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    Why Do Women'S Shoes Brand Have A Big Contrast Between Ice And Fire?

    2016/9/25 10:45:00 48

    Women'S ShoesBELLEHigh Heels For 73 Hours

      

    One side is ice.

    tradition

    Women's Shoes

    Industry continues to slump.

    BELLE

    The two quarter of mainland China's retail operation data of International Holdings Limited: in the 6-8 month, the same store sales of domestic footwear business decreased by 10%.

    Even big international cards are hard to escape.

    Recently, the high-end women's shoes brand Nine West (Jiu Xi) parent company Sycamore Partners LLC LLC intends to liquidate the shoes brand.

    Credit rating agencies have downgraded the credit rating of the company limited to a negative rating because the women's shoe companies' revenues and profits continued to slide.

    In the fiscal year ended July 2, 2016, the net profit of nine hee fell to $52 million from $90 million in the same period last year.

      

    One side is fire.

    Located in light luxury women's shoes.

    High heels 73 hours

    "Recently, tens of millions of Renminbi A rounds have been completed recently. Investors include well-known Taiwanese footwear companies, Rui Shi enterprises and Cheung Feng investment under Temasek banner.

    Why is there a big contrast between ice and fire? Does the successful financing of "high heels" for 73 hours mean that women's shoes market will usher in a new outbreak?

    The brand of women's shoes is facing bankruptcy liquidation.

    Born in 1978, nine hee was the benchmark brand of women's shoes market.

    However, in the past three years, due to the weakness of the major retail markets in the United States and China and the low consumption desire, the main shopping malls in Jiu Xi are increasingly cautious.

    In addition to the popularity of sports, fashion and leisure shoes are becoming more and more challenged.

    In the Chinese market, the headquarters of Jiu Xi China in Dongguan has been dissolved.

    Although the company has tried to improve its business by closing stores, reducing administrative costs and improving product quality, the industry pointed out that under the many challenges such as loss of customers and high inventory in department stores, the recovery of Jiu Xi needs more time.

    However, the only thing to be consoled is that the cash flow of nine Hei is still abundant, and the most recent debt maturity is 2019, and there is a $200 million revolving loan.

    BELLE and Daphne shop in large numbers

    The weakness of women's shoes market is a global situation. The shoe Belle International Holdings Ltd, the biggest shoe company in China, and Daphne International Holdings Ltd have suffered the same situation in the past two years. They can only reduce their capital expenditure through a lot of layoffs and closes.

    The industry believes that the rapid growth of women's Shoe Retailers over the past few years has faced the biggest challenge this year, namely, how to adapt and develop new channels.

    Domestic women's shoes retailers will enter the "ice fire period" that the traditional stores are rapidly compressed and the online business is expanding rapidly.

    The next three years will be a critical period for the industry to reshuffle.

    BELLE international chief executive Sheng Bai Jiao said in July that BELLE had begun to pform its store structure according to its brand and positioning.

    During the two quarter, BELLE continued to close its stores and reduced 276 stores. As of August 31st, there were 20 thousand and 600 retail outlets in China, 13384 of which were footwear stores and 7216 were sports and clothing stores.

    Credit Suisse issued a report that it reiterated the rating of BELLE International's "losing market", and the view on the footwear business of the company was still negative, mainly because of the structural weakness and oversupply of the industry.

    There are still challenges in the footwear business market, and there is no sign of recovery now.

    BELLE business is mainly composed of two parts, one is footwear business, the other is sports and clothing business, and the decline of the footwear business has a direct impact on BELLE's overall net profit.

    The industry believes that footwear business is always the core business of BELLE.

    Subject to the status of agents, sports and clothing business has limited mitigation effect on BELLE's performance. To achieve overall performance improvement, BELLE still needs to expand its product innovation and channel aspects around footwear business.

    However, the decline of BELLE footwear business is not a case. Previously, many domestic and foreign footwear brands such as Daphne, Saturday, Hasen, cross and so on also experienced a decline in net profits, shrinking footwear business and even a large number of stores.

    "High heels 73 hours" raid

    The A round is financed by the "high heels" for 73 hours in light luxury shoes.

    Zhao Ruohong, the founder, explained that a pair of real leather shoes had to go through many small processes, and then divided into 103 larger processes, which would add up to 73.3 hours before and after.

    As a network red man, Zhao Ruohong's well-known identity includes publishers, vice president of wedding website sales and Miss Zhao miss.

    In February 14, 2015, she opened an experiential shop called "high heels 73 hours" on the road to Julu.

    The reason for choosing the category of high-heeled shoes is that Zhao Ruohong herself is a crazy shoe lover. Secondly, from the user's point of view, she observed that there is a blank in the domestic luxury women's shoes market.

    The "high heels 73 hours" positioning is the brand design of women's shoes with high quality, fashionable design and cost-effective.

    The price of most shoes is 1280 yuan, no discount, take the real price.

    It is reported that the brand is currently in Shanghai's long light, Rui Europe several department stores monthly sales volume is the top three women's shoes.

    In addition, unlike the traditional retail brands, which had been designed six months in advance, Zhao Ruohong and her team maintained a new rhythm every week.

    By 2016, the basic monthly number of new items was about 8-10.

    At the production end, "high heels 73 hours" is equipped with the same quality raw material procurement and process support as the international brand.

    Because of the characteristics of Internet direct sale plus small batch and multi frequency order, the supply chain is shortened to 20 days from the order to the delivery time, which is a big 1/3.

    Therefore, compared with the long supply chain of traditional footwear industry, high inventory and slow new push, brands can respond quickly to market trends and changes.

    At present, the "high-heeled 73 hour" line has opened 5 counters in Shanghai, Hangzhou, Suzhou and other cities under the direct selling of Taobao and micro stores, and has three flagship stores in Shanghai with a pink theme of over 300 square meters.

    It is estimated that by the beginning of 2017, the brand will open 20 counters to cover more cities.

    From the marketing channel, "high heel 73 hours" is not very different from traditional women's shoes.

    Its success is mainly based on precise positioning, finding a subdivision area in the vertical direction, locating in the domestic luxury + high heeled shoes market.

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