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Shoe Industry Terminal "Price War Chaos" Phenomenon Is Increasingly Prominent.

2011/11/15 8:34:00 18

Shoe Marketing Brand

At present, the footwear terminal has entered the era of "chaos war".

On the one hand, footwear

market

The trend of saturation is becoming more and more obvious. Brand dealers are hard to make profits. They can only benefit from productivity and scale, resulting in a vicious cycle.

brand

Monopoly ability and channel monopoly ability are limited, and can not be monopolized as thoroughly as cosmetics and other industries, resulting in a brand melee. Third, at present,

footwear industry

Terminal channel resources are limited, most brands are in the growth stage. Fierce competition for footwear channel resources has led to the continuous rise of terminal operating costs, making more and more brands struggling to cope with, and some even fade away from the consumers' view.


The chaos of the terminal is especially prominent in the "price war".

In recent years, many brands have invested a lot of manpower and material resources from store image to shop management to shop service in order to better base themselves on the terminal, but the effect is not very satisfactory.

Therefore, many operators began to make a big fuss about price, hoping to use price war to suppress competitors, enhance store sales performance, and make brands based on regional market.


A sports shoes brand in order to occupy more terminal market share, the new brand just 20 percent off sales promotion, when the competitor 20 percent off, its promotional activities dropped to 32% off; when competitors follow up again, its discount has become "buy one get one"; when competitors "buy one get one", his discount will immediately become "buy one to send two"; when competitors "buy one to send two", it then the whole field 1 fold up, 2 fold...


Similar to the A brand promotion way to other competitors, some brands for brand reputation considerations, usually few discount.

After all, the gross profit margin is up, sales are down, and the corresponding stocks are also increasing. The backlog of stocks will eventually be sold out through two large-scale promotions a year, and the price will be equivalent to the price of A brand buying and delivering.

And consumers are more willing to choose new ones than the old ones.

As a result, other brands have to passively join the price competition.


The B shoes brand launched an event in Sichuan's straight shop in July this year to clean up stock, combat competitors and increase the market share of the brand.

For a month, the men's shoes are bought for a pair of 188 yuan, two pairs of single, 128 yuan, women's shoes for 158 yuan, two pairs of single, 98 yuan.

As soon as the activity was launched, there was a boiling point in the city where the brand store was located. The sales performance of the B brand suddenly soared, and most stores were out of stock. The overall sales situation was close to the gold sales period of the Spring Festival.

Because of the hot B brand activities and the dismal business of competitors during the same period, many brands produced a large number of stock products, which seriously affected the normal operation of the shops.

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C brand fashion shoes launched in August this year, the promotional activities announced: the full court shoes to buy a pair of optional sandals and four pairs of shoes, get the market feedback in general.

Through understanding, many consumers said that this kind of "joint sale" has become commonplace. They even hope that the products themselves will directly reduce their prices. Some consumers also say that "no need to rush to buy, holidays will surely be more cost-effective".


In the face of the above situation, many operators are also suffering. They regard the high operating cost of terminal as the "culprit" of price war.

Indeed, the recent rise in operating costs has become one of the biggest obstacles to terminal operation, and some shops are operating at a cost of more than 60% per year.

Dealers with stronger strength can cope with the rapid growth of rents by expanding their business scale. Dealers with small strength can only choose to close or pform.

Some big brands are also under great pressure. Some brands are beginning to help dealers resist the pressure of high cost through subsidies for futures rebates and terminal rental subsidies.


However, there are also people in the industry who say that the more chaos the terminal, the greater the opportunity.

Terminal operating costs remain high, which means that a threshold is set up in the terminal retail market to eliminate those dealers holding the idea of "making money arbitrarily", leaving the real elite and promoting terminal standardization operation to become an industry norm.


The high operating cost of the terminal aggravates the shuffle of the market, and the listing of the brand business accelerates the reshuffle of the brand players. Throughout the shoe industry, the sports shoes and clothing brands are listed more, making the market of the sports shoes and clothing market clear.

And with the accelerated pace of Wenzhou leather shoes listing,

leather shoes

The brand structure will also gradually clear.

At this time, the terminal will show a "chaotic but not chaotic" development.

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