"High Inventory" Struggling Edge Clothing Enterprises Resuscitation Fog

< p > > the Chinese traditional footwear giant BELLE (franchised store), known as "a target=" _blank "href=" //www.sjfzxm.com/ "> shoes < /a > king, has recently announced its profit warning in 2012. It is surprising that the stock price plummeted on the second day after the announcement of the performance, and the market value evaporated nearly 26 billion yuan per day, becoming the biggest decline in Hong Kong stocks.

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< p > recently, Wang surname staff member of BELLE investor relations told reporters that because BELLE had entered the "silent period" in the first month before its performance, it is not convenient to answer any questions at present.

At the same time, BELLE's many brands are responsible for each person, said BELLE's business situation, "everyone will remain silent."

What is the "BELLE model" that has made the traditional footwear industry emulate? What kind of setbacks are they going through? Will the reform of its brand mode bring about a turning point for the recovery? < /p >

< p > < strong > "high inventory" struggling edge < /strong > < /p >

< p > recently, BELLE issued a profit warning in 2012, and the company's net profit in 2012 was close to 4 billion 280 million yuan.

In 2011, BELLE International's net profit was 4 billion 250 million, which means that BELLE was near zero growth in 2012.

The earnings warning caused a strong reaction from the market.

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< p > from the beginning of 2012, the high storage was regarded as "a sword" by the footwear industry "a target=" _blank "href=" //www.sjfzxm.com/ "> clothing < /a >.

BELLE, which has a unique integrated business model, has not survived.

"High inventory time challenges the company's cash flow and sustainability, and even prospects for development."

A market watchdog from China Footwear Association said.

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< p > 2011, high inventory has become a "mountain" on top of BELLE.

In 2011, the end of 2011 inventory rose 34.1% to 6 billion 520 million yuan.

Among them, inventory turnover increased by 15 days to 167.6 days.

The company explained that due to the Spring Festival holiday, it needed to be stocked beforehand, so the stock amount reached a relatively high level at the end of December last year.

In addition, sales were weak and lower than expected, causing inventory accumulation.

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< p > recently, reporters learned from BELLE that the order led mode has not changed due to inventory difficulties.

The company will place orders all year round, and the area will place orders. After receiving the order, the brand department will contact the factory, and the factory will produce according to the order.

Factories receive regional orders, big cities basically have warehouses, and they are distributed to the counters for sale after storage.

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< p > "the factory has no stock. Every day it goes out every day. The product will not be sent back to the factory."

Mr. Zhu, who works in BELLE Shenzhen factory, said.

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< p > "the effect of going to stock depends on the situation of front-line sales."

A salesperson in Guangzhou, BELLE, told reporters.

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< p > "from last September to March this year, the stock of each brand of each store in Jiangxi can not exceed 100 double indicators.

All regions will do some large-scale promotional activities according to the inventory situation. Last year's promotional activities were more than in previous years.

Bai Lihua, a salesperson in the Southern District, told reporters.

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< p > the above Guangzhou salesperson said that compared to 2011, the inventory ratio of Southern China area has improved a little. However, the high inventory is still more serious.

She explained that the number of discounts, the larger the discount and the more recent products were among them.

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< p > in the first half of 2012 performance press conference, BELLE CEO and executive director Sheng Bai Jiao said that in the first half of 2012, the total inventory of the company remained unchanged, but the number of stores had risen to more than 1000. Therefore, the inventory of each store decreased significantly, which is a benign development. Therefore, the inventory pressure on the discount sale of the company is not large.

However, due to weak market, the second half of this year may increase the intensity of discount.

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< p > has always been weak. BELLE's UBS analysis released reports that BELLE's footwear business in the fourth quarter increased 3%, compared with 2.8% in the third quarter, which reflected that footwear business is deteriorating.

Liang Yuchang, an analyst at the bank, recently visited department stores and found that BELLE had a discount of 55% off in winter goods, which was more powerful than the earlier 50 percent off promotion power, reflecting its rising stock level.

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< p > < strong > resurgence fog > /strong > /p >

< p > "shoes and clothing industry is not enough to sell for three years" is a group denied by the footwear industry. However, the expectation that the digestive cycle needs to achieve one to two years has been recognized in the industry.

Therefore, e-commerce has become a new battlefield for shoes and clothing enterprises to inventory.

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< p > however, BELLE's test results in the field of electricity supplier are not ideal.

In July 2011, BELLE's shoes and clothing B2C excellent purchase network was officially launched, and began to make the platform.

