China'S Move To Cooperate With BELLE Is Now Cracking, And 569 Stores Have Dropped Sharply Last Year.

< p > < < a href= > http://sjfzxm.com/news/index_x.asp > > BELLE < /a > also has control over international brands. If these international brands want to enter China, BELLE is the best channel.

But now Kappa's network channels in China are basically mature, and China's trend can also be considered for the recovery of distribution rights.

An anonymous person said.

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< p > after last year's decision to conclude cooperation with Baosheng international, the third largest distributor, China's trend will be separated from another heavy dealer BELLE international.

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< p > recently, Hongkong media reported that BELLE would no longer distribute the Kappa products of China's trend, and the stock price fell more than 5% on the day of a href= "http://sjfzxm.com/news/index_c.asp" > China's trend < /a >.

A spokesman for China's trend said the two sides were still discussing cooperation.

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< p > < strong > recover the right to speak in the channel < /strong > < /p >

At present, China's largest distributor is its holding company, P, which accounts for 40% of China's revenue.

Mai Sheng Yuehe co founded the company in 2011 with China's trend and some distributors, hoping to consolidate the relationship between China's trend and distributors and form a community of interests.

While BELLE is the second largest distributor in China, sales account for about 15% to 20% of China's sales.

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"P", an analyst who asked not to be named, told reporters that it is not impossible for China to move back to BELLE distribution.

In the early years, relying on BELLE's powerful shopping mall channel, Kappa has already spread out its own network.

If we rely on such strong distributors like BELLE for a long time, China will have less and less advantage in terms of voice and control.

Without BELLE, although China's trend will lose certain sales volume and market share in the short run, it will ultimately benefit the company's cultivation of Kappa brand.

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In the domestic market, BELLE's chain mode has greatly exceeded the department store mode, and has formed a controlling force on the terminal customers. Because of the large number of brands, consumers can easily choose BELLE's brand products. BELLE also has control over department stores, and its entry will drive the popularity of P.

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"P >" BELLE also has control over international brands. If these international brands want to enter China, BELLE is the best channel.

But now Kappa's network channels in China are basically mature, and China's trend can also be considered for the recovery of distribution rights.

The analysts said.

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< p > a distributor told reporters that at present, agents already started negotiating BELLE's plate a few years ago.

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Chen Yihong P told the media at the end of last year that the Chinese company was a large wholesale mode, and brands did not control the retail channel. CEO

The whole industry is facing the difficulties of "brand + wholesale" mode.

As long as you sell wholesale and the tickets are finished, sales volume has already been formed for the brand operators. It will not pay attention to the change of the retail terminal.

Companies such as Lining and China are slow to respond to market changes.

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< p > < strong > store half a year down 569, < /strong > /p >

The brand positioning of "P > China" is "sports fashion". In 2006, China moved from the Italy BASICNET company to buy the ownership of its world-famous sports fashion brand Kappa in mainland China and Macao, and made targeted design for Kappa, and subsequently acquired Kappa ownership in Japan.

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< p > > a href= "http://sjfzxm.com/news/index_f.asp" > Kappa < /a > for a long time, it did not fail to meet expectations and became the "swing Qian Shu" of China's trend.

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In the first year of listing in 2007, China's turnover was more than HK $1 billion 711 million, an increase of 99.2% over the same period last year. Net profit increased by 139.4% over the same period last year, up to HK $733 million 600 thousand. P

In 2008, the company's sales doubled again to HK $3 billion 322 million.

Since 2010, China's performance has been on the decline. As of the first half of 2012, China's turnover was about HK $1 billion 668 million, net profit fell by 56.9% compared to the same period last year, only HK $97 million.

The total number of Kappa brand stores decreased by 569 to 18.2%.

The company's share price also dropped from HK $6 to HK $1 in 2010.

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< p > despite China's efforts to change the past sales model, increase the spot sales ratio and reduce the order targets of distributors, the company's inventory remained at HK $359 million as of June 30, 2012, a slight decrease of 11% compared with HK $404 million at the end of last year.

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< p > China's trend analysis shows that the overall downturn in China's business is due to the downturn in the market and the reduction of the dealer's order objectives, resulting in a reduction in the number of sales. On the other hand, it is due to the reduction of sales discounts for the over season products and the adjustment of the dealer's supply policy to speed up the clearance of inventory.

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In October 2011, when Chen Yihong returned to China and took over CEO, he still stuck to the "sports fashion" that brought great success to P.

But many people in the industry believe that the functional positioning of sports products is the biggest demand, followed by fashion and leisure.

This is why many sports brands, on the functional basis, slightly enhance sports fashion design, which is the key to the rapid and sharp decline of Kappa sales.

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"P" commentator Ma Gang told reporters that the pressure of China's inventory pressure also impeded its pformation and adjustment.

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