BELLE Is Hit By The Electricity Supplier. What Should We Do?

In the surging market, some people are in high spirits and others are falling down. These plots are always circulating, and they have long been disapproved.

but

The delisting is quite lament. Its past brilliance is legendary.

After all, a few years ago, BELLE CEO Sheng Bai Jiao once said such a heroic saying, "wherever there are women passing by, there must be BELLE."

At the peak stage, BELLE did it. For Chinese girls, buying shoes for a long time will buy BELLE and its brand in ten to nine.

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At that time, most of the women in the workplace were Teenmix, Staccato, Staccato and so on.

The half of the counter is actually from the same company, BELLE group.

Now, the trend of time is changing, the market is depressed, and the pformation of BELLE itself is not good enough. Eventually, the former generation shoe king is declining.

Ten years of capital market, back to the starting point

According to the world clothing and shoe net, recently, "one generation of shoe king" BELLE officially withdrew from the stock exchange of Hongkong with a valuation of HK $53 billion 135 million, which is the largest privatization in the history of HKEx.

However, the valuation of HK $about 150000000000 at the peak of 2013 has shrunk by nearly 60%, and nearly 100 billion Hong Kong dollars evaporated, even lower than the total market value of BELLE international at IPO ten years ago.

It is noteworthy that the company's founder, chairman Deng Yao and CEO Sheng Bai Jiao choose to sell 25.74% of BELLE shares they hold, and after the privatization of BELLE is completed, two will cash out billions of dollars.

And high allocating capital will become the new largest shareholder of BELLE, holding 57.6% of its shares; the second largest shareholder will hold 11.9% of CDH investment; the remaining 30.5% will be jointly owned by other management teams of BELLE.

The delisting of BELLE made many people sigh with regret.

BELLE started its footwear industry in the 90s of last century, and then pformed its own brand production and operation. It also acquired other brands of shoes. Its brands include many brands, such as Belle (BELLE), Teenmix (Teenmix), Tata (HERS), Staccato (Staccato), Senda (FATO), FATO (FATO), good people, BASTO (FATO), MILLIES (Miao Li) and so on.

In addition to its own brand, BELLE also acts as a proxy for brands including Bata and Clarks.

There is a market view that the existence of BELLE international covers a large part of the footwear industry in China, especially the half of the women's footwear market.

The expansion of BELLE began in 2009, when it added 681 self-service retail outlets.

From 2010 to 2012, BELLE had a net increase of 1500 to 2000 stores a year.

The expansion of offline stores reached its peak in 2011. In less than two days, a new store will be opened. When you walk in ten department stores, there will be nine storefronts of BELLE.

It is understood that BELLE international, which is brilliant, occupies nearly 50% of the market share in the women's shoes market. This is not the most powerful part of BELLE. It is the 12 consecutive years that China's women's shoes are ranked first.

According to the statistics of China industry and business information center of National Bureau of statistics, 6 of the top 10 top ranked brands in the domestic leather shoes market are BELLE group in the year of 2013. They are Belle first, Teenmix second, Tata third, Staccato fourth, BASTO fifth and Senda ninth.

However, just when everyone thought BELLE would create an immense Empire, in 2014, BELLE's "crazy shop" ended abruptly. Under the impact of the electricity supplier, BELLE group's sales performance began to decline.

Although BELLE's sales increased by 2% to 40 billion 790 million yuan in 2015, net profit dropped by 38%, to 2 billion 930 million yuan, the first decline in profits since nine years.

In the same year, the number of retail outlets in BELLE mainland decreased by 366.

After the company's active pformation, it still failed to change the declining trend of closing stores and declining performance.

In 2016, BELLE's international performance continued to decline, and net profit fell 18.1% to 2 billion 403 million yuan.

A net decrease of 700 stores, with an average of 1 days closing about 2, is in sharp contrast to the hot "average of less than 2 days' opening of 1" during the rapid expansion.

From listing to delisting, BELLE has been in the stock exchange for ten whole years. It has turned from the past glory to a bleak ending. It can be said that the success of BELLE has flourished in the department store. The failure also stems from the infinite persistence of department stores.

In the outbreak of e-commerce and subversion of the traditional business channel mode, faced with the menacing of the electricity supplier, she did not put it in the eyes, and was still on the line.

Coupled with the aging of the brand, product homogeneity and heavy assets caused by years of expansion, making the pformation more difficult, and finally returned to the original point in the capital market.

The collapse of the Empire, the epitome of the struggling Chinese women's shoes industry

When BELLE came out of the news of the delisting, the outside world also wondered whether Daphne would step into its old dust.

Because the paths of the two are very similar, they were once the king of Volkswagen shoes.

The day before BELLE's delisting, Daphne just released the unaudited operational information in the second quarter of 2017.

Statistics show that as of June 30, 2017, the growth rate of Daphne's brand name "Daphne" and "shoe cabinet" brand in mainland China were 10.7% lower than the same period last year.

Among them, the same store sales growth rate dropped 10.2% in the second quarter of 2017.

In terms of stores, Daphne reduced 306 stores in the first half of the year, almost 2 stores on average 1 days.

In fact, the turning point of Daphne's performance also started in 2015.

Daphne not only lost 19.1% of its revenue in that year, but also suffered a loss of about HK $380 million.

In 2016, Daphne's revenue continued to decline by 22.4%, to HK $6 billion 502 million, and its loss doubled to HK $819 million.

And a total of 1039 stores were closed during the year, equivalent to about 3 days on average, 1 days.

In addition, the peak of Daphne's market value reached HK $19 billion 500 million.

Today, Daphne's market value has shrunk to HK $1 billion 187 million, less than the original 1/16 volume.

