BELLE Shoes Brand Success Tips

Ladies buy more shoes and change.

For women, clothes are always missing in the closet, and shoes are always missing in the shoe cabinet.

Different styles of shoes are needed for different occasions, clothes and seasons.

Therefore, in addition to protecting the basic functions of ankles, women's shoes have become an important prop for women to compete in front of people, so they are very close to consumers' psychological distance.

So the essence of women's shoes retail industry is: women are looking for beauty, seeking novelty, changing and seeking for shoes. They are not loyal to shoes brand.

That is to say, the brand of women's shoes should not only exert enough efforts in the style design of shoes, but more importantly, it should also satisfy women's emotional demands for "fickle and unfaithful" shoes.

Only in this way can we succeed in this industry.

When women buy shoes, they value the style.

Therefore, in the women's shoes industry, the use of multi brand strategy and multi styles can capture more consumers and satisfy their emotional demands of fickle loyalty.

According to the market rule of women's shoes industry, the market share of a single brand is not more than 2%, and 5% is the relative limit of a brand. With the increase of the number of single brand stores to a certain limit, the sales volume of this brand can hardly continue to rise.

BELLE accounts for six seats in the top ten brands that occupy 38% of the Chinese women's shoes market.

BELLE shoe industry uses "multi brand strategy" amazing, gross profit margin as high as 65%.

BELLE not only has many brands in parallel, but also further focuses on the essence of women's shoes consumers seeking beauty, seeking new opportunities, changing and seeking more industries, and integrates all links of women's shoes industrial chain at one fell swoop, and ultimately leads its competitors' Daphne 'and' Saturday 'in every link.

What is even more surprising is that, under the theme of satisfying the essence of the industry, BELLE's strategies seem to run counter to the textbooks of economics, such as providing a lot of styles, introducing a large number of brands, small batch production and frequent replenishment.

BELLE legend

BELLE was founded in Hongkong in 1970s, and was introduced into the mainland by Deng Yao, a famous footwear designer and senior industrialist in Hongkong in 90s, and was repositioned successfully in the mainland market.

In March 1992, Shenzhen BELLE shoes company officially put into operation. The first hundred pairs of women leather shoes were born in the mainland.

BELLE Belle is the first brand of BELLE group. Belle takes French "beauties", the main fashion leather women shoes, and the production of men's shoes, the main customer group is "20-40 years old, middle income" urban white-collar.

And with its high quality products with various styles, it has established a distinctive brand image and gained consumers' popularity in a few years.

In the mainland, BELLE is famous for its chain business of high-end ladies' shoes. It chooses a distributor with a common management concept as a "regional exclusive retail agent", specializing in the sale of BELLE's products.

BELLE has been working closely with its distributors in product R & D, design, promotion and publicity, which has greatly promoted the development of its retail network.

By 1998, the layout of BELLE's national sales market was basically completed.

According to the monitoring and statistics of the retail market of key shopping malls in China, BELLE has won the sales champion of China's leather shoes since 2000.

In 2001, it won the National Women's leather shoes product sales and sales double champion.

In 2005 and 2006, the scale of BELLE increased rapidly, and the multi brand business of footwear business was further enhanced, forming a number of private brands such as BELLE Belle, Staccato Staccato, Teenmix Teenmix, her TaTa, Fred Tuo Fato, etc., and agency brands such as Tujia Bata, real Mei Shi Joy& Peace, etc.

And the sales scale and profit growth of each brand have been greatly improved, becoming the largest retailer of women's shoes in China.

How does BELLE meet the essence of the industry?

The slogan of BELLE, "changing and beautiful", captures the mentality of women seeking beauty for beauty, which is consistent with women's changeable and unfaithful nature of shoes.

From this, BELLE has gradually launched the strategic layout of multi brand and multi branch stores.

Store many

The goal of BELLE is that every place where women pass by must have BELLE shops.

Apart from many shops, BELLE stores have large space and bright colors.

