Last week, Aokang International (SH) disclosed its annual report of 603001. Affected by the new crown pneumonia epidemic, during the reporting period, the company realized a business income of RMB 990 million, and the net profit attributable to shareholders of the listed company was RMB 18.8239 million.
In terms of quarter by quarter, the company realized 439 million yuan of operating revenue in the first quarter, down 71.7% month on month; in the second quarter, it realized 551 million yuan of operating income, with a quarter on month increase of 25.51%. Compared with the first quarter, which was seriously impacted by the epidemic, the company's adjusted marketing model and response measures have shown initial results.
Adjust marketing mode to deal with black swan
At the beginning of 2020, all walks of life are in danger of depression due to the sudden "new crown". Among them, the tertiary industry represented by catering, tourism, transportation, retail and so on bear the brunt, with losses of hundreds of billions or even trillions.
According to the macroeconomic data released by the National Bureau of statistics in the first half of 2020, the total retail sales of consumer goods in China reached 17.2 trillion yuan, down 11.40% year on year. Among them, the retail sales of clothing, footwear, knitwear and textiles above the quota were 512 billion yuan, down 19.6% year-on-year, with a more significant decline than other retail categories.
The strong impact has led to a sharp decline in the interim report performance of many listed companies. From the perspective of 28 A-share textile and garment enterprises that have disclosed interim performance or medium-term performance forecast, receivables have declined to a large extent, and even more than 30% of enterprises have suffered losses. Aokang can still maintain profits, which is not easy from the industry as a whole.
In late February, due to the impact of the epidemic, nearly 3000 Aokang stores were basically closed, and online sales and distribution business were unable to deliver goods in time due to the company's delayed resumption of work and logistics problems. Even so, Aokang took measures to strengthen brand building, optimize enterprise management, upgrade marketing channels, adjust sales mode, enhance member management, and innovate e-commerce development, Realize the growth against the trend in the second quarter.
In March, Aokang launched "Aokang ole" wechat app, integrated online and offline traffic in the mode of "store + cloud store", and formed a new retail format of "offline experience store + Mobile App + wechat terminal + intelligent logistics" with the help of digital transformation and upgrading.
In April, after the retail stores were fully restored to business, Aokang rearranged its forces and expanded its "cloud" layout. Through the "O'Connor" mode, it created "100000 cloud merchants", fully integrated online and offline resources, and formed an efficient and orderly cross regional three-dimensional marketing network.
On April 26, the "2020 OCN Olay cloud Investment Promotion Conference" was successfully held in Wenzhou. Through opening the new online "cloud" franchise mode to the whole country, it expanded the dual line sales channels in an all-round way.
On May 30, the cloud opening ceremony of Aokang international digital store was held in Wenzhou. At the event site, Aokang announced that it had reached a new retail strategic cooperation with Alibaba, merged into the same city shopping platform in Ali, focused on localized operation, opened up three key links of online traffic, offline stores and supply chain supporting, and effectively improved the new retail value of offline stores of the company by virtue of accurate contact and portrait of Alibaba data technology.
In addition, Aokang also announced to carry out strategic cooperation with Ruili. Through the exchange of resources, Aokang's 10000 shopping guides and Ruili's online celebrities form the anchor matrix, and with the help of Ruili's experience in content production and celebrity creation, the new live broadcast layout will be opened.
Wang Zhentao, chairman of Aokang international, said: "at present, the digital economy has become a new outlet, and the era of digital intelligence has become a new trend. We believe that "fast people step by step, step by step lead". Therefore, Aokang has decided to join hands with Alibaba, Ruili and other industry leaders to explore digital transformation and integrated new retail. Through new technologies and new play methods such as big data analysis, live delivery and intra city distribution, we can reconstruct people, goods and markets with data, so as to realize the optimization and upgrading of e-commerce platform and physical stores. "
Entrepreneurs come to the battle in person, live broadcast with goods
Under the epidemic situation, live delivery has become the strongest outlet. According to the data of the National Bureau of statistics, in the first half of 2020, the national online retail sales of physical goods will reach 5.15 trillion yuan, an increase of 7.30%.
In recent years, Aokang has realized the "people and goods yard" online by means of third-party platforms such as Taobao, tmall, Jingdong and pinduoduo, as well as the company's self built network mall and wechat applet. Don't look at the current popularity of live delivery. As early as 2017, Aokang has joined the ranks of "online live", exploring the new mode of "entity + live" to accelerate the transformation of enterprises to online.
