BELLE'S Second Quarter Footwear Business Same Store Sales Fell 10%

Facing the cold

Severe winter,

Use all means to seek self-help.

The company has said that if it does not pform, the enterprise will die, and its pformation includes sorting out the store structure, closing the shops with poor profitability and adjusting the number and location of the stores.

Amancio Ortega, founder of fast fashion brand Zara, exploded over Bill Gate to become the new richest man in the world and brought a bowl of chicken soup to the costumes industry.

However, chicken soup is still no match for the cold reality, which is best known by Nine West (Jiu Xi), who is abandoned by shareholders and is at the brink of bankruptcy and liquidation.

Despite struggling to try to close stores and reduce administrative costs, the net profit of its parent company Sycamore Partners LLC had to consider liquidation for 38 million months, compared with the same period last year.

BELLE, which lost 40% of its profits last year, recently released its second quarter fiscal year report, showing that its footwear sales in the second quarter dropped 10%, although the decline was somewhat reversed, which means that BELLE has not been able to grow for the tenth consecutive quarter since the fourth quarter of fiscal 2014.

It is understood that from June to August, during the three month period, the total number of retail outlets in mainland China decreased by 276. As of August 31st, there were 20600 stores in the domestic line, 13384 in footwear stores, and 7216 in sports and clothing stores.

Affected by the economic environment, women's shoes market is weak.

Businessmen feel the cold winter in the cool autumn day, and layout electricity providers and cross-border pformation, including brands such as Saturday. They also begin to wake up. They propose to create breakthroughs by creating a fashionable IP eco ecosystem.

According to the industry, women's shoe manufacturers should consider seeking to save themselves on product pformation and brand building rather than simply discounting the price.

Many opponents, discounts, whether from late August to date, including Hasen, Daphne, 100 degrees, Saturday and other women's shoes business performance reports have been released, in addition to a slight increase, the overall decline of women's shoes brand revenue can be seen that the overall downturn in the women's shoes market, and the growth of e-commerce business offset some of its sales decline.

In the first half of, the group's turnover decreased by 22.3% to HK $3 billion 400 million.

Compared with the operating profit of HK $11 million in the same period last year, today's profit margin is in deficit and operating losses are HK $249 million.

The sales of the quarter products increased, while the gross profit decreased by 29% to HK $1 billion 884 million per year.

The report showed that the group closed 450 stores in the first half of the year.

In the same shop, women shoes company was also on the market Saturday. Although the cost of sales, management and finance decreased year by year under the strict control of the company, the overall decline in revenue still had a negative impact on the company's performance.

2016 in the first half of this year, business income of 7.09 billion yuan, a decrease of 16.09% over the same period last year, achieved a total profit of nearly 28 million 400 thousand yuan, a decrease of 24.66% over the same period last year, and net profit of nearly 20 million 160 thousand yuan, representing a decrease of 25.41% by the same period last year.

As of June 30, 2016, the number of brand chain stores was 1913, of which 1435 were self owned shops and 478 were distribution outlets.

In the declining trend, the only thing that brings a good news is the 100 degree group, but it is on the toy business.

The report shows that in the first half of the year, the income of the company was about 1 billion 503 million yuan, an increase of 6.1% over the same period last year, of which the retail toy business revenue was 241 million yuan, accounting for 16% of the group's total revenue.

Shoe business is still sluggish.

The retail and wholesale business of footwear business was 1 billion 150 million RMB yuan, down 11% from the same period last year. However, due to the restructuring of the group OEM production line, the revenue from the contract production section was 1.114 billion yuan, down 10.1% from the same period last year.

"In recent years, the discount of women's shoes has become more and more common. It's a bit overdone," a footwear industry insider told reporters. The vicious circle of reducing prices and clearing stocks in the industry has not been improved. The gross profit margin of businesses has been getting lower and lower, and frequent shops have been closed, and sales are getting worse and worse.

Behind the low price promotion is the bottleneck problem encountered by the product line.

As the main consumer of 80 and 90, its consumption habits are no longer purely brand oriented, but more individualism. For example, the brand of heels of Internet luxury shoes, which won tens of millions of dollars in A financing, is 73 hours.

This new brand with strong momentum and personality is a strong impact on these listed brands.

At the same time, the sports industry policies are good, the marathon events are rising, and the national health consciousness has sprout up. The sports market has begun to revive after many years of silence. "A lot of girls are more and more like wearing sports shoes and walking shoes, which also divides a large number of customers".

According to BELLE's earnings report, its second quarter sales of sportswear and clothing business increased by 6%.

Which way can we save ourselves? In the face of the cold winter women's shoes, the brand resorted to all means to seek self-help.

BELLE has said that if it does not pform, the enterprise will die, and its pformation includes sorting out the store structure, closing the shops with poor profitability and adjusting the number and location of the stores.

Daphne is betting on electricity providers, plans to continue to increase investment in e-commerce business, through big data analysis to support business development, deepen O2O development, and continue to move forward in the multi brand strategy.

In the context of the second child policy, the toys are planned to rely on the Hamleys toy store bought last year to stop the loss.

Among them, under the banner of "ST&SAT" (Saturday), "SAFIYA" (Sophia), "FONDBERYL" (Febe Lil) and other private brand of high-end leather shoes company on Saturday, put forward the strategic goal of building a fashionable IP ecological circle, take the road of content realization, which seems to be a clearer reform plan for women's shoes enterprises.

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According to its earnings report, the plan can be more effectively integrated through the strategy of brand collection store and the fashionable IP eco ecosystem. It will build the brand collection store into a shopping environment integrating online, offline, sales, integration of experience and interaction, purchase and sharing, content production and dissemination, integration of private brand and cooperative brand.

As to how to implement the IP+ store, the way to play on Saturday is as follows: first of all, grasp the opportunities of M & A and actively promote the strategic layout of the fashionable IP ecosystem.

Through the acquisition of two companies that are developing vertically in the Internet fashion media business, 80% of the shares of Beijing fashion forward information technology Co. Ltd. and the equity of 70% of Beijing Xin Xin Information Technology Co., Ltd., respectively, operate OnlyLady women's and Kimiss's girlfriends network to quickly enter the female fashion information media platform, get the flow entry and enhance user stickiness.

Secondly, we should strengthen the hatchability of fashion IP and accelerate the construction of new platform in various ways.

In the first half of, the Shenzhen subsidiary of IP Star Fashion Technology Co., Ltd. was set up to train and strengthen the incubator operation capability of fashion IP. Through the acquisition fund, it focused on the development and operation of fashion enterprises, fashion women's media, and the early quality enterprises in the net red economy. At the same time, through the newly established incubator platform, the upstream and downstream resources of the industry chain could be effectively docked, and the whole process from traffic volume to commercial cash flow was gradually opened up.

Finally, we should vigorously promote brand collection shops, improve the channel structure, and create a fashionable IP collection platform.

Its brand collection shop name is "SATURDAY MODE", and aims to create younger and differentiated store image, so that the congregate shop gradually becomes an important sales channel for the company.

By the end of 2016, the 6 shopping mall in 1 and 2 cities in the country has opened 60 brand stores, and is expected to expand to 100 at the end of the year.