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BELLE, China'S Biggest Footwear Retailer, Suffers From Growing Pains

2013/3/25 12:43:00 34

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Below P, China's largest a target= "_blank" href= "http://www.91se91.com/" shoe less /a class retailer BELLE international is suffering from growing pains.

Earlier, not only did the media report that BELLE international and its partnership broke up, but its electricity business also fell into losses and other negative rumors.

At the same time, P added that last month, BELLE announced that its performance was "slight growth", and its first half decline in the second half of the year was BELLE's international listing after its more euphemistic wording.

BELLE International said in its announcement that BELLE International's net profit in 2012 increased slightly compared with net profit in 2011, and pointed out that net profit was close to 4 billion 280 million yuan.

It is understood that in 2011, BELLE International's net profit was 4 billion 250 million yuan, which means that BELLE was near zero growth in 2012.

performance decline

The P BELLE international earnings warning caused a strong reaction from the market.

According to BELLE international bulletin, some analysts' comments on the overall financial performance of the group, including the net profit in December 31, 2012, will range from 4 billion 280 million yuan to 4 billion 850 million yuan.

"The board of directors will be close to the lower end of the net profit in 2012 as expected in the analyst's report."

some analysts said that if the net profit of 4 billion 280 million yuan was calculated, BELLE International's net profit growth in 2012 was almost zero.

BELLE International's net profit grew by more than 12% in the first half of 2012, which means that BELLE International's performance in the second half of last year has fallen back.

in addition, the report released by Citibank said that BELLE International announced that its net profit fell by about 10% in the second half of last year, while the market expected an increase of 10%.

Citigroup quoted BELLE management as saying that BELLE last year had four main plates that had dragged down corporate profits, including the one-off provision and other costs arising from the termination of the distribution rights of footwear and sports brands. The joint venture's losses in the new business were higher, the profit contribution of Hongkong's retail operations was lower, and the profit margins of the mainland's core operations were lower.

in fact, the speed of starting a shop from BELLE can also be seen.

It is reported that BELLE opened 1100 stores in the fourth quarter of 2011.

However, BELLE International's fourth quarter report shows that the number of retail outlets in the mainland has increased by 889, while the number of shops in the first half of BELLE has increased to 752.

"For BELLE's business model, opening stores still plays a central role in performance growth."

One industry insider said.

break up puzzle

it is worth mentioning that in the announcement of BELLE's performance forecast that the company's performance in the second half of 2012 has declined, many media quoted BELLE's news that BELLE will no longer distribute the Kappa products of China's trend.

Chen Zhijian, an analyst at P > Changjiang Securities (000783, stock bar), said that BELLE's international market value of nearly 123 billion yuan and its market capitalization of over 5 billion 800 million yuan in China were rumored to break up.

"Whether BELLE will fully focus on casual footwear, abandon sports category, or signal a major contraction in operation, is now possible for all two.

Whether China can rearrange the distributors' channels and strengthen the channel's right to speak is also on the move.

For the above market rumors, reporters call BELLE and China two party movements, as of press release, also did not receive a reply.

however, the fluctuation of its performance may only be a part of the "breaking up" incident.

In fact, BELLE international has always wanted to clarify the business plan of its leisure footwear and sports footwear, and the distribution of interests among brands is the top priority.

Under such a premise, Kappa, which is poor in performance in recent years and concentrated in shops, is equivalent to "giving advice to others" at this time.

in fact, similar events are actually not the first in the industry. In 2009, Daphne abandoned the latter's agency business because of the decline in Nike and Adidas's performance.

At present, BELLE in addition to Kappa in China, but also agents CONVERSE, Puma and other sports brands.

Although the economic factors have had an impact on the sales of these sports footwear brands in China, the Kappa brand is undoubtedly the biggest impact on consumption promotion and other factors.

According to the financial report data, as of the first half of 2012, the total number of Kappa brand stores decreased by 569, a decrease of 18.2%.

In the reporting period, China's profits also dropped by 56.9% compared to the same period last year, only HK $97 million.

"P", BELLE has attributed the reason to two points: on the one hand, the continued downturn in the market makes the company lower the target of the distributor's order, which leads to a decrease in the number of sales; on the other hand, it is responsible for the current difficulties to reduce the sales discounts of the over season products and adjust the supplier's supply policy to speed up the inventory.

but there are more than one sigh: in the fourth quarter of 2012, Italy's first men's shoes brand and the world's second largest casual shoes brand Geox (Jian Le SI), 5 years after the BELLE agent of Chinese women's shoes boss, eventually separated.

At present, Geox relies on BELLE and has 340 sales outlets in the mainland.

MarioMorettiPolegato, founder and chairman of Geox, said the company's cooperation with BELLE will expire at the end of 2012 and will not be renewed in 2013.

Starting from this year, it will operate in three main cities in Beijing, Shanghai and Tianjin. The sale of the remaining two or three tier cities will be represented by the mainland high-end footwear brand Nissin.

