BELLE Group: "King Of Category" Is Comparable To The Redemption Of Textbooks.

There is such an enterprise, he has 13 brands, 6 brands in the industry bestseller brand TOP10 list from this enterprise, the market share is more than 30% of the subdivision area, it has more than 2 thousand stores in the country, and is second to none in the domestic retail industry. At the peak time, the market value of the company is as high as 150 billion Hong Kong dollars.

This is a low-key but legendary enterprise, the BELLE group of women's shoes.

In 2014, the sales volume of BELLE self operated footwear brand was 23 billion yuan.

Sales amounted to 17 billion yuan, net profit amounted to 4 billion 700 million yuan, in the field of women's shoes and even the entire footwear industry, it has an unshaken position.

However, since its 2012 annual report in February 20, 2013, BELLE has been on the market for 150 billion consecutive years after its market capitalization of 150 billion, and its market value has dropped to HK $39 billion.

The story of BELLE begins with the rise of BELLE.

From manufacturers to vertically integrated brands

The growth sample of BELLE has benefited numerous industry peers. The management cadres trained by BELLE have become the target of many friends. In the field of Chinese shoes and clothing, BELLE is called textbook business and Huangpu military academy.

BELLE's early success stems from its leading mode of production, design and management.

BELLE was founded by Mr. Deng Yao, a Hongkong industrialist. In 80s, BELLE sold a large number of products to Southeast Asian market on the cheap production cost of mainland China. Later, BELLE also made use of Hongkong's geographical advantage to sell the fashionable styles of Europe and America to mainland China.

In the early 90s, sports brands such as Lining and Anta quickly opened the market by sports marketing and mass marketing of TV advertisements, while BELLE rarely advertised. It took another more forward-looking model. It chose marketing director as production supervisor and design director to pform market sensitive information into product driving force. Now we call this mode retail oriented mode, while HUAWEI's Mr. Ren Zhengfei calls this mode "let people who hear gunfire call fire."

It is this advanced mode that allows BELLE to take root in the mainland.

In the medium term of development, BELLE began to innovate in the business mode, and completed the pformation from the manufacturer to the vertically integrated brand enterprise.

In 1997, BELLE changed its past mix and batch mode, began to establish a monopoly system, signed an independent sales agreement with 16 business partners, that is to say, the 16 distributors sold exclusively BELLE products in their respective regions.

And these 16 business partners, many of them are BELLE CEO Sheng Bai Jiao's old Department, there are Sheng Bai pepper students in Harbin, and there are drivers in Shenzhen during the 100 peppers, all become local princes.

The advantages of exclusive distributors are particularly obvious, allowing BELLE to integrate more abundant market resources in a relatively short time and rapidly expand its market share.

However, the strong consequences of distributors are also very serious. Dealers can control the life and death of manufacturers by means of channels. In addition, whether a brand's market can be strong depends on the operation ability of local distributors. These two points have obviously become the short board of BELLE, and now these two points have become a problem for many brands.

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The solution of BELLE is "cutting the vassal action".

In 2002, Deng Yao, Sheng Bai Jiao and BELLE dealers jointly established BELLE investment and BELLE invested as the exclusive distributor of BELLE group.

In this way, BELLE executives successfully took over the power of channel control from dealers.

In 2004, BELLE Group acquired BELLE's investment in all assets, BELLE group completed the brand, production, design,

Vertical integration layout.

In August 2012, Daphne terminated its cooperation with the three or four tier city franchisees in 2009 with the purpose of breaking the contract. The purpose is to change the franchise mode to all direct battalions, triggering protests and even prosecutions from a number of dealers.

Obviously, BELLE's cutting fan is more successful and more predictable than Daphne.

From brand matrix to collective store mode

In the course of business, takeover is the booster of BELLE's rapid growth.

With the power of capital, Millies, Bai Shi, Sunda, Yong Xu shoes, beautiful treasure, big step, Long Hao Tian Di, Baroque are all incorporated into BELLE by BELLE group. The acquisition brings more brand synergy to BELLE and greatly improves BELLE's comprehensive competitiveness.