This year, based on the advantages of sufficient source of goods, huge supply system, professional shopping guide and follow-up supporting services, Aokang has launched a call for "all staff marketing" to promote the growth of online business.
It is worth mentioning that during the Aokang live broadcast ceremony, Wang Zhentao, chairman of Aokang international, also directly "appeared on the camera", which was very close to the audience and further drew the distance between consumers and enterprises. On March 24, Aokang and tmall jointly launched the "new fashion · thousand people live challenge". Wang Zhentao and his son Wang Chen, general manager of Aokang international e-commerce, jointly launched the live show. On that day, the sales of Aokang's flagship stores increased by 108% year-on-year. The sales in Taobao and tmall were 2.6 times of the same period, and 6.5 times of the sales volume of last year's "double 11".
Because of the epidemic situation, Wang Zhentao was able to recognize the live broadcast again, and because of the epidemic situation, he dug out more and deeper possibilities from the live broadcast. "In my eyes, live broadcasting is not only a product promotion and sales transformation, but also a high-quality channel for brand promotion and precise service."
From Aokang International's 2020 semi annual report, we can also get evidence: in the first half of 2020, Aokang's online sales channels were further expanded, with online revenue exceeding 195 million yuan, accounting for 20.2% of the total revenue, and 13.93% in the same period last year, with the proportion increased by 6.27%.
Mining incremental space from multiple perspectives
Looking at several major shoe listed companies, in recent years, they have not been doing well, which is closely related to the slow product upgrading, the aging brand image, and the failure of channel transformation. In addition, with the rapid development of sports brand, private brand and independent designer, the competitive advantage of traditional brand is gradually eroded. In order to obtain a larger market, transformation and diversification is one of the essential ways.
In recent years, in addition to the digital transformation of channels, Aokang has strengthened the younger, diversified and upgraded products and brands, which not only improves the loyalty of existing consumers, but also excavates new incremental space.
In terms of brand strategy, in addition to the "Aokang" brand, Aokang international also has the "KANGLONG" brand which highlights fashion and leisure, the "skykey" brand covering children and adults over 3 years old, and the Puma brand based on sports series. According to the data of the semi annual report in 2020, the revenue of "KANGLONG" in the first half of the year is 147 million yuan, and that of "skykey" is 97 million yuan, accounting for 24.6% of the total revenue, showing a good growth momentum. In addition, in the first half of 2020, 16 new stores were opened by "skykey" and 9 stores were opened by puma in the first half of 2020, an increase of 30%.
In terms of product innovation, Aokang international insists on design and production innovation through R & D investment in recent years. In the first half of this year, Aokang international continued to promote production, design and R & D, with a total investment of 17.1976 million yuan, focusing on the R & D and design of product functions and fashion. According to the semi annual report, during the reporting period, Aokang international added 13 patents.
In terms of operation capacity, fine operation and improvement of efficiency are the key to the stable development of Aokang. Combined with cost, passenger flow, logistics and other factors, in the first half of 2020, Aokang opened 224 stores and closed 319 stores, a total of 2812, a decrease of 95 compared with the end of 2019. Although the number of stores has been reduced, the outlets with low flat efficiency are closed. In the future retail industry, the focus of competition will inevitably shift to the improvement of product strength, the building of brand differentiation ability, and the improvement of channel operation and management ability. Only by transforming the original single expansion relying on the number of stores into endogenous and denotation, can we form a benign development state.
In addition, Aokang is a typical shoe enterprise listed company with domestic large circulation as the main one, but at the same time, it also adheres to the road of promoting domestic and international dual circulation. Although the epidemic spread around the world and overseas business was deeply affected, Aokang International's export business grew by 56.08% in the first half of the year, and its revenue exceeded 8.1 million yuan, which fully confirmed the influence and recognition of Aokang shoes in the international market.
More "digital intelligence" operation is the result of Aokang International's constant innovation and change in the past six months. After all, in the uncertain economic environment, how to turn crisis into opportunity is an unchangeable rule for enterprises. "Don't be afraid of the crisis, the real industry leaders are coming from the crisis." Wang Zhentao is full of confidence in the future. "As a leading enterprise in China's shoe industry, Aokang certainly can't avoid this turning point. Only by holding this turning point can we grasp the future of Aokang