Tears of nearly half of the offline stores to save themselves and reorganize the shoe king Belle fashion, is it okay now?
Speaking of Belle Fashion, I think many female consumers have more or less understanding of its brands.
Belle Fashion's predecessor is Belle Shoes founded in Hong Kong in 1981, starting with shoes in the early days, began to develop its own brand in the 90s, began to lay a retail network in the mainland in the mid-00s, and became the first fashion women's shoes factory in China in 2006, at present, it has 12 own brands and 7 cooperative brands based on high-end and high-end, providing women's fashion shoes and clothing products for women, men, and children. It has more than 8,000 directly-operated stores in more than 300 cities in 31 provinces, and still sits on the throne of China's fashion footwear industry in terms of sales and online sales.
Looking around China's fashion women's footwear industry, I have to say that there are very few brands and manufacturers whose brand recognition and comprehensive competitiveness can be in the first echelon of the industry for a long time for more than 20 years, and Belle Fashion, which has held a number of high-profile shoe brands that have been precipitated for about 20 years, is one of them, so it should not be an exaggeration to call it an outstanding enterprise representative in the industry.
However, there are also quite twists and turns and difficulties behind this excellence.
In 2014, due to the rise of shopping malls and the rapid development of online e-commerce channels, Belle Fashion, which focused on offline direct sales in department stores, was greatly impacted, and its sales performance fell sharply for many years, and the company's financial report was ugly every year.
Until 2017, in order to cope with the declining performance, Belle Fashion began to reorganize and significantly adjust the organizational structure and brand positioning of the enterprise, and at the same time vigorously develop online e-commerce sales channels, cut some department stores with sluggish sales, and focus on encrypting shopping center stores.
In that positive channel change, Belle Fashion's online sales revenue accounted for about 28% in the nine months ended November 2023 from less than 7% in fiscal 2017, and the number of offline footwear stores almost halved from 13,062 in February 2017 to 7,444 in November 2023.
With a series of innovations, its revenue in fiscal 2021 and fiscal 2022 increased year-on-year15%, net profit attributable to shareholders of the parent company increased year-on-year respectively37%, sales momentum and revenue profit performance recovered.
However, perhaps also affected by the temporary downgrade of domestic consumption at this stage, Belle Fashion's revenue and net profit attributable to the parent company in fiscal year 2023 fell year-on-year respectively71%。
It seems that although the business situation of Belle Fashion after the reorganization has improved significantly in recent years, the pressure is still not small.
In the current fashion shoe fulfillment industry, which is sufficient, low concentration, limited brand loyalty, online e-commerce continues to roll offline stores, channel decentralization and the impact of phased downgrading of consumption, Belle Fashion will not be so easy to return to the time of rapid growth in the past, but I still wish it good luck.
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