Expert Interpretation: Causes Of Heavy Losses In BELLE's Main International Industry

　　 Belle International In May 24th, the holding company limited announced its consolidated annual results for the year ending February 29th. The report shows that in the fiscal year 2015/16, the group's revenue was 40 billion 790 million yuan, an increase of 2% over last year. Among them, sales of footwear business decreased by 8.5% to 21 billion 74 million yuan compared with last year, and sales of sports and clothing business increased 16.2% to 19 billion 716 million yuan. Footwear business income accounted for 51.7% of the total business revenue, compared with 57.6% last year, the proportion has decreased.

Due to the deterioration of the retail market in the mainland, Hongkong and Taiwan, more than 1 billion 300 million yuan was written off for the acquisition of Mirabell, Millie 's and other brands in recent years, resulting in a net profit of 38.4% to 2 billion 934 million yuan in the year ended February 29th and a 37.79% to 35.86 percentage point decline in earnings per share.

Among them, the loss of footwear and footwear products was very large, and the income decreased by 22.48% to 3 billion 944 million yuan compared with the same period last year, which was mainly caused by the same store sales. The overall revenue of the branch still fell 9.75% to 6 billion 300 million yuan over the same period last year. BELLE said in its annual report that due to the deterioration of the consumer and retail market environment in the domestic and Hong Kong and Macao regions, the sales performance of footwear business in the group affected the sales profit of the same store in the second half of the year.

BELLE international chief executive Sheng Bai Jiao pointed out that no matter how effective the group can improve its management efficiency, it will not fundamentally change the impact of changes in consumer demand on business. The group currently faces two choices, one is to focus on improving efficiency and no fundamental change, but the choice can not fundamentally change the trend of footwear business downturn; the second is to make fundamental transformation, which is a risky decision, which is likely to create great pressure on short-term performance, and also the risk of failure.

Sheng Bai Jiao concluded that in the future BELLE will die slowly without transformation, and the fundamental transformation may accelerate the decline, but there may also be a good tomorrow. However, he did not give a clear answer to the direction of transformation, which is hardly convincing to market participants.

As of February 29, 2016, the total number of retail outlets owned by Belle International Holdings Ltd was 21017, of which 20873 were in mainland China and 144 in Hongkong and Macao.

Sun Xun, a researcher in fashion consultancy, Utah international brand consulting (Beijing) Co., Ltd., said in an interview with reporters this evening. Traditional footwear industry They are also faced with problems of transformation and upgrading. With the three changes and impacts, one is the change of consumption structure, that is, the consumption group. The two is the transformation of people from essentials to non essentials, from single products to lifestyle products, from low prices to high cost performance. The three is the impact of the Internet and electricity providers and the differentiation of existing brands, making the footwear brands with high homogenization and less innovative brands facing the threat of market saturation.

But Sun Shun also admitted to reporters that transformation is a double-edged sword. It needs to reexamine the positioning and product planning of the group, or to invest heavily in the brand of e-commerce to transform the retail channel, or to readjust the existing supply chain and brand. If we can grasp the growth trend, it will be an opportunity, but at the same time, the transformation will bring about a 1-2 year test. Therefore, each brand should choose the best way to transform and upgrade according to its own situation, increase the style and design innovation ability, enhance the supply chain reaction norm, make more use of the electricity supplier and other social channels, and adapt to the market with the new "play" method.

Cheng Weixiong, general manager of the clothing industry veteran observers and Shanghai Liang Qi Brand Management Co., Ltd., said that BELLE, once "shoe king", is going downhill along with the constant adjustment of the retail market structure. BELLE's performance in the transformation process confirms a common saying: "it is difficult to make big ships turn around".

In Cheng Weixiong's view, the main reason why BELLE can achieve today's status is mainly annexation. Agent That is to say, the success of BELLE is based on the success of the "general agent" mode. Nowadays, the wholesale Consciousness Orientation of BELLE's "general agent" is still dominant, and the intensive excavation of retail business is missing. Therefore, Nike and Adidas are still the main business of BELLE.

BELLE's proxy brand has been growing vigorously for many years, but its proprietary brand and acquisition brand have not been able to have a good market performance. In 2013, GEOX, the Italy men's shoes brand, decided to break up after the five year agency expired with BELLE. During the period of agency, through BELLE's efforts, GEOX's network in the domestic market expanded from more than 90 to 340. The abrupt stop of cooperation means that BELLE's five years' investment in the channel is hard to get long-term benefits. If we use Ma Gang's words, "retailers are most afraid of raising the market, but the brand will not play with it."

In the past, BELLE has won many terminal channels with its huge brand community. However, with the increase of brand, BELLE's products have been seriously homogenized. In addition to brand and price differences, the other differences are not obvious, that is, product tonality does not reflect brand attributes.

BELLE has also lost its way. If there is no fundamental change in the channel, BELLE's future development will be very worrying. The construction of the whole channel, many brands of BELLE under the exploration line, also need to speed up the integration of online and offline businesses. Secondly, most of BELLE's channels rely on large and medium sized shopping malls, and now the market competition is fierce. BELLE's channel advantages have become a burden. Thirdly, BELLE has rarely done anything in the street shops. Although it has reduced investment, it has also lost its brand display space. Only the display at the shopping mall level is still too complicated. Fourth, BELLE failed to grasp opportunities when shopping centers were rising, whether it was multi brand store or single brand store in shopping centers. First, we should pay attention to online and offline.

In addition, Cheng Weixiong also pointed out that BELLE's brand positioning is also more confusing. In the past, as long as the market expansion could cover many problems, today, consumers are becoming more rational. No meticulous control will be eliminated by emerging consumers. The next thing BELLE needs to think about is to be a real retail brand and to transform retailers, and to do well in the transformation of agents. This transformation is painful, and the previous multiple contradictions can be ignored. Meditation is the right way to do well, otherwise it will never be able to find the right path.