BELLE, A Shoe Maker: A Fast Running Elephant In Crisis

Do you know that casual Teenmix, feminine BELLE, traditional synda, young OL are suitable for Scarlett, which are all belong to a company BELLE group.

In addition to the above-mentioned private brands, BELLE also acts as a high-end international brand such as BCBG and Clarks, or Nike and Adidas's largest sports shoe distributor in the mainland.

In 2007, the group net profit was 1 billion 979 million yuan, an increase of 102.7%. compared with that of the previous year. The domestic leather shoes market ranked 10 in the top 5, and 5 brands belong to BELLE.

BELLE International's market value reached HK $78 billion 900 million on the first day of its listing in Hongkong, even surpassing that of Gome.

What is the secret of BELLE's success?

One word, "fast".

BELLE's shoe is only more than 20 days from production to rack, and each BELLE brand has 300-400 new shoes styles on average every quarter.

But how can such a large and so many brand groups realize the "quick" profit model?

First, the flexible mode of production with the market.

Despite the large number of brands and large scale products, BELLE insists on the small production line mixed production.

The production of different styles of shoes on a production line has greatly accelerated the overall speed.

Moreover, the first production of each batch of shoes is only 50% of the order, and the rest is produced by replenishment according to the market feedback. The product manager investigates the first batch of sales and forecasts the weekly replenishment order.

BELLE usually uses a three day rolling plan to produce products within three days and start replenishment production in fourth days.

In order to reduce inventory, BELLE also cancelled the finished goods warehouse, and the products produced by the workshop were directly packed and shipped.

This year's annual report shows that BELLE group stock turnover rate is 2.53, lower than the industry average 3.40., followed by internal and external design network.

In order to launch thousands of new products every quarter, BELLE not only has its own designer team, but also has a large number of outsourcing designs.

Because if you design every season's design on your own designer, the risk will be great. Through the outsourcing design, BELLE can guarantee its own research and development advantages and respond flexibly to market demand.

It is worth mentioning that designers not only play a role before production, but also play an important role in the next 50% production. When the first batch of goods is put on the market, the designer will come to the front line personally, and then make changes to meet the market demand.

Third, a strong and self operated channel.

From the very beginning, BELLE aimed at department stores, established partnerships with many shopping malls, and realized its own expansion by using the chain layout of shopping malls.

And most of the channels were run by BELLE. By the end of 2007, the group had 6090 self retailing stores on the mainland.

Channel direct operation not only speeds up the speed of goods distribution, but also more importantly, the direct store has more timely, more comprehensive and accurate sales, inventory or other perceptual information feedback than the franchisee, and has collected a large amount of consumer information for BELLE.

In addition, BELLE also mobilizes the enthusiasm of the channel through the incentive mechanism. All the senior managers of BELLE headquarters, sales areas and production departments are all shareholders of the company. The branch has the pricing power, profits, expenses, inventory and other indicators are all decentralized.

Fourth, the scale effect of multi brand marketing and logistics.

When BELLE enters a shopping mall, it usually enters the four or five main brands together and strengthens its negotiation ability. Therefore, it can achieve the mode of calculating the rent according to the percentage of monthly sales revenue, which greatly reduces the inventory pressure and cost risk of BELLE.

BELLE's logistics system is also shared by many brands. The distribution center also carries out logistics and distribution for all BELLE brands and sports products. You will see that the pport workers often carry BELLE high heels, Nike sports shoes and Levi 's jeans at the same time.

Finally, with the help of capital strength, we will expand our competitive edge.

In 2005, BELLE shoes introduced Morgan Stanley and Ding Hui to invest two PE strategic investors, financing HK $23 million 660 thousand.

With the support of PE capital, the business scale of BELLE footwear industry is expanding rapidly.

The production capacity of footwear products increased from 7 million 300 thousand pairs in 2004 to 11 million 500 thousand pairs in 2006, and 1419 new retail outlets in mainland China in 15 months.

In 2007, BELLE went public in Hongkong. In the second half of 2007, BELLE acquired more than 20 brands through the capital raised after listing.

Shoe making is a cheap representative of "made in China", but BELLE has created a lot in it.

Although China's local enterprises are in a bad position in technology, brand and so on compared with pnational corporations, Chinese enterprises can still get competitive advantages through process management and industrial chain control.