According to the world clothing and footwear network, TOD'S (hereinafter referred to as "Todds"), which was a successful single-selling peas shoe, is now seriously frustrated by the loss of peas shoes. Todds parent company TOD'S Group released its first-quarter earnings report on May 6th, due to the impact of its core business footwear sector, the group's performance has plummeted. After winning the market with comfort, how to cultivate lasting consumption power is the main problem facing Todds.
Declining performance
According to the latest quarterly earnings report released by TOD'S Group, TOD'S Group's sales decreased by 4.4% year-on-year to 230 million euros. The sluggish performance in the first quarter of fiscal 2017 is aggravating the TOD'S group, which is in the midst of a downturn. The previously announced fiscal year 2016 financial report shows that TOD'S Group's sales decreased by 3.2% year-on-year to 1.004 billion euros. TOD'S Group Chairman and CEO Diego said that this year's results will improve, but from the current performance situation Still not optimistic.
In the three months ended March 31, sales of its core business footwear segment decreased by 5.1% to 192 million euros. It is worth noting that in the first quarter of this year, Todds sales fell the largest quarterly decline since listing. From 6.7% to €123 million. TOD'S Group only said that it was mainly affected by poor performance of footwear products and product delivery time. According to the market, Italian domestic sales decreased by 8.7% year-on-year to 79.4 million euros; sales in other parts of Europe decreased by 3% to 57.3 million euros; US sales decreased by 15.7% year-on-year to 16.8 million euros, and sales in Greater China increased year-on-year. 3.6% to 50.3 million euros.
As of the end of the first quarter, TOD'S Group has 274 direct stores and 107 specialty stores around the world. Group Chief Financial Officer Emilio Macellari said that this year plans to add 13-15 stores worldwide and close some unprofitable stores.
Single product
Judging from the current performance, consumers seem to have lost their freshness to the "peas shoes" lacking product innovation. In the current increasingly young shoe industry, the middle class elite style represented by peas shoes is constantly being marginalized, and Todds, which is a selling point of comfort, is gradually losing its competitiveness.
Looking at the product design style of Todds "peas shoes" is rarely innovative. In the context of increasingly diversified and personalized consumers, Todds has made little adjustments in materials and colors, and has rarely explored more space for style changes. The single product with high comfort is the peas shoes. After winning the market, how to cultivate lasting consumption power and seek new profit growth points are the main problems facing Todds in the future.
Cheng Weixiong, a senior observer in the apparel industry and general manager of Shanghai Liangqi Brand Management Co., Ltd., said that faced with the different needs of emerging consumer groups for styles, fabrics, colors and functions, the ultimate single product must have the ultimate choice. The decline in Todds' performance is not unrelated to the fact that the product is too single. Price sensitivity is not necessarily a high-priced product for consumers who are able to substitute for this type of alternative, especially in the current era of ubiquity. The Todds selection of the thousand-dollar price is too narrow.
Unpredictable
Yan Guangya, chief consultant of Guangzhou Lanao Retail Consulting, said in an interview that a single explosive product can not meet the individual needs of current consumers. The growth of performance caused by a single trend is not a long-term support for brand and enterprise development. meter.
The core business footwear line was frustrated and TOD'S Group also tried to strengthen the handbag business. The Double T series handbags launched in the spring/summer 2016 series have a certain heat due to the young design, which brings some vitality to the handbag business. However, under the fierce competition of major brand handbags, the Double T series ultimately failed to bring significant performance boost.
At the same time, the TOD'S Group, whose handbag business has not improved, has refocused its business on the footwear sector. Emilio Macellari attributed the first-quarter results to the designer team “still in the running-in periodâ€. It is normal to think that the new series has not been sold in the past, and that the future will focus on the innovation of “Doudou Shoes†design.
Last year, TOD'S Group stated that it would turn its development focus back to Europe and other European countries, as the group's performance slowed in China, the United States and Japan, while Europe remained stable. However, due to the weak wholesale channels, the European market, especially the Italian domestic market, has also fallen. The only area of ​​growth is the China region, which clearly contradicts the previous return to European strategy.
In terms of store operations, TOD'S Group said it will enhance the experience of physical stores, but did not disclose the details. Emilio Macellari said that a more complete team is being formed to produce more series each year, and some "new generation stores" are being added to provide customers with a new shopping experience. Emilio Macellari believes that the recovery of the Group's performance is only a matter of time. To meet market expectations, TOD'S Group still has a long way to go. It cannot be rushed and requires time and patience.
For more exciting reports, please pay attention to the world clothing and footwear network.
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