The Shoe King BELLE Finally Fell Down The Altar.

The picture shows a shop under BELLE international.

The "NOKIA" of the shoe line has finally fallen off the altar.

According to the world clothing shoes and hats net, yesterday, China's largest

The last performance report of BELLE International (01880.HK) before the privatization of retailers and largest footwear group (BELLE) was completed in the 12 months to the end of the year.

International sales increased by 2.2% to 41 billion 700 million yuan, but operating profit dropped 15.4% to 3 billion 550 million yuan, while net profit fell 18% to 2 billion 400 million yuan.

Main performance data of BELLE international during the fiscal year ended February 28th

Performance data of various departments in BELLE international phase

By category:

Sales of the core footwear business fell 10% to 18 billion 960 million yuan, mainly due to the same store sales for 14 consecutive quarters of decline, 700 stores closed last year, that is, an average of 2 outlets per day.

Business sales benefited from an increase of 15.4% to 22 billion 750 million yuan in retail outlets.

BELLE's international performance data in various regions

By Region:

The mainland is still a major market for BELLE international, with sales increased by 2.8% to 40 billion 600 million yuan, or 97.4% of total sales.

Sales in Hong Kong and Macao fell 12.7% to 8 billion 760 million yuan.

Sales in other regions plummeted 30.3% to 2 billion 200 million yuan.

Performance changes of BELLE international in recent 7 years

As of February 29, 2016, the number of BELLE's international retail outlets decreased by 366 to 13762 stores.

As of February 28, 2017, the number of shoe business shops of BELLE group has been reduced to 13062 again, and the number of stores has been reduced by about 700.

According to BELLE international bulletin, although the store network is huge, the main sales channel of the company is department stores, which are diverted by electricity providers and other emerging retail channels such as shopping centers.

It is noteworthy that this is the 7 consecutive year of profit decline in BELLE's international listing. BELLE international has declared its end in the Chinese footwear market for 7 years.

Sheng Bai Chai, chief executive of BELLE international, once said, "wherever there are women, there are BELLE."

At the performance meeting after the earnings announcement, Sheng Bai Jiao admitted to the media that BELLE international has been reduced to this situation. The main responsibility lies in him. Under the great changes in the market, he failed to anticipate and find the right pformation path in time.

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As the largest shoe retailer in China, BELLE international footwear business also has agents such as Belle, Teenmix, Tata, Staccato, Senda, Basto, Joy&Peace, Millie's and other brands, including agents like Bata, Clarks and Hush Hush.

The group's sportswear business is dominated by distribution agents, including front-line sports brands Nike, Adidas and PUMA, Converse and so on. The clothing brands include Moussy, SLY and Repaly.

Belle International Holdings Ltd was founded in 1981 by Deng Yaoxian in Shenzhen. In 1997, BELLE international integrated its distribution system, implemented the franchise mode, concentrated on department stores, and launched a business model of "vertical integration". It opened up the shoe production line from design, production, logistics to terminal sales, and BELLE International rapidly gained a foothold in China.

The picture shows the stock price change of BELLE international in the past three months.

China's department store reached its peak in 2006, and BELLE international successfully launched in Hongkong in May 2007.

The freezing of funds on the day of listing was as high as HK $446 billion, setting the highest record of freezing funds in Hongkong stock market.

BELLE international has gradually grown into the largest footwear and fashion retailer in mainland China, with a market value of more than HK $150 billion. It has dropped to 31 billion 500 million, and its market value has evaporated nearly 80%.

After the listing, BELLE international, which was driven by capital, bought a total of $1 billion 500 million yuan in 2008. In 2013, it bought 31.96% of the Japanese clothing group, Moussy, SLY and other fashion brands, with an additional investment of 190 million yuan, and a joint venture to attack the Chinese market.

In September of that year, BELLE international also acquired all the capital stock issued by the SKAP brand parent company, dragon world, at a cash price of 700 million yuan.

Relying on the multi brand enclosure strategy, BELLE international once occupied nearly half of the Chinese women's shoes market. The majority of the shoes that consumers saw in the shopping mall was brand owned by the group. No matter which brand the consumer chose, the final profit was owned by BELLE international.

Between 2010 and 2012, BELLE international maintained a rapid expansion of the number of 1500 to 2000 stores per year in the domestic market, with an average of less than two days in the peak period, adding a new store with a total workforce of over 120 thousand.

