BELLE'S Acquisition Of Experts Said Domestic Shoe Industry Reshuffle Within 3-5 Years

In the end of October, we won the brand of Mie Li, and BELLE acquired the next city in China.

In November 14th, BELLE International (1880.HK) announced that it invested 1 billion 600 million yuan to acquire the footwear assets and brands of the famous shoe companies of China.

Through mergers and acquisitions, BELLE not only increased the layout of the domestic footwear industry, but also became the leader of domestic men's shoes.

The acquisition of the 5 enterprises in Jiangsu will be completed by BELLE next year. The assets of BELLE's acquisition include: Jiangsu's shoes, Zigui shoes, Sanda shoes, Shanghai, and so on.

As of July 31, 2007, the total value of unaudited accounts of the 5 companies was about 643 million yuan, while other assets were equivalent to 139 million yuan.

BELLE announced in its announcement that the company's wholly-owned subsidiary, new Belle, had entered into a restructuring agreement with Jiangsu's November 11, 2007 group. BELLE will invest 1 billion 600 million yuan to acquire the company and related assets of the men's and women's shoes products produced and sold by the company.

The acquisition of net assets does not bear debts.

"Takeover is also considering increasing the strength of men's shoes. Our men's shoes are FATO brand, and 50% of them are men's shoes."

A person from BELLE told the China Times reporter.

Data show that in 2006, the sales revenue of the brand reached fifth of China's 10 largest footwear brand.

With such a scale and performance, why did the company choose to sell footwear assets?

In response, Mr. Xu, director of the office of the group, declined to be interviewed on the grounds that BELLE had not completed its due diligence.

Ma Ruiguang, a retail chain expert at yma consulting, analyzed that the sale of the company was mainly caused by management and performance bottlenecks.

It is understood that the net profit of 2005 reached 68 million 168 thousand yuan, and the net profit in 2006 was 72 million 751 thousand yuan.

BELLE said: "the profit growth of the two years has slowed down. According to our estimate, its turnover in 2008 is also 1 billion, compared with the previous two years."

According to the agreement, BELLE will pay 200 million yuan deposit to the Sunda group within 7 working days, and all acquisitions will be completed in January 10, 2008.

However, before the two sides concluded, it was necessary for the group to restructure its footwear assets, and to inject some trademarks and intellectual property related to other brands, such as sun Da, Bai Shi, Hao Ren Yuan and other brands owned by Jiangsu's group, into one of the 5 companies.

"BELLE will not incorporate the company into its own business. It will operate independently, and will not put other brands on the side of the production."

BELLE emphasizes that it will only integrate it to improve the profitability of retail and terminal.

Mergers and acquisitions have led to a change in the industry. "It is not clear whether the company will continue to take over before the end of the year," the management said.

In 2008, the company plans to integrate Fila, miu Li, and its inferior footwear assets and brands into BELLE management mode.

BELLE said.

"BELLE's ambition should not only be the king of women's shoes, but also the king of shoe industry.

This will push shoe industry resources to the dominant enterprises. "

Ma Ruiguang predicts that the domestic shoe industry will achieve a large-scale reshuffle within 3-5 years.

At present, BELLE international owns eight footwear brands, such as BELLE, Teenmix, Staccato, real beauty, and so on. It has acquired three famous brands, and the famous brand has reached 12.

This has brought unprecedented shock to Wenzhou shoe enterprises, and the brunt of its impact is AOKANG, Kangnai, red dragonfly and other well-known shoe enterprises.

A AOKANG official said BELLE's impact on the industry was manifested at the time of its listing. Now, Takeda has taken a big step, and in the long run, it has a great impact on the whole industry. "But the direct impact on the company or other enterprises is not easy to say now."

According to the reporter, due to the impact of BELLE, AOKANG accelerated the pace of listing, and its listing advanced to 2008.

AOKANG plans to officially list in Hongkong on August 8, 2008 when the company was founded 20th anniversary.

Several other shoe companies in Wenzhou are also actively seeking listing.

"BELLE already has a mature model, and BELLE's integration of acquisition brands can be completed in 2-3 years."

Ma Ruiguang is the key to the industry. The most important thing for the company is to link up with capital and jump out of channel marketing to do chain business, so as to control the terminal.