In June 2006, Zhengzhou Denis, in order to snipe the competitor's new business Mart business, asked BELLE group's agent Adidas to participate in the 300 to 300 promotion campaign.

Due to the contradiction between discounts and subsidies, Denis issued the order of Adidas closures, while BELLE will withdraw all the brands such as Adidas, Nike, BELLE, Staccato, Staccato, he and Zhen Mei Shi in Denis store. Finally, Denis's Association came to an end.

Most of the department stores in the early days were self operated goods. Later, they absorbed the mode of introducing factories into stores in foreign retail businesses. The department stores provided venues for suppliers, while suppliers provided people, goods and prices.

However, in order to maintain their competitiveness, department stores require suppliers to adjust prices to attract consumers, which in turn reduces the interests of suppliers and is naturally resisted by suppliers.

For small suppliers, they have to commit themselves to department stores, and dare to speak. But BELLE group is different. BELLE has many well-known brands, and acts as a multi tier international second-line sports brand. The multi brand matrix makes BELLE a key investment partner in shopping malls, and has also become an important contributor. Many shopping malls give all kinds of preferential treatment to BELLE suppliers, such as location, decoration subsidies, and deduction.

If BELLE group is the super VIP of shopping malls in 2006, it will enjoy the deduction bonus, but as time goes on and consumption upgrades, more.

International brands have entered the Chinese market and become the drainage weapon of shopping malls. BELLE has become an optional supplier from the past indispensable suppliers, and its position is not as good as before.

In this regard, BELLE has made strategic innovation for itself.

On the one hand, we should strengthen the layout of the collection stores, increase the layout of the Tai Po sports city and the BELLE MAP store; on the other hand, the sunken price will bring out the 15MINS parity brand of the street shop format to cope with the disappearance of the mall's bonus point.

The advantage of multi brand synergy, on the other hand, is also reflected in the supply chain of e-commerce. It is precisely because of the supply of multiple shoes and clothing brands that BELLE has finally laughed in the vertical B2C field of shoes and clothing.

BELLE electric business, which originated in November 2009, launched its own e-commerce platform, Taoxiu network (interested friends can search for a poorly designed test for BELLE), and bought the excellent purchase network in 2011, and merged Taoxiu network into the best purchase network.

However, in the same industry, the vertical self operated e-commerce platform gave up business because of its mediocre performance. BELLE chose to stick to it. Until mid 2015, BELLE electric business ushered in profits. This is quite valuable.

Until today, multi brand matrix, collection store and e-commerce are the ultimate ideals of many brands.

Open online and offline traffic, rebuild BELLE

In the same industry, there is no doubt that BELLE is a top student. In fact, BELLE has a lot of worries.

Footwear sales in the same store declined for three consecutive quarters, and a large number of shoe stores closed.

CEO Sheng Bai Jiao said that the weakening of footwear sales performance was mainly due to structural problems rather than cyclical problems. This phenomenon will not improve in the short term.

BELLE's sports shoes wear has been growing well. On the one hand, it is related to the warmer sporting goods industry. On the other hand, it is also related to the synergy formed by the integration of acquisition enterprises.

Footwear business is in the structural problems of Sheng Baidu. Daphne international, Daphne and several friends on Saturday are also optimistic. Daphne, Daphne's profit, gross profit and net profit have declined to varying degrees, and Saturday's net profit has also dropped sharply.

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Can BELLE return to its peak?

Read here, you might as well consider the core competitiveness of BELLE, where is the supply chain, or the brand, or the channel network? From the perspective of comprehensive competitiveness, BELLE has no obvious short board.

But BELLE's brand competitiveness is not strong, from a single brand, BELLE's brand's single market share is not high, the highest market share of the brand is not more than 5%, supply chain advantage is not BELLE's unique advantages, and similar product style and design instead of its supply chain defects, it seems that a strong retail network and talent system is BELLE's most convincing core competitiveness.

