BELLE Shoe Industry Is Hit By The Electricity Supplier

The "King" of the shoe industry was also struck by the impact of the electricity supplier. Seeking structural and strategic readjustment has become an inevitable choice.

From a small factory set up in 1992 to invest 2 million Hong Kong dollars, it took more than 20 years to develop BELLE to the largest market in China with a market value of more than 100 billion Hong Kong dollars.

Production and retail companies.

In 2010, its turnover exceeded 23 billion 700 million yuan, and the sales network covered more than 300 major cities, including all provincial capitals, including China, including Hongkong, the United States, Europe, Japan, Southeast Asia, the Middle East, Africa and other countries.

The decline of Empire

With the rise of the Internet economy, China's real economy is entering a recession.

In particular, the irrational development of the real estate economy has further intensified the escape of funds from the real economy.

According to the 2014 statistical yearbook of the National Bureau of statistics, the total number of stores in large supermarkets in China decreased by 2567 in 2013 alone, and 214 in the whole country.

There is still growing trend.

2016, more powerful!

A few days ago, BELLE announced that BELLE international had 20506 retail outlets in mainland China in the 6 months ended August 31, 2015.

Among them, 13710 are footwear shops and 6796 are sports and clothing stores.

Among them, the core business of BELLE's main business was 7.8% lower than that of the same store. The group closed shop for some of the shops with poor prospects.

At the same time, Belle International Holdings Ltd (01880.HK) recently released the company's 2016-2017 quarter fiscal year second quarter earnings report, this year 6-8 months, the group in the mainland net reduced 276 stores.

That is to say, an average of 3 stores a day.

BELLE international chief executive and executive director Sheng Bai Jiao said: "in the future, if the same store sales remain sluggish and the recovery is lower than expected, the profit margin of the footwear business segment will still slow down."

In the first quarter of fiscal year 2016/17, the sales of BELLE footwear business in the same store dropped by 16%.

Diluted advantage

It is understood that this China's largest shoe retailer is in addition to its flagship brand BELLE (Belle), Staccato, Staccato, Joy&Peace, Tata, Teenmix, Teenmix, Senda and so on. It also acts as front line brand Nike and Adidas, second tier sports brand PUMA and Converse, as well as the sales of international brands such as clothing brand, brand, and so on.

Among them, the private brand mainly adopts the vertically integrated mode of operation, and the operation mode of agent brand is mainly brand agent and distribution agent.

In the past, BELLE adopted the strategy of winning the market with dot density. In the age when information and logistics were not smooth, this mode undoubtedly allowed it to quickly occupy the market.

Sheng Bai pepper has made such a lofty ambition: "wherever women pass by, there must be BELLE."

However, now it has become the era of consumer led consumption, especially the development of Internet and logistics and distribution, and the advantage of BELLE has been diluted.

After radical expansion, BELLE has been pushed onto the "altar" mode, which is becoming a major factor restricting BELLE's development.

Under such circumstances, closing shop has undoubtedly become a wise choice for BELLE.

Macquarie capital analysis believes that sales channels change, product categories change, consumers are more fastidious about cost performance, and more consumer choices will continue to affect BELLE's footwear business.

BELLE shoes are hard to sell, which reflects the collective dilemma of brands that rely heavily on department stores.

Especially for young consumers, BELLE is far inferior to some fast fashion brands in terms of price performance, personalization and catching up trend.

And the price is not cheap.

Especially with the increase of brand, BELLE's products have been seriously homogenized.

Yang Dayun, President of the international brand Cci Capital Ltd, pointed out to reporters that homogenization is a big problem for BELLE. "BELLE has many brands, but there is no big difference between age and style. Many brands do not form a division, and a part of consumers will lose to consumers or more personalized brands."

Moreover, the homogenization of products is only one of the many shortcomings of BELLE's existence. Overcapacity is another obstacle to its development.

Ran Lichun, President of Sichuan chain business association, said: "no matter BELLE or former clothing Metersbonwe, they have already faced serious overcapacity. The blind expansion of the past has resulted in a new adjustment now. This is a normal move."

It is difficult for a ship to turn around.

In fact, the impact of the electricity supplier on the entity BELLE group is not unforeseen. As early as July 2011, it invested 200 million US dollars to set up the excellent purchase network and began to intervene in the Internet.

But before and after 2013, Xu Lei and Senior Vice President Xie Yun Li had left their company. In July 2013, COO Zhang Xiaojun also chose to leave CMO.

The departure of senior executives is no doubt a heavy blow to the excellent shopping that has just been established for two years.

Since then, the excellent purchase network has no longer announced the annual sales of the main station, nor has it seen any capable person who is "going to the top of the road and supporting the building".

At the same time, the importance of excellent shopping has not been fully recognized by BELLE group.

The change of consumers' shopping habits and the rise of the electricity supplier channels have made BELLE's core strengths fundamentally disintegrated. There is no way to replicate the "horse racing enclosure" under the online business.

Even this past advantage began to become a burden of pformation.

