Reorganization And Redemption After Privatization Of BELLE

According to the world clothing shoes and hats net, at 4 p.m. on July 18th,

Ending in Hong Kong stocks

Deal.

Waiting for it will be the reorganization and redemption after privatization.

BELLE, known as "shoe king", is tired.

In July 17th, BELLE international CEO Sheng Bai Jiao said that the privatization plan had passed. The former BELLE chairman Deng Yaohe CEO Sheng Bai Jiao will no longer hold shares of the company. It is expected to withdraw the listing status of Hong Kong stocks on the 27 th of this month, and the final trading day of the shares is today at 4 p.m.

It is not clear whether or not to return to A shares.

At its peak, BELLE's market capitalization was close to 150 billion Hong Kong dollars, which is the leader of Hong Kong stock related retail companies.

At the close, BELLE's market value was HK $52 billion 600 million.

It was ten years from 2007 to 2017.

Delisting from Hong Kong stocks means that the purchase and privatization of dust from last year have been settled, and the "Deng Sheng match" that has lasted for 26 years has separated.

In April 28th, BELLE unveiled its privatization plan. The offeree was the consortium of Gao Ling group, CDH investment and executive director of BELLE.

The offeror will purchase all the issued shares of BELLE international through the arrangement of the agreement, and recommend the total purchase price of HK $53 billion 100 million, which is the largest privatization deal in the HKEx's history.

Relying on the advantages of "Hongkong brand and mainland production", BELLE, which has entered the mainland for mass production, is made in China.

The golden age is a giant business in the domestic retail industry.

Because of its poor performance in recent years, it has to be sold at low prices.

BELLE's experience is a microcosm of China's retail industry.

In 2007, Sheng Bai jiao (right) and Deng Yao Qing listed on the market.

The women's shoes counters on the first floor of the department store are the starting points for BELLE.

BELLE originally made shoes brand agency, and is the main agent in China of fashion brands Bata, CAT, Clarks, American city leisure brand Dockers, Levis and sports brand Nike.

After years of accumulation of brand knowledge, BELLE began to buy brands vigorously and began to create its own brand, forming a super brand matrix. Under the banner, BELLE, Staccato, Zhen Mei Shi, Teenmix, and her many brands of fashion leather shoes were firmly occupied by the vast majority of sites on the first floor of department stores and began a long period of monopolistic operation in the mainland.

Whether it's a white-collar Beauty or a student at school, most of the shoe holders have a pair of "BELLE shoes".

However, the market trend has changed, and consumers' preferences are different.

Insisting on quality and pricing, BELLE, which is the main department store, has been defeated by the fast fashion brands in the shopping center and the women's shoes online.

Since 2013, BELLE has been proud of its footwear business and has been dragging its feet on the group.

In fact, not only the old BELLE, but also the whole women's shoes industry are in crisis. Due to the homogeneity of design, the long chain of logistics and the high cost of operation, sales of many shoe brands and stores such as BELLE, Saturday, Hasen and so on have been declining and closing.

Since last year, BELLE has closed shop and has closed 3 stores a day.

During the period of 2010~2012, that is, on the eve of the obvious outbreak of the crisis, BELLE almost opened shop at the speed of about 20% a year, and the number of shops in 8312 years was over 12 thousand.

In the period of 2011, BELLE opened 2~3 stores every day on average.

By 2011, BELLE's revenue reached 28 billion 900 million, net profit to 4 billion 200 million, and the monopoly meant pricing power. By the end of 2011/2012, BELLE's gross margin was up to 57.2%.

BELLE's classic women's shoes

In the face of the crisis, BELLE has tried to shift its focus to new categories, and indeed has a short respite.

In 2013, BELLE acquired Japanese clothing retailer Barok, Italy brand leno, and domestic high-end men's shoes brand Long Hao Tian.

Beginning in 2014, with the advantage of channel, it became the largest agency dealer of sports brand in China. Because of the turning of the sports market, it made a great contribution to BELLE's performance.

BELLE reported that the company achieved revenue of about 41 billion 707 million yuan (RMB, the same below) in the year ended February 28, 2017, an increase of 2.25% over the same period last year, and a profit of about 3 billion 555 million yuan, down 15.38% from the same period last year.

The income of sports and clothing business increased by 15.4% yuan to 22 billion 746 million yuan from 19 billion 716 million yuan.

The growth of sports and clothing business is mainly due to the same store sales growth and retail outlets continue to increase.

However, these "little things" have failed to save BELLE's declining performance in the long run, and have not changed the stereotype of BELLE.

Over the past two years, BELLE's share price has fallen by 26%, far behind the 4.20% growth in the same period.

The past of an enterprise affects its future.

Once the resources become the constraints of pformation, Sheng Bai Jiao also admitted that the failure of BELLE's pformation was largely constrained by the way of operation and brand image.

The first thing to do is channel.

The department store industry is in a bad way and is facing a pformation. Foreign famous Messi stores and Marsha general stores are either closed or started to shift their attention to the fast fashion and food industry. Domestic Wangfujing, new world and Dayang department stores are also upgrading their brands. They will be placed on the first floor to be more popular with the young people. They will increase pets, restaurants and other categories, provide more diversified services and create a better shopping experience.

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These efforts do not match the convenience of logistics providers and experience better shopping centers.

BELLE has also tried to develop online channels, but it still follows the traditional thinking of heavy logistics and heavy operation.

In 2012, BELLE invested 2 billion yuan to develop e-commerce purchase, and once monopolized BELLE's own brand online, cutting off the supply of other electricity suppliers.

At the same time, Xu Lei, vice president of the former Jingdong mall and vice president Zhang Xiaojun of VIC, joined the management team of the excellent purchase network, respectively, as the excellent purchase network CMO and COO.

At the same time, we purchase our own warehouse and take part in the ordering meeting in a large area to share the replenishment mechanism of BELLE supply chain.

But a year later, Xu Lei and Zhang Xiaojun left.

BELLE's fashion style

Sheng Bai Jiao also admitted that the operation cost of shopping centers was too high, and BELLE didn't have the huge financial and energy to do so, so they chose the faster and newer electricity providers, but found that online channels also need a lot of investment. Moreover, the development of online channels was no better than that of the offline businesses. Moreover, the online and offline businesses were totally two customers. The prices and products were different.

Fashion and cost performance are the most important reasons for BELLE's decline.

The reason why fast fashion and e-commerce brand can grow in a short time is the low cost.

Because of the overweight operation mode of BELLE and the pursuit of high-end brand positioning, the price is much lower than those of the younger brands.

Moreover, women's fashion products are rapidly iterative. Young consumers do not put quality first, but fashion design. The design of BELLE is obviously behind the young brand, and it is not out of place.

The heavy burden and the heavy mode make BELLE action slow, and it is difficult to respond quickly to changes in market winds and changes in consumer tastes.

Sheng Bai Jiao also said in an interview that many times Lido had predicted a change in the tastes of footwear products to consumers, but some other changes, though somewhat understandable, failed to predict accurately.

He said frankly, or at that time, was bound by existing interests and did not dare to pform, because once a major pformation was made, it was bound to cause significant pressure on current profits and damage shareholders.

After delisting, can BELLE light up the road? After all, its resource network and brand management strength in China's retail circle still can not be underestimated.

After removing all kinds of restrictions of listed companies, BELLE's management can push forward the pformation of BELLE.

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