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The Low-Key Transformation Of BELLE'S Brand Collectively Fell Into Effect.

2019/11/29 10:47:00 0

BELLE

"Every step is better for me", which is the brand message conveyed by China shoe brand BELLE in the big new product show this autumn.
Obviously, it sounds low-key and modest, especially when it comes to "wherever women pass by, they need BELLE".
The market value of BELLE international listed on HKEx once exceeded HK $150 billion. Two years ago, however, BELLE announced the delisting. At that time, the amount of privatization was HK $53 billion 100 million, and at the peak time of HK $150 billion, BELLE had shrunk nearly 2/3 of its value when it withdrew from the market.
Since 2014, the continuous decline in performance and the subsequent "closed shop tide" are the direct driving force behind BELLE's delisting.
Founded in 1991, BELLE was formerly a shoe manufacturer. After its listing in the HKEx in 2007, it achieved rapid expansion through acquisitions through capital strength. In 2011, BELLE opened a new store in less than two days.
In the fiscal year 2015/2016, BELLE closed 366 stores. At that time, BELLE had one of the largest retail networks in China. It mainly owned 17 footwear brands (12 of which were self owned brands) and sports and clothing brands, representing Nike, Adidas, Sly, Moussy and Replay. But it is the channel which it once proud of dragging BELLE's hind legs. The new channels such as electricity suppliers and shopping centers diverted BELLE's dominant department store channels. In addition, the competition for women's shoes was also intensifying. The rapid evolution of consumer trends also made BELLE unsuitable.
Despite the delisting at the time, the media gave a pessimistic appraisal of the "generation of shoe kings". But the initiative to choose the delisting of BELLE, actually has its own intention - to strive for more space for transformation.
Sheng Fang, President of BELLE international footwear division and new business department (left), and President of Alibaba Juhuasuan division (home) announced that BELLE international has reached a partnership with Juhuasuan.
In 2017, BELLE International launched the strategic transformation of brand upgrading and comprehensive digitalization, and made many new attempts in product design, image building, content innovation and store terminal experience. In the transformation of digital strategy, it is a digital transformation of the whole chain from the trend end and the design side to the supply chain and manufacturing end, until the retail terminal.
"We redefined the core competitiveness of the future. First of all, from the original retail drive, to brand and retail dual core driven transformation, fashion and technology to enhance and upgrade the group and brand of all aspects of business. In fact, it is maximizing the offline retail network and maximizing the transformation of the whole channel retail network. Finally, we will transform from the rapid response supply chain of fashion women's shoes to the fast response supply chain of the whole category, and even the rapid reaction supply chain of upstream raw materials, "said the president of BELLE international footwear division and new business department in an interview with BoF.
Although BELLE is constantly reducing its stores, it has begun to attach importance to the channel of e-commerce. However, under the huge and deep line, the ability of retail network coverage and the ability to respond quickly to supply chain are still one of BELLE's core competitiveness. Especially in the new retail mode, the once regarded as the burden of the store will now become an important part of building a new retail system.
"Technology and data seem cold, but what we want to do is temperature. For example, on the client side, try to start with customer touch products, add a new point of view of retail sales "try out rate", according to the data of a shoe's try out frequency and try length and so on, dynamically record the customer's preferences, so as to find out the shortage of products and adjust and optimize it in time, so that you can understand your feet later, "said Li Liang, director of BELLE international executive director, new retail and technology center, told BoF.
Through the cooperation with different online platforms, the online counters are set up. BELLE uses online stores to share the overall inventory of the brand, so as to solve the problem of offline code and inventory turnover, so that there is no need to worry about the stocking of the goods during the big promotion period. In addition, BELLE is exploring the deep integration of offline retail scenarios and AI technologies to find new models of smart retailing.
From 2017, double eleven gained 30% year-on-year growth, compared to 618 in 2018 and 41% in the same period last year, while the double eleven grew by 71%. In the top 10 of Tmall fashion footwear industry, the group's brand occupied 5 seats. Among them, the founding brand BELLE BeLLE ranked the first place, an increase of 87% over the same period, while sales growth over the same period also exceeded 18%. This year's double eleven latest data, BELLE international shoes and clothing two major business online channel sales total reached 1 billion 50 million yuan, an increase of 43% over the same period last year, while the offline channel grew by 25.5% over the same period. In the top 10 Tmall fashion footwear industry, the group's brand occupies 5 seats, and the group's brand name BELLE wins the championship again. BELLE reconstructs the human cargo market with big data as the driving force, and the strategy of realizing the new retail channel integration is showing success.
