According to Financial reports released by Daphne, used to be the king of shoes in China, the company lost HK819.1 million dollars in 2016 that is 2.16 time higher than the loss in previous year. The report also said the company closed 999 retail stores for the same time.
Belle is another shoe giant in China that also suffered the same fate in the past year, as of February 28,2017 the net profit dropped by 15%-25%.Despite that it is no doubt Belle is still the largest shoemaking company in China.
During the period from 2010 to 2012 they opened 5340 stores in mainland China with average of five stores opening daily, becoming the largest retailer and second largest shoe company in terms of market value in the world. But decline started from 2012, the year in 2012 Belle no long witnessed the double digital growth in net profit that dropped by 38% in 2015.
Saturday Shoes does not escape the fate of loss, they walked the same track as Daphne and Belle in the previous years, nowadays they face the same difficulties as Daphne and Belle have, such as closing stores, suffering from losses in revenue and over production. Sale revenue dropped 9.64% to 1.484 billion yuan in 2016.
Due to sluggish of real economy and sales in retail stores and market in the past years, transition becomes the only way for their survival, they should take the risk of huge suffering to make transition, because they are fully aware of chance of current market.