BELLE, which is mainly dressed in women's clothing, believes that the randomness of female consumers is very large. For them, the coverage of storefront has a very important role in promoting their consumption behavior.

This is also consistent with the sample survey data of UBS.

The survey shows that clothing consumers' brand loyalty is relatively low, and they are more concerned about style and quality.

Since its beginning in 1995, BELLE has tried to develop the retail network, taking the lead in the footwear industry in the mainland to implement the "straight line chain operation mode" which integrates production, supply and marketing by relying on production enterprises as the leader and relying on major shopping malls and regional distributors.

Since 2002, more efforts have been devoted to integrating retail network resources and greatly expanding the construction of direct retail terminals.

By the end of 2008, there were more than 9000 self operated retail outlets in the mainland.

Brand multi

By purchasing and selling agents, BELLE has made more than 20 brands.

Product type covers leisure to noble, conservative to fashion, age 18-45 years old lady.

For different themes and prices, BELLE has two or more than two brands.

At the same time, BELLE takes the concept of "channel to promote brand". In the shopping malls and department stores, Belle stores as the center of different brands.

In this way, consumers have no favorite shoes in Belle, and there are BATHY and San Da beside the store. If Belle's taste fails to meet the requirements of guests, there are genuine beauty poems and Staccato in the same shopping mall, all of which are BELLE's brand.

As a result, different brand stores are the second network, and the women who pass by are collected into the store one by one.

Because of the effective strategy of brand complementarity, BELLE has six of its top ten brands in 2008, including BELLE, Teenmix, Teenmix, Teenmix, Teenmix, Staccato and so on.

Daphne: not many brands, street shops are not the main industry.

Daphne has only two brands, namely Daphne D18 and D28, of which D28 is targeted at mature women and D18 is aimed at young girls.

And attract consumers with low price strategy and fashionable fashion.

Together, these two brands account for the first place in the domestic leather shoes Market in 2008, and the sales volume is second.

However, Daphne's brand is not diversified, which does not conform to the essence of "brand disloyalty" in women's shoes industry, which makes its market share less than BELLE's.

Daphne has 3465 branches, the main street shop, its shortcoming is less choice, guests have no other choices through the market, limit the market share.

Daphne's advertising language is "falling in love with S.H.E and falling in love with Daphne". It has not taken care of the psychological demands of women when they buy shoes.

Now, the advertising language becomes "like yourself, performance in the end", emphasizing the performance of self - personality, but still do not meet the women to buy shoes, seek beauty, change the psychological demands, does not conform to the "disloyalty" nature of the women's shoes industry.

Saturday: many brands are unchangeable, small shops, unsuccessful advertisements

The "Saturday" imitation of BELLE also adopts the "multi brand strategy", but it only locates in fashion women, ignoring the youth and the conservative women's market. The target market is too simplistic and does not conform to the "changeable" nature of the industry.

On Saturday, there were 1293 stores, and only 8 of its 8 brands entered the ten largest list of the ten largest domestic sales and sales in 2008.

Like BELLE, shop opened in the mall on Saturday. Unfortunately, the storefront is not attractive enough. It is crowded, small space, no theme, and not enough brand choice. Customers can easily flow to the next BELLE store.

Saturday's slogan "waking up the unique charm" and "my world, my wonderful", it is hard to remind people of the brand on Saturday, and emphasize the self world, but also ignore the nature of seeking more change and disloyalty.

{page_break}

From the links of women's shoes industry chain, it confirms the essence of its industry.

The industrial chain of an industry includes seven parts: product development and design, material procurement, manufacturing, warehousing, pportation, order processing, wholesale distribution, and retail promotion.

The first three are the "industrial chain links on the line". They are responsible for making the finished products, and they are the input parts of the industrial chain. The latter four are the "offline industry chain", which is responsible for delivering the finished products to the customers, which is the harvest part of the industrial chain.

In the brand shoes industry, because the nature of the industry requires "changeful", operators must grasp market dynamics and customer feedback, so that new products can be input on-line, and can capture the harvest message of old products in time.