In September this year, BELLE international also joined Juhuasuan in launching the "polymerization plan". Juhuasuan will try to use big data to capture the trend of the trend, and make use of big data technology to provide new ideas for shoe design.
When BELLE is able to transfer technology and automation to technology, more resources will lean towards product innovation. BELLE has also attracted many top-level cross-border cooperation, including the cooperation of STACCATO and MOSCHINO creative director Jeremy Scott, which has injected more modern connotation into the brand. The cooperation between 73Hours and the palace culture of the Imperial Palace, the cooperation between BASTO brand and the British V&A Museum has fully integrated the eastern and Western arts and culture into the details of shoe design.
In September of this year, the BELLE international shoe design fund was unveiled. The fund is the first fund to support shoe design in China. It aims to encourage creative design and allow consumers to experience more diversified footwear products. "We hope to attract and support outstanding creative design talents worldwide, and promote our own talents with each other through the BELLE international shoe design fund", so as to contribute more creativity and design to the industry and consumers, "Janner Zhang, head of BELLE global footwear division, deputy director of brand development and image creative center, told BoF.
By contrast, competitors who have been able to compete with BELLE are all in deep trouble. In August 26th of this year, the announcement of bankruptcy of fortune bird announced that bankruptcy auctions had been sold for two times. The red dragonfly, which invites Angelababy to speak at large price, is also hard to pull down. Its share price has shrunk by nearly 80% since its listing in 2015. Daphne international is facing the same problem as BELLE two years ago. The rapid expansion of stores in the ten years from 2002 to 2012 has led to the soaring sales cost, the demand saturation and the longer turnover of inventory. But at present, Daphne has not found a better way to shut down its stores, but its share price has been hovering below 1 Hong Kong dollars for two consecutive years.
BELLE can survive now, thanks to Topsports.
As BELLE's sporting goods retail operation and service providers, Tao Po international has been separated from BELLE international and is known as "BELLE international sports business line" by the industry. In 2018, BELLE accounted for about 6.7% of China's clothing and footwear retail market, of which Nike and Adidas were the top two in China's sports and leisure apparel sales last year.
In the 2017 fiscal year, BELLE sports and apparel business earned 22 billion 746 million 500 thousand yuan in revenue for the first time, exceeding the footwear business, accounting for 54.5% and 45.5% respectively. 2016 fiscal year group footwear business income accounted for 51.7%. No wonder BELLE will consider splitting it up. In October 10th, Tao Bo International Holdings Limited officially landed at the Hong Kong stock exchange. Its opening price was HK $8.5, and its market value was HK $52 billion 700 million.
But in the final analysis, it is essentially a middleman who makes the difference, which means that its inventory will be affected by the upstream brand and downstream customers. If brand partners are gradually being sold through self operated e-commerce platforms or stores, they will surely weaken the business performance and financial situation of the company.
In addition, the revenue of Tao Bo is too dependent on the two main brands of Nike and Adidas. Prospectus shows that in 2017, 2018 and May 31, 2019, the sales revenue of the two brands accounted for 90%, 89.4% and 88.8% of the total sales revenue respectively. In recent years, he has also been actively improving this situation. Prospectus shows that in addition to the two main brands, Tao Bo is also working with Puma, CONVERSE, ghost tigers, TheNorthFace, Cage and other brands.
Apart from these partners, BELLE's own business can hardly be seen as having any advantages. After 2012, when the era of sales driven by channels ended, the domestic sports enterprises encountered the slow-moving predicament after the rapid expansion of listed companies, forcing enterprises to face up to the needs of users, especially young users. For example, Anta launched the trend sports series to attract young audiences. Lining joined the new national tide movement to redefine the brand. From 2016 to 2018, Anta's growth rate climbed from 20% to 44.4%, more than doubled. The Lining group rose steadily from 13.1% to 18.4%, while XTEP increased from 1.9% to 25%. The improvement of domestic sports shoes enterprises can not be separated from their positive transformation.
At least, BELLE realized this very early and actively sought transformation. "We are driven by two cores, one is brand, the other is retail. Technology and fashion are like these two dual core combustion booster, we integrate them into brand and retail, create new possibilities, and make the dual core turn faster and better, "Li Liang said.
Now it seems that the delisting seems to be a good move for BELLE at that time, which can make it free from interference in the capital market and devote itself to transformation. As to how far it can go, whether we can achieve the rise of "one generation of shoe king" depends on how resolute it is to transform itself.

Source: BOF Author: Christina Yao

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