BELLE: From "Crazy Shop" To 3 Stores Every Day

The international interim results report (from March 1, 2016 to August 31, 2016), the first half fiscal year, the company's operating income of 19 billion 526 million yuan, an increase of 0.9% over the same period, the interim profit of 1 billion 733 million yuan, down 19.7% over the same period last year.

The store will continue in the next one to two years.

According to the two quarter retail business data released by BELLE international in early September, the company's performance fatigue stems mainly from prolonged sluggish activity.

Business: in the second quarter of 2016, the sales of BELLE footwear business in the same store decreased by 10%, which is the tenth consecutive quarter since the fourth quarter of fiscal year 2013/2014 failed to achieve growth.

BELLE International said in the interim report that the number of footwear retail outlets in mainland China has decreased by 378 during the reporting period. In the next few years, if the same store sales continue to be sluggish and the recovery is lower than expected, the profit margin of the company's footwear business will continue to decline.

On the basis of "pformation needs", the group's adjustment or closure of shops with "poor prospects" will continue in the next one to two years.

In the last fiscal year, it was also affected by the decline in footwear business. BELLE group's net profit was 2 billion 934 million yuan, down 38.4% compared to the same period last year.

Public information shows that BELLE group (Hongkong listed name "Belle International Holdings Ltd") is the largest company in China's footwear industry. In addition to its flagship brand BELLE (Belle), Staccato also has Staccato, Zhen Mei Shi, she, Teenmix, sun Da, and Bai Si chart.

And some sports brand agents and international brands in China.

From "crazy shop" to 3 stores every day

In the past ten years, BELLE, like most domestic shoes and clothing brands, mainly relies on the strategy of opening stores to occupy the market.

In the craziest 2011, only a single flagship brand of BELLE shoes will open a new store in less than two days.

By 2014, BELLE's "crazy shop" ended abruptly.

Since March 2015, the closing period has been opened.

In 2007, BELLE added 2280 self-service retail outlets (including footwear, clothing and sports) all year round, and the total number of self operated retail outlets reached 6143 at the end of 2007.

In 2008, there were 3241 new retail outlets.

This expansion lasted for many years. As of February 29, 2016, the total number of BELLE self owned retail outlets was 21017, up 242.13% from the end of 2007.

Reporters combed the annual report of BELLE international listing, found that in 2009, the number of new self-employed retail outlets was 681, and in 2010, the figure was as high as 1562.

In 2011, BELLE added 1958 New self-employed retail outlets, reaching a high peak in recent years.

In the fiscal year 2014/2015, there are 876 new self retailing retail outlets in mainland China, which are far from the historical peak.

In the 2015/2016 fiscal year, BELLE international has reduced 366 shoe self-service outlets in mainland China.

This is the first time BELLE international has been experiencing negative growth since its launch.

"Footwear business continues to show a decline in sales and profitability in the same store due to a decline in passenger traffic and a shift in consumer preferences."

BELLE International said in its earnings report.

The latest Chinese daily data show that BELLE will close 2 stores in almost half a year.

In the 6-8 month of this year, the group reduced 276 stores in the mainland, that is to say, the average daily closing of 3 stores.

Relocation of e-commerce platform

In the interim report, BELLE is also looking forward to the future development. It also revealed that in order to adapt to the new trend of consumer online shopping, BELLE has re incorporated the original Independent E-commerce Team into the brand team in 2016 to achieve better technical complementarity and resource support.

Looking through the past information, we can see that the independent business platform referred to in the report refers to its investment network of $200 million in July 2011.

But before and after 2013, the platform had been subjected to the turmoil of executives. First of all, CMO Xu Lei and senior vice president Xie Yunli had left, and less than a year later, COO Zhang Xiaojun chose to quit.

At present, BELLE International's quarterly retail performance report and annual report no longer display the retail sales of the excellent purchase network platform in the annual report.

Industry

Retail sales in winter and winter

In fact, in recent years, shoes and clothing enterprises, known for their "crazy shop", have been baptized almost all these two years in the past two years.