In 2015's clothing industry annual observation, I mentioned: BELLE, Bosideng, Metersbonwe and other several categories of king in pition anxiety disorder.

For Bosideng, the crux of the problem or the lack of strength in the top management, Metersbonwe is stepping into the Internet and technology field, and also needs to adapt to the water temperature and swimming posture. While BELLE is in a silent period, it seems to be waiting for a big move.

In 2010, at that time, Jingdong launched a price war in the 3C market and Tencent Yi Xun, Gome and Suning. At the same time, it launched an expansion war with Dangdang and van guest network.

For those Jingdong, such as crossing the river, only strive to move forward.

At this time, the ceiling of BELLE shoes market is difficult to break through, while the sports business is growing fast, but the growth space of agency business is also limited by many manufacturers' checks and balances strategy.

At that time, Jingdong's position in the 3C field, like BELLE's position in the footwear industry, needs to expand the category to carry out the compound operation of traffic.

Then BELLE will magnify those big moves, expand the category and carry out the complex operation of traffic.

Method 1: add and merge.

M & A is a well developed means of expansion by BELLE. In the past, the acquisition of BELLE was more inclined to the layout of footwear products, and only a product layout of clothing products. In the future, BELLE or around the entrance of women's shoes, the extension of M & A from children's products, fashion products and women's life classes, so as to conduct a compound operation for female customers, at the same time, improve the types of merchandise stores, and even evolve to the theme stores.

This practice is familiar to BELLE, which is more likely.

Mode two: layout smart wear, focus on the future.

Smart wear has just started, but there are already many industries in the industry looking forward to the layout of the industry.

Located in the forefront of innovation in Shenzhen, already has more than 500 smart wear related enterprises, smart wear is listed as the fifth largest future industry in Shenzhen. As a well-known shoe and clothing enterprise set up in Shenzhen by headquarters, BELLE is also the partner of many smart wear enterprises. BELLE may wish to advance the layout in this field and plan for the future.

Mode three: offline integration or cross-border cooperation.

Although BELLE's electricity business continues to grow, its share of the total business is only about 5%, far below that of women's clothing, which accounts for 30% of the total sales of women's clothing.

From this point of view, BELLE's e-commerce business has not played a good role in the firewall of the whole business. Conversely, BELLE's electricity supplier can not use its own power to defend the whole industry.

The best option is to open up online virtual inventory and offline physical inventory, make good use of the distributed warehousing of stores, turn online and offline into open platforms, open to manufacturers, and make better use of retail management capabilities to serve good consumers.

In addition, with the Internet women's clothing brand cooperation, around the consumer output package is a new idea, worthy of BELLE's exploration.

The industry is not a precedent, La Natsu Bell 200 million stake in seven grid, the king of nine Mu Wang shares 12 million shares of Korea's clothing house, search for the special 324 million yuan strategic investment in the United States group.

Mode four: subdivide category, further make channel sink.

Over the past decade or so, BELLE's product positioning and shop strategy have been accompanied by the department store's footsteps, and cut into the consumption groups of large and medium-sized cities. But the coverage of consumer groups in small and medium-sized cities is not complete. In 2012, although the 15mins of public parity was launched, there was room for improvement in terms of commodity richness and composition.

At this point, the possibility seems to be minimal. For BELLE, can the income gained by subdivision and further subsidence move BELLE?

The troubles that BELLE faces is that many enterprises will appear in the future and will not appear. Your business is not big enough and not excellent enough.

BELLE's growth, from manufacturers to brand enterprises, from brand matrix to retail leader, to the survivors of vertical e-commerce industry, BELLE did not fall behind every drum of the times.

In the past, BELLE has been successful in leading the industry. At the moment, BELLE needs to lead itself, break through and plan for the future.

Welcome to the exchange, author WeChat magangfz

48 hours after the epilogue was written, BELLE again offered a magic weapon for acquisition.

On the morning of March 24th, BELLE International announced the acquisition of the Fashion Box SpA 29% of the Italy Cowboy brand Replay parent company, and the two sides established a joint venture to expand the Greater China market.