BELLE Focuses On Brand Integration Under The Financial Crisis

Into Tianhe square, here, "Belle (BELLE), Teenmix (Teenmix), Tata (HERS), Staccato (Staccato), BASTO (best picture)".

All brands are owned by the same enterprise. It is BELLE's model of the shoe industry.

The domestic shoe companies, the BELLE international after listing, can be described as a dust storm. Despite the financial tsunami, Morgan Stanley (hereinafter referred to as the big name) still thinks its "thin camel is bigger than the horse".

Moreover, under the background of the national policy led expansion of domestic demand, mastering the channel means mastering the survival of enterprises.

According to Gao Hua Securities, BELLE is China's largest footwear agency, Nike's largest agent in China, Adidas's largest two tier agent in China, BELLE's stores can be returned to the store in one year, and the annual return of sports brand stores is 33%, higher than the 25% level of the same industry.

In the second half of this year, Italy leisure shoes brand GEOX gave up cooperation with AOKANG and chose BELLE as an agent to show BELLE's channel advantages.

As a domestic shoemaking giant, AOKANG has also sprout the idea of following BELLE in recent years.

BELLE model - the combination of own brand, agent brand, intensive and perfect channel, has really touched the heart of a large number of domestic shoes, including AOKANG.

BELLE's "thin dead camel is bigger than Ma Da". "At present, there are 28 brands of BELLE agents."

The Guangdong Footwear Industry Association told reporters that BELLE's channel is undoubtedly the best in the shopping mall of the first tier market nationwide.

It is understood that Belle (BELLE), Teenmix (Teenmix), Tata (HERS), Staccato (Staccato), BASTO (best picture) are BELLE's own brand.

In addition, BELLE is the domestic agent of ELLE and GEOX foreign brands.

On the one hand, we must grasp the construction of our own brand, and continue to seek foreign partners on the other hand, and attract the other side with the advantage of domestic channels, and take the agency power to form a cluster effect. This is BELLE International's strategy.

"BELLE mode - industry chain vertical integration production."

A research report from China Merchants Securities concluded that BELLE's rapid reaction business model helps to adjust product series in time according to market conditions.

Because of this, BELLE's ordering time is shorter than the industry average. 2/3., under the influence of the financial tsunami, the apparel retailing industry is inevitably affected, but BELLE is still popular.

"Although the company can not avoid being dragged down by the economic downturn in the short term, its risk is limited because its rent is determined by the way of revenue linked, plus the supply chain can effectively reduce the amount of deposits and loans."

BELLE's profit forecast has been lowered by 11% this year, while the 09 and 2010 earnings forecasts have been lowered to 16% to 17%. respectively. "BELLE's earnings forecast is mainly reflecting three factors: first, the group must provide for its inventory and the operational losses caused by the whole purchase of Mirabell"; secondly, the provision of operational losses for Millies and Staccato in Hongkong and the United States; secondly, the increase in advertising expenses plus the decrease in revenue contribution from sportswear sales, leading to an increase in group operating expenses and a negative impact on profitability.

However, Da Mo added that the potential for the one-off provision of the 07 year inventory of MB will be cut off. It is expected that BELLE's net profit will increase by 22% in the next two years, and 15%. from BELLE's report, BELLE is still the leader of the mainland's retail stocks in the eyes of investment banks.

It is worth noting that, as a shoe company, BELLE, which is defined as a retail share, has further enlarged its channel side functions.

In fact, because of its huge sales system and multi brand strategy, it has increased the ability to fight risks and maintain a higher gross margin.

China Merchants Securities report believes that BELLE will continue to seek the right brand in the future based on product operation and capital management.

"Multi brand strategy obtains different segments of consumers."

According to statistics, BELLE international added 13 new brands in 2008, of which 6 are private brands, and the market oriented vertically integrated business mode (Design + production + retail) effectively improves profit margins and inventory turnover.

The report predicts that in 2009, the growth of footwear consumption will be around 6%, and the expansion rate of BELLE shops will slow down, focusing on brand integration and "internal accomplishment".

