Chapter 11 Where is the way out for the top shoes under the bankruptcy panic?

In 1957, when the first Charles Jourdan women's shoe store opened in Paris, almost all the fashion ladies in Paris were dispatched collectively, resulting in the last store had to close, and could only enter by issuing number plates , and the rest of the people waited in line at the door of the store to relieve the crowded scene at that time.In France, Charles Jourdan, founded in 1921, was once a representative of elegance, nobility, femininity and high quality in women's shoes, and a pointer to fashion trends.Charles Zhuodan insisted that a fashionable woman with good taste should be impeccable from head to toe, handbags should be matched with shoes seamlessly, and accessories should best express the elegance and perfection of women.A woman who pays attention to and loves fashion must be a lover of Charles Jourdan.

However, if the founder of "Charles Jourdan", the trend indicator, old Charles Jourdan is still alive, he will definitely not be able to accept the fact that his company filed a bankruptcy application with the local court.Martine Truchet, a member of the French Confederation of Trade Unions and secretary of the Labor Council of Charles Chaudin, revealed to the media that Christophe Beranger, chairman of the company, announced at the special meeting of the Labor Council that morning that the company would stop all payments and send Romans- The commercial court of sur-Isere filed for bankruptcy protection.

The bankruptcy will involve three subsidiaries of the Charles Jourdan Group, they are Charles Jourdan Commercial Company in charge of production, Charles Jourdan France Company in charge of marketing and administration, and Sodepar Company in charge of store operations.Group management has issued circulars to 432 employees of the three subsidiaries. The bankruptcy of Charles Jourdan was a heavy blow to the French shoe industry, but the bad news was by no means the only one. In France, Stephane Kelian, a luxury shoe manufacturer as famous as Charles Jourdan, also received a letter from the Romans-sur-Isere Commercial Court. bankruptcy order.

So on September 2, 2005, hundreds of shoe-making workers marched in Romans-sur-Isere, a small town in southern France and the center of the luxury shoe industry, to protest the imminent unemployment.Workers piled up old shoes on an old stone bridge in the town in protest.Gilles Apoix, a representative of the trade union, called for this: "We can't throw them away like old shoes." This fact may be a reflection of the status quo of Europe's top shoe industry - except for a few successful ones, most of the traditional brands known for their high quality and excellent craftsmanship are struggling, or their design is not attractive enough to cause customers to lose, or they are in debt.In short, the golden age of top footwear has faded away.

This is a strange phenomenon: "Made in France" and "Made in Italy" are still status symbols in the Chinese market, but in Europe, the "brand-name manufacturing" that people are proud of is a dismal business. The footwear industry, which France has always been proud of, is experiencing an unprecedented shock, mainly from its counterparts in Asia.According to the statistics of the French Footwear Federation, due to the competition of imported shoes from Asia, the French shoe output in 2004 was 53 million pairs, a decrease of 13% compared with 2003, and the total number of employees in the shoe industry was 15,300, a year-on-year decrease of 15%. From 173 to 150.Last year, France imported 208 million pairs of footwear from Asian countries, equivalent to two-thirds of the French market (325 million pairs).

But it's a very dubious argument that the French luxury shoe industry's troubles are linked to cheap shoes in Asia.After all, customers who buy Charles Jourdan and those who buy Chinese-made shoes for less than ten euros a pair will not overlap.Customers who are accustomed to Charles Jourdan's comfortable "foot feel" and noble symbols will never patronize a pair of Asian shoes that cost less than ten euros. So where does the pressure come from for a top shoe industry like Charles Jourdan? For manufacturers of Europe's top footwear industry, the biggest pressure comes from cost.Because shoemaking is a rather complex process, especially for top-of-the-line women's shoes.

Any small change in a top brand shoe can cause a big change in the manufacturing tools.For example, to shorten the high-heel part by 2 cm, the manufacturer needs a completely different mold; if a new fabric is found and wants to try, then a new fabric cutting system is required.What's more, fashion is an unpredictable and fast-changing trend. "Bohemian" style is popular this year, and "Bourgeois" style may be popular next year; It may be all thin and tall roots of 6 cm, with various changes.This is a pain for manufacturers, because too many changes mean a sharp increase in costs.

In addition, in Europe, the monthly salary of a skilled shoemaker is around 2,000 to 3,000 euros; in China's Guangdong region, the monthly salary of an equivalent skilled worker is only about 2,000 yuan.Not only that, the industry is becoming less and less attractive to young people. Even in regions with a long tradition of shoemaking in France and Italy, it is difficult to find young people who are willing to engage in the shoemaking industry. The heavy cost pressure makes manufacturers have no more funds for marketing activities and brand promotion, and to open up new overseas markets, but marketing and overseas emerging markets happen to be the new growth support points for luxury goods.

In the face of difficulties, the most important thing is to find a way out.Fortunately, Europe's top footwear industry is still alive today. The best old models are naturally TOD's.In the first half of 2005, the sales of this popular brand in the kingdom of luxury footwear reached 142 million euros, a year-on-year increase of 23.3% compared with 2004; the group's total revenue reached 239 million euros.In the gloomy luxury footwear market, TOD's is no different from a light that illuminates the night sky. Ms. Sabine Brunner, the general manager of Tod's, once summed up the success factors of the brand: "Exquisite workmanship, each pair of shoes from mechanical cutting to hand-sewing, both beauty and durability; although the products are produced in Italy, investment, research and development, innovation and Market launches are aimed at the global market.”

