BELLE's Business Model: Multi Brand Distribution With Department Stores As Its Channel

BELLE international 2011 shoes 18 billion 500 million of the class income, 40% of the middle and high-end women's shoes market, far more than 10-50 of other companies; 10270 shops, nearly 2 times the number of Daphne, is 5 times more than Saturday and 1000 degrees, and has achieved a far ahead position. BELLE is a company with strategic vision and executive ability. Its focus on the department stores and the layout of many brands are the key factors for its success.

　　 with Department store For channel BELLE is positioned in the middle and high grade, matching with the target group of department stores. In the 04 years, the income growth of urban residents in China has entered an accelerated period, and the department stores have entered the expansion stage. BELLE's strategy at this time is to form a multi brand aggregation advantage and expand with the department store side by side. In 04-08, BELLE's revenue grew by more than 80%. In 06, Daphne surpassed Daphne, the first brand of women's shoes. All direct battalion: in 05-07, BELLE gradually recovered the agency power of franchisees and established a direct distribution mode. In the competition, AOKANG accounted for 10% of the direct sales and several others were in 70-80%. Channel sinking: 10 years, most of the central and western regions have exceeded 15000 yuan, which is the disposable income level of residents in the first tier cities such as North Guangdong and other cities 10 years ago. They are also the starting point for the rapid growth of Eastern Department stores and BELLE, and the revenue of the department stores in the Midwest nearly three years and fixed investment in intangible assets also rose linearly. Correspondingly, the main brand channel of the company has sunk obviously, and the new shops are mainly concentrated in the eastern three or four line cities and the Midwest. By the end of 11, BELLE had entered the city with 300 breakthroughs. Scale advantage: BELLE international accounts for about half of the revenue of women's shoes in shopping malls, so it can give priority to selecting good positions in department stores and get more favorable buckles. We speculate that BELLE's deduction point is about 18-20%, and the other brands are about 25%.

　　 Multi brand layout The company has 15 own brands, 11 agent brands, 03 years four main brand layout, and 04 years, Daphne Thousands of degrees and so on began to layout the second brand. BELLE's brand is mainly three categories: professional elegance, leisure fashion and sports leisure. Its own brand is mainly professional elegance and leisure fashion. The agent brand is mainly the high price brand and sports leisure brand in professional elegance. The sales volume is only 1 billion: brand shoes: the average selling price of women's shoes is mainly concentrated at 200-800 yuan, each company has multiple brand layout, and the leading brands are distributed in the core area of 400-600. BELLE is also focusing on this core market. The main brands BELLE and BELLE compete directly with other leading brands such as kissing cats, Saturday, 100 degrees, AOKANG, Daphne, etc. In the field of leisure and fashion, Teenmix was first established. In recent years, Sophia, sun dance and other brands have followed up. In the elegant style, Staccato occupied a large share, and gradually expanded the brand line through acquisitions and agents. It can be seen that the way of BELLE brand operation is to first distribute the largest sales market, to make the main brand bigger and stronger, and to occupy a higher market share by establishing new brands and subdividing the market. It is estimated that among the top 10 women's shoes in the past ten years, BELLE's brands account for five of the top ten brands, and occupy three of the top brands. Women's Shoes 30% of sales. In the 11 years, BELLE earned more than 5 billion, Teenmix, he, Staccato all exceeded 2 billion, and she and Teenmix reached more than 1 billion, and 7 more than 100 million brands. BELLE can successfully operate many brands, which lies in the commonality of channels. In turn, many brands form a collective advantage, forming the bargaining power of channels. With the expansion of channels and categories, BELLE is still expected to maintain a 20% growth. It is estimated that 12-14 years EPS will be 0.53, 0.69, 0.84 yuan, corresponding to PE 26,20 and 16 times, and recommend rating.