The traditional "layered wholesale sale mode" has many layers of channels, which hinder the exchange of most information, and make information such as sales and market changes not timely feedback to the development and design links.

Therefore, brand fashion, women's shoes, generally embrace or directly control the marketing part, minus the wholesale and then pferred to the retail congestion structure, so the offline will only contain warehousing, pportation, order processing, sales promotion three parts.

In the whole industry chain, the focus of the on-line part is to create "quality stable, low cost products" in the most effective way.

The main strategies include optimizing each link's internal operation, reducing time wastage, vertically integrating information exchange among different links, enhancing information pparency, reducing errors and duplication caused by information loss, reducing costs, establishing a management structure and system with "efficiency management" as the main body, strengthening the overall control capability of the on-line Industrial chain, and meeting the essential requirements of the industry.

The focus of the offline part is to deliver the finished products to the customers effectively.

It's not just selling products on shelves, but also sending products related information to consumers' heads effectively.

In the offline part, efficient order processing and pportation, low cost warehousing, marketing strategies that meet product characteristics, and effective delivery of product information are indispensable.

Under the premise of the essence of the "changeable" industry of women's shoes, controlling the time and information loss on the whole industry chain (product on-line time and the speed of information feedback in the sales market) has also become the main goal of "vertical integration".

There are four main parts in the production cost of a pair of OEM shoes.

Among them, "leather material cost" is the largest (accounting for 40% of income), followed by "production tools" (15%) and "other material costs" (15%), and finally to "workers' wages" (10%).

Final gross margin is 20%.

In the three links of the industrial chain, the product design determines the needs of the above four costs, so the added value is the highest. Raw material purchase can only affect three items outside the labor cost, so the added value is relatively low; "production" can only control the wage and the added value is the lowest.

Therefore, the main strategy of the integration and optimization of the industrial chain should be led by the "product design" with the highest added value, and integrate the two parts of "procurement" and "production" (centralized control cost and listing, production time).

From another point of view, the price of a pair of leather shoes (the harvest part of products) is determined by the "sales and promotion" link, which determines the final return of the product.

Therefore, the core of the integration of offline industry chain is "sales and promotion". {page_break}

2, raw material procurement: how to acquire strong bargaining power.

"Material procurement" is based on the raw material requirements, auxiliary material requirements and fittings specifications, and the production time allocated according to the design part, accurately assigning raw materials to the production sites and assembling them into finished products.

How to get the materials that meet the requirements at the greatest cost effectiveness and distribute them to the production point at the right time is the focal point of the optimization of the procurement work.

First look at the raw material procurement of BELLE.

Wenzhou is a traditional leather material processing industry base.

Due to the high environmental pollution caused by leather making industry, Wenzhou tanning industry has been closely watched by environmental protection departments in recent years. Local tanneries have moved their production lines to lower cost areas and set up marketing points in some "industrial raw materials centers" to receive orders.

BELLE's purchasing center is located in the Southern China area, and "Shenzhen Southern China international industrial raw material city" is one of its main supply and marketing centers, through which we can connect with all kinds of "material suppliers" faster and more directly.

Because BELLE has mastered the production capacity of the main components in production, it is necessary to concentrate on purchasing several main raw materials in the procurement of materials.

In addition, it concentrates on the production of leather shoes, reducing the number of purchases, facilitating its integration of procurement operations and its suppliers, whose 5 largest suppliers have accounted for 56%. of their total purchases.

This has also increased the number of purchases of single raw materials, thereby enhancing bargaining power, reducing raw material prices and raising gross margins.

Daphne: centralized procurement of raw materials, strong bargaining power

Daphne uses a large proportion of "non leather materials", greatly reducing the cost of materials, easy to launch products at a lower price.

After all, women's loyalty to shoes is low, and in low price markets, prices are often the first front.

Daphne's parent company has a large OEM production line and has three production bases, producing about 20000000 pairs of shoes a year.

In addition, there are eight factories producing different parts of shoes.

