Does BELLE Sell Itself Means The Decline Of The Real Economy?

According to the world clothing shoes and hats net, recently,

The news of privatization will explode the major media and become the focus of attention of all parties.

As China

The largest company, BELLE international, has dominated China for 12 consecutive years.

At its peak, the market capitalization reached HK $about 150000000000 at its peak. Not only has it been sold in a low profile, but its privatization has also been put on the agenda.

Some people say that behind the shoe king's selling is the decline of the real economy.

The author believes that this reflects the urgency of pformation in traditional industries.

Deputy director, Department of industry research, Chongyang Institute of finance, Renmin University of China

Believe it or not, the consumer has changed.

With the rapid growth of GDP per capita, China is ushering in a new era of consumption upgrading. The consumption structure will change significantly. The demand for clothing and food has basically met, and the demand for "living, doing, health and happiness" has been rapidly released, and the proportion of consumption expenditure in urban and rural areas is expanding rapidly.

Growing up in the Internet environment, the 80 and 90s have grown into the backbone of consumption. Their spending habits have changed the existing rules of the Chinese consumer market.

In 2015, China's population over 60 years old and over 200 million, and the current elderly people are different from the traditional concept of the elderly. Their values, consumption and lifestyles are constantly updated. Consumer demand is also changing to higher levels, personalization and diversification. They are constantly upgrading regardless of their dress or spiritual needs.

In the face of such consumption escalation, BELLE international obviously did not keep pace with consumers, and failed to meet consumers' increasingly personalized and diversified needs in a timely manner, and also failed to adapt to the market demand under the upgrading of consumption.

BELLE international executive director and chief executive Sheng Bai Chai also said that consumer demand for footwear has changed a lot, and began to pay attention to cost-effective, convenient and personalized.

However, even if we are aware of the problem, we may not be able to adapt to this trend in time.

Although BELLE international has many brands, however, there is not much difference between age and style. Many brands do not form a division, so it is easy to lose themselves in this era of personalized and diversified fashion. With the continuous influx of foreign brands and the growth and growth of the new brand in China, the degradation of BELLE international seems inevitable.

Many brands also fail.

"Wherever women pass by, there must be BELLE."

This is not only the rhetoric of BELLE international, but also the portrayal of crazy expansion.

From 2010 to 2012, BELLE international retail stores increased by 2355, 2983 and 2614 year-on-year respectively.

As of November 30, 2016, BELLE international has 20630 retail outlets in China, 13145 of which are footwear stores.

While running crazy shop, BELLE international brand is also expanding rapidly, not only has the same name flagship brand BELLE (Belle), but also has STACCATO, JOY&PEACE, Millie s, Jipi Japa, beauty Po, Tata, Teenmix, Xinta, bath, 15MINS, map, 15MINS, map and so on, 14 self operated footwear brands, and has also represented the international brands of shoes, such as, ",", ",", "," and "STACCATO".

The multi brand advantage provides the brand guarantee for the differentiation market entry, on the one hand, it achieves the status of BELLE international shoe king. On the other hand, it also buries the hidden danger.

In fact, BELLE International's success is more complacent to channel dividends, and BELLE itself is more like channel brand rather than consumer brand.

At the beginning, BELLE international stepped the pace of the initial stage of consumption upgrading. At that time, the purchasing power of domestic consumers increased rapidly, and at the same time, it was not very sensitive to personalized and diversified consumption. Its channel advantages all over the country made BELLE brand and shoes King status.

This has also created BELLE's confusion over channel brands and consumer brands, making them overconfident in consumer brands.

However, the positioning of products under such multi brand background is not very clear. At the same time, multiple brands will bring about the doubling of the cost of design innovation, so that the slow updating of BELLE's product style has become the consensus of the market. This will inevitably lead to the continuous loss of consumers, let alone lasting favor and preference.

Finally, BELLE international is overconfident with its multi brand strategy, aiming to occupy all markets through multi brand strategy, but the product is too popular. The final result is turned out to be a high-end customer, but the low end customers can not afford it, let alone more and more personalized and customized demand.

The electricity supplier is coming, but BELLE is not on the draught.

The rapid development of e-commerce in China has constantly changed the layout of the traditional real economy, such as retail and manufacturing.

In 2013, China's online retail market reached 1 trillion and 850 billion, surpassing the United States as the world's largest online retail market, and the retail sales volume of physical commodity network accounted for 10.6% of the total retail sales of consumer goods in China.

In 2016, China's online retail sales amounted to 5 trillion and 160 billion yuan, and the retail sales volume of physical commodities accounted for 12.6% of the total retail sales of social consumer goods. It became the main driving force for the growth of retail industry, and the growth rate of other retail businesses was much higher than that of department stores, supermarkets and shopping centers.

It is no longer a legend to get e-commerce users.

However, BELLE International believes too much in its channel and is not ready to respond to the impact of the electricity supplier.

Since 2009, BELLE international has started the layout of Tmall, Jingdong and other platforms. Subsequently, it has set up Taoxiu network and excellent purchase network. After that, Taoxiu network has been merged into excellent purchase network.

Regrettably, these electric shock attempts have not formed a climate at all, and even today, there has been no clear development strategy for e-commerce.

As an enterprise founded by the entity industry, BELLE International's electric shock is instead, "on the left and right sides". On the one hand, it is necessary to maintain the channel under the existing railway without being affected. On the other hand, it also needs to gain online advantages. The two rabbits are almost impossible to complete at the same time, and the collision between BELLE's internal electricity suppliers and entities is also an open secret.

In addition, the production of BELLE international has not been able to keep pace with the times, nor has it been able to catch the tail of Internet +, realize flexible manufacturing, and produce personalized customized products in industrialized flow shop.

With the advent of e-commerce, the new industry has been flying one after another, and even the traditional industries like red collar suits have been flying through the pformation. But BELLE international can only look at it with open eyes and sigh that its past glory is gone forever.

Today, the high leverage Capital Group will take over BELLE international, capital holding industry, or will open BELLE's new journey.

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