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BELLE'S Multi Brand Bundles Operate &Nbsp, Gaining A Strong Position.

2011/11/11 15:45:00 35

In 2006, when Shenzhen was set up to the market in 1991, in just 15 years, BELLE achieved an annual sales of about 3000000000 Yuan in 2006, with an annual profit of 977 million yuan, an increase of more than 4 times than that in 2005, 13 times higher than that in 2004. In May 23, 2007, BELLE international succeeded in the market in Hongkong, closing its market value to HK $78 billion 900 million on that day and once becoming the largest mainland retail listed company in the market value of the Hongkong stock exchange.

In 2010, BELLE ranked second in the global market of footwear companies (the first is Nike, the market value is $35 billion 860 million, third is Adidas, and the market value is 11 billion 150 million dollars).

Behind the frightening numbers,

BELLE

How do we do it? The secret is always insisting on "doing more".

brand

"And"

channel

The core of the strategy is to be equal to the king.

1, multi brand bundling operation

Multiple brands cut into multiple market segments

As the largest female shoe retailer in mainland China, BELLE is like a heavily armed women's shoes group, adopting a multi brand strategy and an independent brand strategy.

BELLE strives to make consumers have no correlation between brands.

BELLE shoes own and agent brands include BELLE, Teenmix, he, Staccato, Zhen Mei Shi, Mei Bao, Miao Li, sun Da, Bai Shi, JipiJapa, GEOX, BATA and so on nearly twenty, each brand carries on the refined crowd localization and the brand marketing respectively.

For example, Teenmix and he are all located in young women around 20 years old, priced at 300~500 yuan, Teenmix's style is casual and comfortable, and he is more fashionable and formal; while the main brand BELLE locates in 25~35 year old young women, the style is more mature and changeable, and the price is 500~800 yuan; Staccato is the representative of the high-end female shoes, the price is 800~1000 yuan, emphasizing the design sense and excellent manufacturing process and material.

This has become the fundamental way for BELLE to improve its market share.

On the one hand, multi brand strategy enables BELLE products to be targeted at customers of different age, gender and income, thus providing a wide range of customers for the company.

BELLE's advantage in segmented market makes it possible to get different consumers in different segments through multi brand strategy, so that the company can get a steady income.

Moreover, because of the adoption of different sub brands, market exchange and promotion can be done directly by brand names, trademarks and advertising slogans, which will not affect the brand of any group due to the poor management of any sub brand or other problems.

Binding operation, gaining a strong position

Because of holding more than ten strong brand resources, BELLE is also in a strong position in cooperation with strong terminal large department stores, and it makes BELLE easier to win many favorable conditions.

At the same time, it is BELLE's multi brand strategy that makes it the main chain of supply chain. In the process of channel development, multiple brands are packaged and entered. When other brands are inferior to the terminals such as shopping malls, BELLE has gained a strong voice for shopping malls. Only the discount points obtained from the stores relative to their competitors are enough to support their promotional expenses.

Control of retail terminals

When other listed companies put their shoe factory assets into a listed company, BELLE went to the retail chain store; when other enterprises put the funds raised to production, BELLE was used to expand the network.

In every department store, you see different brand counters, but behind these counters belong to BELLE.

When BELLE controls the retail terminal of the department store that occupies 71% of China's brand women's shoes, it will firmly control consumers.

Business resources are limited, especially in the first tier cities and provincial capitals of Beijing, Shanghai, Guangzhou, Shenzhen, and so on.

BELLE firmly controls the terminal, and this terminal has no chance to get it. On the one hand, it blocks the competitors. On the other hand, when BELLE downplays the image of the footwear brand and turns to the brand image of the channel, it can completely integrate all its brands into a "BELLE small universe" in the department store. With the advantage of department stores and business circles, it has the pricing power and easily gains 62% higher gross margin than the traditional shoe companies.

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2, strategic support

The promotion of any strategy has its important support system. If the strategic operation system such as BELLE is so big and big, if there is no strong support system, the success of its strategy is unthinkable. If we haven't realized all the elements and conditions of the strategy, everything will only be a castle in the air and a moon in the well.

What is the strategic operation of BELLE?

Rapidly expanding financial fulcrum

BELLE has obvious characteristics of light asset operation. The company's balance sheet at the end of 2006 showed that fixed assets accounted for only 19% of total assets, while intangible assets accounted for 15%. In 2006, the net assets yield was as high as 37%, but the assets and liabilities ratio of the company was only 41%, indicating that BELLE did not rely on increasing financial leverage to enhance the profitability of the company, and the core competitiveness of the company was clear at a glance.

Due to the "lightness" of BELLE international on the balance sheet, the appliance chain enterprises such as Gome and Suning are occupying the upstream suppliers' funds for expansion. The difference is that the rapid expansion of BELLE international does not need to borrow chicken eggs.

From the accounts payable age analysis of the company, 99% of the accounts payable account for 30 days, which coincided with 98% of the accounts receivable aged in 30 days. This shows that BELLE international accounts for accounts receivable at the same time to determine the timing of accounts payable payment, and does not occupy the upstream suppliers to expand funds.

At the same time, from the mid 2007 data, we can see that in the first half of 2007, BELLE international increased 988 retail outlets and expanded rapidly, while all the capital expenditures of the company during the same period were only 6.1 billion yuan, which is lower than the recurrent gains and losses of 7 billion yuan in the middle of 2007. It shows that BELLE international does not need too much capital investment in the light assets operation strategy, and its own "hematopoietic" function has basically met the needs of expansion.

High Maori supply chain fulcrum

The strong supply chain system is the important development mode of BELLE in China's shoe industry. All aspects of the supply chain from product design to development, production and so on are all undertaken by BELLE itself.

Today, advocating industrial chain division and cooperation, this mode seems a bit different.

In fact, it is a guarantee for BELLE to get high profits, and also a deep accumulation of BELLE's vigorous development over the past decade.

Under this mode, BELLE has made enough profit in every key link of the industrial chain, and the gross profit margin of the enterprise is much higher than the average level of the industry, which is 10 percentage points higher than that of other excellent enterprises such as AOKANG and Lining in the domestic shoe industry.

From the point of view of product design, BELLE launches thousands of different new shoes styles every quarter. Each brand has 300 to 400 styles in a quarter, plus ODM OEM style and agent foreign style, to meet diversified customers' needs in a comprehensive way. In production, the first order of any BELLE product will always produce 50%, and the remaining list will be completed through the way of replenishing orders, combined with the feedback from the market. On BELLE's purchase, BELLE has grasped the main production capacity of the main components, and only needs to concentrate on several main raw materials in the procurement of materials, which also increases the purchase quantity of single raw materials, thus enhancing the bargaining power, reducing the price of raw materials and raising the gross profit rate. First

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Highly competitive channel fulcrum

For all retail outlets throughout the country, all of which are directly managed and controlled by BELLE international, the advantage of doing so is that it can directly contact with consumers, so as to get first-hand information of market dynamics, and facilitate management to make timely and accurate decisions for the market.

Through the huge sales network, BELLE international can understand the market trend and the preferences of different customers, so as to develop products that reflect the latest fashion trends. Therefore, the company can minimize the production of redundant or unpopular products and maintain less quarter discounts, and does not need to use a large number of discount policies to stimulate sales of such products, thereby maximizing the company's profits.

In the sales system of BELLE, the feedback and mastering of consumer demand is the most important and the lifeblood of BELLE's business model. The retail terminal, as a front-line position to contact with consumers, naturally shoulders the heavy responsibility of feedback consumer demand, and it is obvious that only the direct network point can better accomplish this task.