The East Does Not Shine. Who Will Help The Western BELLE?

In recent years, the shoe and clothing market is very low, and the clothing business is frequently closed down.

The main industry continues to slump, while the sports business is recovering, and the electricity supplier business is expected to achieve full year profits.

On the face of it, the fact that the East is not bright and the Western light does not make BELLE's life seem too difficult.

But objectively speaking, it would be unrealistic to rely on these sideline to help BELLE's performance.

At least for now.

Offline contraction

At this time last year, the outside world was shocked by the negative growth of BELLE's first store.

Today, there is no improvement, only worse.

according to

The latest retail business data released in the first quarter of this year (3-5 months 2015) show that the number of retail outlets in the mainland has decreased by 167.

At the same time, BELLE's core main business footwear business and same store sales fell by 7.8%.

What does this figure mean? We can learn one or two from the comparison of past data.

First of all, this China's largest shoe production and retail companies has a strong scale advantage.

Since 2010, BELLE has been roping around with more than 2000 new stores every year.

In the craziest 2011, a new store will open in less than 2 days.

However, in 2014, BELLE stopped moving forward.

According to data from BELLE in the second quarter of last year (6-8 2014), the number of retail outlets in the mainland decreased by 56 in three months.

This is not only the first time that BELLE has seen a negative growth in the number of shops, but also embarrassed BELLE to start a shop in an average of less than 2 days from the previous day to an average of less than 2 days.

Now, when the number of 167 stores in a single season has been reduced, the record of BELLE shop has been refreshed to close the house in nearly half a day.

"Nowadays, when the discount stores are on sale, the business is better, otherwise it will be cold and cheerless.

Which is the same, the whole industry is having a hard time.

A domestic shoe clothing brand sales staff told the new financial observer reporter that the industry has long been away from the golden period. "Loss and closet shops are all expected."

Judging from the performance of other peers, this statement is not false.

In the first quarter, the performance of women's shoes such as Daphne and Saturday was also unsatisfactory.

Among them, the total number of Daphne core brand outlets decreased by 14 to 6388, and the same store sales of core brand businesses fell by 15.9% on a year-on-year basis. The operating income on Saturday decreased by 8.93% compared with the same period last year, and net profit dropped by 27.36% over the same period last year.

The bad news is that such a momentum is hard to reverse in a short time.

BELLE chief executive and executive director Sheng Bai pepper has pointed out that the weakening of sales performance of footwear companies is mainly due to structural problems rather than cyclical problems. This phenomenon will not improve in the short term.

At the same time, this year's footwear profits will decline further, and the same store sales will also be worse than last year.

However, it is worth mentioning that in the first quarter of last season, the same store sales of sportswear business increased by 12.4%.

Some media quoted Sheng Bai Jiao's point of view that the footwear business in the past few years has helped the sportswear business, hoping that the sports clothing business can be helped in turn.

Online Opportunity

From the current trend of development, it is revealed that "can be expected", in addition to the sports clothing business, there is an e-commerce business.

BELLE's e-commerce business includes independent e-commerce platform

And other e-commerce business, excellent purchase is the top priority.

In 2014, the purchase amount of excellent purchase and BELLE electric business reached 2 billion yuan, an increase of more than 80% compared with 2013.

By the end of 2014, sales of excellent mobile terminals accounted for nearly 40%, while sales of mobile terminals increased by 400%.

According to the data provided by the relevant person in charge of the purchase network to the new financial observer, the electricity supplier business is still in a good momentum this year.

"This year's excellent purchase and BELLE electric business continued to maintain strong growth, clothing category grew by more than 200%.

Mobile APP and WeChat users continue to increase, mobile terminal revenue accounted for nearly 60%, the peak value of more than 70%.

At the same time, excellent purchase also maintained a good gross margin, which made excellent purchase continued profitable after March.

The person in charge of excellent purchase said that the company continued to maintain more than 50% growth in the first five months of this year, and has been making profits for 3 consecutive months since March, and is expected to make overall profit in the whole year.

This is good news for BELLE, which is increasingly weak in offline business.

But objectively speaking, this is just a start.

As far as the entire electricity business can go, how much effect will it play on the performance of the whole group?

Mo Daiqing, a senior analyst at the China Electronic Commerce Research Center, once said that loss or profit is not the only criterion to evaluate the business of an enterprise.

To some extent, the business model behind the business and the strategic pformation of enterprises for profit making are far more important than profits and losses.

Unfortunately, on these two points, BELLE electricity providers did not show their advantages.

On the contrary, BELLE's determination and attitude towards strategic pformation has even been widely criticized.

Tang Jun, a consultant of the strategic industry research institute, has pointed out that BELLE is not a company that actively develops e-commerce. To a large extent, it is worried that competitors will make big e-commerce and passively respond. This determines that the sales pattern of BELLE, which is dominated by the line and supplemented by the Internet, will not be broken.

In fact, BELLE is honest enough.

In last October's BELLE performance press conference, Sheng Bai Jiao once said that for the electricity business, "did not want to understand before, so far, it is still not very clear".

Just imagine that when the top decision-makers do not understand the business well, the best buy and e-commerce business can be developed more clearly.

After all, BELLE's positioning and attitude toward superior shopping, more or less, will affect the development path and prospects of excellent shopping.

Against this background, it is obviously not realistic to expect the electricity supplier business to feed BELLE group in the short term.

But in any case, in the case of the main business downturn or even slightly powerless, this at least provides a good opportunity to understand - want to understand how the electricity supplier business is done, and understand the way BELLE will follow.