Sales Promotion At The End Of The Year Started Four Battles Between Belle International And Saturday

At the end of the year, women's shoe brands were offering discounts everywhere Promotion Activities. In the capital market, several women's shoe companies are often compared by investors. For example, Belle International and Saturday, whose main businesses are similar and whose customers are the same.

As of December 23, the market values of the two companies were respectively HK $118.923 billion and HK $3.623 billion. Although the scale of Saturday is small, as a rising star, it is still favored by many market participants. So, how to view the investment value of the two companies?

Vertical integration mode creates higher Gross profit

Recently, the reporter came to the Sixth Department Store in Xujiahui, Shanghai christmas In the peak sales season, the crowd is very busy. The first floor is mainly for women's shoes. As there are too many people, the shopping guides are in a hurry to get shoes.

Among many women's shoes brands on the first floor, many brands, including "BELLE", "TATA", "SENDA", "Teemix", and "STACCATO", belong to Belle Group. It can be seen that the leading position of Belle International women's shoes has something to do with its numerous brands.

In fact, compared with Saturday, the gross profit rate of Belle International is also quite high. According to the central report, the gross profit rate of Belle International's footwear products was 68.8%, while that of Saturday was 52.45%.

"Belle has relatively mature channels, so it can achieve better control over expenses. In addition, brand influence will also affect the company's gross profit. Relatively speaking, Belle will have a stronger position in negotiations with shopping malls. However, after listing on Saturday, we are vigorously expanding our channels and opening many new stores, so there will be relatively more discounts, which will also affect the level of gross profit margin to some extent. " Liu Hongjun, partner of Zhenglue Junce Management Consulting, said.

It is reported that the high gross profit rate of Belle International is also related to its vertically integrated business model, that is, all links in the industrial chain such as product design and development, production, marketing and promotion, distribution and retail are completed by the company. The global clothing giant ZARA has also adopted this model.

Shi Hongmei, an analyst of Orient Securities, believes that the most direct benefit of this model is that the company can earn enough profits in every link of the industrial chain and improve the gross profit margin of the company. In addition, under the vertically integrated business model, the company can control each link of the supply chain more timely, directly and effectively.

In fact, Belle is on the road of popularity. Although it has a similar consumer group with Belle on Saturday, its customer group is slightly younger than Belle.

"Saturday's positioning is more fashionable than Belle's, which can be said to be positioning in a more segmented market," Liu Hongjun said.

As a latecomer, Saturday's business strategy and model largely referred to the industry benchmark of Belle. For example, the multi brand operation strategy. In addition, Saturday mainly adopts the vertical integration business model, that is, the design, production, channel promotion, marketing and other aspects are reasonably matched, market-oriented, vertical integration profit, which is similar to the vertical integration model of Belle International.

"The two women's shoe companies Belle and Saturday have a lot of similarities. They both adopt multi brand operation and follow the path of" store in store "in department stores, aiming at similar customer groups. The former pays more attention to the integrated operation of the brand as a whole, while the latter pays more attention to the refinement of customer needs." Zhu Qinghua, a researcher in light industry of CIC Consulting, said.

Saturday: Performance is not as expected by the market

Although at the beginning of listing, as the first A-share women's shoe stock, it was favored by many market participants on Saturday, the company's net profit growth in recent years has been lower than expected. In 2010, there was even a negative increase in net profit.

In the first half of this year, the operating revenue on Saturdays was 606 million yuan, up 20.47% year on year; The net profit was 57.137 million yuan, up 0.21% year on year.

In the same period, Belle International achieved an operating revenue of 13.891 billion yuan, up 24.55% year on year; The profit was 2.613 billion yuan, up 38.49% year on year.

"The reason why the net profit growth on Saturday was slow and lower than expected was that on the one hand, the company's channel expansion process was relatively slow, on the other hand, the company's sales expenses increased rapidly, dragging down the growth of performance. In general, the company's operating capacity still needs to be improved," said Yu Chunyan, an analyst at Dongguan Securities.

The financial report shows that in the first three quarters of this year, the sales expense on Saturday was 298.3265 million yuan, up 42.37% year on year.

In addition to cost control, analysts believe that in the short term, Saturday's problem is mainly due to the clearing of inventory. As of the third quarter of this year, the company's inventory increased by 37.27% year on year.

"Since the listing on Saturday, there has been more investment in channel expansion, and the new store has a process of making profits, so it seems that the recent net profit growth is not as expected. But in the long run, its prospects are good," said Liu Hongjun.

Tang Shuangshuang, an analyst with Huachuang Securities, believes that in the long run, women's shoe enterprises have a strong dependence on market channels, which makes the expansion of enterprises relatively limited. Therefore, if you want to make a breakthrough in competing for the third and fourth tier markets on Saturday, you must improve the profitability of sub brands. The future focus is on the growth of Sophia, Fabriel and other brands.

In fact, both Belle International and Saturday have to face the same challenges. "The slowdown of China's economic growth will inevitably have an impact on the women's shoes market, but the impact is not significant." Zhu Qinghua said that the current domestic women's shoes market is mainly faced with problems such as scattered market, lack of industry norms, weak brand awareness of enterprises, serious trend of product homogenization, etc. The entry of this foreign brand also aggravates the competitive pressure.

Belle International is cheaper

Sudden increase of trading volume on Saturday

In terms of market value, Belle International is significantly larger than Saturday. At the same time, Saturday seems to have the advantage of "turning around when the ship is small" because of its small share capital.

"The share price of Belle International has outperformed the market in recent years, indicating that its capital contribution is in pursuit of the company. The share price is currently fluctuating, which is related to the weak overall pattern of Hong Kong shares. On Saturday, the share capital was relatively small, and the net profit was stable in recent three years, but it did not show a stable growth, and the P/E ratio was significantly high." Liu Xiaojie, a financial researcher in AAA, said.

He believes that the performance growth on Saturday is not as stable as that of Belle International. At the same time, the share capital is small, and the capital is easy to affect the share price. If the price can be kept around 9 yuan in the future and rise steadily, it may be related to the institutions' raising of their dynamic earnings expectations. At present, no matter from the analysis of the market atmosphere or the existing financial data of individual stocks, it can be seen that this stock has greater advantages than Belle International.

It is worth noting that since December, the trading volume on Saturday has significantly increased, and the stock price performance has also slightly outperformed the market.

"Technically, the cost of positions on Saturday has quickly concentrated in the range of 9 yuan to 10 yuan in the near future. At present, it is not clear the direction of capital operation and the winners and losers. Investors can take strategies to avoid risks. If they can hold positions, they need to set a stop loss around 9 yuan, which is marked by the fact that the daily K line does not guard 9 yuan and breaks down." Liu Xiaojie said.