Deigo Della Valle, the helm of JPTod&aposs, said: We want to design a shoe like LEVI&aposS, which is a necessity of life!That's right, JPTod&aposs has become a "necessity of life" for celebrities because it insists on good quality, comfort and practicality, and can be worn for several years instead of just for one season. This modern brand with a history of more than 20 years, in addition to being famous for having many well-known fans, another "legendary story" is that for many years they only have three types of moccasins with leather soles, rubber soles and soft soles, and D Bag. , Eight Bag two bags; however, Tod&aposs has used a variety of leather, leather color and played with the "sole game" to create countless variations of simple products.

However, it is really only JPTod&aposs who can become popular all over the world with a very small number of item styles. TOD's product structure is rather simple, which allows it to save a lot of production costs, thus being able to maintain high profit margins. TOD's is not a top shoe with creativity and design as its special selling point. Its simplicity and comfort are the important reasons why people love it, and it is also one of the magic weapons for TOD's to stand upright in the turbulent market. In addition, after gaining more profits, TOD's can carry out marketing promotion with a stronger momentum in order to win more profits in emerging markets and challenge other brands. However, it is really only JPTod&aposs who can become popular all over the world with a very small number of item styles. Moreover, for most women, if there is no bright or elegant color, no heel of different heights and shapes, no embroidery or diamond-studded decoration, there will be a lot of beautiful dreams. Well, we can take a look at Jimmy Choo.Jimmy Choo, which has been compared to "Cinderella's shoes", is a well-known small brand founded in 1996. In recent years, it has become a hot newcomer on the red carpet.The way of its success can be summed up in one word: top, and then top.It is only "released accurately" in a very limited range: celebrities, royal family members, fashion enthusiasts.Despite the high cost, small-scale production and extremely high selling prices still allow the brand to maintain very healthy profit margins. The founder, JIMMY CHOO, is Chinese. His Chinese name is Zhou Yangjie. He was born in a family of shoemakers in Malaysia, and his father is a local first-class shoemaker. After graduating from middle school, JIMMY went to London to study shoemaking, and opened a special store in the mid-1980s, specializing in high-end women's shoes, making two pairs a day, and his reputation has also started.Later, JIMMY met Tamara, the editor of British VOGUE magazine, and the two cooperated to create the JIMMY CHOO brand The 4-inch high heel is its characteristic. The balance between the heel and the shoe body is the most important element of Jimmy Choo shoes. The magnificent and elegant style matching formed by the ingenious use of gemstones and leather is also the highlight of Jimmy Choo. Everything about JimmyChoo seems to be geared towards the top: go only to the most exclusive stores and turn down any invitations that aren't up to par - although that's a bit risky for a young brand; it's only available where the money is flowing Stores, such as New York, London, Beverly Hills or Las Vegas; its stores are decorated like high-end salons in the upper class, simple and elegant, or gorgeous and subtle, and every detail conveys its own Identity and branding concept. However, the top and top consumer groups are limited after all. This field has been occupied by pioneers such as Roger Vivier, Manolo Blahnik, and Jimmy Choo. It is conceivable that it will be difficult for latecomers to get a share of the pie. According to another source, the French government decided to allocate 8.53 million euros to support Romans-sur-Isere, the top French shoe industry center, to solve economic problems at the meeting of the Inter-Ministerial Committee for Territorial Consolidation and Development (CIACT, formerly CIADT).Since the bankruptcy of Charles Jourdan and Stephane Kelian, a total of 573 people have been directly unemployed, bringing the local unemployment rate to 16.7%. According to the press materials released by the Prime Minister's Office, 2.73 million euros of the money are used for the employment package plan, 3 million euros are used for the optimal combination of enterprises, 300,000 euros are used for collective shares, and 2.5 million euros are used for industrial external expansion plans. At the beginning of the year, the French Footwear Federation joined hands with the French Footwear Importers and Exporters and Wholesale and Retail Federation, the All-French Retailers Federation and the All-French Franchise Distributors Federation to form an informal "shoe alliance". "Shoe League" believes that if the trend continues, it will have serious consequences for the employment of the domestic shoe industry and the survival of some enterprises. To reverse this situation, technological innovation must be strengthened.Taking the French Leather Technology Center as an example, in order to encourage technological innovation, it invested 2.2 million euros in the shoe industry technology platform.In the center, the designer's design inspiration can be made into sample shoes within 72 hours for more reliable and in-depth analysis by the industry. But how much help can these government support measures bring to the "Charles Jordans"? It's a difficult time for most of Europe's top small and mid-sized shoe manufacturers: after Charles Jourdan, Stephane Kelian, who will fall next? MOSQUITOS is no longer profitable, with sales plummeting to 40 million euros; Robert Clergerie is struggling after losing many followers after the departure of its founding designer. Benedict Jourdan, 54, granddaughter of the founder of Charles Jourdan, said with great sadness when the company declared bankruptcy: "As far as I am concerned, today I completely buried my life." So for these struggles For the top European shoe brand on the edge of survival, how can it return to its golden age?