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    BELLE Intends To Increase Investment In Network Sales 20 Times

    2011/3/29 9:02:00 47

    BELLE Market

    With the accumulation of traditional market for many years, more and more traditional clothing and footwear brands and distributors began to make their own businesses online.

    Recently,

    BELLE

    01880.HK released its 2010 earnings report, showing that its operating income reached HK $23 billion 706 million during the period, an increase of 20% over the same period last year.

    By contrast, the annual revenue of BELLE sales is about 100 million yuan, but on the 25 day of the Tenth China (Guangzhou) International Footwear Exhibition, Xie Yunli, general manager of BELLE group's e-commerce department, revealed that the Group intends to invest 20% of its sales in 3-5 years for Internet sales.


    BELLE

    Net pin

    Less than 1% invested


    In March 24th, BELLE International announced its final performance as of December 31, 2010.

    Data show that BELLE international gained net profit of HK $3 billion 425 million in 2010, an increase of 35.17% over the same period last year.

    Operating income was 23 billion 706 million yuan, an increase of 20% over the 19 billion 762 million yuan in 2009.

    Financial reports said, "the increase in income is mainly due to the steady growth in sales revenue of footwear business, and the annual income has reached 14 billion 650 million yuan, an increase of 25%."


    Although the earnings report did not list the revenue of e-commerce business separately, according to BELLE's e-commerce website Taoxiu network related person in charge, through the main sales of BELLE's BELLE, Staccato, he, Teenmix and other brand products, last year, net sales revenue has reached 100 million yuan.


    Xie Yunli confirmed the number to the reporter.

    Although it is "insignificant" compared to the total revenue of the group, BELLE obviously attaches great importance to the growth of this part.

    "The group currently has less than 1% of its sales in this area, but it is estimated that the number of sales inputs will increase to 20% in 3-5 years."

    Nandu reporters also learned from reliable sources that in addition to group support, Tao Xiu network has been invested in venture capital.

    In addition to self built e-commerce channels, Xie Yunli also said that the company has worked with more than 200 e-commerce sites such as Taobao, Jingdong mall, Amazon and so on, enabling consumers to find BELLE products on all large websites.


    Business ideas are still slow down.


    Not only BELLE, but also

    Lining

    Like the traditional clothing brands such as the seven wolves, many footwear companies have begun selling their products online.

    "E-commerce is absolutely the only way for traditional brands."

    Qian Jinbo, chairman of Red Dragonfly Group, said that this year the company will invest 20% of its advertising investment in the Internet.

    "This proportion may increase to 50% in three years."



    Nevertheless, there are still many unavoidable defects in online sales of footwear products, such as product experience, especially women's shoes, "not trying to wear" and "picture chromatic aberration", which are more fatal than other products' online sales.

    In addition, taking the Spring Festival holiday as an example, it was originally the peak season for the consumption of traditional footwear enterprises. Consumers were also accustomed to choosing discount items in the physical stores at these stages.

    But this stage is constrained by logistics, which is the "disaster Festival" of the e-commerce industry.


    As for the problem of "lack of field experience links", Xie Yunli said that customer feedback is only 3% of all customers' demand based on customers who do not like or are inappropriate, and the number is acceptable.

    As for the logistics problem, Xie Yun Li also disagrees. "This is the business rule determined by the characteristics of e-commerce, and it is also the holiday of e-commerce employees."


    It is worth noting that, despite the bright prospects, they also clamour to "increase investment".

    But when the traditional shoe companies are involved in e-commerce, they still tend to "slow down".

    Qian Jinbo's argument is "keeping pace with one another". Xie Yunli's experience is "not conservative, not radical".



     

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