Analysis: Fashion Women'S Shoes Enterprises Show Steady Development Trend

According to statistics, in 2010, the total consumption of women's shoes in China exceeded 8 billion pairs. market The total transaction volume is as high as 300 billion yuan. In large shopping malls, the size and income of women's shoes are second only to clothing. For many Women's Shoes For enterprises, in order to gain more market share, the two or three tier cities are also the battleground of the military. Fierce competition in the market has forced many women's shoes enterprises to devote their energies to fashion design. On the other hand, they have invested a lot of energy in building brands and channels.

　　 Business continues to grow

The annual report shows that BELLE international achieved 23 billion 706 million yuan in 2010, an increase of 19.96% over the same period last year. The income of footwear and sportswear business reached 14 billion 649 million yuan and 9 billion 57 million yuan respectively, up 24.85% and 12.8% respectively. The annual report revealed that BELLE International's gross profit margin increased by 2.4 percentage points to 55.7% over the same period in 2010, of which the gross margin of footwear and sportswear business increased by 2.6 percentage points and 0.2 percentage points to 68% and 35.9%, respectively. BELLE The international explanation said that the increase in gross margin of footwear was mainly due to the improvement of the economy in 2010, the increase of consumption intention, and the relatively low discount and promotion power. Meanwhile, the improvement of the brand business of the M & A also significantly increased the gross profit margin. As of December 31, 2010, BELLE international has 11967 self retailing stores in the mainland, including 8312 self operated footwear businesses and 3655 self operated sporting goods stores. In addition, the company has 172 self retailing stores in Hongkong and Macao.

The 2010 annual report of the Daphne annual report shows that the annual turnover increased by 14% to HK $6 billion 623 million, and gross profit increased by 19% to HK $3 billion 800 million. According to the annual report, the "Daphne" brand accounted for 66% of the total turnover of the company, which was 70% in 2009. As of the end of last year, there were 1986 direct outlets in the Daphne brand, an increase of 138 over the 1848 in 2009, 819 in the direct counters, 103 in 716 compared with 2009, and 984 in retail sales in the union, representing an increase of 743 over the 743 in 2009. Its other brand "shoe cabinet" has 1113 direct outlets in mainland China, an increase of 300 from 813 at the end of 2009. The annual report shows that shoe sales, gross profit and operating profit are excellent, up 36%, 44% and 72% respectively over the previous year.

Daphne's annual report revealed that inflation was high in 2010 and the cost of raw materials increased. "Daphne" increased the average selling price to ease cost pressures, and helped further distinguish Daphne from other brands such as "shoe cabinet" brand positioning. "Daphne" brand remodeling plan is also one of the key projects in the second half. In the first half of 2010, Daphne completely ended its sportswear business. Daphne said it will continue to launch its sales network in the two or three tier cities this year, offering 800 outlets for its core brand businesses, including 600 direct sales outlets and 200 retail outlets.

　 Profit margins continue to rise

The gross profit margin of BELLE footwear business has increased significantly compared with that of last year. The main reason is that, on the one hand, compared with the market situation in 2010, there was a marked improvement in the economic environment in 2009 compared with the market situation. The consumption intention was enhanced, and the discount promotion efforts were relatively low. On the other hand, the improvement of M & a brand business was more obvious, and the gross margin level was greatly improved. Judging from the trend of gross profit margin, the first half of 2009 was weaker, and the second half of 2009 increased significantly, reaching a higher level in the first half of 2010, and basically normalized in the second half of 2010.

The above changes are mainly due to the fluctuations in the business cycle, with obvious phased characteristics, and do not represent a single trend. The gross margin level of footwear business is mainly determined by two factors, one is the location of a specific brand, and the other is the level of operation management and supply chain management. BELLE group has a large number of footwear brands, and its overall positioning is relatively stable. At the same time, operation management has been relatively mature, and gross margin is expected to remain relatively stable in general.

The improvement rate of BELLE footwear business profit margin is roughly the same as that of gross margin, indicating that the cost is basically stable in proportion to sales. Subdivision, sales and distribution expenses accounted for a slight increase in sales, while general and administrative expenses accounted for a slight decrease in sales. The former is mainly due to changes in the cost environment. Under the current economic situation in China, there is a rising pressure on rent and personnel wages. The latter is mainly due to the fact that fixed expenses are relatively large in general and administrative expenses, and there will be a certain dilution in the period of healthy growth of sales performance. {page_break}

BELLE expects that in the coming period, the business environment in mainland China is expected to be relatively grim, and the cost and cost will have a rigid upward trend. To this end, BELLE group is actively taking measures to improve the sales level of single stores from various aspects and alleviate the pressure of rising costs. At the same time, the M & a brand is in the stage of improvement and upgrading. The improvement of its single store performance and the embodiment of scale effect will also help the group to control the cost accounting ratio and maintain relatively stable profitability.

The Daphne chronology shows that, thanks to the growth of the retail market in the mainland of China, the group's core private brand "Daphne" continues to be a market leader and accounts for 66% of the group's turnover as of December 31, 2011. In 2010, Daphne's turnover and gross profit margin increased. Despite fierce competition in the market, high accounts and rising raw material costs, Daphne has been able to deal with cost pressures successfully by increasing the average selling price. In addition, in the second half of this year, the group promotes the "Daphne" brand remolding plan to maintain its competitive strength. In promoting brand status, the group has won high praise from customers through introducing high-quality products. Daphne's operating profit is under pressure due to increased expenditure. Last year, the group spent more on personnel and rental costs than in previous years.

