Wang Baili, The Old Shoe, Is No Longer Relying On The Agency Brand To Make Profits.

The former shoe king now relies on agency.

Profits can be realized.

Belle International Holdings Ltd, the largest fashion shoe manufacturer in China, issued a mid day report. In the first half of August 31, 2015, the income of footwear business decreased by 5% to 9 billion 835 million 700 thousand yuan compared with the same period last year, but the revenue from sports and clothing business increased by 16.1% to 9 billion 823 million 900 thousand yuan, and the group's revenue grew 4.3%.

BELLE international is experiencing two major business days.

Footwear business as the main business continues to perform poorly.

According to the China Daily, BELLE has reduced 424 of its footwear shops in the mainland in 3-8.

The profit margin of footwear business dropped from 21% last year to 19.3%.

BELLE International believes that the main reason is that the market is sluggish and the average paction price rises, resulting in a sharp decline in volume.

According to the reporter, in fact, the development of footwear business in recent years in BELLE has been slowing down from 15% in 2011 to 3.2% in 2014.

At the same time, thanks to the huge demand for sports products brought by the sports boom, BELLE International's other major business movement and clothing business increased by 16.1%, with 95 new stores in the first half of the fiscal year.

Despite the good performance of sports and clothing business, BELLE's international revenue in half year has barely maintained its growth, but worries remain.

Reporters learned that BELLE international footwear business mainly for its own brand, to adopt an integrated business model, profitability is significantly stronger than the sales agency based sports and clothing business, the first half of the fiscal year two business profit margins were 19% and 10.5% respectively.

However, footwear business accounted for 51.8% of the revenue from BELLE international in the first half of fiscal year, from 55.9% in the same period last year.

Revenue accounted for 49.2% of the group's revenue from 44.1% last year, which means BELLE's profitability is declining.

The industry believes that the current Nike, Adidas and other sports brands in China

More and more, the brand itself is also accelerating the layout of the direct store. The growth of agency brand performance can not fundamentally save the overall decline in the overall performance of the footwear business, which is not a permanent solution.