Game Theory Of BELLE Shoe Business Mode

BELLE mall counter

Who has more advantages in negotiation between BELLE and a department store? Department stores are 50 thousand or 100 thousand square meters of building area, and they are huge creatures. BELLE is only a small counter, and even can not see that they are linked together because it is a multi brand image.

BELLE shoe business model

So who has greater bargaining power? Of course, BELLE. Although it is a small counter, it looks like a small shrimp. The department store looks at a huge monster. But for BELLE, it has 10 thousand retail outlets in the whole country, 10 private brands, four private brands among the top 10 brands in the country, and 30 international agents.

For department stores, if BELLE brand If you don't enter, the mall will not attract customers. In this sense, BELLE has more advantages than department stores. Although it looks small, it looks like it is under the water, the department store is looking at the big water, but BELLE is more successful.

The essence of chain is: gold products plus gold lots, and BELLE does this, so BELLE's Chain mode Leading and surpassing the mode of department stores greatly, it forms control power. BELLE has built up control over the terminal customers, because customers must buy their shoes when they go to department stores, and they can't buy them without buying five palms of BELLE. BELLE also has control over department stores, because it has 1 stores, and it will not be popular if it does not come in.

BELLE also has control over international brands. If these international brands want to enter China, BELLE is the best channel, with the lowest cost, the smallest risk and the largest sales volume. In 2008, a major event took place in China's footwear industry. The second largest shoe making enterprise in the world, GEOX (Italy), extended an olive branch to BELLE, a domestic shoe giant, and formally signed the agreement to grant BELLE exclusive rights in mainland China.

Past times AOKANG The company was both a foundrier and a retail outlet for GEOX. Later, it gave BELLE the more profitable business and retail part to AOKANG, leaving the part of OEM to AOKANG. This means that BELLE's control has been controlled down to the terminal customers and upward to the department stores and brands. This is the controlling power of the company.

Game of business mode: control and counter control

The case of BELLE and Kappa (China trend) is actually a case of control and counter control. In the early days, BELLE was once a distributor of Chinese trends. In order to fight for control of discourse, the Chinese trend finally chose BELLE to withdraw from its distribution channels. Although losing sales and market share in China in the short term, they are sober to realize that short-term sales are not the most important for China's trend. The most important is who has the final say, who has the right to speak and who has control.