The development of shoe cabinet in 2010 surpassed the expectations of management. Same store sales maintained double-digit growth. Turnover, gross margins and operating earnings were excellent, up 36%, 44% and 72% respectively over the previous year. In addition, the average selling price climbed and the gross profit margin increased by about 3.2 percentage points. The key to the success of shoe business is that its popularity has been widely accepted by the mass market customers.

Construction of force channel

BELLE in 2009, on the one hand, is to deal with the changing market environment. On the other hand, it is also based on the analysis and summary of the group's development process since listing. BELLE group has made positive adjustments in its business strategy, and has asked to change the growth mode from the past expansion to the expansion of the network and increase the single store output on two legs. With the joint efforts of management staff and staff at all levels, the 2010 achieved remarkable results. This year, the sales of BELLE footwear business increased by 24.9%. The contribution from the increase of single store output and the expansion of shop network is basically balanced. The annual growth of same store sales has reached a higher level, objectively speaking, the market condition is favorable, and the subjective aspect is that the retail teams in various areas have implemented the group strategy effectively, constantly improved the management level and initiative marketing ability of the operation details, and better excavated the potential of the stock store. The achievement of this achievement well reflects the good tradition and practical execution ability of the team at all levels.

In 2010, the progress of BELLE's newly opened shop was accelerated. In the mainland of China, there were 1562 new shoe shops all over the year, and the plan was completed at the beginning of the year. There are more new shops in 2010, mainly for three reasons. First, the expansion of the Department Store pipeline, especially for the three tier cities, is more aggressive. Secondly, in 2009, the group moderated the progress of opening stores and created a larger space for 2010. Finally, the group increased the strength of the new brand, especially the leisure brand, from a long-term strategic perspective. This year's new shops are mostly concentrated in the third quarter and fourth quarter. The sales contribution is not very obvious, and the contribution to sales performance next year is expected to increase.

The original core brand has maintained a relatively strong momentum of continuous development, not only has achieved double-digit growth in the same store sales, but also maintained a relatively fast pace in network development. Take the BELLE brand, the largest and oldest brand in the group, for example, there are more than 200 open shops in 2010, and the number of shops has increased by more than 15%. The newly opened shop is dominated by two or three line cities, indicating that the Department Store pipeline is steadily infiltrating into the small and medium-sized cities previously covered by less. At present, BELLE brand operates only more than 1500 stores in more than 200 cities, no matter from a static point of view or from a development perspective, it is far from a relatively saturated level. BELLE Group believes that the brand of fashion shoes represented by BELLE, in general, is still in the growth stage of the Chinese market in the life cycle, and the future development space is very broad. The merger and acquisition of footwear brand business in the 2008 and 2009 years, on the one hand, due to the poor economic environment, vulnerable brands were hit more; on the other hand, because of the transition stage of team adjustment and supply chain transformation, the performance was not ideal.

In 2010, due to the coordination of the external environment and the reconstruction of the internal process, all new brands showed a marked improvement. The same store sales growth and overall sales scale growth obviously exceeded the average level of footwear business. At the same time, the business indicators have also improved significantly, the output of single stores has increased, profitability has been enhanced, and operational efficiency has been continuously improved. What is particularly prominent is the brand of the two brands, namely, the two brands, which have been sold for nearly three years. The total sales volume has doubled, and the profitability has been greatly improved. It has become one of the important growth points of the footwear business of BELLE group.

BELLE's business in Hongkong, along with the improvement of the economic environment, showed a marked recovery in 2010. Sales growth in the same store was very strong and profitability improved significantly. Because of the limited market space in Hongkong, BELLE group's retail business in Hongkong has limited space both in terms of sales scale and profit margin. However, the strategic role of Hongkong business in BELLE group will not be weakened. On the one hand, the Hongkong market will still play the role of the fashion window relative to the mainland market. The operation in Hongkong will help the group to grasp the trend of the trend. On the other hand, the Hongkong market is ahead of the mainland market in terms of retail management, active marketing and brand management, and its relevant experience will play a very important role in guiding and improving the BELLE retail business in the mainland.

In 2011, Daphne group will continue to increase sales outlets and expand sales network scope, so as to grasp market opportunities. The sales network is also the key to consolidate the existing business. Daphne group plans to open 800 sales outlets in its core brand business in 2011, including 600 direct sales outlets and 200 sales outlets. In the coming 2010 years, Daphne group has set up a total of 500 Daphne sales outlets, including 250 Direct stores, counters and 250 franchised outlets to increase sales and market penetration. For the "shoe cabinet" business, Daphne group's goal is to open 250 new outlets in the mainland to grasp the great potential of the popular women's shoes market.

In January 2010, Daphne group purchased equity interest in FullPearl International Limited (Full Pearl) 60%. Full Pearl is a retailer in China's first and second tier cities, as well as Hongkong and Taiwan specializes in high quality and high-end shoes. The takeover group can immediately enter the sales network of the domestic high-end market. At present, Full Pearl sells about 200 outlets with its own brand "love" and "love charm", as well as other agency brands, including the famous Canadian brand "ALDO" and the American fashion brand "Jessica Simpson". Daphne Group believes that FullPearl's investment will enrich the brand lineup, complement the group's strong position in the mass market, and expand its business in the booming high-end shoe market.