BELLE and Daphne are typical representatives of the rapid development of China's women's shoes industry. BELLE has expanded rapidly through brand and channel, occupying half of the domestic women's shoes market.

From 2007 to 2015, BELLE's revenue rose from 11 billion 700 million yuan to 40 billion yuan, becoming the most popular "shoe king".

Daphne has grabbed the mass market through cheap leather shoes, and has reached its peak in the past decade by means of differentiated brand positioning and new channel expansion of street boutiques.

In addition, other footwear brands that have expanded rapidly in recent years face the same predicament, and the profits of the entire industry are now shrinking dramatically.

For example, last year's revenue increased by 5.3%, but net profit dropped by nearly 20%.

Another performance that had been aggressively pushed forward on Saturday was also sluggish.

Since 2014, revenue and net profit have shown negative growth.

In 2016, there was a drop in total revenue, total profit and net profit. According to the annual report, the company's operating income dropped by 9.61% to 1 billion 484 million yuan, and the net profit attributable to shareholders of listed companies fell by 7.52% to 20 million 839 thousand and 600 yuan, while three 233 stores closed at the same time.

Analysis of relevant economic experts, the current shoe and clothing industry generally exists the problem of excess capacity.

Taking footwear as an example, China Leather Association's output and domestic sales data in 2015 showed that China's footwear output was 140 billion yuan in 2015, and the domestic market consumption was expected to be 3 billion 800 million pairs, with 9 billion 870 million pairs of footwear exported for the whole year.

The crazy offline expansion led to the saturation of the market, oversupply, coupled with the rise of the electricity supplier and the unfavorable factors such as the unfavorable pformation of BELLE's electricity supplier, which constantly eroded its foundation and eventually led the collapse of the shoe empire.

BELLE is facing not only the abrupt change of the whole market, but also the crisis of traditional enterprise pformation.

Fortunately, all families are also worth looking forward to, whether it is BELLE's capital involvement, management adjustment, lack of identity restrictions of listed companies, etc., or the two generation of Daphne's succession, replacement of LOGO, cooperation with international brands and foreign models, or all other fine-tuning and major cities, at least positive attempts.

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After privatization, is BELLE reborn in the nirvana or in a slump?

E-commerce has not yet developed. There are only two consumer scenarios in the street shops and department stores. This mode of distribution makes BELLE "invincible" because consumers can only accept these choices, and what to buy is entirely BELLE's final say.

However, with the vigorous development of the mobile Internet, the famous traditional enterprises on the main stage are gradually fading away, and the Internet and the mobile internet field are flourishing. The emergence of the electricity supplier has completely changed the business mode of channel management.

Brand competition in the channel has declined, and the degree of competition has increased.

Moreover, thousands of products on the Internet have already flooded BELLE into the torrent. Consumers can hardly reach the local level and contact with numerous women's shoes brands quickly. BELLE can no longer have the right to speak like the original department stores.

With huge sales volume, user volume and stores, it ignores "data", does not pay enough attention to users' wishes, and lacks certain Internet thinking. Under the great changes in the market, there is no way to predict and find pformation.

Perhaps the decline in profits has led BELLE management to see the crisis, but their adjustment has not brought new growth to BELLE, or even missed the opportunity of the electricity supplier.

Today, BELLE's delisting is indeed a factor of market competition. In the past two years, BELLE's net profit is declining. It is an indisputable fact. However, BELLE's delisting is mainly due to a U-turn pformation.

Generally speaking, listed companies are relatively convenient in financing and are conducive to rapid growth.

BELLE has always had a strong cash flow.

In the fiscal year ending February 2017, BELLE's operating cash flow reached 4 billion 400 million yuan. In the previous fiscal year, it reached 5 billion 100 million yuan, enough to meet the development needs of the company.

Moreover, during the ten years when BELLE listed on the Hongkong stock exchange, it never issued new shares for financing, instead, it paid dividends to shareholders for 20 billion Hong Kong dollars every year.

Visible, BELLE is not bad money, whether to keep the listed status, there is no substantial impact on the business.

Although physical retailing is tough, Internet dividends are also gradually disappearing.

Although there is a lot of speculation and bubbles in the new concept of retail nowadays, the importance of physical retailing still has great opportunities if we make progress in digitization and intellectualization.

Many citizens also say that they will insist on trying to buy in a physical store, and buying shoes online will have problems of not fitting feet, exchanging goods and buying fake goods.

Moreover, BELLE is just delisting, and has not closed down.

BELLE still has more than 13000 retail outlets, and there will still be a chance to return to the future integration of online and offline resources.

At present, most of the leaders of shoes and clothing in China are 70, while Deng Yao and Sheng Bai Jiao are 30 after 50.

Bai pepper also publicly stated at the press conference that she still could not drive a computer, even WeChat did not make a good prediction of market changes, which led to the failure of BELLE pformation.

From the privatization framework, we can see that the older generation of entrepreneurs and leaders chose to withdraw from their shares, while the younger generation of management chose to increase their share holdings, which also laid the foundation for smooth intergenerational pmission.

In addition, BELLE should move towards "personalized, niche and cost-effective" pformation.

No matter production or marketing, BELLE should go to some high-end or smaller products. Niche represents BELLE's international need to fine tune its brand, identify the brand oriented customers, and make the overall positioning of the brand more clear.

In short, there is no permanent king in the market, and there is no invariable rule.

No one can always stand on the summit of the times, do not conform to the trend of the times, and do not make any response. Even a huge commercial empire can not survive.

And the battlefield that decides BELLE's life and death is not in the stock market, but in the shopping mall.

More interesting reports, please pay attention to the world clothing shoes and hats net.