The final step of the shoe king is to withdraw from the market.
The total price of privatization is HK$53.1 billion. This is the new record for Hong Kong stock trading, but it is far from the peak of Belle. Ten years ago, her market value once touched HK$140 billion. But this price does have a premium over her performance over the past year. Belle International offers a price of HK$5.27 per share before the suspension, with a market capitalization of only HK$44.4 billion. Behind this is: same-store sales for 13 consecutive quarters of negative growth; as of February 28, 12 months, net profit fell 18%, the core sales of footwear business fell 10%; 700 stores within a year - Turn off 2 stores every day.
But Belle doesn't think this is the last step. After privatization, she will continue to transform and increase her efforts. It is worth noting that Belle founder Deng Yao and CEO Sheng Baijiao will no longer hold shares in the company. The 26-year-old "Deng Shengpei" left, Belle has the next step? Today, Belle is no longer Belle 10 years ago, and HK$53.1 billion is already a high valuation for her. At the last performance conference of Belle, Sheng Baijiao said: "Before the listing of Belle 10 years ago, it has frozen more than 400 billion yuan of funds, even surpassing the Industrial and Commercial Bank of China. Fortunately, at that time, I did not want to forget the shape, talk about the road to success, or today More self-sufficient."
But the CEO, who rarely appeared, once claimed that "every place where there is a woman, there is Belle." And now, it’s just a pair of white peppers. At that time, Deng Yao built a full-chain model of women's shoes from Belle to retail, and then aimed at the mainland market. After Shengbaijiao became the general manager of Shenzhen Belle, he also focused on occupying shopping malls and street shops, and laying out channels. From 2010 to 2012, Belle has more than 1,500 new net stores each year; in 2013, the total number of stores exceeded 19,000, and all of them were directly operated.
After the listing in Hong Kong in 2007, Belle not only accelerated the integration of the retail network, but also opened the road of brand expansion: 380 million acquisition of Fila, 600 million acquisition of Millies, 1.6 billion acquisition of Senda... plus the previously acquired Tianmeiyi brand, Belle The company has gradually formed a super-brand matrix: Belle, Skatu, Zhenmei poetry, others, etc. The agent brands include Bata, CAT, Clarks, etc., which basically realizes the full age and full price coverage of users. Making large-scale, strong acquisitions, the early barbaric growth laid the absolute right of Belle in brand, capacity and channels. At that time, mainstream department stores were able to monopolize. More than half of the mall's and even all footwear areas have been included in Belle. As a result, Belle has mastered the pricing power, and the price is often 30% higher than the peers.
This also makes Belle's annual growth rate of net profit more than 20% before 2012 (except in 2008). Looking at it now, Belle's advantages are in several aspects: First, the early market advantage of the mainland market formed by "Hong Kong brand, mainland production"; Second, the occupation of the commanding heights of the mainstream channels, forming a dive advantage for the market; Coverage of orientation creates an exclusive monopoly advantage. But now, the three advantages of the future are weak. Shengbaijiao took the lead in laying street shops and paving the way. The other women's shoes Daphne, the expansion to the street shop was actually eight years later in 1999, this year Daphne faced the largest "clearance" in history.
The loss of the first-time bonus (from supply and demand to supply exceeds demand), channel diversion and brand personalization trends are all evident, and Belle is transforming in the rush of the trend. With the advantage of the channel, it has become the largest dealer of sports brands in China. In 2014, Belle Group's net profit margin rebounded to 15.5%, which is an increase in net profit from sports and apparel business. Daxie acquired and expanded into new categories. In 2013, Belle acquired the Japanese clothing retailer Baroque, the Italian brand Lannuo, and the domestic high-end men's shoe brand Long Hao Tiandi, hoping for an extension of the growth. The channel sinks. Only the competition in the third- and fourth-line markets has already become hot, and Beller, a latecomer, does not have any advantage. The transformation of traditional enterprises is a self-blood revolution, but the transformation of Belle is not painful, and it still adds to the advantages of the past.
In fact, without prejudice, Belle can still turn the first step by telling the brand story. Nowadays, users' perception of a brand image is three-dimensional. It is no longer based on how many stores. It will look for evaluations of the brand from social networks and e-commerce platforms, and even interact directly with brands to build awareness. Uniqlo is actively interacting with users, opening a special area in the flagship store, allowing users to design their own T-shirts.
Differentiating brand tonality and combing the long tail demand is a very good entry point for Belle. She only turned around the advantages of degradation, letting the brand age and product homogenization become the "female classmates without stories." By 2015, Belle International's net profit was only 2.934 billion yuan, down 38.4% year-on-year. Uniqlo interacts with users, and its brand has become a super IP for emotional sustenance and value expression. The Belle brand relies on specific products. When you see BeLLE, people only think of high heels. At the 2016 interim results conference, Shengbaijiao sighed e-commerce "has caused a huge threat to the group. The performance of the group is unlikely to reverse within the foreseeable 1-2 years." Obviously, Shengbaijiao believes that e-commerce is an enemy. It is a common problem of many traditional entities.
As early as 2008, Belle gradually established the e-commerce model of the whole network marketing according to the development steps of Taobao distribution - Tmall flagship store - B2C distribution - independent B2C website Taoxiu. The products are also gradually developed from the sales of Belle's brands. This was once seen as a successful case of traditional enterprise e-commerce transformation. However, with the rise of B2C platform for vertical footwear such as Haole and Letao, Belle began to re-integrate resources in 2011, and concentrated the entire e-commerce business on the new B2C vertical e-commerce online.
