Volkswagen Shoes Are In The Doldrums, Old Shoes Are In The High-End Market.

Volkswagen women's shoes market is bleak, and the high-end high-end may become a breakthrough.

The launch of two new women's footwear brand Badgley Mischka and naturplus in China has also been announced. It will cooperate with the group's global brand strategy to expand business through diversification of brand portfolio.

At present, the group's income portfolio includes revenue from retail and wholesale shoe business, contract production shoe business and retail toy business.

In February 2013, the company bought two trademarks of "BADGLEY MISCHKA" and "MARK&JAMES" at a total cost of 2 million 300 thousand US dollars.

"BADGLEY MISCHKA" is the fashion clothing brand of the United States. It was founded in 1988 by designer Mark Badgley and James Mischka. Its products include evening wear, dress, perfume, handbags, shoes and glasses, etc. MARK&JAMES is its sub card, which was launched in 2009.

The two brands have been stationed in China and have retail outlets in the first tier cities.

It is believed that the acquisition of trademarks and signs related to "BADGLEYMISCHKA" and "MARK&JAMES" registered in China, Hongkong, Macao and Taiwan will benefit the group's future launch of the brand shoes and handbags.

In the first half of June 30th this year, the income of the group reached about 1 billion 503 million yuan, an increase of 6.1% over the same period last year. The group equity holders should make a net profit of 90 million 412 thousand yuan, down 18.5% from the same period last year.

In the second half of the year, the group will rely on the Hamleys toy store bought last year to stop falling.

In October last year, the Group acquired a 100 year old toy store called Hamleys, which has just opened its first store in Nanjing.

After the elimination of the factor of 20 million 300 thousand yuan in seasonal losses of Hamleys toy stores, the group owners should earn 111 million yuan, down slightly from a year ago.

However, the Beijing Commercial Daily reporter noted that the business of women's shoes in thousands of degrees has not been well developed under the increasingly severe market environment. The number of self operated retail stores and the three party retail stores of the group has decreased by 21 and 11 respectively, compared with the same period last year, the sales of the same store decreased by 12.4%.

The cross border action of the thousand hundred degrees originates from the decadent situation of the women's shoes industry.

In October 24th, BELLE International released its 2016 mid fiscal year (March 1, 2016 to August 31, 2016) performance. The sales volume of BELLE's footwear business decreased by 12.7% compared with the same period last year due to the two digit decline in same store sales. Meanwhile, 378 retail outlets in the mainland were reduced during the reporting period.

BELLE said that the adjustment or closure of this "bad prospect" shop will continue for one to two years.

In the 2015 fiscal year, Daphne's losses amounted to HK $497 million (about 430 million yuan). In October 20th, Daphne announced business data for the third quarter of this year, and the same store sales decreased by 13% compared with the same period last year, which is the eighth consecutive quarter of same store sales decline since 2014.

However, diversification is not a good solution to the problem. BELLE felt earlier in the winter of women's shoes industry, and earlier involved in diversification. But so far, there has been no obvious pulling effect.

At the end of September this year, BELLE International announced that it would sell 2 million 719 thousand stake in Japanese retailer Barok, Japan. After the deal was completed, BELLE's stake in Barok fell to 18.6%.

It bought a 31.96% stake in Barok 93 million 960 thousand years ago, which was interpreted by the industry as BELLE's quest for diversification in the shoe industry's continued downturn.

But now, the announcement of BELLE's sale of the latter shares has led the industry to speculate that diversification will make it easier for these old women's shoes enterprises to come out than to focus on solving the main business problems.