BELLE Acquired 29% Stake In Italy Brand Replay

As China's physical retail market has withered, the largest domestic market

Belle International Holdings Ltd's main footwear business is rapidly declining, and the group is now actively expanding its campaign to maintain growth and apparel business.

BELLE international has announced that it will acquire 29% stake in Fashion Box SpA of Italy Cowboy brand Replay parent company. The two sides will establish joint venture to manage Replay brand development in Greater China market.

The Claudio Buziol family, which founded Replay brand in 1978 and set up Fashion Box SpA, has completely withdrawn from this paction.

The Buziol family has sold Fashion Box SpA 51% stake to Equibox Holding SpA, which is controlled by Matteo Sinigaglia and Massimo Sinigaglia brothers in 2010. Now the family sells the remaining 49% stake to BELLE international and Box.

BELLE international and Equibox Hodling SpA have made a three year development plan for Fashion Box SpA.

The development strategy aimed at building global brands includes layoffs (30 people) and new partners for the US, Latin American and Japanese businesses. Fashion Box SpA will also focus on Replay's European business.

Besides Replay, Fashion Box SpA also owns

Replay & Sons and high-end brand We Are Replay have 3000 sales outlets and 200 retail outlets worldwide.

In 2014, the group earned about 204 million euros, and 87% came from the international market.

According to relevant data, from the end of fiscal year 2013, BELLE's international footwear business with Belle, BELLE, StacCATo Staccato and Joy & Peace real estate brands began to show a downward trend. In the second half of the 2015 fiscal year, the deterioration was widened to double digits. The group decided to close a lot and withdraw from the Hongkong market.

At the same time, as the sports industry is unusually hot, BELLE International's sports and apparel business has maintained the growth of Nike, Nike and China's largest agents and Adidas Adidas, Puma Puma and CAT.

In the three quarter of fiscal 2015, BELLE international has been reducing its stores, but in the three quarter, the group has increased 278 stores, of which 272 are sports and clothing stores. The fourth quarter group has expanded rapidly. 315 of the 367 sales points that have been added up are sports and apparel business.

BELLE International

Moussy and Sly are the two Japanese fashion brands.

In 2013, the group bought 31.96% shares of the two parent brands, Baroque Japan, Barok and Japan, at $93 million 960 thousand (about HK $732 million 900 thousand), while one of BELLE's international shareholders, CDH investment, also acquired 23% stake in Baroque Japan Barok Japan.

After the paction, BELLE international and Baroque Japan, Barok set up a Chinese joint venture to expand China's expansion for Moussy and Sly.

BELLE International (1880.HK) closed at HK $4.73 on Tuesday, a slight increase of 0.42% over the whole day, and the stock has fallen by 19% since 2016.