In September, after 5 years of being in love with AOKANG group, the second largest shoemaking enterprise in the world, Italy GEOX (VS), extended the olive branch to BELLE, a giant shoe giant in China, and formally signed the cooperation agreement, granting the exclusive agency to mainland China to BELLE in September.

It is worth noting that although BELLE has obtained the exclusive agency power of GEOX in mainland China, it is only limited to sales.

At the same time, GEOX did not completely give up AOKANG's partner, the product is still AOKANG OEM.

"We had a comprehensive relationship with GEOX before.

Thereafter, cooperation with GEOX in production will continue. "

AOKANG people in the newspaper interview was outspoken, "they (GEOX) have their own ideas".

The advantages of BELLE and AOKANG are fully embodied in the actions of GEOX.

BELLE international 2008 semi annual report shows that by the end of June 30, 2008, BELLE has added 2212 retail outlets and 8355 total stores.

According to the industry forecast, by this year, the number of BELLE's chain terminals will reach 1.

After acquiring such enterprises as BELLE, BELLE has become the biggest shoemaking enterprise in the country.

"From the scale, BELLE's" big "is understandable, but concentrates on the ability to sell shoes.

GEOX continues to choose AOKANG OEM, focusing on the ability to make shoes.

Liang Venlo said.

"Not long ago, we have just been named GEOX as the world's best OEM enterprise."

AOKANG people told reporters that GEOX looked at the production capacity of AOKANG Ou Bei International Industrial Park, so continue to give this piece to AOKANG.

It is understood that at present, AOKANG Ou Bei International Industrial Park specializes in producing international brands, including GEOX, Tommy, bass, Aldo, fumais and so on. The headquarters Industrial Park has seven branches, mainly producing AOKANG, Kanglong, beautiful beauty and other brands; Chongqing red fire bird production base mainly produces Red Flamingo brand.

The production mode of BELLE is more inclined to the light assets strategy of Nike giants and Adidas giants.

"BELLE does have its advantages, such as brand management, such as shopping mall sales channels, such as financing, such as geographical location."

AOKANG people said that BELLE is more in charge of the front line of the commercial battlefield, AOKANG's advantage lies in "logistical support".

"In terms of production, AOKANG can make full use of various means to save costs, and it can ensure quality on the basis of cost saving."

In the next 2-3 years, according to BELLE's plan, we hope that we can upgrade all the business indicators of Mie Li and San Da to the level of BELLE's existing businesses. The investment bank also expects BELLE to slow down its expansion in 2009, and first consider the practice of internal strength in AOKANG.

For AOKANG, this may be an opportunity to catch up.

However, one company is a listed company, and a company has only disclosed the intention of listing. But AOKANG has not been able to get enough information on BELLE's financing capability, which has affected the expansion of the later stage, especially the expansion of the channel side.

In May 2007, Belle International Holdings Ltd's global stock offering was listed in May 23rd.

It took more than 3 months at that time, and BELLE's total market capitalization was close to 80 billion yuan.

At the end of the same year, as the largest private shoe manufacturer in the mainland, AOKANG formed a strategic alliance with one of the world's largest strategic management consulting firm, Kearney, and it was reported that the move was preparing for the listing.

At present, in the domestic shoe making industry, only a few enterprises, led by AOKANG, can compete with BELLE.

But in the eyes of the world, compared with BELLE, AOKANG is obviously at a disadvantage because it is not listed.

It has been reported that AOKANG will be listed on AOKANG's 20th anniversary in August 8th this year, but it is still uncertain.

AOKANG people declined to comment on the grounds of sensitivity, but also revealed that the current economic environment is not a good time to list.

AOKANG does not want to expand its channels.

Turning to the change of channel mode, AOKANG group vice president Wang Zhenquan once summed up the "1+N" mode and "zero risk" agency mode.

Among them, the "1+N" mode means that "1" stands for flagship space or single brand flagship store, and "N" stands for multiple stores.