According to the plan, Geox will have 382 stores in mainland China in 2017.

data show that in 2008, Italy's Geox, the world's second largest shoemaking enterprise, extended its olive branch to BELLE, a domestic shoe giant, and formally signed the agreement to grant BELLE exclusive rights in mainland China.

In the past, AOKANG was both a foundrier and a retail outlet for the company, and Geox later gave BELLE the more profitable business, that is, retail, and left the part of the foundry to AOKANG.

In response, a number of internationally renowned investment banks, including J.P. Morgan, Citibank and Credit Suisse, have reported that cooperation between BELLE international and Kappa and Geox will disrupt BELLE's development.

electricity supplier's pain /p >

then, what will be the impact of the two major partners? At present, BELLE's own brands include: Belle (BELLE), Teenmix (Teenmix), Tata (HERS), Staccato (Staccato), Joy&, Peace (real Poetry), Mirabell (Mei Libao), Millie s, Senda (Xinta), Millie (innell), Mun (best picture), and so on; the famous international brands of agents include: ",", ",", ",", "and".

Morgan chase reported that BELLE international needs to make a one-off provision to terminate the two sportswear brands Kappa and Geox, while e-commerce and new popular brand market losses result in a decline in performance.

JP Morgan believes that in addition to Kappa and Geox related costs are one-time, two other reasons will continue to affect BELLE international operations in the future.

according to the introduction, BELLE international has made great efforts to carry out the development of the electric business. However, due to the difficulty of the pformation from traditional enterprises to e-commerce, BELLE international has not made much progress in the business of e-commerce.

Not long ago, Xu Lei, one of the elders of the excellent purchase network, had already left the CMO network, and returned to the Jingdong mall as the senior vice president of the marketing department.

Earlier, there was news that BELLE international cooperation with suning.com was broken, resulting in suning.com BELLE's brand products have shelves clearance.

Wang Enbin, director of public relations of BELLE's e-commerce department, said: "our cooperation with suning.com has been very good. The reason why it can not be searched is due to the interface of search, and now it belongs to the season change, so some products may be cleared."

Suning.com market center responsible person also said, "our cooperation with BELLE has no problems."

but it is puzzling that suning.com's website can only search for a woman's shoes on BELLE's website.

it is reported that the online shopping mall has started to accelerate its platform strategy since the second half of last year. In addition to the original Tmall flagship store, it has now entered the B2C platform such as Jingdong mall, suning.com, Dangdang and No. 1 store.

The reporter searched at Tmall flagship store and found that the sales volume of BELLE official shop was far lower than that of other footwear products.

In terms of best selling, AOKANG's best selling men's shoes sell more than 3601 pairs in a single month, and the best selling men's shoes in red dragonflies sell more than 2220 pairs in a month, while BELLE's men's shoes sell only 629 pairs in a single month.

for BELLE's electricity supplier's performance, Wang Enbin said, "at present there is no specific data announcement, but we can say that all the performance has exceeded our expectations."

But it is worth noting that a number of internationally renowned investment banks have pointed out that BELLE's e-commerce business is in a state of loss.

Less than P, experts say, for BELLE, the deeper reason is that more than 70% of its stores are in traditional department stores.

On the one hand, the department stores have been blocked by electricity providers, and on the other hand, they have been diverted by shopping centers.

BELLE faces many challenges because of its high operating cost and serious passenger flow.

"In front of BELLE, there are two ways: first, to actively improve the distribution of the current stores, the other is to tie in with the department store formats, and to improve the shopping experience and other means to tide over the difficulties of the department stores."

In P TOP10 e-commerce enterprises in the United States, only Amazon is a pure e-commerce enterprise, the rest are traditional enterprises.

This shows that the distance between retail enterprises and emerging technologies and markets is very short in the US. E-commerce in the United States has inherited the retail genes of traditional enterprises.

In P, in China, for a long time, when people refer to Internet sales agents, they always differentiate them into e-commerce enterprises and traditional enterprises.

The reason is that China's traditional enterprises are far behind the pure Internet companies in the application of IT technology and Internet marketing.

That is to say, there is a huge gap between China's traditional retail enterprises and the new IT technology and Internet marketing.

As a result, China's traditional enterprises and e-commerce enterprises seem to be very different.

with the participation of traditional enterprises in Internet sales, this situation will slowly change, and this change will become faster and faster.

Taking traditional enterprises like BELLE as an example, the initial attempt at electronic commerce seems to have made no contribution. Compared with those enterprises that are growing several times more, their experience is more exploration, attempt, abandonment and reconstruction.

In this process, we need to straighten out the relationship between enterprises and distributors, the relationship between internal innovation departments and traditional departments.

In the eyes of e-commerce enterprises, these traditional enterprises are wearing fetters to swim in the tide of electricity supplier.

in fact, whether it is business enterprise or traditional enterprise, its essence is retail.

And companies like BELLE are born with retail genes.

If we want to get a share in the big market of the electricity supplier, after we straighten out the relationship and clarify the direction, as long as we make up the lesson of Internet technology and marketing, it is not difficult to establish our own status in the future.