Most shoe related components can be fully self-contained.

It integrates all raw materials procurement and has strong bargaining power.

The top five suppliers accounted for more than 50% of total purchases.

Reduce production costs by purchasing varieties and purchasing quantities.

In addition, the concept of early purchase is also introduced, namely, Futures Purchasing: purchasing materials in the off-season, and then organizing some basic shoes.

Saturday: more semi-finished products, scattered procurement, bargaining power is weak.

The main raw material for Saturday is leather made from animal skin.

Other raw materials and accessories include semi-finished products (shoe upper, heel, soles, etc.), nylon, rubber, glue, nails, etc.

Raw materials are mainly purchased from the mainland, mostly from Guangdong, and a small part comes from leather, such as Henan, Hebei and Anhui.

In addition, it also outsourced parts of production by outsourcing products to suppliers or purchasing semi-finished products.

Before 2008, suppliers purchased raw and semi-finished products from the suppliers themselves.

After 2008, part of the leather is changed to self purchase on Saturday, and then sent to the supplier for processing.

Unified procurement of leather materials can ensure consistency of product color and texture, and improve product quality.

At the same time, a large number of procurement can also reduce costs, but the corresponding cost is increasing the capital occupation of the company's production links.

Large purchases of semi-finished products make it difficult for procurement to reduce costs by quantifying.

A large number of procurement projects also increased the variables of purchasing work.

As a result, Saturday's procurement network is more extensive than BELLE and Daphne.

The five suppliers only account for about 35% of their total purchases, and their bargaining power is lower than that of BELLE and Daphne.

BELLE has integrated procurement suppliers and quantitative purchases to reduce costs in raw material procurement. The five suppliers have reached the total purchase amount of 56%.. Daphne's five largest raw material suppliers accounted for more than 50% of total purchases, and the bargaining power was high.

Saturday due to the purchase of semi-finished products, resulting in higher costs, in this link than BELLE and Daphne.

3, manufacturing: 20 days.

Manufacturing is the purchase of materials, accessories, according to the design rules and specifications, assembled into finished products, for offline industry chain to consumers.

The key to optimize the manufacturing part is to integrate production units and achieve flexible and low operating costs.

BELLE's factory adopts the way of "small production line mixed production".

That is, the shoes of the same order can be produced on a production line even if the styles are different.

The flexibility and speed of leather shoes are greatly increased.

A shoe can only be sold for 20 days from production to rack sales.

BELLE usually does not purchase OEM products.

It invested 500 million yuan to build an industrial park in Longhua, Baoan District, Shenzhen, covering an area of 130 thousand square meters and a building area of 250 thousand square meters.

It can produce 10 million pairs of shoes per year, and products radiate in China, the United States, Europe and other countries or regions.

After the acquisition of "San Da", the production base of East China is doubled.

BELLE fully integrated its own production line to produce its own main components.

Each component workshop is reduced in one plant area.

Coupled with the application of a large number of data design, small batch production equipment and equipment, to help reduce production cycle, to achieve rapid and small batch production, as early as possible.

Through the integration of the on-line production and supply chain, BELLE has speeded up the production cycle, controlled production costs, and made gross margins more than 60%.

Production and manufacture of Daphne

Daphne has 6 shoe factories and 44 joint venture materials factories, but 40% of its production outsourcing is dominated by OEM production mode.

When the production line of the group company can not meet the needs of Daphne market, Daphne will integrate resources and join forces with the strong. It can borrow others' production plant resources for their own use, intensify development and production, and thoroughly break the management of self consuming factories and self built pipelines in the past.

When choosing manufacturers, Daphne will establish a stable long-term cooperative relationship based on whether the other party has good product design and development capabilities, product quality and production capacity stability, and set up professional departments to link with the professional departments of manufacturers.

This long-term and stable cooperation ensures all outsourcing styles of Daphne. No matter how much the order is, manufacturers can guarantee "special offer".

