"Shoe King" BELLE Walks Down The Altar Shoe Enterprise Pformation Pain

In March 28th, it was called "China shoe king".

International Holdings Limited (Daphne) released its 2016 annual report. The group's annual losses of HK $819 million 100 thousand were 2.16 times the net loss of HK $378 million 900 thousand in the same period last year.

At the same time, the annual report shows that in 2016, the number of sales outlets of Daphne's core brand business was reduced to 999.

Coincidentally, another shoe giant Belle International Holdings Ltd (BELLE) released the fourth quarter retail business data report and earnings warning announcement on March 19th evening, which is affected by the downturn in the footwear business. As of February 28, 2017, the net profit of BELLE will be reduced by 15% to 25%.

In addition, it is known as "the first stock of China's footwear industry".

(18.800, -0.38, -1.98%) Limited by Share Ltd also said that after 2016, after the diversified pformation in 2016, the year-end performance is still unoptimistic.

The industry believes that a series of measures such as hatching net red and investing in VR industry have been carried out on Saturday, but at present there is little effect.

"Change, so beautiful."

At that time, BELLE entered the family by this advertisement. More than half of the ladies' shoes counters in the first tier city department stores were BELLE counters, and their self owned shops were all over the streets of two or three cities in China.

Official website shows that BELLE is still the largest company in China's footwear industry. BELLE group has many brands such as Belle (BELLE), Teenmix (Teenmix), Tata (HERS) and so on. At the same time, BELLE also has 7 brands, including Bata, etc., which are the overlord of Chinese women's shoes.

According to the ideal planning of BELLE, the matrix composed of more than ten brands can cover all kinds of consumption groups of different ages and consumption ability, and yearn for quality life.

In the industry, its position is also outstanding, the circle circulated such a sentence: the shoe industry will be divided into two categories, one is BELLE, the other is non BELLE.

From 2010 to 2012, BELLE international footwear business increased 5340 sales outlets in mainland China, with an average of four or five stores a day.

Obviously, BELLE almost monopolized the sales channels of women's shoes.

According to its earnings report, BELLE's revenue reached 28 billion 900 million in 2011, and its net profit increased from 900 million in 2006 to 4 billion 200 million in 2011.

In the capital market, BELLE's market value exceeded 150 billion. It is the highest retail enterprise in China with the highest market value. It is the footwear company with a global market value of second. The market value of private listed companies in China has been ranked third (after Baidu and Tencent).

But since 2012, BELLE has begun to go downhill.

BELLE reported that in the 2012 fiscal year, BELLE's net profit increased by only 2%.

Previously, in the 2008 fiscal year, the data remained above 20%.

After the 2012 fiscal year, the net profit growth rate has not yet reached two figures.

In the 2015 fiscal year, net profit increased by 38% instead of rising.

Similarly, Daphne and Saturday also experienced a craziness from the expansion of the store to the business downturn, showing a parabolic trajectory.

The industry believes that

The first problem is overcapacity.

According to the output and domestic sales data of China Leather Association in 2015, China's footwear output was 14 billion pairs in 2015, and the domestic market consumption is expected to be 3 billion 800 million pairs (total consumption 350 billion yuan), and 9 billion 870 million pairs (51 billion 100 million US dollars) of footwear exports for the whole year.

The retail industry also believes that the whole industry of shoe enterprises has not changed.

A retail agent of the company said to China Economic Weekly that in the past a long time, the development and design of new shoes had been adopted by the traditional brand of women's shoes in China for a period of six months.

First of all, the design team finalized the style of shoes according to the latest products of foreign fashion week. Then, at the quarterly order meeting, the distributor or the person in charge of the sale chose the style and placed the order. After that, the order information was pmitted to the relevant production department, the supplier prepared raw materials and accessories, and finally, the factory started, after the production was completed, the products were distributed to warehouses and stores around the country.

"Daphne, BELLE and other brands are mostly family businesses. The enterprise structure is very complex. The making and modification of a resolution often need to be discussed through various departments and various meetings, and the cost of products is high and the price is high, especially the homogenization of its brands is very serious, and profits are declining year by year."

The agent said.

Shoe companies are not unaware of their bottlenecks.

For example, BELLE's chief executive and executive director, Sheng Bai Jiao, said earlier that she wanted to pform herself in an aggressive manner. In order to save her performance, BELLE began to set foot in e-commerce in 2009.

Tao Xiu network was then BELLE's B2C e-commerce station.

In July 2011, BELLE Group invested in the online shopping mall, and developed rapidly. In August 2011, Tao Xiu net merged to buy online shoes city.

With the conversion rate higher than peers, in 2013, excellent purchase completed 1 billion 100 million yuan sales, becoming the largest footwear online shopping platform in China.

At the same time, the excellent purchase was renamed the excellent shopping mall, and began to expand from footwear to clothing and clothing category.

But it is in the middle of this year, the excellent purchase network has undergone significant changes in personnel, the original purchase network CMO Xu Lei, senior vice president Xie Yunli and COO Zhang Xiaojun have left, BELLE electric business has not been successful.

Saturday took another road of diversification.

On Saturday, March 2016, the "Foshan Saturday shoe Limited by Share Ltd" was renamed "Saturday Limited by Share Ltd", weakening the industrial positioning and laying the foundation for diversified development. In June 2016, the fashion industry acquisition fund established by Saturday announced that it invested 5 million yuan in Guangdong Nanhai Eagle Vision Technology Co., Ltd., holding 15% stake, and began to enter the research, production and sale of FPV glasses, as well as VR content research and development business.

On Saturday, July 2016, with the Guangzhou Cci Capital Ltd and Xinyu Chuang Jia investment management partnership, the Beijing industry fund was established, with a total scale of 500 million yuan, mainly engaged in social media integration services and brand IP incubation.

Despite the frequent performance of Saturday's performance, the company's main business is not strong enough, and its sideline is also very inefficient.

On February 25, 2017, the 2016 annual performance Bulletin released on Saturday showed that during the period from 1 to December in 2016, the company achieved operating income of 1 billion 484 million yuan, a decrease of 9.64% over the same period last year, and the total profit was 32 million 999 thousand and 900 yuan, down 0.67% from the same period last year. Net profit attributable to shareholders of listed companies was 21 million 642 thousand and 900 yuan, a decrease of 3.96% over the same period last year.

Though

This shows that the company's performance is low, first because the downward pressure on the domestic real economy still exists in 2016, which has a great impact on the retail industry. The main shopping malls continue to face difficulties in passenger flow decline and customer group structure changes. However, as BELLE chief executive Sheng Bajiao feels, "no pformation will die!"

Once pformation, it means that risks can be speeded up on the existing basis, and the huge cost may result in failure.

As for the direction of pformation, the more than 60 year old helm still seems to have no idea what to do next.

For more information, please pay attention to the world clothing shoe and hat net information report.