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    Does BELLE'S Breakup Affect BELLE'S Performance?

    2012/11/21 21:44:00 28

    Jian Le ShiClothingChinese Market

    Italy's first men's shoes brand, the world's second largest casual shoes brand.

    geox

    (GEOX) after 5 years of acting by BELLE, the Chinese woman's shoe boss, she finally chose to "break up".

    Footwear international BELLE international will lose the mainland business agent of Italy brand next year.


    The reason for BELLE's breakup


    The employees who were responsible for the mainland's business revealed that the reason why they didn't renew their contracts was that BELLE only paid attention to the growth of sales during the cooperation period, focusing on the growth of sales volume. Its self and brand types were not clear enough to take care of other aspects of the brand image.

    For Yang Xilun, who broke up with BELLE, the brand expert believes that this is a conflict between the East and West's business philosophy and value system.


    Yang Xi fell: BELLE is a listed company, and there is a constant demand for performance. While Italy brand brand has its own path of development, sales guidance and brand management orientation may conflict, leading to breakup.


    As a well-known brand of casual shoes in Italy, Jian Lok settled in BELLE Hongkong in second years. The sole agency agreement signed at that time lasted for 5 years.

    At that time, BELLE was joining hands with Jian Lok to expand his brand "reserve" and to expand to the men's shoes market. Because the main products of Jian Le's are high-end high-end men's casual shoes products, this can play a great supporting role in the expansion of men's shoes business of women's shoes giant BELLE.

    The head of the company said that it had stopped working with BELLE because he wanted to enter China in more direct outlets. The Japanese company had more advantages than BELLE in the operation of Direct stores and the management of high-end footwear brands.


    However, we understand that before joining BELLE, Jian Le she joined hands with the Zhejiang men's shoe brand AOKANG shoe industry in early 2003 to enter the Chinese market.

    AOKANG is responsible for the brand promotion, network construction and product sales of China's market in the Chinese market. It is AOKANG's power to distribute China, while AOKANG also uses the network of Jian Le Si to move towards the international market.

    In October 2004, AOKANG international brand industrial park was officially opened.

    At that time, the cooperation between the two sides was called the classic case of shoe companies entering the world.

    However, after the end of the contract with AOKANG, he did not choose to renew his contract and turned to BELLE to expand the Chinese market.

    Yang Xilun, a brand expert, believes that he had already planned to break up with BELLE.


    Yang Xi fell: in fact, Jian Le Si was ready to leave BELLE, including signing the agreement with the Japanese emperor.


    Will BELLE's performance be affected by parting ways?


    In the first half of this year, BELLE, a leading shoe manufacturer in the mainland, was a growth trend against the market. Its revenue and net profit increased by 15% and 12% respectively, and the gross margin was 57%.

    In the second quarter, the same store sales growth returned to 10.5%, and net profit was 2 billion 242 million yuan, becoming the highest net profit retailer in the footwear industry.


    According to the financial report, as of the end of June this year, BELLE shoes own brand business accounted for about 57.2% of revenue, and footwear agency business accounted for only about 5.5% of revenue.

    So, will the choice of BELLE to split up with BELLE will have an impact on BELLE's future development? Brand expert Yang Xilun believes that the profit of agency business is very small in BELLE's total plate, and the loss of individual agent brand will not affect its overall business.


    Yang Xi: in general, BELLE is a strong brand in China. It has its own leading development strategy. Losing a brand will not have a great impact on its entire financial structure or influence, and there will be many choices in this matter, because after all, it is agent relationship.


    Handover to meet challenges


    Recently, the brand of Italy's brand has signed a cooperation agreement with another Chinese agent, Nissin, which plans to have 382 GEOX stores in mainland China in 2017.

    However, other relevant sources revealed that when he studied Chinese stores, he found that whether it was the brand image or the promotion of product categories, it was far from the intention of Italy headquarters.

    BELLE's own brand is basically a brand of women's shoes, and the profit is also women's shoes.

    Perhaps because of the consideration of improving product category, BELLE intends to increase the intensity of men's shoes when acting brand.


    In the 5 years of BELLE agency, the proportion of men and women shoes was about 8:2, while in Europe, men's shoes accounted for 40%, women's shoes accounted for 50%, and children's shoes accounted for 10%.

    "This makes Chinese consumers generally think that it is just a brand of men's shoes, but in fact it is not at all."

    Yang Xilun, a brand expert, said that the reason why he was not working well with AOKANG shoes and BELLE was that he did not understand the Chinese market and Chinese corporate culture.


    Yang Xi: I think it is not enough to understand China's market, industry chain, industrial structure, and business culture. European brands are stereotyped. But China is a changeable market and a flexible market. For the future, it is still a challenge for the healthy people.


    In particular, after the European debt crisis, the European market has generally declined, and the centroid is turning its focus to the Asia Pacific region, especially in the Chinese market.

    Mario, founder of Mario, said: "we plan to increase the speed of opening stores, and we will add 20 Direct stores next year, and the agency will open 100."

    The focus of China's products will shift to women's shoes and launch.

    Clothes & Accessories

    And other categories.


    Experts analyze the way forward for the health club.


    At present, there are 8 direct outlets in Shanghai and Beijing.

    There will also be selective expansion of strength in the second tier cities, such as the addition of direct outlets in Tianjin. In addition, next year, the company will open a flagship store in Ningbo and launch an online shopping website to enter the channel of e-commerce.

    For the future development of Jian Le Si in China, the answer of brand expert Yang Xilun is intriguing.


    Yang Xilun: Jianle is the first step to cooperate with AOKANG, the second step is to cooperate with BELLE, and the third step is to cooperate with Japan. In fact, the three enterprises themselves are different in positioning, because AOKANG is itself a brand enterprise. The first step with it can help Jianle build a factory and understand it.

    Chinese Market

    In the second step of cooperation, BELLE has a huge sales network, Jian Le Shi sells his shoes through BELLE and improves the awareness of Chinese consumers. The third step is the Japanese company, which specializes in high-end luxury brands. They may be more clear about the location of Italy brand or target segmentation market, and may be more perfect in terms of customer goals, ideas and ways of operation.

    Therefore, the expectations of Jian Le's should be relatively clear, but it will be difficult to predict whether the expectations will be lost again because of the changes in China.


    In the industry, Mr. Kuang Jie believes that after cooperation with JAC, there should be some changes.


    Kuang Jie: before it worked with AOKANG and BELLE, it basically gave up AOKANG and BELLE.

    Now with the cooperation of NK and Qing, he will have greater autonomy and have the right to speak, regardless of the speed of opening up and strategic positioning.

    Now if it is not easy for them to want to play the women's shoes, they may lose some loyal users of men's shoes.

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