Competition Between BELLE And Other Shoe Companies Like Daphne

BELLE international, which is "slogan" and "beauty", is really changing this time.

The company, which has been the first in the Chinese brand women's shoe market for 10 years, wants to become a shoe industry WAL-MART, allowing everyone to choose a suitable shoe at its point of sale.

In March 21st,

For BELLE, the most important purpose of the two acquisition is probably not to increase the competitiveness in the sporting goods market.

The growth of China's sporting goods market has slowed down sharply, and domestic and foreign sports brands have had a hard time in the past two years.

According to the 2011 earnings report, BELLE's total sales volume was 28 billion 900 million yuan, of which the contribution from sporting goods was only 10 billion 400 million yuan, and the gross profit margin of sportswear business increased by only 0.7 percentage points over the same period last year, much lower than that of footwear products.

BELLE looks at 600 stores owned by Big Step.

Shenzhen is the largest sporting brand agent in Southern China.

They enable BELLE to further open up small and medium-sized urban markets and emerging communities in big cities.

At present, BELLE's sales depend heavily on department stores in the first tier cities, and this channel is nearly saturated.

The data that can be referenced is that in 2011, the number of shops in BELLE increased by 23.6% compared with the end of 2010, and the income increased by 22.1% over the same period. The number of shops listed in Hongkong increased by less than 19%, while the income of Daphne increased by 29% compared with the same period last year. The sales of Daphne 70% came from the independent stores in the two or three middle and small cities.

BELLE has been in trouble in the fourth quarter of 2011, due to the slow growth in sales of traditional channels.

According to the results of the report, BELLE's revenue fell 15.7% in the same quarter compared with the same period last year, and net profit dropped by 61.9% compared with the same period last year. Its footwear business's same store sales grew by only 8.2%, compared with the growth rate of 18.5% in the third quarter of 2011.

This prompted BELLE to re look at its high-end.

Previously, the average selling price of Daphne and its shoe products was less than 300 yuan, and the price of BELLE's women's shoes was at least more than doubled.

Chen Yingjie, chairman of Daphne International Holdings Ltd's board of directors, once compared BELLE to "Mercedes Benz" in women's shoes industry, while Daphne wanted to be "TOYOTA".

But in the fourth quarter of 2011, Daphne launched its brand remolding program, including the replacement of brand logo and brand new store design.

Daphne group said that in 2012, it will vigorously expand its high-end brand business, and increase the speed of expansion of Direct stores and slow down the growth of franchised stores.

BELLE turned around, but it hit Daphne again.

Liu Guanwu, capital analyst at Analysys, told reporters that the biggest advantage of BELLE's entry into the two or three tier city is its brand value. "But the supply of shoes is not fixed, and BELLE can not block the whole channel."

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Compared with Daphne, BELLE has a rich variety of products now, and already has the prototype of WAL-MART in shoe industry.

At present, BELLE's own brands include more than ten BELLE, Teenmix, TATA, Staccato and other foreign brands, such as Bata, BCBG, Elle and so on, while Daphne has only two brands, Daphne and shoe cabinet.

In addition, the top ranked men's leather shoes market is BELLE brand.

In 2011, when China announced the report time, BELLE said that the future stage of youth and children's products will be the focus of its development.

Through the acquisition of Guangzhou's Yili Lai Group's two children's clothing brands Hello Kitty (Hello Kitty) and Disney (Disney), BELLE extends its tentacles to the field of children's shoes.

A BELLE employee told reporters: "in addition to helloKitty and Disney two brands of children's shoes, BELLE will also launch in 2012 Belle kids, Tata kids and other children's clothing brand."

BELLE also has more than Daphne sales channels, that is, online shoe city excellent shopping network.

The B2C e-commerce platform, which was launched in 2011, has already received $100 million from BELLE.

BELLE plans to invest $200 million in it.

"When the capital market is in the cold winter, many B2C websites that rely on capital investment have contracted.

And this just reflects the advantages of traditional enterprises in e-commerce.

Excellent purchase network public relations director Wang Enbin said.

In the online shopping market, BELLE launched a brand name "inNet", which is located at the lower end of the line.

This brand takes the Japanese port fashion as the main feature, and the price is around 200 yuan.

Moreover, the network special contribution can carry out large-scale "two development" for BELLE's offline products.

It has been reported that BELLE's special contribution from the net to the final production of finished products usually takes only 3~4 weeks.

But Liu Guanwu believes that the current electricity supplier platform does not depend on price wars in the past, and it is "user experience, customer service, logistics, three package service, website experience".

This is precisely the short board for BELLE's traditional enterprises to enter the field of e-commerce.

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Moreover, as BELLE's most important competitor, Daphne has yet to build its own B2C e-commerce platform.

BELLE has already seized some of the opportunities in this future competition, and has helped to maintain its image of quality stocks in the eyes of investors.

You know, BELLE now has a P / E ratio of more than 22 times, and Be Daphne is 1/5 higher.