"Shoe King" Aura Is Fading Away From BELLE To Fight For Fashion Pformation

BELLE international, which once occupied half of China's women's shoes, issued a 2016 earnings warning, announces the first consecutive profit decline in 10 years.

According to BELLE international financial report, last year 6-8 months, the group closed 276 stores in the mainland, equivalent to an average of 3 outlets per day.

BELLE, which once opened a new store in less than two days, is now reduced to the point of shutting down shop.

On the contrary, Daphne, another shoe king in China, is also in a quagmire of declining performance. The industry believes that the top priority of China's textile enterprises is to shift from the profit model based on the channel development to the core of brand building.

BELLE International released its 2016 earnings warning, announces the first record of consecutive profit decline in 10 years.

The announcement said that in the fourth quarter of fiscal year 2016/17, footwear sales in the same store decreased by 6.2% in. The board expects that the profit attributable to equity holders will be reduced by about 15% to 25%.

For the 2016-2017 fiscal year, profits continued to fall sharply. BELLE group blamed it on the continued weakening of footwear business, resulting in impairment of related business goodwill, while other intangible assets were expected to be impaired. Besides, footwear performance weakness, gross profit and operating profit declined year-on-year.

BELLE group also said that the decline in profits was related to the adjustment of the management stock incentive plan implemented by the group in May 26, 2014, and the related expenses increased considerably in the previous fiscal year.

With about 10 footwear brands such as BELLE, Staccato and Zhen Mei Shi and Nike, Adidas, Puma, CONVERSE and other international sports and outdoor brand agents group, it is China's largest fashion brand retail group.

According to BELLE's official website, BELLE is the largest company in China's footwear industry, with annual sales of over 23 billion yuan. It is also the largest consumer retail market with the largest market value in China. The Hang Seng Index constituent stock of Hongkong and the world footwear listed company ranked second in the market value.

As of February 28, 2017, BELLE group has set up 20716 stores in China, with a net increase of 86 in the quarter, including 13062 footwear businesses.

After a round of horse racing, the 2015 fiscal year became the turning point of BELLE group's performance. The Group recorded its first profit decline in 9 years, falling from 4 billion 763 million 900 thousand yuan in the 2014 fiscal year to 2 billion 934 million 100 thousand yuan.

Coincidentally, Daphne has also fallen into the mire of declining performance. According to the 2016 annual report released by Daphne group, Daphne has lost 819 million 100 thousand Hong Kong dollars for the whole year, which is 2.16 times the net loss of HK $378 million 900 thousand in the same period last year.

Daphne group said that the high inventory situation prevailing in the industry led to heavy sales of online and offline channels, and fierce competition in the market. Retailers also cleaned up over the season goods through large discounts, coupled with the increase in the sales of goods sold over the past season, resulting in a 23.1% drop in the core business of shoe cabinet.

Daphne also announced a net reduction of 1030 sales points, equivalent to closing 3 sales points on an average day.

The slowdown in the overall economy, the increasingly fierce competition between the entity store and the electricity supplier, and the increase in labor costs will impose heavy pressure on Chinese retailers. Some businesses will also fall into price wars, which will directly damage the profit margins of the companies.

BELLE and Daphne have been on the scene for a while. The current difficulties are the problems that domestic shoe manufacturers and apparel enterprises have to face after explosive growth.

The interview with Ding Jun, a consultative partner, Ding Yun, said that the decline of shoe companies such as BELLE and Daphne was mainly caused by three main reasons: first, the positioning of the brand itself could not keep up with the consumption upgrading needs of the consumer groups. The focus of early development was the simple and crude channel expansion, and the products could not be completed by iterative updating. Secondly, influenced by the poor development of China's department stores, the department stores did not select brands based on their own crowd positioning, which led to the fact that the sales information of the stores could not be effectively and timely feedback to the merchants, resulting in the loss of the efficiency of the sales terminal channels. Third, the talent training echelon was not upgraded, and the operators of the deep cultivation channels were not upgraded.

BELLE is an agent of many sports brands, including Nike, Adidas, Puma and CONVERSE. It is also the largest shoe retailer in China.

After the setback, BELLE also adjusted its brand strategy this year, with sales of sports and clothing brands continuing to grow, replacing footwear products as a core profit point.

According to public information, BELLE footwear business stores quarterly net reduction of 83, an annual net reduction of 700, while sports, clothing business store net growth of 169 to 7654, an annual net increase of 543 to 7111.

In the same store sales performance, footwear sales in the same store fell 6.2% while sportswear business increased by 4.5%.

But the industry believes that in the long run, sportswear can not be BELLE's continued profit point.

Apart from the high margin of brand agents, the overall scale of China's garment market is small.

According to the data of the National Bureau of statistics, sales of clothing, shoes and hats and needle textiles increased by 7.1% in 2016, increasing for second consecutive years.

According to fashion industry research and consulting agency No Agency, this increase is mainly driven by international brands and new entry.

With the brand promotion, China's local brand growth is only 3%, excluding CPI, which is actually less than 2%.

The agency expects that the growth of China's clothing market will fall to 4.5% in 2017, of which China's local brands will be barely flat, and the first drop will probably occur.

