well, and its output was good, but it sold poorly and sold out. At any time, there is a possibility of low price processing or rotting at home.

In recent years, AOKANG international stock accounts for no more than 20% of total assets, while Red Dragonfly keeps about 20%.

At the end of the three quarter of 2017, the stock of Saturday was still up to 1 billion 516 million, accounting for 42.3% of the total assets. From the data, the company's inventory absolute number has not been significantly reduced.

According to the 2016 annual report, the shoes sold by the company were 5 million 590 thousand pairs in the year, and the shoes were up to 12 million 680 thousand pairs. That is to say, even if the company no longer produces new shoes, those stocks will have to be sold out for more than two years.

As with all domestic apparel companies, after the listing to raise funds, began staking, quick shop all over the country. On Saturday, the scale of revenue will expand rapidly in just a few years, which is based on the expansion of the number of stores.

On Saturday 2012, the total number of shops in China reached 2351, and in that year only 555 new businesses were added.

As for why profitability is going backwards, the company attributes it to objective factors such as the lack of economic growth, complex and changeable market environment, the slowdown in the overall growth rate of the retail industry, and the increase of shop rents and staff costs.

In 2014, -2016's revenue and net profit fell into a continuous downturn on 2014. Especially in 2016, the net profit of the company was only 20 million 840 thousand.

Do not make money after the opening of the store, how to do? Close the shop!  By the first half of 2017, the total number of shops has been reduced to 1688.

The 2017 performance bulletin, which was released shortly ago, showed that the annual revenue and net profit attributable to the bottom rebounded, both of which increased year by year, and the net profit was 24 million 940 thousand.  But this does not mean that the main business of women's shoes is getting warmer.

Incremental profitability of the company in 2017, mainly the acquisition of two companies included in the scope of consolidated financial statements.

The impact of the two acquisition companies on net profit is 15 million 670 thousand. After deducting this effect, the net profit of women's shoes industry's contribution to the company has been less than 10 million.

Slow transformation

The declining performance also prompted managers on Saturday to think about the future of the company.

In 2016, the company combined with the experience accumulated over many years, determined the new strategic direction of building the fashionable IP ecosystem.

This "fashionable IP ecosystem" looks bigger. Zebra consumption has a popular interpretation of this concept by studying related announcements on Saturday. The strategy can be roughly divided into two parts: online and offline.

1, online: hatch from the media, cultivate the media matrix, and hatch all kinds of fashion IP through the self media matrix, and also can receive advertisements.

2, offline: set up brand collection store "SATURDAY MODE", and display and sell all kinds of fashionable IP products.