Belle is holding a premium purchase and strives to make a profit within three years. In 2012, Xie Yunli, the then head of e-commerce, announced that Belle will invest 2 billion yuan to develop high-quality purchases. At the same time, it must "internetize Belle's own brand and cut off other e-commerce sources." In addition, the excellent purchase can also participate in the order fair as a large area to share the replenishment mechanism of the Belle supply chain. Belle regards e-commerce as the 11th district (10 districts under Belle Line), and also gives it the mission of opening up new channels and establishing new monopoly advantages: Youbu.com not only sells Belle's series of brands, but also Selling any shoe and apparel brand outside the Belle system, its direct competitors are Letao, Haolebu, etc. In the future, it may compete with Jingdong and Vanke.
The development logic of Youbu.com is the same as that of Belle, and its scale has made it the largest shoe e-commerce platform in China in 2013. But in the same year, the entire vertical e-commerce also ushered in a decline period. This concentrated and monopolistic development thinking has not left the routine of the Belle industrialization era. But in fact, from the consumption scene, user experience to sales logic, it has been different. Youbu.com belongs to the traditional entity enterprise transformation e-commerce. The advantage lies in its strong financial strength and stable brand support. The disadvantages are also obvious. It is often limited to the overall layout of the enterprise and is bound by the care of the offline business.
For a long time, the best-selling is like a prisoner caught from an e-commerce, and has been clearing inventory. Belle is worried that the online channel will have an impact on the offline, so the strict distinction between online and offline goods makes the excellent purchase in a position that can not provide services for Belle customers, and can not sell Belle hot money. This makes it difficult for the customer data obtained by the purchase to be used by Belle. The traditional enterprise transformation e-commerce, Haier Mall is a good reference, its goal is very clear, is to do services. The online order is completed by the offline store, the online is the entrance, and the data link is opened throughout the company. Every aspect of product design, production, sales and after-sales can benefit.
In the era of big data, data is the right to speak. The dispute between SF and the rookie is precisely to fight for this initiative. But Belle still ignores the user experience and data precipitation, moving toward scale. In 2013, the company purchased sales of 1.1 billion yuan and rushed to the throne of the largest footwear e-commerce platform in China. In the same year, the entire vertical e-commerce also ushered in a decline period. The problem of high traffic acquisition costs and limited competitiveness of platform e-commerce has always been the paradox of vertical e-commerce. Utilities began to expand from footwear to apparel and other categories, trying to transform fashion e-commerce.
It was only after the sudden internal changes, the e-commerce high-level officials resigned, and unfortunately, the excellent purchases failed to survive the big waves. In 2016, Shengbaijiao said that the company has tried at three levels, including allowing offline consumers to enjoy online services and consumer experiences; establishing a customer management system to enable customers to spend more in physical stores; through online and offline Consumer interaction promotes the digital transformation of stores and goods. However, it is too late, all attempts may end at Belle's delisting and the founder withdraws.
Shengbaijiao took full responsibility for the failure of the transformation, saying that every meeting will be sad. Belle's recession is clearly not a resilience of its own power, but as a leader, looking for a balance between short-term profits and long-term development, he eventually prefers the former. Sheng Baijiao blamed Belle for the current situation, "he did not make a good prejudgment and response to market changes." Investors do not know how to treat this honest and honest old man, sympathy or understanding. In the face of the plunge in performance, Sheng Baijiao still hesitated when he talked about the transformation at the 2015 performance briefing, and sighed: "I am 65 years old, how many years can I toss?"
In the early days, Belle's production model had its advantages. In the industrialized era, the typical model of shoe enterprises is mass production, which is sold to franchisees or direct sales stores through ordering, and is updated on a quarterly or semi-annual basis. The sales are stratified by the first-line, second-third-line, and fourth-five-line cities, and the layers are discounted to digest the tail goods and stocks. Belle has made some innovations on this basis - its stores are all direct-operated, designed to understand the hot-selling styles through buyers, and then design the next season models; production first small-scale trial sales, each will first put 50% Go to the market, then modify the style and make up the order through market feedback. As a result, Belle's inventory control has always been good.
However, in 2015, the mainland market fully launched "Internet +". Foreign fast fashion brands have also brought offline competition to the fast, accurate and detailed C2M field. Belle Innovation did not focus on speeding up the turnover, and its products still take 3-6 months from the drawings to the finished products. In addition to the order meeting, the turnover days last for several months. It is also ZARA, which is directly operated by the store and has a full industrial chain. Its product is designed to be on the shelves, and it takes an average of 10 to 15 days. It can be said that in the whole industry chain construction, Belle serves the scale, and ZARA serves the speed.
By mimicking the design of luxury brands, ZARA will launch more than 12,000 styles a year, each with a small number of single stores, and the same products will not be placed in the store for more than 3 weeks. Its single store orders directly from the headquarters on a weekly basis, and the products arrive in the store within 3 days. This quick change guarantees a continuous freshness. At the same time, fast fashion brands don't care how many people a product can cover. What they care about is whether a certain product can accurately hit a certain group of people and achieve rapid sales. On the other hand, Belle, the proportion of bold and innovative shoes is only 40% per year, and the rest are based on the small repairs of the first year of the best-selling models. In the eyes of consumers, this is outdated.
In addition, Belle's "high pricing, low discount" has also been beaten by ZARA's "first-class design, second-rate fabrics, and third-rate prices." Today's shopping malls are compatible, and many of Belle's brands are also incapable of exclusive, and ZARA often choose to open a big store in a place where the first-line brands are piled up, and it is easy to be an enemy. The pain of Belle is that to turn the whole industry chain model for scale service into speed service, it is necessary to take a turn and move the whole body. Shengbaijiao thinks that it can't afford it. The 68-year-old Yanai is still tossing. He plans to shorten the UNIQLO production cycle to about 13 days, and strive to be comparable to ZARA. "I don't want to survive," I am afraid it is the basic condition for the old brand to survive in the new era.
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