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    BELLE Crossover Women'S Clothing From Shoes Industry: Will It Be Comedy Or Farce?

    2014/1/26 13:05:00 23

    Garment IndustryRetailingEra MarketingManagement Mode

    < p style= "text-align: center" > < img src= "/uploadimages/201401/26/20140126010824_sj.JPG" align= "center" border= "0" alt= "/" < < > >


    < p > August 2013, BELLE acquired 31.96% stake in Barok Japan company for HK $733 million.

    Barok, Japan, is a fast fashion brand retailer specializing in young Japanese women. Its 90% stores are located in Japan and 24 in mainland China.

    Unlike the popular Korean or European and American brands on the market, Barok represents the trend of women's clothing in Japan.

    In China's mainland market, there are few Japanese women's competing products except I.T's large collection store.

    < /p >


    < p > this campaign announces that China's "women's shoes king" is formally crossing the border of women's wear.

    Just a week later, he signed a takeover agreement with LNUOI, Italy, referring directly to BELLE's high-end fashion apparel market.

    < /p >


    Barok, who is eager to spend the winter, has bought the Japanese a href= "http://www.91se91.com/business/" > cross border action < /a >, such as the Japanese company such as Barok, and so on, which is a great hope for the management of BELLE shoes industry, which is the solution to BELLE's shoe industry.

    Of course, this is also a "bargain market" when the bottom of the bargain.

    Shen Zhengyuan, a senior researcher at CIC, said, "Barok valued HK $4 billion 100 million to HK $5 billion 800 million in 2011, and it was 40% cheaper according to BELLE's stock price."

    Sheng Bai Jiao said, "BELLE will regard the garment industry as the direction of development in 35 years, and will accelerate its entry into China's high-end fashion market."

    < /p >


    < p > < strong > women wear crossover > /strong > /p >


    < p > although this is an important step for BELLE shoe industry to move towards "whole category" and "big retail", the cross-border strategy still worries the industry.

    Famous independent critic Ma Gang will divide the growth bottleneck of shoes and clothing enterprises into three major constraints: "category, channel, management". He believes that "BELLE's core channel advantages consist of more than 1.8 000 stores in the country. The majority of outlets are self owned stores. When other shoes and clothing enterprises are staggering from the batch mode to retail, BELLE's channel management capability has been far ahead."

    < /p >


    < p > but the great changes of the times also make it untimely and comprehensive. The bottleneck of BELLE's growth is less.

    Despite the absolute leading position in the high-end shoes market, it always occupies the 30% market share.

    However, "typical large single product companies" have a premium advantage in front of department stores, but also face higher systemic risks.

    However, the speed of advantage becoming inferior is far beyond the imagination of BELLE management.

    < /p >


    < p > BELLE began to try "a href=" http://www.91se91.com/business/ "product line extension" < /a > earlier. The children's shoes had been the development direction of key categories, and then launched its own brand 15min to expand to the low-end women's shoes market. In September 2012, the acquisition of dragon world entered the high end men's shoes market, but all were under the category of "shoes".

    Even if it is Nike, Adidas, Levi's and other international manufacturers in China's terminal retailers.

    < /p >


    < p > Shen Zhengyuan said, "there is basically no difference between clothing and footwear in terms of commodity sales."

    BELLE always maintains a suitable distance in clothing and plays the role of commission, focusing on footwear production design, procurement, manufacture and distribution channels, and then improves the channel efficiency through consignment.

    < /p >


    < p > Barok is the first time that BELLE has taken over the acquisition of the clothing brand, making it a great step to cross the border.

    2013 semi annual report shows that its revenue grew 11.1% over the same period last year, net profit fell 3.4% compared with the same period last year, and high-speed growth is facing collapse.

    The core of BELLE's operation mode lies in the growth of new stores and the growth of business performance, and the substitution of new categories to replace the original mode of adding new channels has become the first response to its dependence on epitaxial growth.

    < /p >


    The growth rate of shop opening slowed down to 10% in 2013 P. Expanding new products is another way to renew our life and become more important.

    Originally, the "consignment" mode increased the number of new products for once.

    At that time, the Italy men's shoes brand GEOX decided to break up after the expiration of the five year agency contract with BELLE. Although BELLE made efforts to make Italy's first men's shoes brand and the world's second largest casual shoes brand GEOX expand from more than 90 to 340, the abrupt cooperation made it impossible for them to invest in five years.

    < /p >


    < p > this time, BELLE made a decision to play for itself.