"Zero risk" agency is to adopt the way of "bottom guarantee plus business commission" to ensure that the agent does not take any risks.

Agents are mainly responsible for store leasing and maintenance of local public relations, and the rest are responsible for the completion and cost of the business.

It is understood that this model has been promoting, but there is no large-scale expansion.

According to AOKANG, the main strategic point of AOKANG is still in the two or three line market.

The risk of consumer contraction and the decline in gross profit margin will mean that every move should be exposed to investors, especially those in BELLE.

The channel is king. It is a conclusion. How can we go further with millions of eyes watching BELLE?

"BELLE's sales volume was weaker than expected after the traditional shopping boom in the golden week holiday of October."

Dafu securities latest research report shows that on 13-26 October, the income of the company's footwear business grew to 40% compared with the same period last year, while the same store sales growth dropped to 5%.. However, in the first 9 months of 08 and until the end of the golden week, the revenue growth of the footwear business and the growth of the same store sales were 50% and 10%. respectively, compared with the sports apparel distribution business, and the defensive business of the footwear retail business was higher.

After the closing of the Beijing Olympics, sales of sportswear continued to be weak.

Like other retailers, BELLE's sales growth has slowed down, and the expected downtrend will continue for several months.

However, the report also said that even if BELLE's branch expansion plan slowed down, the company could achieve its 09 year revenue growth target as long as its sales growth in the same store kept rising.

"Under the economic slowdown, department stores will offer more discounts and promotions, while retailers will also reduce their prices.

We expect that BELLE will also price its products depending on market conditions. "

The report stressed that BELLE's gross margin will be the focus of attention.

BELLE BELLE is the largest female fashion shoe retailer in mainland China.

At present, BELLE owns its own footwear brands, including Belle (BELLE), Teenmix (Teenmix), Tata (HERS) and Staccato (Staccato).

The company's footwear brands include Bata, ELLE, BCBG, Mephisto, Geox, Clarks, Merrell, Caterpillar, Sebago and so on.

BELLE is also one of the largest retailers of sporting goods in China. Its products include: Nike, Adidas, Reebok, Puma, Mizuno, LiNing, Kappa and Converse. It also acts as a leisure Cowboy brand Levi "s.". In addition, the group has the right to use the brand name of the fashion sports brand.

BELLE brand group (part) Belle (BELLE) BELLE BELLE's core brand, but also one of the most famous brands of Chinese footwear.

Products in the middle and high-end range.

Teenmix (Teenmix) Teenmix comes from Hongkong. BELLE is packaged by the popular password "lifeforfun, styleforteens", which symbolizes the cultural life of young new generation to meet the needs of young people's fashion and avant-garde.

The price is above 700 yuan.

JOY&PEACE (real Poetry) BELLE founded the brand from the concept of "world harmony", and implemented the spirit of Simple&Match (simple and harmonious) design, with shoes as artworks, expressing the concept of "joy and peace".

The brand is positioned to lead the trend of leather shoes design and manufacture in Europe and the world, with male and female executive shoes as the dominant position.

Staccato (Staccato), which was introduced into the mainland market in 1998, is a famous high-end fashion shoes brand in Hongkong and Mainland China.

Staccato (STACCATO) originates from the Italy brand. In Italian, it describes "flowing music", which implies the rhythmic life of modern cities.

BELLE defines it as a commitment to meet the needs of young and high-end white-collar buyers.

AOKANG is located in the middle and low end of the two or three line market. AOKANG group, formerly known as Yongjia Olin shoe factory, was founded in 1988.

In 2001, AOKANG group started its multi brand business, and launched Kanglong casual shoes and beautiful ladies fashion shoes.

Now AOKANG leather shoes, Kanglong leather shoes and beautiful ladies leather shoes are all regarded as national inspection free products by the AQSIQ.

Unlike BELLE, AOKANG's sub brands are concentrated in the middle end or the middle end, and are currently active in the two or three line market.