BELLE Swallowed Up Capital Of San Da To Improve Shoe Concentration

A takeover is quietly stirring up the domestic shoe industry. The largest domestic shoe industry merger case has been BELLE.

After spending 380 million yuan on the acquisition of Fila and 600 million yuan in the acquisition of Miu Li this year, BELLE group recently launched a joint venture to spend about 2 billion 200 million yuan to incorporate the famous brand of shoes, Jiangsu.

This is also the third mergers and acquisitions activities of BELLE International (HK.1880) since its launch in May this year.

Previously, Sanger had once been the title of the king of men's shoes. Dozens of years of painstaking efforts have changed the flag overnight, and all the channels and assets of Sanger have gone to BELLE, and BELLE, known as the king of women's shoes, has finally completed the combination of two swords.

Where will the sword go next?

The calm surface of China's footwear market is thus surging.

BELLE's sword "this is just an ordinary takeover."

In November 20th, a person in charge of BELLE's marketing department told reporters lightly.

In this case of concern about the acquisition behind the trader's hand is BELLE group CEO Sheng Bai Jiao.

"Many years ago, he regarded Shen Da as his prey, and now he finally realized his dream."

One insider said.

In May 23rd this year, BELLE international listed on the Hongkong stock exchange. At the closing price, BELLE's total market capitalization amounted to HK $67 billion, far exceeding HK.0493 of HK $38 billion.

And more than 10 years ago, BELLE was incorporated in Shenzhen. It was just an obscure workshop company.

An old staff member of BELLE told reporters that Sheng Bai pepper was like an ordinary employee in a dilapidated residential building in a district in Shenzhen.

"At that time, Sheng Bai Jiao said that we should adhere to the brand strategy. In the future, we will be the NO.1 of Chinese made shoes. We all think he is crazy. No one can imagine that he is making about 10000000 pairs of shoes a year."

In the development of BELLE since then, brand operation has always run through BELLE.

Sheng Bai Jiao has created a unique management mode, which is to separate the brand management of design, R & D, replenishment and delivery, packaging and warehousing and channel development, so that BELLE can maximize the integration of company resources and carry out multi brand operation at low cost.

In addition, unlike Kangnai and other stores that choose to open stores, BELLE only enters the shopping mall, and the four or five main brands will enter together, forming a trend of encircling other products.

After the acquisition of BELLE, the market share of the company will exceed 20%.

And BELLE's big acquisitions and rapid development come from its huge capital after its capital operation.

As early as 2005, BELLE introduced two fund companies of Morgan Stanley and CDHRetailLimited of CDH investment as strategic investors.

After these capital injection, BELLE has gained a fast rising channel.

Why is it that many years ago, in the Chinese shoe industry, it has been known as "Nankang" and "North Sen". Both of them have been competing for the top spot in the domestic market, and AOKANG, Daphne and fortune birds are also constantly joining.

A series of acquisitions by BELLE changed this pattern.

In 2002, he began to lose his fortune. He spent a lot of money in that year -- building the Shanghai Yong Xu export manufacturing base. Here, there are 12 overseas imported shoemaking lines, which are known as the most modern shoemaking factories in China. The investment in the first phase of the project only cost more than 400 million yuan.

At the beginning of the construction of this base, some experts thought that it was too risky for the company, because the way to rapidly expand production capacity is not the principle of low cost expansion of shoes industry. In the final analysis, the shoe industry is a labor-intensive industry with high labor cost requirements and relatively low supply time and logistics requirements. So Shanghai does not have any advantages.

Unfortunately, this prediction has finally become a reality.

According to people familiar with the matter, after the heavy pressure on Shanghai base, the capital chain was obviously tense, which made the development in the future limited to the difficult situation and became an opportunity for BELLE to buy.

In the face of the rise of BELLE and the decline of cedar, Wei Yanxin, director of Kangnai group culture center, said: "although this incident has shocked me, it has little impact on Kangnai."

In the past year, Kangnai has completed its sales of 2 billion yuan, which is almost 2 times that of the company.

It is an indisputable fact that, in the face of fierce competition, the improvement of the concentration of industry, how to innovate and infuse fresh blood for the brand are the problems that every shoe enterprise should consider at present.

Kangnai, a former big brother, obviously felt the crisis and was trying to find a breakthrough.

Last year, Kangnai opened the shoemaking base in the form of industrial park to Russia. So far, 11 enterprises have been introduced, which is a positive sign for Kangnai's internationalization.

"The failure of the implementation of cedar means that the Chinese shoe industry has gone to an era. A group of traditional family businesses are being replaced by the new capital operation enterprises, and now the pattern has evolved from the separation of the male to the BELLE."

A senior rival in the past said with great emotion.

In the past, we have not had a big gap with BELLE, but now we are far behind.

A local shoe trader in Wenzhou said he believed that after the listing, BELLE not only had sufficient cash flow, but also had a great degree of standardization in the management of enterprises through the process of quality asset restructuring before listing, and more importantly, BELLE also stood on the international stage.

"BELLE's listing is a watershed. It has changed the history of China's footwear industry."

Wang Zhentao, President of AOKANG group, said that the listing of BELLE international in HKEx has stimulated almost all the domestic shoe enterprises' nerves.

Starting from BELLE, China's shoe industry has been divided into two groups, one is family owned enterprises represented by Kangnai, Sanger and AOKANG. These enterprises have been well established since the late 80s of last century, while the other ones were the capital operated enterprises with BELLE, 100 billion and Daphne as the leading ones.

In the face of the impact of the new capital forces, the Kangnai and AOKANG in one faction chose to expand overseas markets without exception. Its typical performance was to open overseas stores and choose a large number of overseas brands to seek stable and continuous profits. AOKANG expanded further overseas.

AOKANG and GEOX, the first brand of Italy footwear industry, have adopted the cooperation mode of "two-way access".

This mode is: AOKANG processing products for GEOX, GEOX also rooted in AOKANG with the help of AOKANG network, while in the international market, AOKANG helps AOKANG sell AOKANG products through its global network.

Wang Zhentao's real intention is to find a big ship and go out to sea by boat, so as to realize the internationalization of his own business as soon as possible.

A Wenzhou shoe company official told reporters that the decline of the old style enterprises is not only one of the companies, but also many enterprises like the company.

When it is not strong enough, it has invested in clothing and power generation industries to widen its fronts.

In addition, new product development and production and marketing disconnect, almost no design team, and sales have been using the past 80s supply and marketing personnel of the old road.

"This has led to the domestic market being divided into food, and foreign markets can not be opened up. The decline is sooner or later."