What Did BELLE Really Think Of?

One stone stirred up thousands of waves. After the "warm-up", BELLE International launched a "heavy blow" to buy the shoe business.

In November 14th, BELLE International Group, the leading female footwear enterprise in Hongkong, announced in Jiangsu that its wholly owned subsidiary, new beli, bought 1 billion 600 million famous footwear companies in China, 5 shoe subsidiary and several assets and trademarks.

Following the acquisition of Fila for 380 million yuan in August and the acquisition of Miu Li by 600 million yuan in October, it is also the third industry M & A in BELLE international since its launch in May this year.

Prior to that, Sanger had the title of the king of men's shoes. Decades of painstaking brands changed the flag, and all the channels and assets of Sanger were BELLE, and BELLE, known as the name of women's shoes, finally completed the combination of two swords.

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

At the same time, the calm surface of China's footwear market began to flow.

It is learnt that since the listing in Hongkong, BELLE has promised to use 27% to 31% of the 8 billion 660 million yuan assets to be used as expansion plans, mainly in the form of acquisition.

Insiders predict that 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.

The domestic shoe industry will achieve a large-scale reshuffle in 3 to 5 years.

In May 23rd this year, Belle International Holdings Ltd listed in Hongkong, BELLE.

This day, according to the closing price of the day, its total market value reached HK $67 billion, far exceeding the Gome value of HK $38 billion, and became the mainland's retail market capitalization of HKEx in one fell swoop.

From 1981, the founder and chairman of the board of directors of BELLE, Deng Yao, founded Li Hua Shoes Co., Ltd. in Shenzhen, BELLE has made a fortune from footwear manufacturing, and from the retail channel, and gradually expanded to many brands. In the 16 years since its coming, BELLE has got rid of the plight of China's traditional manufacturing industry and has become the representative of new manufacturing.

In fact, at the beginning of entrepreneurship, BELLE chairman Deng Yao and CEO Sheng pepper had strong awareness of brands.

They believe that leather shoes must sell well at a good price.

This brand awareness runs through the whole development process of BELLE, making it intentionally break away from OEM's manufacturing route from the very beginning and lay a high starting point with its brand.

In 2000, BELLE began to develop multi brand strategy, and then launched more and more brands.

At present, BELLE international has 2 licensed brands: BELLE, Teenmix, Staccato, other 6 brands, such as TATA, Jipijapa, and Bata.

In addition, BELLE international is also a distributor of Nike, Adidas, Reebok, Puma, Kappa, Mizuno, Levis and other sports casual wear brands.

According to statistics compiled by China industry and enterprise information publishing center (CIIIC), BELLE has become the number one brand in China's women's wear shoes for 10 consecutive years in terms of sales revenue.

In last year's sales of the top 10 Chinese women's shoes, BELLE, BELLE, Teenmix, Staccato and so on, occupied 4 seats, of which BELLE ranked first.

May 23rd is also a watershed. It has changed the history of China's footwear industry.

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

The merger and acquisition of footwear industry acquisition record, as China's largest female shoe retailer, bought at the cost of about 1 billion 600 million yuan, the new shoe company, which has been known as "the first brand of Chinese men's shoes", has created a merger record in the Chinese footwear industry in terms of asset size.

According to the announcement issued by BELLE, in November 11th, new Belle signed a formal agreement with Jiangsu's Sunda. It will acquire 5 subsidiary companies wholly owned by Sunda, namely: Jiangsu Sunda shoes industry Co., Ltd., Zigui Yong Xu Shoes Co., Ltd., Jiangsu Sunda Group Three Gorges Shoes Co., Ltd., Shanghai bath Industry Co., Ltd. and Shanghai Wei Dun International Trade Co., Ltd.

Jiangsu will invest in one of the 5 companies before pferring the land and property, and pfer some trademarks and intellectual property related to other brands, such as sun Da, Bai Shi, Hao Ren Yuan and the group, to Xin Bai Li.

BELLE announcements show that the balance will be paid on or before January 10, 2008.

Notice that the final purchase price may be adjusted, but not more than 1 billion 700 million yuan.

In view of the reasons for the merger, it is pointed out that this refresh the acquisition of the record amount of the shoe trade in China. Besides the intention of BELLE group to integrate the domestic footwear market with capital strength, it is also the key reason for the group to continue to develop its shoe business.

BELLE said that the acquisition was based on the trademark and brand recognition of the pferee.

The acquisition will further consolidate BELLE's market position, and the production facilities and assets owned by the pferee will enhance BELLE's capacity.

It is understood that the Shenzhen based BELLE group has begun to expand its business to men's shoes in recent years. The company seeks to increase its coverage in the consumer market and increase overall revenue and profits through horizontal expansion.

At present, the company is the largest female shoe manufacturer in China, with a market share of 8.2% in 2006.

Although Jiangsu Sanger group is one of the largest shoe retailer in China, the domestic influence of its footwear business has been declining in recent years. Compared with other famous men's shoes brands, such as AOKANG, snail's shoes business is developing slowly.

In addition, the company's diversified development involves many fields, such as clothing, chemical industry, biology, electric power, software development and so on.

The company has limited energy and resources to develop shoe business.

According to sources, the sale of shoe products by the company is largely due to the problem of gold chain after diversification. The sale of shoes business may be due to the repayment of large bank loans.