"Excellent purchase network is to take the money under the line to do online things, constantly burning money."

BELLE electric business staff Mr. Zhou told reporters that traditional enterprises like BELLE are very strict in cost control.

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< p > it is understood that in order to balance the conflict between the two channels under the line and the line, many local businesses have adopted the method of product differentiation. Online channels mainly sell the entry-level and classic products of the brand, among which there are many old products sold in previous years, while the offline ones are biased towards high-end, personalized products, so as to avoid duplication of goods from different channels.

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< p > BELLE is struggling to solve the online and offline conflicts.

According to Mr. Zhou, some shoes are special contributions, which can not be bought online.

The prices of the same products are converged under the online and offline prices, and the products of the old ones are dealt with online discount, and there are more promotional activities.

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< p > what is worth mentioning is that Xu Lei, CMO, left a month ago and returned to the "old club" Jingdong mall.

For the reasons for leaving, "Xu Lei left, the possible reason is that Jingdong routines in BELLE can not play.

BELLE is a very strict cost control company. It costs money to make money. Jingdong can't get rid of the market by burning money. "

The analysts pointed out that the electricity supplier is a very big challenge for BELLE, but BELLE does not understand the electricity supplier. The electronic business team does not understand women's shoes.

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< p > "overall recovery is still hard to predict."

These shoes and clothing industry associations are not very optimistic about BELLE's prospects.

BELLE said the number of retail stores in the mainland in the fourth quarter of 2012 was 889 net increase, and the sales of footwear increased by 3% in the same period. The sales growth of a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > was 10%.

In the opinion of these people, increasing the stock of retail stores can really relieve the pressure of inventory. However, he stressed that the company's profitability and consumption environment are the key to the improvement.

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< p > < strong > brand cooperation will reduce burdens. < /strong > < /p >

P, a former BELLE middle-level manager, told reporters that BELLE, which has a strong brand advantage, will seek reforms in brand cooperation and "reduce burdens".

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Less than P, the industry has always attributed BELLE's leading position to multi brand, channel self-reliance and quick reaction supply chain.

According to the analysis, the deep subdivision of the consumption characteristics of women shoes determines the necessity of multi brand strategy. BELLE has dispersed the risk of single brand operation through the multi brand coverage of broader consumer groups. Meanwhile, the scale advantage of multi brands has increased the ability to bargain with department stores.

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< p > it is reported that BELLE has 10 thousand retail outlets, 10 private brands, 4 private brands among the top 10 brands nationwide, and 30 international brand agents.

As of the end of June 2012, there were 159 million 640 thousand retail outlets, of which 11022 sold shoes and 49 million 420 thousand sold sportswear.

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< p > however, the above people told reporters that only a few brands can really operate successfully and produce high value brands. Under the condition of good consumption environment, many brand operations can bring BELLE's advantage of "brand + channel strategy" to the maximum.

"When the environment is bad, these brands add to the burden of BELLE."

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< p > the media has announced that BELLE will no longer distribute the Kappa products of China.

An insider from BELLE told our reporter that in general, the sales of BELLE agent brand dealers were first sent to the factory and sent to the sales outlets. At present, kappa products are no longer in the warehouse.

According to this statement, the breakdown of cooperation between BELLE and China has been basically finalized.

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P, a long-time BELLE analyst, believes that BELLE is the second largest distributor in China and operates at least hundreds of retail outlets. Its sales share accounts for about 15% to 20% of China's market share, that is, up to 400 million yuan.

For wholesale 60 percent off, BELLE does not sell more than 1 billion yuan.

The sale of Kappa at present is not a big contribution to BELLE's profits.

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< p > apart from the trend of "breaking up with China", Italy's first men's shoes brand and the world's second largest leisure shoes brand Geox (Jian Lok) will not renew the contract with BELLE in the fourth quarter of 2012, ending the 5 years of agency cooperation.

The brand has won the domestic growth opportunities with BELLE's retail channel, and now it plans to implement its own mode.

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< p > "the pattern of dressing for others may change."

The above pointed out that in the process of cooperation with brands, the "brand + wholesale" mode has increased the burden of high inventory for both partners.

In the pformation and development of BELLE, this part should become a part of lightening the burden and putting on the light.

Therefore, she believes that in the long run, the breakup is not necessarily the wrong choice, and it has something to do with the change in the direction of BELLE's cooperation.

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< p > in the eyes of these people, BELLE will act on the brand agent, which may help BELLE get out of the difficult position. However, she also pointed out that BELLE should be careful in preventing the chain effect brought about by the weakening of control.

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