    {page_break} < /p >


    < p > strong > two degree pition < /strong > < /p >


    < p > Barok has long been ambitious in planning the Chinese market.

    When the new president Mukai Hirono took office in 2008, his experience in the clothing industry was limited. One of the advantages was fluent Mandarin in Beijing.

    The "China Communications" took over second years, and Barok China branch was established.

    In 2010, the first brand was introduced, and the first mainland store was opened in Shanghai port Hui square.

    Barok's goal was to develop into 100 stores in January 2014.

    < /p >


    < p > but obviously the difference between Chinese and Japanese "play" is huge. At present, Barok's 90% stores are located in the Japanese mainland. After BELLE acquired more than 30% stake, it basically means that the Chinese market is absolutely "a href=" http://www.91se91.com/business/ "leading right < /a >.

    According to media reports, the running in between BELLE and Baroque ended in October last year, and the mobilization of personnel in various districts has been completed.

    Barok, a staff member of the Shanghai company, told the "Global Entrepreneur" that Zhao Shan, the managing director of the board of directors, had left the company. "Now (Management) is the person of BELLE shoe industry".

    < /p >


    With the help of BELLE, Barok's goal of "100 stores" was lightened by P.

    Take the new world department store as an example, its total of 70 footwear brands, BELLE and its brand accounted for 13%, contributing 30% of sales performance.

    Women's clothing will benefit directly from the influence of its footwear brand and get a high premium on the shops and renting judgments, which is similar to the way BELLE sells other clothing brands.

    < /p >


    Less than P, however, the unknown is the brand product itself. Whether the crossover success can be achieved in the field of clothing production design that BELLE is not good at.

    Ma Gang thinks, "buy Barok, BELLE won't expand to dress design, because input cost is high and cycle is long."

    It is difficult for BELLE to master product design, which puts a risk on it.

    < /p >


    In the same period of 2013 as the downturn of the clothing industry, the era of strong marketing in the past has gone back to P.

    "Nowadays, marketing is just the beginning, not the key to success.

    The main thing is to have good products in hand.

    Ma Gang said to Global Entrepreneur.

    < /p >


    < p > BELLE has its own store in its own shoes city and its department stores, but BELLE's < a href= "http://www.91se91.com/business/" > target consumer /a < > whether to pay for Barok is another matter. The key commodity design is not held in BELLE's hands, but is controlled by Barok.

    < /p >


    < p > < strong > Raptors crossing the river < /strong > /p >


    "P", which is a pformation decision that we have worked with Barok, is a painstaking effort for BELLE.

    In the depressed Japanese clothing market, Barok continued to grow, earning 59 billion 800 million yen (about 4 billion 500 million yuan) in 2012.

    The company, founded in 2000, is good at finding market opportunities.

    Take its first brand, Mose (Moussy) as an example, it is certain that at that time there was no "cool style cowboy fashion" opportunity in the Japanese women's wear market.

    Barok launches new business every year: Shel tter for shopping for young women in department stores, Rodeo Crowns Wild Bowl for family audiences, and Enfold for mature women who are very sensitive to the trend.

    < /p >


    < p > the strength that Barok establishes for himself is: "in the distance from the nearest place of customers, we should catch and accumulate the potential demand of customers, and reflect these needs to the products, and take the lead in introducing unprecedented new fashions."

    "Moussy leg jeans" is an example of mining consumer demand.

    After in-depth study of Asian women's physique, designers constantly grope for cowboy fabric selection and beautification of leg shape, and finally solve the problem of how to make the legs look as if they are generally slender in Europe and America.

    < /p >


    < p > BELLE needs to wait for at least one year trial and error process, so that Barok can capture the expertise of the trend demand in the < a href= "http://www.91se91.com/business/" > the Chinese market < /a >, and complement the BELLE channel and management advantages.

    As Ma Gang said, "at least a year later, there will be some movement. It is necessary to form a system of goods, stores and management for at least two years."

    < /p >


    < p > BELLE said, "this investment and joint venture will provide opportunities for the group to develop the fashion industry in China and increase the coverage of the consumer market."

    < /p >


    < p > China's footwear industry cried out last year.

    Daphne's same store had a negative growth in sales, net profit fell 35.8%, and the shoe industry's net profit in the first half of slipped by 34.78%.

    Just as Shen Zhengyuan told Global Entrepreneur, "terminal sales data are declining, and BELLE pformation is also urgent."

    < /p >

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