Tang Xiaotang, founder of No Agency, said the slowdown in the clothing market and the decline in local brands could not be reversed. But what is more worrying is the recent intensive listing of the spinning and weaving industry and the large number of pactions that have been born at the same time.

Tang Xiaotang pointed out that "last week when the Bureau of statistics released retail data, several textile and apparel stocks traded on a daily basis", indicating that the irrational domestic market reflected the fact that the real retail market was surging.

It may be listed before the market slump, so it is necessary to pay attention to the local spinning and weaving enterprises with frequent mergers and acquisitions or leveraged pactions in the market.

BELLE international, which once occupied half of China's women's shoes, issued a 2016 earnings warning, announces the first consecutive profit decline in 10 years.

According to BELLE international financial report, last year 6-8 months, the group closed 276 stores in the mainland, equivalent to an average of 3 outlets per day.

BELLE, which once opened a new store in less than two days, is now reduced to the point of shutting down shop.

On the contrary, Daphne, another shoe king in China, is also in a quagmire of declining performance. The industry believes that the top priority of China's textile enterprises is to shift from the profit model based on the channel development to the core of brand building.

BELLE International released its 2016 earnings warning, announces the first record of consecutive profit decline in 10 years.

The announcement said that in the fourth quarter of fiscal year 2016/17, footwear sales in the same store decreased by 6.2% in. The board expects that the profit attributable to equity holders will be reduced by about 15% to 25%.

For the 2016-2017 fiscal year, profits continued to fall sharply. BELLE group blamed it on the continued weakening of footwear business, resulting in impairment of related business goodwill, while other intangible assets were expected to be impaired. Besides, footwear performance weakness, gross profit and operating profit declined year-on-year.

BELLE group also said that the decline in profits was related to the adjustment of the management stock incentive plan implemented by the group in May 26, 2014, and the related expenses increased considerably in the previous fiscal year.

With about 10 footwear brands such as BELLE, Staccato and Zhen Mei Shi and Nike, Adidas, Puma, CONVERSE and other international sports and outdoor brand agents group, it is China's largest fashion brand retail group.

According to BELLE's official website, BELLE is the largest company in China's footwear industry, with annual sales of over 23 billion yuan. It is also the largest consumer retail market with the largest market value in China. The Hang Seng Index constituent stock of Hongkong and the world footwear listed company ranked second in the market value.

As of February 28, 2017, BELLE group has set up 20716 stores in China, with a net increase of 86 in the quarter, including 13062 footwear businesses.

After a round of horse racing, the 2015 fiscal year became the turning point of BELLE group's performance. The Group recorded its first profit decline in 9 years, falling from 4 billion 763 million 900 thousand yuan in the 2014 fiscal year to 2 billion 934 million 100 thousand yuan.

It happens that there is a similar case,

Also fell into the mire of declining performance. According to the 2016 annual report released by Daphne group, Daphne has lost 819 million 100 thousand Hong Kong dollars for the whole year, which is 2.16 times the net loss of HK $378 million 900 thousand in the same period last year.

Daphne group said that the high inventory situation prevailing in the industry led to heavy sales of online and offline channels, and fierce competition in the market. Retailers also cleaned up over the season goods through large discounts, coupled with the increase in the sales of goods sold over the past season, resulting in a 23.1% drop in the core business of shoe cabinet.

Daphne also announced a net reduction of 1030 sales points, equivalent to closing 3 sales points on an average day.

BELLE and Daphne have been on the scene for a while. The current difficulties are the problems that domestic shoe manufacturers and apparel enterprises have to face after explosive growth.

The interview with Ding Jun, a consultative partner, Ding Yun, said that the decline of shoe companies such as BELLE and Daphne was mainly caused by three main reasons: first, the positioning of the brand itself could not keep up with the consumption upgrading needs of the consumer groups. The focus of early development was the simple and crude channel expansion, and the products could not be completed by iterative updating. Secondly, influenced by the poor development of China's department stores, the department stores did not select brands based on their own crowd positioning, which led to the fact that the sales information of the stores could not be effectively and timely feedback to the merchants, resulting in the loss of the efficiency of the sales terminal channels. Third, the talent training echelon was not upgraded, and the operators of the deep cultivation channels were not upgraded.

After the setback, BELLE also adjusted its brand strategy this year, with sales of sports and clothing brands continuing to grow, replacing footwear products as a core profit point.

According to public information, BELLE footwear business stores quarterly net reduction of 83, an annual net reduction of 700, while sports, clothing business store net growth of 169 to 7654, an annual net increase of 543 to 7111.

In the same store sales performance, footwear sales in the same store fell 6.2% while sportswear business increased by 4.5%.

But the industry believes that in the long run, sportswear can not be BELLE's continued profit point.

Apart from the high margin of brand agents, the overall scale of China's garment market is small.

According to the data of the National Bureau of statistics, sales of clothing, shoes and hats and needle textiles increased by 7.1% in 2016, increasing for second consecutive years.

According to fashion industry research and consulting investment agency No Agency data, this increase is mainly driven by international brands and brands newly entering the Chinese market. The growth rate of local brands in China is only 3%, and the increase of CPI is actually less than 2%.

The agency expects that the growth of China's clothing market will fall to 4.5% in 2017, of which China's local brands will be barely flat, and the first drop will probably occur.

For more information, please pay attention to the world clothing shoes and hats net report.