What Happened To BELLE, The Shoe King?

According to the world clothing shoes and hats net, in April 18th,

1880.HK suddenly announced the suspension announcement, which caused a lot of stir in the industry.

It is reported that CDH capital is negotiating with BELLE international management about potential mergers and acquisitions, with a total value of $5 billion 700 million.

Many media have reported that the title of "one generation of shoe king" BELLE should be sold cheaply to attract eyeballs.

Because, compared with the 100 billion market capitalization of BELLE, its market value is less than 50%.

In fact, BELLE's performance fell for the 2 consecutive year after its net profit slipped in 2015.

2016/17's first half year results announcement shows BELLE international.

Business sales revenue fell 12.7% compared to the same period last year, accounting for less than half of the total business income, only 44%.

You know, this business was 57.6% in 2014 and 51.7% in 2015.

People can't help asking, what happened to the "shoe king" once?

Mr. Ye is a famous person.

Brand Hunan channel manager, he told the author, "obviously, BELLE has more discount in Hunan market this year than before."

However, at present, BELLE is facing difficulties not only in her family, but also in the main brands of women's shoes, including Daphne (00210.HK) and 01880.HK (Saturday).

First, let's look at the other major domestic women's shoes listed companies:

In addition, two sets of data can further illustrate this problem.

China's National Bureau of statistics released the economic indicators of China in the first quarter of March. The retail sales of China's clothing market increased 6.4% to 110 billion 100 million yuan compared with the same period last year, the worst increase in all consumption categories, while in the 1-3 months, the clothing category increased by 6.2% to 364 billion 800 million yuan, ranking the bottom second.

In addition, the downturn in the apparel industry has become a trend in the world. A lot of brand failures and closings show that there is a surplus capacity in the industry. According to Euromonitor Euro data, from 2011 to 2014, the sales volume of women's shoes increased by 52%, but the market demand increased by only 13%.

Since the environment is so great, what else should we pay attention to for BELLE?

1, how to balance the problems between channels.

Mr. K, who had done business in the department store, told me that BELLE's current channels are mainly department stores. In recent years, the performance of department stores is not good enough, which is bound to affect her performance. Now young people like to visit shopping centers.

Of course, these shopping centres do not see such domestic brands, which leads to her high failure.

This argument has also been verified in the relevant departments of rainbow, "from the performance of BELLE in recent years, the share is indeed declining."

Mr yew said, "BELLE's channel layout is still dominated by shopping malls. It is slightly unitary. Today, the overall performance of shopping malls is not good enough.

Of course, it is worth noting that some unsuitable places invite them to enter, giving the conditions are indeed preferential, but business is bad, inventory backlog, can only choose a good business site washing goods, inventory vicious cycle.

If we rely on crazy horse racing and barbaric growth, we will not see the future.

2, how to deal with the escalation of consumption and catch the young people.

Random glance at BELLE's news commentary, there are many consumers complain that BELLE's design style is very old, very cliche, and the price is too expensive.

I randomly asked more than ten female colleagues in the company. Most of them did not buy BELLE shoes in the past year, and none of them bought them.

Although minor checks are not representative, to some extent, the preferences of young women are changing.

In fact, compared with the brand of "high heels and 73 hours" in recent years, the gap between the brand and the store design is obvious.

(BELLE and new women's shoes brand "high heels 73 hours" counters comparison chart)

"When I was in college, I thought BELLE was expensive. Now I work and I think she is ugly, and I choose her style and quality. If I am in the same quality, I will care more about fashion and fashion."

The words of Miss Gao after 90 have certain representativeness.

You know, today's new middle class has the power of consumption and desire, and they want to buy fashion trends, personalities and exquisite brands, and the popular brand and traditional channels of shopping experience have not met their needs.

It is very important for BELLE to seize this escalation of consumption and catch more young female consumers.

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3, how to balance the two main businesses

Because of the change of consumer lifestyle, sports shoes have been popular in recent years. The data also illustrate this problem. Compared with the footwear business, BELLE agency's sports and clothing brand sales are growing.

A few days ago, BELLE issued a 2016 profit warning. In the fourth quarter of fiscal year 2016/17, footwear sales in the same store decreased by 6.2%, while sales in sports and clothing business increased 4.5%.

However, in the clothing industry veteran observers, Cheng Weixiong, general manager of Shanghai Liang Qi Brand Management Co., Ltd., it seems that the growth of agency's brand performance can not fundamentally save the overall decline in the overall performance of the footwear business, which is not a permanent solution.

Of course, for BELLE, the introduction of strategic investment is not a good thing.

Mr. K also agrees, "just yesterday, this scene made many friends in the industry feel uncomfortable, because after all, this is not a good signal for the physical retail industry. But dialectically speaking, acquisition or stock ownership does not mean BELLE's collapse. What new changes will it be worth paying attention to?"

Fortunately, another good news is that the department store industry is getting warmer and warmer since 2016.

Moreover, BELLE is also aware of the problem. CEO Sheng Bai pepper admitted in the 2016 annual performance conference that the decline in performance was mainly due to the great changes in consumer demand for shoes, and consumers began to pay attention to cost performance, convenience and personalization. At the same time, the emergence of electricity providers posed a huge threat to the group.

Now, it's time for BELLE to think about what to do next. How can we find the shoe king who was "beautiful because of change?"

Tips

BELLE International's current business includes manufacturing, distributing and retailing footwear and apparel products.

The brand of its footwear business mainly includes Belle, Teenmix, Tata, Staccato, Basto, Joy&Peace, SKAP and Mirabell.

The main brands include Bata, Clarks, Hush Puppies, Mephisto and Caterpillar.

Unlike footwear business, its sports and apparel business is currently dominated by agents, including front-line sports brands Nike, Adidas, PUMA, Converse, and clothing brand Moussy and SLY.

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