BELLE international net profit by 650 million, if the restructuring fails will lose the destiny of this.

China clothing network reported on June 21st: in the past three years, clothing, footwear and accessories retail industry are facing the same problem: sluggish growth, profit decline. Changes in consumer demand, industry competition, enterprises can not keep up the pace of development of backward market and so on are allowed in the performance of depressed revive weak. Facing the footwear business performance is unsatisfactory. A generation of shoe king BELLE International (01880.HK) also said a heavy heart.

In June 20th, BELLE International released earnings 2016/17 years, the year ended February 28, 2017 operating income was 41 billion 706 million 500 thousand yuan, compared to the year ended February 29, 2016 increased by 2.2%, while net profit of 3 billion 555 million yuan, down 15.4% year-on-year in February 29, 2016, compared to February 29, 2016 net profit of 4 billion 202 million yuan, a decrease of 650 million yuan.

The income of footwear and sports clothing declined

According to Chinese clothing network understanding, in the fiscal year, BELLE international has passed the online business outlets and clean up some inventory, and plan to in the next 1 to 2 years by Ole, electricity providers and other discount channel to alleviate the high shoe product inventory. The channel has not eliminated inventory, make great efforts to do product innovation and service upgrades, the old inventory Nanxiao not to say, the new inventory will let BELLE suffered a serious decline in the performance of international embarrassment.

BELLE international business by the footwear business and sports apparel business, the two division. The results showed footwear business as of February 28, 2017 annual income of 18 billion 960 million yuan, down 10%, the footwear business income accounted for BELLE international total revenue ratio was 45.5%, compared with 51.7% last year, the proportion was significantly reduced.

Footwear business

The footwear business's own brands mainly include Belle, Teenmix, Tata, Staccato, Senda, Basto, Joy

It is understood that BELLE international footwear business private brand mainly adopts a vertically integrated business mode, including product development, procurement, manufacturing, distribution and retailing. The main way of agency brand is brand agent and distribution agent.

In the fiscal year of 2016/17, BELLE international reduced 700 footwear self retailing outlets in mainland China, and the gross profit margin of footwear business was 66.9%, which was 0.4 percentage points lower than that of last year.

Sports, clothing business

Sportswear and apparel business is currently dominated by distribution agents, including first-line sports brand Nike and Adidas, second-line sports brand PUMA, Converse, and clothing brand Moussy, SLY and REPLAY.

The 2016/17 fiscal year, the footwear business and sports clothing, the decline in sales growth of 15.4%, total sales growth in the 2.2%. fiscal year, sports apparel business, net 543 new stores, compared with February 29, 2016, a net increase of 7.6%: the first line sports brand stores, a net increase of 252, two line sports brand stores, a net increase of 251, clothing business shop is a net increase of 40. By the end of February 28, 2017, a total of 20841 proprietary retail outlets, including 20716 located in the China mainland, 125 is located in Hongkong and Macao.

Sports apparel business, gross margin was 43.8%, but compared with last year, down 0.7 percentage points, from this point of view, if BELLE footwear business declined by motion save clothing is not reliable, after all the sports apparel business still rely on sales revenue, its position and not passive, moving apparel business gross profit also decreased.

The main cause of the decline in performance is: the image is aging and the price ratio is low

BELLE international performance decline reason: the core of the footwear prices high price low, poor sense of design style is backward, in addition, the product update cycle longer, more consumers start to pay is not much. BELLE chairman Deng Yao said publicly that BELLE's traditional business model has been challenged seriously. Once those successful experience now has become a weakness. It seemed to say, in the face of the new consumption environment, an inattentive BELLE international may suffer a big crush one by one, and.

BELLE international group reported the average inventory turnover days was 141.3 days, compared with 2016 growth 5.6 days and 135.7 days, the footwear business average inventory turnover days was 215.8 days, compared with the previous year's 208.2 days, 7.6 days longer. It can be seen from here, BELLE international in the fiscal year through the effectiveness of online business and otter rice shop channel inventory liquidation is not good, but BELLE is going to continue to rely on international outlets and other electricity providers discount channels to clear inventory, effectiveness and how can make nothing of it.

A year's revenue of 17 billion 856 million yuan, "shoe king" is true

Now this shoe king, which is deep in the mire of performance, is an industry mythology for its glorious years.

In 1950s, now BELLE International President Deng Yao started as an apprentice in 60s with a small factory of his own side, at the beginning of 70s will set up shop, after 20 years of baptism, Deng Yao's "shoe kingdom" China throughout the various provinces and cities in the mainland, 1979, Belle (BELLE).2007 brand shop in Hongkong in May 23rd of that year. BELLE international in Hongkong successfully listed.

A success belongs to the wisdom of the people, another is brave enough to break and.1974 to 1976 years, China, when the "Cultural Revolution" period of commercial activity has been almost shut, and have the shoe and shoe shop in Hongkong's Deng Yao, with good industry status with the "fearless" mentality accept the invitation, the mainland, around half a China within two years, the latest footwear information back to the mainland.

In 1987, Deng yew saw a mature time, resolutely decided to set up a factory in Shenzhen to produce products and to shorten the time of product design to 3 months.

With the continuous vitality, the mainland consumer market in 1992, Deng Yao began to open up the BELLE brand sales channels. In order to protect the brand, in 1994 he decided to open the store, and the network mode of franchise development sales, sales channels to eliminate fakes on the market. Until now, many consumers in mind, BELLE international shoe quality is still relatively excellent.

Public information shows that in 2008, BELLE international achieved 17 billion 856 million yuan in business revenue and 2 billion 3 million yuan in profit. In the first half of 2009, its turnover was 9 billion 310 million yuan, up 13% compared to the same period last year, which earned a net profit of 1 billion 136 million yuan, up 15%. over the previous year.

At that time, manufacturing equipment and technology were far less than now, while BELLE international was able to record nearly 20 billion yuan, and its "shoe king" was in its name.

The change of consumption preference, the serious aging of products and the low cost performance lead to the decline of BELLE international shoe shops, and continue to show the declining trend of same store sales and profitability. Transformation is the inevitable choice for BELLE international.

As a retail enterprise of BELLE international, the inevitable choice to consumers as the center, science and technology as the driving force, to the main line of the digital transformation of the way, the success of the transition can have long-term competitiveness, BELLE CEO and executive director Sheng Baijiao said, miss the critical time window, the transition has failed may lose the destiny of this.