BELLE'S Growth: 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.

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.

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 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 local market.

These two points have obviously become the short board of BELLE, and now these two points have become a problem for many brands.

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 vertical integration layout of brand, production, design and retail.

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.

June 2006, Zhengzhou

In order to snipe competitors' new business Mart business activities, BELLE group's agent Adidas was asked 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 at the same time, it has many international second-line agents.

The multi brand matrix enables BELLE to become the key business partner of shopping malls, and has also become an important contributor to profits. Many shopping malls give all kinds of concessions to BELLE suppliers such as location, decoration subsidies, and deduction points.

If BELLE group is the super VIP of shopping malls in 2006, enjoying the deduction bonus, but with the passage of time and the upgrading of consumption, more fast fashion brands and international brands will enter the Chinese market and become the drainage weapons of shopping malls. BELLE will become an alternative 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.