In 2010, Daphne Acquired Full&Nbsp; Pearl&Nbsp; What Challenges Would BELLE Take?

Take the Pacific department store in Xujiahui, Shanghai as an example, you may also see many brands such as BELLE's Belle, Tata, Staccato, Teenmix and so on, while Daphne has only one Daphne brand.

But things are changing.

In 2010, just after the new year, Daphne announced an agreement with Full Pearl International Ltd (hereinafter referred to as Full Pearl) to acquire the 60% stake of the latter in total price of HK $195 million.

Full Pearl is a BVI company. The indirect holding Shanghai Shoes Co., Ltd. (hereinafter referred to as the footwear industry) mainly operates in the first and second tier cities in mainland China, Taiwan and Hongkong, and operates the retail business of middle and high grade women's shoes. It operates "AEE", "Ameda", ALDO and Jessica Simpson4 brand.

As a result, Daphne's high-end brands increased from the original 2 (Arezzo and Sofft/Born) to 6.

These brands will represent Daphne in the department store with BELLE and Saturday's series of brands.

Although Daphne has expanded to 6 high-end brands, it is still "weak" compared with BELLE.

Statistics show that as of the end of 2008, BELLE has 11 private brands, mainly including Belle (BELLE), Staccato (Staccato), Tata (HERS), Teenmix (Teenmix), Fato (and so on), and Bata, BCBG, Elle and so on 12 proxy brands.

And there are many brands on Saturday.

So, what is the competitive advantage of Daphne compared with BELLE, which has many brands and experienced BELLE in department stores?

Daphne vice president of investor relations admits that in the high-end market, "Daphne's advantage is not so many, and there is no way to compete with BELLE, Saturday and other brands in the short term."

But in the deputy general's view, Daphne has an advantage in the high-end market because of infrastructure construction, because the supply chain system in the first tier cities is already complete.

In addition, Daphne has persisted in the mass market for many years, which is precisely the lack of brand coverage in the high-end line such as BELLE and Saturday.

In the domestic women's shoes market, Daphne is often compared with BELLE, but Daphne's list of direct competitors is not BELLE.

Take a closer look, although the same as the market share of women's shoes, but the two are indeed in some ways on the two parallel lines.

Daphne is not necessarily a place to see BELLE, such as in the street.

The popular market positioning has led Daphne to choose closer to its consumers in the form of street shops. At present, street shops account for 70% of the total Daphne stores.

According to BELLE's prospectus, 84.1% of BELLE's main high-end market is located in the store store in department stores.

Daphne regards Street Based channels as an important competition threshold.

"The street shops are much more difficult to build than the stores or counters in the department stores," the deputy general analysis of Daphne said, because each street shop has to find its own location. Each shop has different landlords, and each landlord has different requirements. The whole process is not always time consuming.

Especially in the two or three tier or even lower tier market, Daphne's street paving channel has become an important factor in attracting high-end brands such as Nike and Adidas.

Analyst Zhao Xiao also believes that street sales is one of Daphne's core competitiveness.

"Daphne's street shops only provide Daphne brand, and Daphne consumers may not come in," an analyst believes, which helps to develop brand loyalty.

In the department store, the brand of women's shoes is very dizzying. The paction of a pair of shoes is likely to be based on the comprehensive consideration of many factors such as brand, style, price, technology, material and so on.

In today's era of diverse consumer tastes, especially female consumers, it is rather naive if a businessman puts a brand's sales entirely on their brand loyalty.

BELLE launched the "combination boxing", that is, trying to fully cover the footwear brand, and even if consumers do not buy BELLE brand, the footwear brand purchased is also BELLE's own brand or agent brand.

This is also a reason why BELLE has launched a brand acquisition in recent years.