What Causes BELLE To Decline In The Impact Of E-Commerce?

Recently, in Liaoning radio and television station, "2+1 tonight" has made a dialogue about BELLE delisting, which has aroused my attention.

Attention.

To tell the truth, if Chinese men do not know BELLE, it is really "OUT".

BELLE is

You should have heard something about her brand, because your wife / girlfriend forces you to know her.

I belong to the group of "OUT", because I not only have brand names for women's shoes, but also for men's shoes.

They all belong to those people who basically don't know.

This program forced me to understand and know BELLE.

BELLE's splendor

When Hongkong was first founded in 1992, BELLE was only a small factory of HK $2 million.

Thanks to its rapid acquisition of shopping malls and street stores, BELLE has successfully listed in the HKEx in May 2007 after 15 years of development. Its market value is as high as HK $67 billion at the beginning of its listing.

According to the world clothing shoes and hat net, in the most brilliant 2013 of BELLE international, BELLE's market value was once more than HK $150 billion, becoming the largest shoe retailer in China. The name of "shoe king" is even louder.

Public information shows that BELLE international footwear business's own brands mainly include Belle, Teenmix, Tata, Staccato, Senda, Basto, Joy&Peace, Millie s and so on.

In addition to its own brand, BELLE also acts as a proxy for brands including Bata and Clarks.

There is a view that the existence of BELLE international covers a large part of the footwear industry in China, especially the half of the women's footwear market.

Throughout the history of BELLE's development, it is also a rapid expansion history.

Deng Yao was born in an ordinary family in Hongkong in 1934. When he was 20 years old, he entered the Hongkong shoe factory as an apprentice.

Ten years later, he already owns his own small shoe factory.

If Deng Xiaoping primary school disciple completed the privatization of BELLE international in July 27, 2017 and sold all the shares, Deng Yao had made shoes for more than 60 years, that is, a lifetime.

Especially after the reform and opening up in mainland China, Deng Yao saw and seized the opportunity.

Around 1980, Deng Yao first supplied the design to the mainland factories and made them back to Hongkong for sale.

With the rapid development of Deng Yao's business in the mainland.

In 1998, he simply suspended the sale of BELLE in Hong Kong and made full efforts to develop the mainland market.

In 2011, with the rise of BELLE international share price, Deng Yao ranked ninth in the Hongkong rich list with 4 billion US dollars, ranking the 281st in the world, and most of the former Hongkong tycoons in China were real estate rich or real estate based Hongkong tycoons.

For a time, we saw that most of the department stores had BELLE stores. Because brands covered all kinds of age groups, plus the large number of stores, BELLE not only occupied a large number of customers, but also became the favorite objects of department stores.

The department store is not the introduction of BELLE, there is no hierarchy symbol, a department store, no BELLE shelves, who dares to say that she is a big shop!

For Chinese girls, if they buy Women's shoes for a long time, ten times out of ten they will buy BELLE and its brand.

"Wherever there is a woman, there is a BELLE!" "as long as there is a department store place, there is a BELLE figure!" became one of the founder of BELLE company, one of the proud peppers.

BELLE's "delisting"

BELLE once again attracted public attention, which was privatization in July of this year.

In July 17th, BELLE International announced that the privatization scheme was adopted by the special meeting of shareholders, and that more than 98% of the company's shares supported privatization. In July 18th, it was the last trading day. In July 27th, BELLE international will officially withdraw from the market.

A generation of shoe king withdrew from the capital market.

In fact, in April 28th of this year, a consortium composed of high alpine capital, CDH investment and BELLE executive director, presented a privatization offer to BELLE, which will purchase BELLE's all issued shares at HK $6.3 per share in an agreement.

After the privatization deal is completed, the high leverage capital will own 56.81% of BELLE international, and CDH investment holds 12.06% of the shares. The company, including the executive director of BELLE and the president of the sports department, Yu Wu, executive director and President of the new business department, will have the remaining 31.13% shares in the management of the tender offer.

BELLE founder and chairman Deng Yao and chief executive Sheng Bai Jiao will sell all of their holdings and withdraw from BELLE international.

The total number of two people held 25.74% through their controlled entities will amount to HK $130 billion.

At four p.m. Beijing time on July 27, 2017, Belle International Holdings Ltd officially announced its withdrawal from the stock exchange of Hongkong.

A generation of shoe king "sold cheap".

The total value of the company is HK $53 billion 100 million.

Compared with HK $150 billion at the peak of the market value, you can see how much the market value has shrunk. Deng Yao and Sheng Bai Jiao occupy a total of 25.74% of BELLE shares, which means that they will eventually leave the market with tens of billions of dollars, and BELLE will no longer be "BELLE". This BELLE's HK $53 billion 100 million purchase amount has also set the highest record of HKEx.

In expansion, lost in expansion.

As the saying goes, "those who get the channel get the world".

BELLE's popularity lies in its opening up.

The expansion of BELLE's international stores also foreshadowed the decline of single store output in the future.

In 2009, there were 681 new self-employed retail outlets. From 2010 to 2012, the number of BELLE's net sales increased from 1500 to 2000 each year. In 2011, BELLE was at its peak and the most crazy. In the year, BELLE would open a new store in less than two days, and set up shop to some crazy degree.

