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    BELLE Stores More Than Two Stores A Day And Wants To Get Rid Of The Trough Through Social Marketing.

    2015/9/19 13:33:00 48

    Apparel IndustryNikeElectricity SupplierMarketing ModeInternetData

    As the boss of the shoe giant, BELLE now suffers from the difficulties of closing shop and declining its performance due to the impact of the electricity supplier and its own strategy.

    BELLE international is experiencing the test of ice and fire.

    On the one hand, the performance of sports and apparel business continued to grow; on the other side, the core business -- footwear for the first time this year fell into the predicament of closing stores and declining performance.

    But in fact, BELLE's performance has been going downhill in recent years.

    To achieve growth in the future, BELLE also needs to solve the problem of brand homogenization.

    Close two stores a day

    According to the latest business data released by BELLE group, the largest proportion of footwear business in the same store is on the decline.

    In the first quarter of this year, sales of BELLE footwear business in the same store decreased by 7.8%, while footwear sales in the two quarter dropped by 7.7%.

    Sales blocked, so BELLE had to slow down the shop speed.

    Data show that in the first quarter and the two quarter of this year, 329 stores were closed.

    In the craziest 2011, BELLE opened a new store in less than two days.

    BELLE's negative growth is not accidental.

    In contrast, the 2011-2014 annual BELLE annual report found that in recent years, despite the overall downturn in the footwear market, although BELLE has maintained its growth in performance and steady pace of opening stores, the growth rate is slowing down from the data.

    During the period of comparison, sales revenue increased by 22.1%, 13.5%, 10.1% and 8.7% over the same period last year.

    Among them, the slowdown in the sales revenue of footwear business is the most obvious, slowing from 15% growth in 2011 to 3.2% last year.

    The sales revenue of sports and clothing business has maintained a relative growth rate in recent years, compared with the same period last year, 13.5% in 2011, compared with 17.2% last year.

    In terms of opening up shops, the shop opening speed of sports and clothing stores remained stable during the comparison period, but footwear stores had increased by 1958 from 2011 to 876 last year.

    The delisting of "Belle" brand in Hongkong recently shows the decline of the shoe giant.

    At the end of August, the flagship brand "Belle" of BELLE group was located in the last store in Hongkong. The main reason for its withdrawal is that the input is not directly proportional to output.

    For the decline in performance, BELLE is not without a hunch.

    In the earnings report released earlier, BELLE group CEO Sheng Bai Jiao said that under the environment of Internet changing people's lifestyle and behavior mode, the current business dilemma of fashion shoe and clothing retailers is the common problem of the industry.

    The retail business of BELLE group, especially footwear business, is mainly operated by department stores. Currently, it is generally faced with the pressure of insufficient passenger flow and low consumption intention, and it is hard to see effective improvement in the short term.

    Weak coping strategies

    In the macroeconomic downturn,

    Traditional retail

    The department stores are all depressed.

    Constrained by the overcapacity of manufacturing industry and the impact of electric business, the domestic shoe industry is in a sluggish state. As the biggest shoe manufacturer in China, BELLE's performance decline seems inevitable.

    However, Yang Dayun, President of the excellent international fashion brand investment company, believes that when BELLE is facing the new environment, whether it should deal with the speed or the intensity of its efforts, it will appear weak.

    It is understood that since its listing in 2007, BELLE has been insisting on multi brand and multi-level marketing strategies, opening stores and counters in shopping malls in large and medium-sized cities, expanding and occupying the market in a near monopoly situation.

    BELLE international operates a total of 13 footwear brands: Belle, Teenmix, Tata, Innet, Basto, and so on. At the same time, it also operates Bata, Clarks, HushPuppies and other 7 brands.

    Ms. Chang, who often buys shoes, says that the similarities between brands such as Belle and Tata are similar.

    Even for the same brand, the styles of the same season are often changed a little.

    This also deviates from the original intention of multi brand development strategy.

    This result also shows that in the 2014 fiscal year, BELLE's private brand growth rate is only 1.5%, while the proxy brand growth is 23.1%.

    {page_break}

    Yang said that with the arrival of the new consumption era and the Internet era, BELLE's extensive development strategy relying solely on abundant capital is obviously out of date.

    Although BELLE owns many different sub brands, there are also problems such as product design similarity, which makes consumers' cognition of brand vague and sticky.

    At the same time, with the multiple choices on the Internet and the entry of high-quality brands from abroad, BELLE's products gradually lose their performance price ratio and competitiveness.

    After seeing the slowdown in the growth of its own footwear brands, BELLE wants to seek new profit growth points by increasing the proportion of sports and clothing business.

    In 2013, BELLE Group invested nearly US $100 million to acquire Barok, a Japanese clothing retailer.

    Sales revenue of BELLE sports and clothing business increased to 42.4% last year from 39.4% in the same period last year.

    But Yang Dayun believes that such a business extension can not bring obvious results.

    Because of the macroeconomic background, the apparel industry has also been affected, and this structural adjustment has not been successful.

    According to the analysis of the North Institute of Commerce, although sports and clothing can bring a higher growth rate, but because of the majority of agents, the gross profit is smaller than that of their own brands.

    In addition, as the trump card of BELLE sports and shoes and clothing, there are more and more distributors of ADI and Nike, and the direct battalion is also increasing the proportion of the Chinese market.

    The growth of proxy brand performance does not substantially restore the overall decline in the performance of the footwear brand.

    Adjustment or out of the trough

    A series of strategic deviations and untimely response, let shoe king BELLE stand.

    Transformation

    Above the draught.

    However, Yang Dayun believes that BELLE is probably experiencing the biggest crisis since its establishment due to the weakness of the macro-economy. But as the leader of the shoe industry in China, this period is also a good adjustment period for BELLE.

    BELLE has begun to adjust the source of e-commerce channels.

    Before the fall of this year, the products of Belle, Tata and other brands in Tmall flagship store are mainly in the same quarter of the previous year.

    For BELLE, the Internet channel was simply a platform to deal with inventory only.

    But now, on the front page of Tmall flagship store on Belle and Tata, the new products in autumn 2015 are very conspicuous.

    Shoes are also changed to the price of hundreds of dollars per day for thousands of yuan. Some shoes in the fall are now discounted, and the price is between 300-800 yuan.

    Yang Dayun believes that the spread of former brands is generally achieved through product pactions, and now BELLE should help.

    Internet

    Social marketing promotes brand awareness and influence.

    At the same time, Yang Dayun said that BELLE group should implement individualization strategy from three aspects: brand, marketing mode and consumer group.

    In the face of a multifarious and ambiguous brand, BELLE should pform its fleet from a large aircraft carrier to a fleet of various fleets and integrate its brands.

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