Daphne uses OBM (Original Brand Manufacturer), that is, the manufacturer specially designs and designate the product with the enterprise, and then attaches the trademark of the enterprise for the sale of the enterprise.

Before the development of new products, Daphne will carefully analyze market trends, market trends, marketing indicators, historical sales records, changes in sales channels, existing inventory structure and information on competitive brands, and calculate the total number of new products, quantity of samples and total expected orders for the new season.

Different developers are responsible for different product styles and product categories, and are responsible for managing different cooperative factories.

Daphne adopts the industry's most advanced "information management system". Through the seamless connection of B2B, Daphne will enrich the market information and sales dynamics of Daphne to the main manufacturers, provide accurate market information for manufacturers, formulate countermeasures and adjust the direction in time.

From the "cost plus price method" to "retail pricing law", Daphne determined and adhered to the retail price location according to the brand recognition and brand positioning of consumers, and then pushed back the profit from all aspects of the circulation from the "retail price", and pushed back the "production procurement cost".

Although Daphne has integrated all production parts, the only way to reduce costs is that products can not be listed quickly.

Manufacturing on Saturday

Before absorbing and merging "Li Yuan shoes industry", Saturday mainly adopts OEM mode, and entrusts external processing plants for processing and production.

The "outsourcing" mode of production is mainly provided by the company with styles, samples and processing requirements. The foundry manufacturers organize the design of shoes, purchase raw materials and organize production.

The products used are "Saturday" brand and sold exclusively after Saturday.

After merging the "Li Yuan shoes industry", the production mode of centralized purchasing raw materials, semi purchased products and self-produced molding is adopted, and a two line parallel production mode (OEM and self production) is implemented to achieve a small variety of large-scale production to meet the needs of each brand's products.

Among them, the OEM order price is mainly determined by reference to the production cost of the company's own production mode, and the price is determined by the way of "cost plus".

Most of the components are purchased and concentrated on the final assembly capacity, because the final assembly work is relatively fast, and products are listed faster than Daphne.

Comparison of the three major women's footwear enterprises in the manufacturing process:

In the field of manufacturing, BELLE has introduced a large number of electronic design and production coordination tools to increase production efficiency to 200%. and limit the production of the first order to 50%, so as to reduce the production and waiting time, so that the products can be put on the market early, and can be sold from the production line to the sales outlets in 20 days, while Daphne and Saturday need more than 30 days.

BELLE is better at manufacturing.

A strategy of "vertical integration" is also launched here.

The enterprise receives customer demand and market information from the sales and marketing section, and plates into the internal supply and demand arrangement after "order processing", and then creates the right product by the on-line industry chain, and sends the market through the "warehousing and pportation" part to the marketing point.

This is the operation process of the whole industrial chain.

Next, we look at how these three leading enterprises integrate their industrial chains according to the nature of the industry and compete with each other in the market.

1, product design: more than 1000 shoes were launched in the first quarter.

The middle and top grade Chinese women's shoes are basically based on Italy or Spanish style.

Pure Chinese design can only survive in low-grade (Chinese designers will also refer to international women's shoes exhibitions or magazines to design fashionable women's shoes).

Fashion is the most important requirement of design.

Because women are motivated to buy shoes, often because they see a favorite style, not because the price is flat, not even because of the need - do you think, in general, is it necessary for a person to have more than ten pairs of shoes?

To this end, the development team collects the information of market acceptance, seasonal elements and technical indicators, and sorts out the details of the products, and sends them to other parts of the "on-line industry chain", that is, the "procurement" and "production" links.

Finally, the products are made by different schemes.

BELLE: integrated design and development team

BELLE will "design and develop independently" as one of the core competitiveness.

First of all, in the "fashion center" of Italy, BELLE and the fashion design center cooperate to let their design team communicate with each other in designing ideas, not only improving the design ability, but also capturing the trend of every season, and mastering the changes of main elements such as style, color and material.

In the "leather products center" Spain, BELLE set up R & D center to improve product technology and introduce different elements to make products more varied.

