BELLE 2 Billion Crazy Hit B2C: Self Built Channel VS Third Party Platform

BELLE fashion shoes and clothing

As early as April this year, there was news.

In June 5th, Gong Wenxiang, former vice president of Xiu Xiu net and self proclaimed "deep throat" of the electric business community, revealed on his micro-blog that BELLE had brought 2 billion yuan into the electronic commerce platform of shoes and clothing, and will block other footwear B2C from the source of shoes.

He further emphasized that the effect of this blockade is inevitable, because BELLE is also a national agent for many brands such as Adidas and Nike, which will directly lead to other big footwear B2C without BELLE, Nike, ADI and other brands can be sold.

As early as 2008, BELLE had already laid out e-commerce, but until 2010, its online sales of nearly 1 hundred million of its network were still negligible compared with its sales performance of more than 200 billion under the line.

This crazy 2 billion yuan to force e-commerce, will it block the other B2C channels to improve the share of its own network marketing market?

According to the insiders, if Gong Wenxiang's prophecy comes true, BELLE will create a huge clothing and footwear brand online store, which will seriously affect the sales share of the whole line brand. It can be described as "killing one thousand of the enemy and losing eight hundred of its own".

King of channel

Less than 1% of online investment.

"The market value of BELLE is nearly 140 billion yuan, which depends on the advantage of the channel."

Fang Shang Li, deputy general manager, said to our reporter.

By the end of last year, BELLE had 11967 self retailing stores in mainland China, including 8312 self operated footwear businesses, 3655 self made sporting goods stores, and 172 self retailing stores in Hongkong and Macao.

In 2006, BELLE became the largest agent of Nike and Adidas in China.

Besides, BELLE's sports and leisure brands such as Lining, Reebok and Kppa, which are represented by Reebok, are all looking at BELLE's numerous outlets.

On the other hand, after the listing of BELLE, the successive acquisition and merger of the shoe companies at home and abroad, such as Miao Li, San Da, Bai Shi, Yong Xu and so on, made BELLE a real brand of women's shoes.

More importantly, while the number of brands continues to increase, the acquisition also brings BELLE channel network expansion.

"At present, there are 28 brands of BELLE agents and agents."

Chen Hu, vice president of Le Tao net operation, told reporters.

He believes that in the shopping mall of the first tier cities in China, BELLE's channel is undoubtedly the best.

Under the line, the channel's performance is far from satisfactory.

According to BELLE's March earnings report, the sales of women's shoes, which occupy the largest market share in China, reached 23 billion 706 million yuan in 2010, while the sales volume of its e-commerce website Taoxiu network was only 100 million yuan in 2010.

According to AI data, China's overall footwear sales exceeded 400 billion yuan last year, including Taobao, which accounts for less than 5% of online footwear retail sales, while the size of online shoe sales in Japan and South Korea is about 40%.

In the face of this huge market and the obvious high rate of growth that can be expected, any traditional shoe enterprise will be heartstruck.

"At present, we invest less than 1% in the network, and will gradually increase the proportion in the future. We will invest 20% of our sales in Internet sales in 3-5 years."

Xie Yunli, general manager of BELLE group electronic commerce department, told our reporter.

Self built electricity supplier channel VS third party platform

For most of the traditional enterprises, the first three party e-commerce websites such as Taobao, Jingdong, Mcglaughlin, Le Tao and Hao Le buy first explore market experience, accumulate popularity, gain sales volume, and invest more in building their own e-commerce platform, which is a prudent path.

"Seven wolves set up shop in Taobao, which has brought us effective sales."

Seven wolves new channel manager Hu Jun told reporters.

However, as the third party B2C platform, the disadvantages of Taobao network are becoming increasingly evident.

As a large number of brand owners embrace Taobao, the benefits of the rapid growth of a single brand will be weakened.

According to Hu Jun, the sales revenue from the three party platforms such as Taobao is less than 3% of the total revenue of the seven wolves. "We hope to increase the proportion of e-commerce revenue to 10%-15% in the next 3-5 years through self building websites and strengthening supply chain management."

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

Qian Jinbo, chairman of the Red Dragonfly Group, told the media that Red Dragonfly will invest 20% of its advertising expenses to the Internet. "This proportion may increase to 50% in 3 years."

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