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800 Million Successful Acquisition Of Big&Nbsp; Step&Nbsp; BELLE Is Committed To Sports Brand Agency.

2012/4/22 16:51:00 13

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Brand Shoes BELLE Shoes Sportswear Sportswear

BELLE international, which has absolute market power in women's shoes, is increasingly showing its ambition in the sporting goods distribution industry.

At the end of last year, the largest sporting brand agency in Southern China was acquired by Shenzhen leading sporting goods company limited. Recently, it announced that it would buy Nick and Adidas distributors Big Step, which had more than 600 stores, and BELLE's channel layout for sporting goods distribution industry has been gradually clear.

1025 new stores opened last year

BELLE announced that it will invest 880 million yuan to acquire a full stake in a company called Big Step Limited, with the aim of increasing the development of sports and leisure market in China with the help of the latter.

Big Step is a sports brand distribution company in China. It sells and distributes Nick and Adidas products in some provinces and cities, and has 600 self operated stores, which is basically the same as BELLE.

BELLE's business scope includes Belle, Teenmix, Tata, Staccato and so on.

shoes

The other important business is the sportswear business.

BELLE sportswear business is currently dominated by distribution agents, including front-line sports brand Nike and Adidas, second-line sports brand Kappa, PUMA, Converse and Mizuno.

The first line brand and the second line brand division, on the one hand, is based on the importance of the business. The sales of the two brands of Nike and Adidas account for more than 85% of the group's sports apparel business.

On the other hand, it takes account of the differences and commonalities in operation, management and performance. Nike and Adidas brands have a high degree of awareness and rich structure in Chinese consumer groups. The scale of single stores is generally larger than that of second tier brands, and their profitability is also strong.

BELLE believes that the acquisition of Big Step will enhance BELLE's strategy and channel layout in some regional markets.

In addition, since the business is basically the same, the scale effect can be generated and the procurement cost reduced after the acquisition.

BELLE's 2011 results show that the company has 14950 stores in the sporting goods market. In 2011 alone, the company has entered more than 30 new cities, and has worked with more than 200 department stores. The total number of net shops has increased by 1025 over the past year, an increase of 28% over the same period.

Sports apparel income is not equal to footwear.

It is understood that in November last year, BELLE international bought Southern China's largest sports brand agency in Shenzhen for 1 billion 100 million yuan, leading the sporting goods Co., Ltd., thereby greatly improving BELLE's position and competitiveness in the sporting goods distribution industry.

BELLE estimates that after the acquisition of Big Step, the annual sales of Big Step's terminal stores will reach 2 billion yuan.

The analysis pointed out that the sports brand agents that can compete with BELLE today are only Baosheng international, which owns more than 3000 Direct stores and thousands of joint stores in China.

domestic

Sportswear

Competition in the industry is becoming more and more intense. However, due to the disappearance of the international economic situation and the domestic dividend policy such as population and land, the sports apparel industry has gone from high speed to rapid development. At the beginning of this year, all kinds of sports brands including Lining and Anta have suffered from declining orders and high inventory.

From BELLE's last year's earnings report, we can see that BELLE has 14950 sporting goods terminal stores, which are far higher than 10270 of the footwear products stores, but the benefits from the terminal shops of footwear products are far higher than those of sporting goods terminals.

Last year, BELLE's total sales amounted to 28 billion 900 million yuan, of which only 10 billion 400 million yuan was contributed from sporting goods.

The proportion of sports apparel business income in the group fell from 38.2% to 36%, gross margin was 36.6%, up only 0.7 percentage points from the same period last year, far below the gross profit margin of the footwear products of the group.

According to the analysis of BELLE annual report, sportswear business involves only retail distribution links, while footwear business is a full value chain mode. Therefore, the former's profitability, including gross margin and operating profit margin, is significantly lower than that of footwear business.

BELLE said frankly that the future sportswear business will face many challenges such as general merchandise channel adjustment, fierce competition of international sports brand and overstock of local sports brand.

Although the sports industry continues to operate, but BELLE has not slowed down the pace of expansion in the women's shoes market, in addition to continue to stabilize the high-end women's shoes market, but also tentacles reach the middle and low end.

Women's Shoes

Market.

It is understood that, due to the gradual saturation of the high-end women's shoes market, BELLE launched its first mid low end women's brand 15MINS at the end of last month, focusing on mainland wage earners with a monthly income of about 3000 yuan.

BELLE management revealed more recently that it will open 100 low-end women's shoes stores this year, which means that BELLE has finally put down its position, competing with the "shoe king" Daphne in the low-end women's shoes market.