Quanzhou Children's Shoes And Clothing Business Expansion Is Embarrassing.

Mr. Zhu, a shoe manufacturer in Jinjiang, has been very upset recently: the remittance which the agent has promised for a long time is not in place, and the planned joint venture loan has been shelved for various reasons, which makes Mr. Zhu very worried.

In the Quanzhou children's products industry, Mr. Zhu's experience is not unique. Reporter from Fujian Children's shoes The industry association has obtained an astonishing data: according to incomplete statistics, this year's Quanzhou children's products industry has at least 3 billion yuan of accounts receivable not recovered.

Whether the high account receivable has not been recovered is a problem in the way of operation of children's products enterprises in Quanzhou. Is it a painful period for every industry to develop? compete Is the mode really suitable for the development of children's products enterprises? With various thoughts, journalists have visited the industry recently.

3 billion the number of accounts receivable is amazing.

Mr. Zhu has a headache, and the agent is unable to repay the money. Year end I'm sorry. Originally wanted to unite 5 enterprises to use joint insurance to lend money to banks to ease the financial strain. How can enterprises not trust each other and how to get together 5?

Reporters learned that in Quanzhou children's products industry, there are so many business owners. According to authoritative sources, this year, some of the bigger Jinjiang brand children's shoes manufacturers were defaulted on accounts receivable accounts for more than 200 million yuan at least 5, while other small businesses were more or less owed tens of millions of dollars by agents.

Mr. Zhu told reporters that most of the companies in the industry had the phenomenon of arrears. "The annual bad debt ratio is determined according to the time of the enterprise's collection. If the money is collected during the collection time, it will not be regarded as a bad account. Generally speaking, enterprises that are controlled within 10% are good operations, and the profits are considerable. But if they are over two years, they will be bad debts. Mr. Zhu said, but this year because of the big environmental factors, coupled with a lot of desperately expanding the terminal to "plate" brand business crazy investment, crazy shop, let the market inventory rate is higher and higher, only then makes the whole industry agent repayment strength weaker and weaker.

"Many enterprises are in arrears, not only the children's shoes industry, but also the development of a relatively mature sporting goods industry. At present, this problem still exists, but the adult shoe industry has higher profits than children's shoes, and the market is more mature, so they are more stressed at present." Xie Jiasheng, Secretary General of Fujian children's shoes industry association, said that accounts receivable of 3 billion yuan is not a small sum. Now it can be said that the children's shoes industry is entering the shuffling period. It will depend on how many children's shoes enterprises can survive this year.

Products of the battle for terminal resources

In the view of Xie Jiasun, the reason why huge accounts receivable is not recovered is related to the lack of operational capacity of children's products industry.

"Since the children's shoes industry began to implement the integrated operation of shoes and clothing, most of the enterprises in the industry could not keep up with the operation. In the past, children's shoes enterprises only sold shoes wholesale, and the level of management of enterprises was not so high. Now brand children's shoes enterprises are starting to do chain stores, taking monopoly mode, but the level of operation of enterprises has not kept pace with the development of enterprises, just rushing to the market blindly, and now it will return such a problem. Xie Jiasheng regarded such huge accounts as the inevitable "labor pains" for the rapid development of the industry.

In fact, in the eyes of many people in the industry, the huge accounts receivable is not recycled. It is more like the Quanzhou children's products industry is paying for its blind expansion.

"How can we not be owed by agents, we are all crazy to support the agents, and rush to deliver goods, to the shelves, to rent, to shop rentals, few entrepreneurs think seriously about whether their terminal market has such digestion ability." Mr. Huang told reporters that, because of the scarcity of terminal resources, in order to seize the terminal, find more powerful agents and attract more partners, Jinjiang children's shoes enterprises have launched various preferential policies, and even appeared the phenomenon of "full distribution" and "let dealers store Zero". In fact, the whole children's shoes industry in Quanzhou has had a great impact on other industries, and the whole children's footwear industry is forced to "unite with others".

Such a move has played a key role in the development of the brand. Many city centers have been occupied by the brand of Quanzhou children's shoes. At the same time, many other industries, such as adult shoe and clothing agents, have been fighting or extending to the children's market. In the short term, it can help children's brands quickly occupy the market, but it also causes a large number of funds to be occupied by enterprises, and various arrears occur frequently, which seriously restrict the development of enterprises.

What is more noteworthy is that recently, some venture capital companies have injected funds into children's shoes and clothing enterprises to make more Quanzhou children's shoes and clothing brand enterprises more crazy. In the words of Mr. Huang, "they are not at all beginning to think about whether they can digest the goods so much. They just want to make the market bigger and think that they can expand their terminals with the money injected by the venture capital. They never thought that although it could attract more agents at a time, it would be a dangerous move for" not to succeed ". If their purpose is only to expand the channel and make a big market, then the consequences are unthinkable.

Xie Jiasheng did not completely deny such a view. But he also said that in fact, most of the venture capital companies are "thunderstorms and heavy rain", and many children's shoes and clothing brand enterprises disregard market profit margin, and how the agent's credibility is competing for terminal resources. This also makes the whole competition pattern subtle change.

Developing new products catering to the market

For the 3 billion yuan of accounts receivable that has not been recovered, the industry should take a headache while thinking about what should be done in the future to avoid such a situation.

Xie Jiasheng told reporters that the Fujian children's shoes industry association is now planning to introduce the book of children's shoes industry integrity alliance. "We should use the strength and credibility of the association to publicize the ratings of the dealers in the children's shoes industry according to the stars, so that the manufacturers will have a better understanding of the credibility of the agents and will know more about how to guard against them." Xie Jiasheng said, but it is not so easy to do this, because it is very important for manufacturers to match enough.

"If the association promotes the entire children's shoes industry to make joint initiatives, in fact, it can eliminate some malicious dealers. As long as manufacturers are willing to place them outside the industry, the whole business model of children's shoes industry will also change. Xie Jiasheng said, but this requires enterprises to sign and seal, join the integrity alliance. Many enterprises are unwilling to support and cooperate, because considering that these dealers have not finished with their old accounts, they are afraid that the money will not be returned after they are released. Therefore, it is still difficult to initiate the integrity alliance book, but this is a direction.

Relying on the strength of the association is only one aspect. From the enterprise itself, the direct mode of the adult sporting goods industry is a way for children's products enterprises to draw lessons from.

We can see that a lot of Jinjiang sports brands are listed successfully. After the capital is sufficient, the first step is to implement the company's direct operation and recover the agency rights of some bad credit agents. Such a move is to speed up the operation of the company's cash flow, the two is direct profit is also relatively high, and all marketing strategies can be implemented quickly and effectively. After the launch of the company's direct operation, although many agents oppose it or even resist it, its effectiveness is obvious to all.

Of course, if the method can really be implemented, people in the industry do not have the bottom. In their view, if we can enhance their operational capability, and even launch the ERP system, firmly grasp the sales situation of agent terminals and their real sales data, then the refund problem will no longer be a big problem.

Chen Shuqing, general manager of Liuhe children creative industry Co., Ltd., said that the best way for businessmen to profit from profit and to hold on to agents is to induce them to taste the sweetness. "For small and medium enterprises that do not have strong financial strength to develop direct outlets, the best way to solve the problem is to enhance product research and development so that the products can meet the needs of the market and let agents have confidence." Chen Shuqing believes that this can really solve the problem of accounts receivable not recovered from the root cause.