The Discount Rate Of BELLE Stores Is Up To 40%.

< p > every shoe lover knows that the optimal number of < a href= "http://www.91se91.com/news/index_c.asp" > shoes < /a > is N+1 double (N is the current collection of shoes doubly), even if the financial situation sometimes curbed the operation of the formula.

Shoe retailers have always been the vane of Chinese consumers. They now have as many shoes as their counterparts in developed markets.

But the shoe size formula does not apply to the number of stores.

BELLE International (Belle International) is a good example.

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< p > according to Nomura data, China now has 6 pairs of shoes per person, more than the Japanese (5 pairs), as well as Taiwanese, but still far below the British average of 11 pairs.

Overall, China's footwear sales have been rising at an average annual compound growth rate of 10% over the past 10 years, compared with about 4% in the US.

BELLE, which targets women in the mid-range market, has grown by an average of 25% a year since it was launched in 2007.

The strategy is simple: stores mean sales, so the number of franchised stores has increased to three times.

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Sales in the first half of this year increased by 11% compared to P.

This is enough for BELLE to become the best performing Hang Seng Index on Monday, up 5%, but so far this year, its overall performance is still the last second.

Bad price declines mean investors are more worried.

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< p > BELLE's slowdown in sales was mainly due to economic weakness and increased competition.

The company promised to increase sales in the same store.

But what if the problem is in its business model? The department stores that depend on it are slowing down.

The owner of Gieves & Hawkes and a href= "http://www.91se91.com/news/index_c.asp", Ferragamo /a (Ferragamo), has just announced that its sales in China have dropped by 10%, due to the weakening of passenger traffic.

Online retailers are also a threat. They sell shoes similar to BELLE models at a price as low as half.

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< p > according to the data of UBS, the current inventory discount rate of "a href=" http://www.91se91.com/news/index_c.asp "> BELLE < /a" is up to 40%.

Whatever the reason, in view of the pricing factors contributing more than 1/3 of China's shoe market growth over the past three years, BELLE seems not to bet on the best way for Chinese consumers to spend a lot of money.

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