How does Baocheng, the world's largest sports shoe leader, respond to the impact of this outbreak?
From: Dongguan Tengyulong mechanical energy technology co., LTD Post date: 2020-04-24

How does Baocheng, the world's largest sports shoe leader, respond to the impact of this outbreak?

After the nest is covered, the epidemic has a growing negative impact on the shoe and apparel industry.

Affected by the epidemic, Baocheng International Group, the world's largest manufacturer of sports shoes, is responding through a comprehensive expenditure reduction initiative. On April 20th, some media reported that Baocheng International Group ’s senior executives have considered that from June to the end of December, including Taiwanese personnel and overseas organizations, each person must take 6 days of unpaid leave per month. More than 3,000 people; in addition to the implementation of unpaid leave, deputy general managers and above, including the group chief executive Cai Peijun, all pay reductions of 10%; once the above plan is confirmed, this will also be the first time since the establishment of Baocheng International Group 51 years without pay And pay cuts.

Looking at the performance of each brand, the income distribution in the first half of the year has been relatively balanced. Nike, Anta, and Li Ning almost accounted for 50% of the income in the first half of the year (a small fluctuation), so the consumption was missing from February to April It will have a direct impact on the corresponding proportion of the annual performance of brand companies, and short-term performance will inevitably be affected. The financial report shows that in 2019, Nike China's revenue was 6.2 billion US dollars, accounting for 16% of total revenue. Adidas China's revenue was 5 billion euros (about 45.5 billion yuan), accounting for 26% of total revenue. The absolute sales of the two giants in China The amount is comparable, but China accounts for a greater proportion of Adidas, Puma Asia Pacific (main contribution of China and India) accounts for 28% of total revenue, the absolute amount is 1.56 billion euros, China accounts for about 12-13%, and The two giants differ more.

From the perspective of the current epidemic situation, international brands such as Nike and Adi are facing both overseas and domestic tests, while the domestic epidemic situation has passed the peak period and has begun to be controlled. Therefore, the follow-up repair situation of domestic brands may be faster than foreign brands. Under the current situation, we are optimistic that domestic leading companies will take advantage of their cash flow and management capabilities to increase their share in the Chinese market. But at the same time, it should also be noted that whether it is Nike or Adidas, the Chinese market is one of the fastest growing markets of the two companies in recent years. Next, it does not rule out the possibility of resources or more investment in hot markets, which will further intensify competition in the Chinese market.

Gao Xiang believes that although international brands have always been in the mid-to-high-end position, domestic brands are more inclined to cost-effective, but product categories are now more and more, new concepts and new categories are constantly being created and developed to keep up Even continuous creation is the key, and this form of competition is the same starting line for all brands, so in the future, brands that can continue to maintain vitality, tap new traffic, and constantly improve conversion rates will continue to grow.

Gao Xiang believes that in the future industry, it is the comprehensive strength that determines the share, because the times have changed, the content is king, and consumers have the world. The epidemic is an uncertainty that the industry is currently facing. This year's test may be an opportunity to stand out or become stronger. Therefore, during the epidemic, some enterprises have established a higher-quality model online than the same industry and established a deeper connection with consumers, which will cause the concentration of traffic to high-quality brands.

Tengyulong Machinery Technology Co., Ltd. is a technology-based enterprise supervised by German Kenyang International Group Company, which integrates professional R & D and footwear machinery manufacturing. The main products are foam cutting machine, automatic gluing hammer leveling machine, polishing / roughening machine series, hot melt adhesive series, steam bake soft steaming machine, hot stamping machine series, printing machine series, thermal transfer series, process series Etc. complete sets of equipment for shoe making.

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