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Recently, the veteran women's shoes company announced on Saturday that it sold 100% of its wholly-owned subsidiary Foshan Saturday Technology Research and Development Co., Ltd. (hereinafter referred to as the "R & D company") for 13.85 million yuan, and said that it would no longer retain production capacity on Saturdays.
Industry insiders said that in the current declining leather shoes market, on Saturday, Chaoyang Industry urgently needed to help it achieve a recovery in performance, and the facts also proved that the acquisition of Yuanwang Network on Saturday has brought greater help to its performance.
After reselling heavy assets, the intention to gradually divest women's shoes business and focus on the development of the Internet business became more apparent on Saturday. Industry insiders speculate that shortly after that, Saturday may be reduced to a "shell company."
Textile and apparel brand management expert and general manager of Shanghai Liangqi Brand Management Co., Ltd. Cheng Weixiong said in an interview with Beijing Business Daily: "It is uncertain whether this equity transfer means a full shift to the OEM model after Saturday, but it is certainly possible. Today, there are major challenges in brand operation on Saturday, and the foundry model can greatly reduce costs while helping it to maintain a stable and stable brand operation. "
Regarding the reasons behind this wholly-owned subsidiary's equity transfer, Saturday said that it is part of the company's strategic transformation and the gradual divestiture of heavy assets. It is also to further optimize the asset structure, concentrate resources to promote the company's strategic transformation and upgrade, and accelerate the establishment of "to "User-centered, data + content driven, consumer scenarios open up and integrate" new retail platform.
Xu Xiongjun, a strategic positioning expert and founder of Jiude Positioning Consulting, said in an interview with a Beijing Business Daily reporter that because of the downturn of the entire footwear industry and the overall decline of the industry, Saturday has been undergoing transformation and development in the past two years, constantly "throwing away" Footwear business and assets, after the equity transfer, will move towards the foundry model on Saturday.
Earlier, Saturday also stated in the announcement that in recent years, due to the low proportion of self-production, it has maintained a considerable OEM (foundry production model) production ratio. This time after the divestiture of the R & D company's heavy assets, it will focus on purchasing parts and materials on Saturday , Centralized manufacturing, or centralized procurement of finished products to reduce production costs and personnel costs. And when the heavy assets in the production R & D and supply chain management parts are released or reduced, they focus their energy and resources on brand operation management and supply chain management to further promote strategic development.
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