According to reports, the brand of China's top ten shoe products ranked fifth in 2006.

In terms of channels, BELLE's market share will exceed 20% after the big acquisition of San da.

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.

In fact, BELLE's acquisition of San Da is also considering increasing efforts to expand men's shoes. BELLE's men's shoes are FATO brand, while the 50% of men's shoes are men's shoes.

BELLE international has BELLE, Teenmix, Staccato and other 8 footwear brand chain stores, Nike and Adidas are the largest sports shoe distributors in China.

According to public information, at present, BELLE international has more than 2800 female shoe shops and more than 1000 sports shoes chain stores in 150 cities in the mainland, and has set up 35 retail stores in Hongkong, Macao and the United States.

Whether BELLE is listed, or frequent mergers and acquisitions, it is easy for insiders to see that BELLE's sword is actually a channel.

According to industry analysts, BELLE international has been hoping to expand its product line, and it takes a long time to start from scratch. BELLE International hopes to achieve its goal through faster acquisitions.

Experts believe that from the nature of BELLE's international acquisition, its strategy should be based on three considerations.

First, the acquisition of BELLE international is more and more centered on retail strategy.

In some shopping malls, BELLE international sporting goods retail has started sports layer sales, that is, when the new mall opens, it can take a floor to make sporting goods, and if women shoes reach a certain quantity, it can also be carried out in this way.

Second, the BELLE International Men's shoes for deep ploughing women's shoes are few and look forward to entering the men's shoes market through acquisitions.

Third, BELLE International hopes to use the production base of Hubei in Shenzhen. BELLE international, which has 3 production bases in China, hopes to expand its production base to the mainland.

AOKANG built a shoe base in Chongqing, attracting many footwear enterprises to enter.

BELLE international chose to have more cost advantages in manpower and power resources near the Three Gorges.

Self run and department stores are the key words of BELLE channel.

Self operated outlets can bring back things that consumers are dissatisfied with.

And stationed in department stores, BELLE has brought an endless stream of people.

Statistics show that by the year December 31, 2006, BELLE's sales in department stores accounted for 74.3% of total sales.

The channels that blossom everywhere also bring a new profit growth point for BELLE.

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

In addition, BELLE also represented Lining, Reebok, Kappa and other sports leisure brands.

None of these sports and leisure brands are BELLE outlets.

Despite the prelude to the consolidation of industries, some industry experts show that the new BELLE has acquired a rational and "reserved" attitude towards the acquisition of the brand. However, the momentum of industrial integration is highlighted by the "big hand" of the group.

Xie Rongfang, Secretary General of Wenzhou shoe leather industry association, said that the acquisition of the brand by Xin Bai Li could be a prelude to the integration of footwear industry.

"At present, there is room for integration in the footwear industry. Of course, big brands like BELLE can buy other brands.

The acquisition and large-scale entry of BELLE into men's shoes will put pressure on other large men's shoes brands, including many brands in Wenzhou, which will feel pressure and trigger their corresponding measures.

Wenzhou is known as the "shoe capital" of our country, and a large number of famous domestic men's shoes brands are in this place.

Xie Rongfang believes that the biggest impact on the acquisition of new belle is the large shoe enterprises. "A series of measures after the listing and listing of BELLE have caused great pressure on the large shoe enterprises, and this is very natural and normal. After all, he can make the first step forward.

If the merger is successful, it will probably impact the market of large shoe companies, which is different from the market pressure faced by small shoe companies. Large enterprises will have to face up to the strong expansion after BELLE's acquisition. "

Because BELLE products are located in the middle and high-end market, the main market is in the first tier cities. Now the acquisition of the shoe business and the expansion of the men's shoes show that BELLE is trying to expand to the two or three tier cities nationwide and launch more brand positioning.

This has become the "heart disease" of many large shoe companies in China.

Wang Zhentao, chairman of AOKANG group, a leading shoe manufacturer of domestic men's shoes, is worried about the expansion of BELLE after listing. As early as the news came out that BELLE's listing and financing in Hongkong was 8 billion 660 million yuan, Wang Zhentao asked questions. If BELLE used these funds to distribute in the whole country, how should AOKANG deal with it?

And after the BELLE group went public in the production of men's shoes, Wang Zhentao sighed: "the competitor has added one, and it is heavyweight."

At present, the industry generally believes that the shoe market in China is still highly dispersed. At the moment, another leading enterprise in BELLE's acquisition industry, under the premise of successful integration, will promote the market share of the domestic footwear industry to gradually concentrate from a high degree of decentralization, and will have an impact on the competition pattern of the industry.

It is not only a symbol of the pformation of China's footwear industry from the industrial economy to the capital economy, but also likely to trigger a tide of listing in the industry.

The booming BELLE has brought a lot of impact to many Wenzhou shoe companies, which are known as shoes.

At present, BELLE international owns 8 footwear brands, such as BELLE, Teenmix, Staccato, real beauty, and so on. It has acquired 3 famous brands, and the famous brand has reached 12.

This has brought unprecedented shock to Wenzhou shoe enterprises, and the biggest touches are Wenzhou, known as "China Shoes Capital".

At present, there are about 2200 shoe-making enterprises, of which 526 are shoe manufacturers.