In 2014, BELLE started its first negative growth in shops, and the crazed expansion eventually brought about a sharp decline.

In 2015, BELLE's international net profit fell sharply for the first time, the first profit decline in nine years.

This year, BELLE, which expanded in quantity and made profits by scale, reduced 366 of its retail outlets in the mainland.

Until 2016, BELLE, which had opened for 2 days, ushered in the tide of closing stores.

6~8 closed 276 stores in the month, equivalent to 3 shut down a day.

Since then, although BELLE has made efforts to pform, it has failed to change the declining trend of closing stores and declining performance. Its operating income in 2014, 2015 and 2016 was HK $50 billion 474 million, 48 billion 452 million yuan and 47 billion 83 million yuan respectively. Net profit was 6 billion 10 million yuan, 3 billion 485 million yuan and 2 billion 713 million yuan respectively, and net profit fell two in two years.

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Is it really the impact of the electricity supplier?

For the news of BELLE's delisting, the media used more electric shocks to explain.

Of course, the impact of the electricity supplier must be an important reason for BELLE's failure.

For instance, BELLE chief executive Sheng Bai Chai admitted that she would not surf the Internet or even WeChat.

When BELLE reached its peak, the new business format of electronic commerce began to rise.

In 2013, e-commerce broke out.

The new commercial channels bring subversive innovation to the traditional business format and change the line mode of traditional business format.

In the face of the impact of e-commerce, BELLE's pformation is not ideal. It has not changed the way of being a channel under the line, so that BELLE has paid a heavy price.

In fact, BELLE is not a negative electricity supplier, but rather early contact with the electricity supplier, at least in mainland China BELLE is an early intervention in the retail brand of electric business.

In July 2011, BELLE set up an excellent purchase network, which was once regarded as a model of vertical B2C.

At the same time, it also has layout in Tmall and other electronic business platforms.

In the face of the huge impact of the electricity supplier, BELLE also wants to pform. The problem is that its business pformation is unsuccessful.

In the face of the huge offline terminal, BELLE has been hesitant in the business of electronic commerce, its electronic business platform is only used to clean up the quarterly money.

BELLE CEO Sheng Bai pepper has said that the group considers the possibility of pformation from the traditional department store sales mode in the future, but he stressed that the direction of pformation has not yet been determined, and the electricity supplier business has been "do not want to understand".

He said that the market did not make a good prediction of the market changes, and lacked the ability to cope with the more complicated market situation, which led to such a situation. "No pformation path has been found, and the main responsibility lies with me".

But we should also see that in addition to the impact of the electricity supplier, there are other possible reasons for the failure of BELLE.

Market demand and supply change, enterprises can not reflect in time.

This is a hard nut to crack for BELLE.

The author exchanges with the anchors and choreographers of TV stations, which are more fashionable female consumers. Their view is that BELLE's brand in recent years is somewhat unitary, and the changes are not keeping pace with the decline.

I also asked a few marketing experts that they believed that BELLE was too greedy, eager to make a big move, to seize everything in the market, what products wanted to do, and what market would not let go.

Some people think that BELLE products are too popular in recent years, and high-end customers feel low grade. Low end customers believe that the price is high and the price is high.

In recent years, women's shoes have been saturated and oversupplied.

Data show that from 2011 to 2014, the sales volume of women's shoes has increased by 52%, but the market demand has increased by only 13%.

The sharp increase in supply has a great impact on the market. Since 2014, the unit price of women's shoes has started to decline, and in 2015 it has fallen to 4.2%.

After 2015, the sharp supply of the market led to a decline in the sales revenue and profitability of single stores, and the women's shoes market basically entered the state of volume and price.

The pformation of consumer tastes, the supply of enterprises did not follow up in time.

The supply of footwear market has not adapted to the change of demand, so it is difficult to satisfy consumers' requirements for quality and reputation protection.

The footwear market is not lack of demand or demand, but the demand has changed. The supply of products has not changed. Quality, brand and service have not kept up.

In the BELLE 2015~2016 annual performance meeting, Sheng Bai Jiao said that it is obvious that consumers' demand for regular shoes is decreasing.

Now there are more choices in the market, and the demands have changed, but BELLE has not kept pace with this. At least BELLE has not caught the hearts of young women.

It can be seen that the failure of BELLE is not an article on "supply side structural reform".

As an enterprise, the ultimate goal is to meet the needs of consumers, in-depth study of market changes, understand the actual needs and potential demand; the main direction is to improve the quality of product supply, reduce invalid supply, expand effective supply, and improve the adaptability of supply products to market demand changes.

In the era of excess economy, there is no such thing as "putting food in basket."

The market has no products that are always selling well, there is no permanent king, and there is no unchangeable market rule. An enterprise must remain in an invincible position, let the product adapt to the market and not allow the market to adapt itself to the product.

Keep in mind that there is no market for off-season, there is no market in the off-season, where there is market demand which is not satisfied, do not think effective demand is insufficient, but you create insufficient effective supply.

Instead of being defeated by the electricity supplier, BELLE was defeated by itself.

More interesting reports, please pay attention to the world clothing shoes and hats net.