Shoe King BELLE Realizes The Whole Process Digitalization

In the past 600 days, the "big project" is to achieve the digitalization of the whole process, and use data as the driving force for the development of the company.

BELLE has no treasure map, but the general direction is clear.

According to the world clothing and shoe net, in the afternoon of July 27, 2017, with the closing price of HK $6.24, BELLE international, a 25 year old brand.

The retail giant officially bid farewell to the Hong Kong stock exchange.

Whether in the consumer retail industry or private placement

This is a landmark paction.

According to the planned privatization price of HK $6.3 shares, the total value of BELLE international is HK $53 billion 100 million, which has become the largest privatization deal that has not been surpassed in the HKEx so far. In the domestic investment market, the highly prestigious high altitude capital invested heavily in BELLE's 57.6% stake and became the new controlling shareholder of the latter, and Zhang Lei, the founder of high altitude capital, was appointed chairman of the company.

Unlike most people who stay in the simple recognition of BeLLE (BELLE) brand, BELLE international is actually a diversified sports fashion industry group, which has three major businesses: footwear, sports and apparel.

Its own store has two stores, and its salesperson reaches 80 thousand people. Besides BeLLE, there are nearly 20 brands such as STACCATO, TATA, TEENMIX and so on. The apparel business operates 6 brands such as MOUSSY, initial and so on. Tao Bo sports TOPSPORTS is the key retail partner of nearly 20 leading global sports brands in China.

Before privatization, BELLE is continuing to experience the great test of the new business environment.

Due to the impact of electricity providers and other factors, its traditional industries are facing the dilemma of declining performance. This is exactly the historical proposition that BELLE needs to overcome after its privatization: how can we revitalized an old retail companies?

Recently, BELLE international executive director Li Liang, who led the digital pformation, interviewed reporters and chatted about what BELLE was trying to do in the past 600 days and the logical clues behind it.

Li Liang said that the "big project" that BELLE is working on is the realization of digitalization of the whole process and the data itself as the driving force for the development of the company.

But for a business tycoon like BELLE, achieving this is not only based on "top down" but also "bottom-up" and "centralization" to ensure efficiency.

In the face of such a systematic project of BELLE pformation, they do not have the so-called "treasure hunt map". They have the "clear general direction" and "step by step to achieve it under the premise of a clear direction."

Making data a productive force

Although BELLE is a traditional shoe retail companies, it has digitalized genes in history. For example, the turnover of BELLE's goods depends on the data, so that its supply chain can guarantee shipment in 20 days. Its sales volume is also dynamic feedback, so as to ensure that the bestseller is continuously supplied, not just through the pre forecast.

However, like most traditional companies, BELLE's data have been fragmented and fragmented.

The performance of "fragmentation" is three: the bottom data is fragmented, the store data can not feedback brands and businesses in time; data from different regions, different channels and different stores are not interlinked, and can not form effective "data alignment"; macro data and micro decision-making are also fragmented, and data can not quickly help the front-line salesmen to answer, and can not guide the supply chain to adjust in time.

Therefore, since the first day of BELLE pformation, data pformation has become a consistent goal.

To be more precise, it is "whole process data pformation".

This concept is not difficult to understand. BELLE wants to integrate them into the data flow process, such as supply chain, design and manufacture, store decision-making, membership management and so on.

According to Li Liang, the data interpretation of BELLE can be interpreted as "adding new observation points to its original operation engine."

He gave an example of the sales side: the original production of goods depends more on prediction and rapid response, but now one of the directions of data innovation is, "can we start with consumers or even touch products?" this is manifested in: BELLE uses RFID technology to store smart shoes for stores, and according to the data of a shoe's trial frequency and time, customer preferences can be dynamically monitored.

At the beginning of 2018, STACCATO stores found that a new on-line shoe wear rate was ranked first, but the conversion rate was only 3%. After actual investigation, it was found that the shoelace was too long.

When the shoes were returned to the factory for improvement, the conversion rate reached 20% instantly, which created tens of millions of sales.

The smart store solution with Tencent smart retail cooperation, "excellent Mall", is BELLE's broader data attempt.

The logic of this plan is to help store store display by collecting shop flow, customer store mobile lines and attributes.

For example, according to the logic of a line shop, a male running volume is considered to be greater than that of a woman. Therefore, the ratio of men and women shoes is 7:3. After using the excellent Mall, it is found that the number of women entering the shop accounts for more than 50% of the total passenger flow. This is obviously a mismatch between "people and goods".

After that, the store increased its display of women's shoes by 30%, and the sales of single store women increased by 40%.

BELLE's exploration of data includes: providing toolkit for store management, optimizing product arrangement through large data, improving supply chain capability through lean management.

Li Liang told reporters that the original label of a shoe is only a few, but now, every pair of shoes sold by BELLE can add hundreds of labels through each process, which is the foundation of BELLE's algorithm and mechanism.

What BELLE is doing is to abstract the data, use the data as the means of production, and then use force analysis to become the productivity driving the business pformation.

Small step run

And what the outside world has used to think - in some buyout cases, the holding side of the controlling party is very different. Li Liang stressed to reporters that the BELLE innovation team is dependent on BELLE's core competitiveness, whether it is through data, new retail model or technical level, "we are not subversive, but the icing on the cake."

This stems from the innovative team's awareness of BELLE: BELLE's advantage lies in its own business system is still very strong - twenty thousand stores, 80 thousand employees, DAU more than 6 million (much more than most APP in the country), at the same time, has an iterative quick, responsive, and data is more regarded as "accelerating the engine running catalyst."

BELLE management, led by group CEO Sheng Bai Jiao, has great determination to facilitate the pformation of the company and actively explore the road of pformation. However, for any old company, pformation is bound to be difficult, such as whether the executive layer really understands the goal of pformation, and the movement will not be deformed.

Therefore, apart from the top-down implementation of BELLE's pformation, "bottom-up" is also one of the core strategies.

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