On the evening of January 18, a performance preview was released on Saturday, saying that it was expected to lose 430 million yuan to 645 million yuan in 2021, the largest loss since its listing in 2009.
According to the announcement on Saturday, as the parent company of Saturday Footwear, the Company intends to place assets related to the footwear sales business into a wholly-owned subsidiary, Foshan Saturday Footwear Co., Ltd. (hereinafter referred to as Saturday Footwear), in the form of a capital increase, mainly including the inventory of the footwear business and the equity of the operating subsidiary, except for trademarks related to the footwear business.
After the integration is completed, Saturday intends to transfer 100% of the equity of Saturday Shoes and determine the transferee through public listing or commercial negotiations. At this point, the former "women's shoe first stock" Saturday will completely transform from a traditional shoe company to a social e-commerce service company.
Following the delisting of the "shoe king" Belle and the evaporation of Daphne's market value of nearly 20 billion, the loss of shoes on Saturday can't help but make people ask, has the traditional women's shoe business declined?
Founded in 1993, Saturday is principally engaged in the design, production and sale of women's shoes. After years of development, the company has grown into a leading multi-brand shoe operator in the industry, with its own brands such as Saturday, Divs, Sophia, Fibriel and so on.
In 2014, the company achieved revenue of 1.758 billion yuan, according to CIIIC data market share of 4.52%, ranking sixth in the women's footwear industry.
Since 2015, affected by the fierce competition in the women's shoe market and the impact of online channels, Saturday began to explore transformation, set up an industrial fund, and optimize inefficient women's shoe stores.
In 2017, the company completed the acquisition of Onlylady and Girlfriend Network, two major new media companies, involved in brand advertising marketing, Internet celebrity economics
Ji and other businesses achieved Internet advertising revenue of 138 million yuan, accounting for 9.20%, and the transformation effect began to appear.
In 2018, the company acquired Yaowang Network (completed in March 2019), and in 2019, the Internet advertising business achieved revenue of 854 million yuan, accounting for 40.83%.
At the beginning of the acquisition of Yaowang Network, Saturday also tried to integrate the footwear industry and Internet business, using the traffic and technical advantages of Yaowang Network to sell the company's footwear products through short videos and live broadcasts on major platforms. However, after more than two years of running-in, it finally came to an end, and the shoe industry was finally abandoned.
Left one: The main force of the network is looking at the big duke of Yu
According to Regent's understanding, Yaowang Network has more than ten signed artists such as Wang Zulan, Cecilia Cheung, Zhang Yuxi, Wang Yaoqing, Xiong Ziqi, Lu Xingyu, Ying'er, Du Ruoxi, Cao Xiwen, and more than 50 incubated short video masters such as Grand Duke Yu and Naiti Guli.
Regardless of the star effect for the time being, with the main cargo master Of the Remote Look Network, Yu Dagongzi, the number of fans on the Kuaishou platform has now exceeded 28 million.
Why do you still sell your shoes with tens of millions of traffic? Saturday said that the reason for its loss was mainly in three aspects:
First, the epidemic has had a great impact on offline commercial sales, which has had a great impact on the digestion of the company's footwear inventory, coupled with the additional costs incurred by the company due to business transformation, resulting in the footwear business being in a state of operating loss throughout the year.
Second, the operating income scale and net profit level of the two fashion new media companies controlled by the company, Beijing Fashion Fengxun Information Technology Co., Ltd. and Beijing Shixin Information Technology Co., Ltd., have dropped sharply.
Third, the company began to implement the 2021 equity incentive plan at the beginning of the year, which generated an amortization expense of about 80.08 million yuan throughout the year, which also had a greater impact on the company's operating performance.
In summary, the sluggish performance of footwear products was the main reason for Saturday's sharp loss.
Traditional shoe brands mostly use offline retail stores as a base, and online business is a short board. With the rise of e-commerce platforms, the traditional footwear industry has to go online, but the thinking has not kept up with the trend, resulting in a wrong layout.
At the same time, driven by people's awareness of healthy life, the sports and fitness crowd continues to grow, and the sports footwear category is highly sought after. In addition, the types of women's shoes are constantly subdivided, such as daddy shoes, canvas shoes, Loaf shoes and other hot sales are also dividing up the traditional women's shoes market. Many reasons have put pressure on traditional women's shoe companies.
It is worth mentioning that among the many Internet business companies acquired on Saturday, Yuanwang Network has been placed high hopes and has become one of its important sources of revenue. In 2021, The Remote Vision Network achieved rapid growth, with its annual transaction order volume exceeding 100 million and sales of GMV exceeding 10 billion yuan, about 2.5 times that of the same period in 2020.
Industry insiders said that live streaming with goods to increase revenue has become the consensus of the industry, whether Saturday can really rely on this business to achieve profitability or even long-term performance support, but also depends on Saturday's operating capabilities.