The Trend Of The Movement Comes From BELLE International.

BELLE International released semi annual report on 2016/17 fiscal year.

BELLE International believes that the scale of sports and clothing business beyond the scale of footwear business should be said to be reasonable.

Generally speaking, in the more developed and mature countries, the various styles of shoe market are mainly sports and leisure, and the proportion of shoes is relatively limited.

With the rapid growth and maturity of Chinese consumers, their diversified scene needs and personalized aesthetic requirements are likely to be embodied in sports and leisure categories.

The report showed that the performance of the six months ended in August 31, 2016 was compared with the same period last year,

Sales revenue declined by 12.7%, sales of sports and clothing business increased by 14.9%, total sales revenue increased by 0.9%, operating profit decreased by 19.8%, and the company's equity holders accounted for a 19.7% decrease in profits.

The company says sports,

Benefiting from the substantial growth of the demand for sports fitness for consumers, the company continued to maintain a good growth momentum. The footwear business continued to show declining sales and declining profitability as a result of the decline in passenger flow and consumption preferences.

At present, sports and clothing business is mainly based on distribution agents, including front-line sports brands Nike and Adidas, second-line sports brand PUMA and Converse, as well as clothing brand Moussy, SLY and REPLAY.

The company said that the main reason for the growth of the business is, on the one hand, that the same store sales have been growing well, at the level of the number of units, mainly driven by quantity growth, and the average paction price has only increased slightly.

On the other hand, retail outlets continued to increase. The number of retail outlets in August 31, 2016 was 7216, an increase of 10.6% compared to 6524 in August 31, 2015.

In the first half of fiscal year 2016/17, the number of retail outlets for sports and apparel business increased by 105, an increase of 1.5% compared with February 29, 2016.

Among them, the first-line sports brand shops only increased by 4 net, the current business focus is to increase the shop effect per unit area; the second line brand store has increased by 84, and the new clothing business has increased by 17.

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The myth of BELLE International's brilliant growth is no longer going on.

Reporters compared with the results of the rapid growth, BELLE international has no longer seen the double digit high growth rate of business revenue before. Half a year ago business revenue growth was only 0.9%, while net profit growth was a mess, down nearly 20% year-on-year.

Statistics show that BELLE international is the listing name of BELLE group in Hongkong. It was founded in Shenzhen in 1978, and its annual sales volume exceeds 23 billion yuan in its prime.

It is the largest consumer retail market in China, and has always been praised as the constituent stock of Hongkong Hang Seng Index. The market value of the world footwear listed company is second.

Reporters found that before relying on the main footwear business to drive the whole performance of BELLE international has changed.

According to the financial report, in the six months ended August 31, 2016, the actual income was 19 billion 526 million yuan.

Among them, the income of footwear business was 8 billion 586 million yuan, down 12.7% compared with the same period last year, and the income of sports and clothing business was 10 billion 940 million yuan, up 14.9% compared with the same period last year.

The current business of BELLE group is mainly divided into two parts, one is footwear, the other is sport and clothing.

Self owned or acting brands occupy half of the women's shoes market.

And footwear business is different, its sports and clothing business is currently based on distribution agents, including front-line sports brand Nike, Adidas, second-line sports brand PUMA, Converse, and clothing brand Moussy, SLY and so on.

It may be influenced by market competition. As a sideline, the proportion of sports and apparel business has increased obviously, from 49.2% in the same period last year to 56.0%, for the first time, it exceeded the sales scale of shoe business.

However, the reasons for the decline of BELLE women's shoe brand performance alone, BELLE explained in the announcement that consumer sentiment continued to slump, but also on the footwear business to form a substantive constraint.

In response, insiders told reporters that the performance of BELLE group suddenly declined for nearly a year, which is the reason for the macro environment. But fundamentally speaking, it is BELLE group's own problem. In fact, this trend has already made obvious omens in the past few years.

According to the statistics of BELLE international, the net profit of BELLE in 2012 only increased by 2%. At this time point, BELLE's net profit growth was maintained at over 20% speed (except 2008), and the net profit growth rate has never been over two digits since then, and dropped to 38% by 2015.

According to the reporter, although in the past year, BELLE has made bold efforts to reverse the operating situation, sort out the channel pattern and pform the supply chain mode, but this does not seem to have much use.

The reporter noted that in the first half of fiscal year ending August, its retail outlets continued to shrink and its net domestic stores decreased by 378 in the mainland.

In the last fiscal year, BELLE has reduced 366 stores.

BELLE group also said in its earnings report that the current footwear business environment is quite grim.

At the October 25th performance conference, Belle International Holdings Ltd executive director and chief executive Sheng Bai Jiao also said that the current retail market is tough, and the footwear market will have a structural decline in the next 2 to 3 years.