Sheng hundred pepper once said that the business business has been "not want to understand".

This kind of strategy "not to understand" is directly reflected in its action in the channel of e-commerce.

BELLE has its own excellent shopping mall founded in 2011 and has business on other e-commerce platforms.

But BELLE has been wavering about whether to make brand or to make channels, how to balance the conflict between online and offline, and whether the electricity supplier should use only the platform for handling seasonal style inventory.

A few days ago, Dangdang was exposed to invest 200 million yuan in 2016 to restructure the clothing market. BELLE's more than 30 brands were re entered Dangdang after pulling out of Dangdang in January 2015.

Although BELLE is also actively dealing with the impact of the electricity supplier channel, and efforts to change the main business decline, but still can not change many investment banks to pessimistic expectations.

Until now, BELLE footwear business is still weak.

Sales of BELLE's electricity business account for a small proportion, less than 4%, which is limited to the overall sales.

Although BELLE group said that it will invest more resources in the electricity supplier channel.

However, BELLE, who has missed the best stage of the development of the electricity supplier, will make further efforts in the future. It is still uncertain how much the BELLE group will play in the future.

According to Nelson's survey, 67% of consumers still enjoy the pleasure and satisfaction of shopping in physical stores.

Accenture's survey found that from the convenience point of view, the physical stores that had improved shopping experience still had absolute advantages. 93% of consumers said that physical store shopping was "very convenient / convenient", far higher than that of network (75%) and mobile devices (61%), and the proportion of consumers who planned to shop more through physical stores increased from 18% to 18% a year ago.

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Although the trend of consumers returning to the store indicates that the shopping experience of the physical store can not be replaced by other channels.

But now the whole industry has been far away from the golden period of development. The development of the electricity supplier has made the price information more pparent, and the price is more convenient.

As a result, consumers nowadays are becoming more smart in buying shoes. The cost performance of BELLE shoes can not satisfy consumers.

Therefore, consumers often choose to shop in the shoes, online orders, entity stores have basically become consumers' "try shoes store".

Apart from the slightly better sales in discount sales, the usual sales situation is not optimistic.

As for how to restore the trend of decline in the future, ran Li Chun said: "BELLE and traditional domestic apparel chains, in addition to increasing the added value of products, adding labels to customized products may also be a way out."

The whole channel is the mainstream of the future retail business.

Although every wave of change has come to an end, although it has not completely eliminated the old things, it has reshaped the entire industrial structure and changed the expectations of consumers.

Retailers who rely on their original business models will not be able to adapt to the new environment with the times. The decline is inevitable. BELLE is just the tip of the iceberg.

Like milk tea, Rene Liu, who once endorsed Daphne, is now better off than BELLE.

In 2015, Daphne closed 805 stores throughout the year.

The clothing brand Bosideng ended September 30, 2015, the total number of down apparel business outlets decreased by 548 year-on-year.

In the future, with the co-existence of various retail formats, they will become increasingly inseparable.

For example, if a person orders on a website and then goes to his physical store to pick up goods, is it actually traditional retail or e-commerce? According to expert estimates, 50% of the current store sales are affected by digital information, and this proportion is growing rapidly.

As Ma Yun said, "there will be no more e-commerce in the future, and all businesses must be electronic."

The three squirrels have been on the line for 65 days, and sales have jumped to the top in the Taobao Tmall nut industry.

But in the face of the wave of digital wave, Zhang Liaoyuan, as "squirrel Daddy", integrated different channels into an integrated seamless experience of "all channels", and began to speed up the layout of offline stores.

And once in order to fully pform to the network channel, closed all the 140 stores under the line of paraquat taste, after 5 years also chose to return to the entity, now online has developed dozens of distributors, laying 1 million line stores.

These former Internet companies began to move from "online &rdqrdquo" to "offline", and "Online + offline" sales mode also indirectly explained that in today's fast changing era, it is impossible for enterprise development to adopt the "single track" approach.

The advantages of online shopping are: wide selection, easy search, affordable price, convenient comparison, convenient shopping location.

The advantage of a physical store is that it can provide face-to-face personal services. Customers can touch goods and have a full range of perception, and consider shopping as an activity and experience.

Today's customers want both sides of the two benefits.

Therefore, as a traditional retailer, it is necessary to design the shopping experience from the beginning, integrate the two aspects of online shopping and physical store shopping perfectly, use various advanced digital tools in every link of customer shopping path, and design attractive ways to form a good interaction with customers to meet the needs of customers, so as to keep up with the new wave of retail pformation.

Xiong Xiaokun, a light industry researcher at CIC, pointed out: "the competition for women's shoes is fierce. We must aim at the needs of consumers if we want to break through, and consumers will buy it only if they are" right "with consumers.

In his view, at present, thousands of women are committed to improving the comfort of women's shoes.

Daphne invited Gianna Jun and other endorsements to make use of the "fans economy", starting from the needs of consumers.

Therefore, if BELLE can adjust its strategy in time, adjust the differences between brands, better integrate with the Internet.