For example, the "Insoelia technology" introduced in 2003, by changing the center of gravity of the sole of the heel and reducing the pressure of the forefoot, will make the high heel shoes no longer painful.

Shoes are not only more comfortable, but also increase the tolerance of design, making product design more intimate.

Each brand's design team is composed of "designer" and "product development team".

This combination of teams enhances the flow of information and ensures that various technologies that are beneficial to the product can be applied in the most appropriate way.

BELLE: rich and varied product line

BELLE not only has its own design team, but also purchases a large number of different designs, that is, ODM, to expand product changes and flexibly respond to market demand, because if all the designs are put on their designers, the risks will be great.

BELLE launches thousands of different new shoe styles every quarter. Each brand has 300 to 400 styles in a quarter, plus ODM OEM style and agent foreign style, to meet diversified customer needs in a comprehensive way.

BELLE: introducing electronic technology to expand the productivity of the design team

For example, BELLE's computer aided design system, CAD, can integrate a large number of foot shape and shoe last data, and can quickly apply the design to all sizes to help the design team complete the design of a single product quickly.

Moreover, the 3D simulation system can display the real shoes in real time to change the design quickly.

In this way, a series is designed. It used to take several weeks. Now it can be done in 10 days, and it is fast and fast.

BELLE launches a large number of styles every quarter, but under the same fashion trend, the styles of each product line are easy to be similar.

The above CAD design system, through the integration of various spare parts data, makes the design of similar styles faster, a series of different series, a design team can do well.

BELLE: small batch production to speed up product listing

The first order of any product of BELLE will always produce 50%, and the rest of the list will be combined with the feedback from the market.

It is worth mentioning that designers not only play a role before production, but also play an important role in the next 50% production.

They will go to the front line after the first shipment is put on the market, and decide whether or not to change the product according to the actual sales and consumer response.

Daphne: independent design is designed to increase production efficiency and choose fewer styles.

Daphne emphasizes independent design, and specially asks Italy designers to help them, leading the design direction.

Two international design awards have also been obtained.

In order to make up for the lack of product line delay caused by mass production, Daphne has designed special series to attract market attention.

The women's shoes are closely related to fashion and taste, but the price is appropriate.

Daphne also cites CAD/CAM technology, but it is different from BELLE's goal of quickening design and listing in advance. Daphne mainly aims at starting from design, integrating the commonality of raw materials and components, so as to reduce costs.

But Daphne has only two brands. In daily operation, there are certain restrictions on the styles that the two brands can carry, and can not provide customers with a variety of choices.

And in the product design, it failed to cover most of the market blocks.

Saturday: product design depends on external environment and poor self-control.

Similar to BELLE, Saturday divided the market with 5 main brands.

On Saturday, brand development centered on "chief designer", deciding the style of each brand and adopting the Trinity development mode of designers, marketers and marketers.

This mode facilitates the use of direct controlled terminal sales network to get fashion trend information.

On Saturday, he also worked with Italy de Ma international fashion design company in technology and product development.

In view of the trend of four seasons, the company has submitted four plans and drawings every year, putting forward the design requirements of popular elements, materials, colors, and last type, and then developing product lines by local designers.

In Saturday's main brands, Mooffy was designed by Italy designer G.P, and ST&SAT, SAFIYA and FONDBERYL were designed by Italy designer and Chinese designer.

In terms of independent technology, Saturday is relatively backward, its development center is yet to be established, and its design and output can not be integrated and coordinated, so its control over the design of "on line industry chain", raw materials and finished products output is relatively poor.

The product design is mainly middle and high grade, most products are on the vertical line of a style area, only for price segmentation, and can not distinguish and cover the market successfully.

To sum up, BELLE has won the same in product design and quantity.

Not only does the design and development team with strong capability and efficiency, but also self develop, the ODM OEM product is introduced to make up for the lack of self design to further meet the diverse needs of customers.

At the same time, BELLE has more than 1000 new products per quarter, far more than Daphne's 100 or 300 on Saturday.