The situation of domestic women's shoes brand Daphne is even more serious.

Daphne released the three quarter data show that as of September 30th, Daphne's total sales point was 4840, the first three quarters of the total reduction of 757.

In 2015, it closed 805 stores throughout the year.

Corresponding to "closing the tide" is the result of deep mire.

According to the announcement, in the first three quarters of this year, the same store sales rate of Daphne international core brand business decreased by 12.1%, and the third quarter decreased by 13%.

In the past 2012 fiscal year to 2015 fiscal year, Daphne's turnover dropped from HK $10 billion 530 million to HK $8 billion 379 million, and its net profit also dropped from HK $956 million to HK $-3.79.

At the beginning of September, Daphne International announced its interim results in 2016 with a turnover of about HK $3 billion 400 million, down 22.3% from the same period last year.

Net profit fell to HK $-1.64 billion.

Looking at the whole industry of shoes and clothing, the national brands, such as Smith Barney and Baleno, once faced a similar dilemma.

In 2015, the annual report shows that in order to store goods, Smith Barney began to turn to Internet marketing and closed 1500 stores in three years.

In 2015, the net profit of American Apparel was -4.31 billion yuan, the first loss in the past seven years.

There are also JEANSWEST and Baleno.

JEANSWEST's total sales in China in 2015 amounted to HK $2 billion 800 million, a decline of 29.36%. In four years, JEANSWEST's retail outlets slipped from 3261 to 2249, closing thousands of stores.

Media reported that Baleno's stores closed 617 in two years and was sold by the parent company Hongkong de Yongjia group in June this year.

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Exergy analysis

"Insufficient overall innovation capability is the core issue".

"Shoe king BELLE is going downhill along with the continuous adjustment of the retail market structure. The performance of BELLE in the pformation process confirms a common saying:" it is difficult to make a big boat turn around. "

At the end of 2015, Cheng Weixiong, the vice president of the Mei Bang dress and the founder of Shanghai Liang Qi brand, once said so.

The first problem is concentrated on overcapacity in the whole industry.

In 2015, China Leather Association's output and domestic sales data showed that in 2015, China's footwear output was 14 billion pairs, and the domestic market consumption was expected to be 3 billion 800 million pairs (total consumption 350 billion yuan), with 9 billion 870 million pairs of shoes exported (51 billion 100 million US dollars) throughout the whole year.

But in Cheng Weixiong's view, the shoe and clothing industry's current difficulties are not only in the industry's excess capacity.

He pointed out that the lack of overall innovation capability of the industry is the core problem hidden in the tide of the great environment. Because of the lack of innovation, the homogenization of products is extremely serious, and upgrading is also not enough to catch up with foreign brands. Often, "a series of several styles sell for the first quarter", coupled with the common failing of manufacturing enterprises in China, "do not pay attention to brand building", all kinds of reasons make it difficult for domestic shoe brands to harvest loyal customers.

"In recent two years, the most direct inducement of the shoe industry" closing shop tide "comes from the strong impact of the Internet economy.

Hu Chuncai, general manager of Shanghai Shangyi Enterprise Management Consulting Co., Ltd.

In addition, in recent years, the rental price of stores has been soaring, labor costs have also risen sharply, and the cost of shoe brand opening has also been pushed up synchronously. Under such circumstances, it is not surprising that the brand chooses to "shut shop" to relieve pressure.

Visit

Some customers call style obsolescence.

In October 25th, reporters visited a number of stores in the BELLE group of new world department store in Chongwenmen, Beijing, and found that most stores had not many customers.

Belle stores launched multiple promotions, with no more than 10 customers in the ten minutes of reporters' stay.

One salesman says, generally speaking, the traffic is large at the end of the week, and the working day is relatively small.

A customer said that she had visited several Belle shops before, but she never picked a satisfactory style. "It feels that his home design style is a bit outdated, but the price is not low. Consumers who like his home style should not be able to accept this price."

She said that with the rise of new brands and the impact of foreign brands, BELLE has been lack of competitiveness.