BELLE Footwear Business "First Quarter" Sales Slump

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The latest retail business data released in the first quarter of 2015 showed that China's largest footwear production and retail companies's number of retail outlets in the mainland has decreased by 167, while the sales of its footwear business have dropped by 7.8% over the same period last year.

In the past, the scale of stores has always been the advantage of BELLE international.

Data show that in the most crazy days of 2011, BELLE international opened 2~3 stores every day.

Sheng Bai Chai, CEO of the company, said that the slowdown in group business growth will become normal and there will be no explosive growth in the short term, so the pace of opening stores will slow down in the future.

You may not know that shopping in shopping malls to buy shoes, perhaps 8 out of ten brands from the same group.

According to the information released by BELLE official website, BELLE has independently operated 13 footwear brands: in addition to the same name Belle (BELLE), we can see Teenmix in various shopping malls.

), Tata (HERS), Staccato (Staccato), Joy&Peace (Zhen Meishi), Millie 's (Miao Li), Senda (San DA), Innet (Nell), Basto (best picture), etc., at the same time, it also manages 7 brands: Bata, Clarks, CAT, and so on.

An industry source told the first Financial Daily reporter, "there is no doubt that China's largest shoe manufacturer and retailer is not BELLE."

But after the rapid development of BELLE, BELLE suffered the most sluggish time in China's footwear industry. Its share price dropped by nearly half of its historical high price of HK $17.86 after being listed on the stock exchange of Hong Kong.

From peak to trough, survival is like roller coaster.

Sheng Bai Jiao, chief executive of the company, points out that the weakening of sales performance of footwear companies is mainly due to structural problems rather than cyclical problems.

He said that this phenomenon will not improve in the short term.

Sheng Bai pepper expects this year's footwear profit margin or decline, the same store sales retrogression will be worse than last year.

This statement shows that the tone of the slowdown in the next few years has no suspense.

The industry said that an increasingly unneglecting reality is that under the combined constraints of market saturation, rising costs and persistent impact of electricity providers, the extensive development mode of women's shoes brands that simply scale and compete with production capacity and cost reduction is no longer feasible.

In fact, BELLE shoe business has been weakening for some time.

In March this year, it released the fourth quarter 2014 earnings report, footwear business turnover fell by 4.2%.

A few more, in the second quarter of 2014, data showed that BELLE international, which has been doing well in its store expansion, has suffered a negative growth in the number of stores for the first time.

In 2014 6~8, the number of retail outlets in mainland China decreased by 56.

Rough statistics will close a store on an average of less than two days.

The reporter noticed that although the main shoe business was weak, the sales of BELLE's sportswear business was good, and the part of the first quarter of this year was up 12.4%.

Sheng Bai Jiao said.

Business has gone through the doldrums in the past few years, the market has finished inventory, performance is better, profit margin trend is benign, in the first three months of 2015, double-digit same store sales growth.

He said that in the past few years, the footwear business has helped the sportswear business, hoping that the sportswear business can be made up for now.

The industry told the first Financial Daily reporters that in order to save their performance, "shoe king" planned the cross-border pformation early.

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

Just a week later, he signed a takeover agreement with LNUOI, Italy, referring to the high-end fashion market.

This campaign declared that China's "women's shoes king" formally crossed the realm of clothing.

"Traditional business growth is weak and seeking new market growth points is one of BELLE's strategic development directions."

The source said.