As the industry pointed out, in China's footwear apparel brand, every ten years will encounter a ridge, from 2013, BELLE's international performance began to decline.

With the rise of the electricity supplier industry and the gradual pfer of consumer shopping habits to the online sector, the department store industry has been impacted by the electricity supplier and the new shopping center. The domestic women's shoes market is still in the doldrums, and BELLE international has begun to get rid of the backlog of its stock through a substantial reduction sale.

However, the lag of product design and the lag of electricity supplier pformation make BELLE international become one of the biggest victims in the process of domestic consumption pformation and upgrading.

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%.

Sheng Bai Jiao admits that the group is facing a critical moment and is in urgent need of pformation. In the future, only by integrating the traditional retail mode with the network economy mode, can BELLE international maintain its long-term competitive advantage with the new retail strategy.

He said earlier that if he did not pform, he would die, and the company was preparing for the winter. The worst was yet to come.

The analysis of the causes of BELLE International's performance predicament mainly includes the market saturation of women's shoes industry, oversupply, pformation of electricity supplier failure, but the most prevailing view is that consumer tastes are changing rapidly, and even consumers comment: "BELLE shoes feel more and more in line with the taste of the three or four line villages and towns."

In the continuing downturn of physical retail industry, BELLE international finally chose a closed shop strategy in the face of increasingly high market rents and staff salaries. Only three months from June to August last year, BELLE international closed 276 stores in the mainland, equivalent to 3 stores on average.

Xiao He lost Xiao He, and the BELLE international once proud of the land strategy has become the largest cumbersome of the group. The huge store network and the number of more than 1 billion of the employees have become the last straw to crush the BELLE international.

Sheng Bai Jiao pointed out that in fact, consumers have already foreseen that the demand for shoes will change to sports casual shoes. But the rapid change of consumers' demands for price performance, personalization and convenience still makes the group feel unprepared, but their vision is not long enough. The short-term interest constraint is one of the reasons for the failure of BELLE international pformation.

Some analysts pointed out that the huge volume made BELLE international footwear business difficult in the pformation process. At present, the proportion of sports apparel business has greatly exceeded the footwear business.

Sheng Bai Jiao pointed out that in the future, the structural proportion of footwear sales should be changed. Digital pformation and the development of new brand marketing talents are the key.

According to the world clothing and shoe net, in April 28th, consortium, led by Gao Ling group, CDH investment and executive director of BELLE international, announced a proposal to privatize BELLE international and proposed a total purchase price of HK $53 billion 100 million.

From the scale of cash, BELLE international has become the largest privatization deal in the history of HKEx, exceeding the privatization scale of 34 billion 500 million Hong Kong dollars.

According to another source, Merrill Lynch is arranging a $28 billion loan for BELLE international privatization and seeking at least $3 billion underwriting commitments.

After the completion of the paction, BELLE international will cancel its listing status in the stock exchange.

For the price and timetable of privatization, Sheng Bai said that the price of privatization is reasonable, which is the highest target price set by analysts in the past six months.

The purchase price should not be compared with its previous closing price, but should be based on the knowledge of the market in recent years.

As a passive party to offer, BELLE international is even more unable to know the timetable.

However, no compensation plan will be offered to shareholders at the current price.

Some analysts point out that privatization is beneficial to the current BELLE international from organizational structure to corporate governance.

After privatization, BELLE international will return to the "centralized system". It will no longer be constrained by the views of the board and so on, making it more convenient and faster in decision-making.

Sheng Bai pepper regrets that BELLE international has frozen $about 400000000000 yuan on the day of listing ten years ago. After ten years, it is studying privatization today, and his sense of responsibility makes him feel bad at every performance. Because he feels that he can not handle it.

He said that if privatization fails, BELLE international will continue to focus on long-term goals, no longer entangled in short-term interests, and will no longer announce operational data every quarter.

The success of BELLE's international pformation after privatization is still unknown.

In a report released last year, Credit Suisse pointed out that if BELLE international decided not to restructure, the group's footwear business profits will drop 25% to 30% every year in the next 3 to 4 years. However, structural reforms may lead to a further decline in profits. For example, footwear business profits fell by more than 50% on a yearly basis. The bank expects BELLE's footwear business in the next few years to remain difficult.

More interesting reports, please pay attention to the world clothing shoes and hats net.