"Dominant" Belle Online "Power Collection"

Online "right collection"

At present, the goal of Yougou is to strive to enter the top three footwear B2C websites this year order The number of sales exceeded 5000, and the company made profits within three years. The revenue within three to five years accounted for 5% to 10% of Belle's overall business.

The key is how to improve performance. " Wang Li said frankly that Belle "burns money" in e-commerce, which has power and pressure.

　 No way out

According to the statistics of iResearch, the transaction scale of China's online shopping market in the second quarter of 2011 reached 179.2 billion yuan, up 76.7% year on year. In addition, according to the insiders, the B2C field of footwear in mainland China has a market share of more than 400 billion yuan, and currently only 2% - 3% has been developed.

As a result, all kinds of capital began to enter the semi standardized product of shoes one after another to seize the beach. Tencent made up its mind in only three days, and helped Haole Buy to realize the third round of financing that surprised the outside world with 50 million dollars; Alibaba invested 15 million dollars in the shoe store; On the other hand, Letao, another B2C platform, has received olive branches from Tencent, Baidu, Alibaba and other investment departments. At the same time, Daphne, Li Ning, Seven Wolf and other traditional clothing and footwear brands have passed through the controversial stage of doing or not doing, opening up e-commerce as the second battlefield.

In fact, "Belle has seen the crisis, so it needs to look for new breakthrough points, or its performance will be difficult to make another breakthrough." Wang Li believes that the more successful Belle is in the original business, the greater the pressure. After all, listed companies need beautiful reports, strong annual growth and single store performance growth. However, "Belle is very difficult to do this. As can be seen from the frequent and vigorous activities of Belle in Tianjin Lebin Department Store this year, its performance is under great pressure at present."

Li Peng, secretary-general of the Asian Footwear Association, also has a similar view. In his opinion, Belle's great efforts in channel expansion and market expansion will inevitably hamper its efforts in product design Energy on. Under the complex situation that some Taiwan funded enterprises, which are good at integrating international resources, rely on professional research and development and unique design to seize the high-end market of women's shoes in mainland China and nibble at Belle's market share, the future development speed of Belle is likely to slow down.

Belle clearly pointed out in its 2010 annual report that for the more mature business of the original shoe brands and first-line sports brands, the next step of store network development focuses on the second and third tier markets with low penetration.

It is not difficult for Belle to understand this move. With the promotion of urbanization and the rising consumption capacity of second and third tier cities, the sinking of domestic business channels and brands has become a medium - and long-term strategy for enterprise expansion. Moreover, department stores, especially middle and high-end department stores, are not as respectful to the strong Belle as they used to be. To some extent, in the current market environment, it is difficult for Belle brand to enter the high-end stores in the first tier cities.

In any case, compared with the arrogance of the first tier market, Belle has lost its momentum in the process of channel sinking. Take women's shoes on Saturdays as an example. Although it can't compete with Belle in the first tier market, Belle occupies 7-8 counters on the floor of women's shoes in most first tier cities, and only 1-2 counters on Saturdays; However, in the second and third tier markets, the gap between Belle and Belle in terms of development opportunities and resource acquisition is gradually narrowing. Many new shopping malls have left 4-5 counters for Belle and 3 counters on Saturdays in women's shoes brand investment promotion.

"If it is a second tier brand, its offline business is still growing in scale and trying to catch up with the first tier brands, so there is no special motivation to do e-commerce. It is that enterprises like Belle, which are among the top ten or five in the industry, need e-commerce more." Liu Hongjiao said that success would be icing on the cake; If you lose, you will not hurt your bones and muscles.

　 E-commerce ambition

"Belle is a traditional enterprise Electronic Commerce The enterprises with the largest investment. " Li Zhongwei, president of ShopEx, who once provided Belle with a whole network e-commerce solution and helped develop its online distribution channels, told the new financial reporter that Belle, with high investment, has high expectations for e-commerce business. "Financing 2 billion yuan is not only for 200 million yuan of turnover, but also has higher expectations."

As Li Zhongwei said, at present, the goal of Yougou is to strive to enter the top three footwear B2C websites this year, with a daily order volume of more than 5000, achieve profitability within three years, and achieve revenue accounting for 5% - 10% of Belle's overall business within three to five years. This means that even at the lower limit of 5%, the contribution of Yougou still needs to reach 1.19 billion yuan to meet Belle's total revenue of 23.7 billion yuan last year. If the growth rate of Belle is more than 20%, the rated target of Yougou will be between 2 billion yuan and 4 billion yuan.

Up to now, the daily orders of Yougou are about 1500-2000, and its PV value (visitor volume) has exceeded 800000, "which means that Yougou now has a retail scale of nearly 100 million yuan." Liu Hongjiao has calculated an account for the new financial reporter, taking Suning Yigou, which claims to have achieved a retail scale of 2 billion yuan and has successfully transformed traditional enterprises into e-commerce, as a sample, So far, the PV and UV (independent visitors) of E-shop, which has been started for a long time, are only five times that of Yougou. Considering that the unit price of Suning E-shop is almost five times that of Yougou, the retail scale of Yougou has almost exceeded the 100 million yuan mark in just a few months.

Even so, the target of 2 billion to 4 billion is still slightly exaggerated. But it is not empty talk.

As early as 2008, Belle dropped its first chess piece in the e-commerce chess game that it had been hesitating for two or three years, and registered and established a special e-commerce company - Ligang Shoes (Shenzhen) Co., Ltd. Nanshan Branch. Since then, Ligang Nanshan Branch has operated 11 brands of Taobao Mall flagship stores and its own independent e-commerce platform Taoxiu.

In 2009, Belle built Taoxiu. com by itself, and invested 600000 yuan every month to independently test e-commerce. From the initial sale of tail goods to the normal sale of products, gradually expand categories and brands. By June 2010, Belle's online sales had exceeded 10 million yuan per month without any advertising investment, and the website conversion rate had reached 2%. It took Dangdang and Zhuoyue ten years to reach this figure. By the time Yougou integrated Belle's e-commerce business, Belle had opened 11 direct stores and 100 franchise stores on Taobao, as well as many B2C distributors such as Dangdang, Zhuoyue, JD and Letao. The network pattern has spread in an all-round way.

"These are just a series of continuous and intensified 'payment' of Belle, and it will not let the whole enterprise go in without testing the water temperature." Li Zhongwei said that after exploring the depth, Belle will naturally present the banner of Yougou.

With the emergence of Yougou, Taoxiu has been formally merged, and Taoxiu members have moved to Yougou Online Shoes City as a whole. The original cooperation plan with Haolebai, etc., was also more or less affected.

It is worth mentioning that the strength of Belle's "abandoned" partners and competitors cannot be underestimated. The monthly visits of Haolemai and Letao are far higher than that of the Taoxiu under Belle, and they are also among the best in third-party data rankings, including Yougou. How much opportunity cost will be brought by the "arm breaking" mode chosen by Belle to make way for its own channels, which has aroused speculation and concern from the outside world.

"At present, Belle will not stop communicating with other B2C platforms, because it will continue to ship goods." In Liu Hongjiao's view, Belle is operating "online" as "offline", Yougou is its own direct marketing platform, and Taobao, Haoleyao and other stores have cooperated for a long time. This is nothing more than a "right collection" behavior, a control behavior. The purpose is just to sell better and gain more profits. The real core of online multi-channel lies in the control of the price system. As long as the price system can be well controlled, regardless of the way consumers buy, the ultimate benefit is Belle. {page_break}

"I am more worried about team integration than about tactics." Liu Hongjiao said that although it is important to absorb foreign aid, it means that the new team has traditional Baili people, and has pushed e-commerce to the current height by exploring; There are also new pure Internet enterprises, and traditional e-commerce enterprises with "money burning" background. Whether it can truly integrate and achieve a smooth transition is the key core issue to carry out the strategy of Yougou and Belle.

　 Offline "turbulence"

Compared with the rise of online business, offline business is inevitably a bit sad and "turbulent".

Faced with the huge advantage that traditional core business cannot be exceeded in a short time, Belle began to gradually extend its tentacles to a more diversified direction. It is not only planned to increase investment in footwear products with an average unit price of about 200 yuan, but also to fight against low-end mass markets; We will also increase investment in research and development of high-end men's shoes to increase market share. At the same time, the children's clothing business has also been put on the agenda by Belle.

"Due to the correct development direction and good market positioning of Belle, as well as the management's promotion of sales growth forecasts of branch stores and the same store, Belle has a good prospect," said Huang Jiajun, vice president of China Northern Securities Group Co., Ltd.

However, not everyone buys it. "Compared with the test of men's shoes and children's clothing, Belle should still focus more on the traditional women's shoes business." Wang Li told the New Finance reporter that although she is the boss of the shoes industry, Belle's advantage is not in men's shoes, let alone children's clothing. This attempt may not be a wise move. Similar to Wang Li's idea, UBS seems not to be optimistic about Belle's new initiatives, and believes that in view of the uncertainty of the new strategy and share trading, "Belle's share price may face downward pressure in the near future."

To make matters worse, major shareholders and management suddenly reduced their holdings. On September 8, a number of management personnel, including Sheng Baijiao, chief executive officer and executive director of the company, placed 240 million old shares at a price of HK $15.28 per share, with a total value of HK $3.67 billion, equivalent to US $470 million.

After the reduction of holdings a year and a half ago, the cash out again inevitably led the outside world to interpret that the management of Belle had shaken their confidence in the company, and even began to worry that some "signals" had been released. Barclays Capital published a research report, saying that Belle's major shareholders may further reduce their holdings to less than 30% after the 180 day lock up period in the future.

Coincidentally, according to Wang Li, in the past few months, there was a rumor in the industry that Belle had a few large district managers quit the management team and only retained shares. "Belle has the 'Eight King Kong' who are in charge of various large areas. They are the core team of Belle, and not only have considerable assets, but also have channel resources." Wang Li said that the "Eight King Kong" are holding the lifeline of Belle. Once the "King Kong" are dispersed, the consequences will be unthinkable.