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BELLE's Valuation Has Shrunk By More Than 40% Over The Past Two Years And Further 700 Million Cross-Border Women's Wear.

2013/8/13 11:21:00 36

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in the face of the fact that sales growth and profit growth in 2012 are at a historical low level, the domestic a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > industry leader BELLE has stepped out of the first step in finding new additions. Last week, it announced that it spent 733 million on the 31.96% stake in BaroqueJapan, a Japanese women's clothing retailer. At the same time, we intend to enter into joint venture with Barok in China to enter the a target= "_blank" href= "http://www.91se91.com/" > clothing /a and accessories industry. BELLE group admitted that last year was a rather difficult year in the 20 years of operation. Sales growth and profit growth were at a historical low. As BELLE said in its 2012 annual report, the force garment market was understood as BELLE looking for new growth points. 
 Barok's valuation has shrunk by over 40% for the two years, .
 according to its announcement, its wholly owned subsidiary, Pu Guan, Ding Hui nei, and CLSASunriseCapital, entered into a share purchase agreement, and Pu Guan agreed to buy 31.96% of Barok's Japanese company for HK $733 million. BELLE will set up a series of joint ventures with Barok through wholly-owned Affiliated Companies Zhuo Co., Ltd., to develop garment and accessories business in China. The total investment of the above two investments is not expected to exceed HK $924 million. 
 the Board believes that this will provide opportunities for the group to open up China's fashion industry and is expected to increase the coverage of the group's consumer market. The reporter inquired the information of Barok's official website and learned that as of April 30, 2013, Barok had operated 14 brands of product and collection store, which had 348 stores. However, the number of stores in Japan is as high as 319, accounting for 91.7%, with only 29 overseas outlets located in the mainland and Hongkong. In 2009, its landing in Shanghai officially entered the Chinese market. Barok once hoped to speed up the expansion of business in Greater China. 
In 2011, Barok planned to raise $200 million in Hongkong (about HK $1 billion 560 million). At that time, the sponsors Lyon wrote a listing report at the end of 2011 that Barok made a profit of HK $280 million in the 2011 year (end of January), and Lyon gave the company a valuation of HK $41-58 billion at that time. At the end of January 2011, it had 26 stores in the mainland and Hongkong. 
 but the plan is shelved because the market is not ideal. Barok, who lacks local retail experience, has been stagnant for nearly two years. From 2011 to April 30th this year, the number of stores in its Greater China region increased by only 3 to 29. With the estimated value of 41-58 billion in 2011, BELLE now has a 31.96% stake in HK $733 million, which means that the value of Barok is HK $2 billion 300 million, which shrank by more than 40% compared with that year. 
 "Barok sees more of BELLE's channel advantages." A senior garment industry veteran told reporters that as of June 30th this year, BELLE has 18316 retail outlets in China. 
While buying a brand that is not yet mature in China's clothing (9.32, 0.37, 4.13%) market, P also has its own wishful thinking. (BELLE) In the above announcement, BELLE pointed out that the Board believes that this investment provides opportunities for the group to develop the Chinese fashion industry and is expected to increase the coverage of the group consumer market. 
 in the light of Zhu Qinghua, a light industry researcher at CIC, the cross-border operation of shoes companies will be the trend of the future. "On the one hand, the footwear industry has a higher degree of integration with the garment industry. The combination of the two will not obscure the brand positioning of shoes enterprises; on the other hand, the integrated development of footwear and clothing will enhance the anti risk ability of the shoe enterprises and expand their influence." {page_break} 
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 cross-border ambition /p >
 at present, BELLE has two businesses, one is footwear business, the other is Distribution Agency NIKE, Adidas, PUMA, Converse and other sports a target= "_blank" href= "http://www.91se91.com/" > dress "/a" business. However, the two businesses were affected by the overall environment last year, and the fast track of sustained growth for many years was blocked by the waist. "2012 is a relatively difficult year for the group in its 20 years of operation. Sales growth and profit growth are at a historic low." BELLE said in its 2012 annual report. 
 reporter read BELLE's 2012 annual report to understand that in 2012, BELLE's annual sales volume was HK $32 billion 860 million, an increase of 13.5% over the same period, which is the first time that BELLE has exceeded the 30 billion mark since its listing. However, its operating profit increased by only 2.6% to 5 billion 403 million yuan, the slowest year in nearly 5 years. 
 2012, the sales scale of footwear business was 21 billion 45 million yuan, an increase of 13.6% over the same period last year, which is obviously slower than the 25% increase in the previous two years. The profit margin dropped by more than 1 percentage points. Sportswear sales in 2012 amounted to 11 billion 814 million yuan, an increase of 13.5% over the same period last year. But the profit margin dropped by 2.4 percentage points. "For local sports brands, the main problem is to digest past inventory backlog, retail chain store efficiency decline and high cost, resulting in continuous negative growth in orders and brand operators facing negative operational leverage pressure." BELLE believes that the sports apparel market in the short term is unlikely to have a more obvious recovery. 
In the face of the unfavorable situation in 2012, BELLE is also actively adjusting its internal strategy this year, P. "Under the market environment of the current department stores with low passenger flow and low consumer sentiment, the group plans to moderate the pace of shop expansion. In fact, this adjustment has been in progress within BELLE this year. Reporters learned that in 2012, BELLE added 2614 stores, but in the first half of this year, there were only 752 new stores in the domestic market, of which 442 were retail outlets for shoes and 310 for sportswear outlets. 
 the cross border women's dress has already been traced back to BELLE. Faced with the growth of the two major businesses of footwear and sportswear, BELLE has stated in its 2012 annual report that the group will continue to actively explore new businesses, develop new market segments and new channels, and foresight to lay a solid foundation for the long-term and steady development of the group. 
Reporter P called BELLE international for more details about the investment, but its staff said that the company did not want to receive media coverage and was reluctant to disclose more information to reporters. "This is a measure of BELLE's strategic adjustment." For the cross-border entry into the women's clothing industry, the industry analysts said that BELLE has a huge channel resources, especially in shopping malls, the channel is consistent with women's clothing. 
 however, BELLE had no experience in the operation of women's clothing before. According to the analyst, the most reasonable division of labor between the two sides is the design and production of Barok, while BELLE is responsible for the channel. 
 viewpoint .
 < a > href= > http://sjfzxm.com/news/index_f.asp > > women's wear > /a > is not a good choice. /p >
 > as for its choice of women's clothing as a new business, Zhu Qinghua, a light industry researcher at CIC, describes the current situation of women's clothing industry to reporters. At present, women's clothing in the clothing market is saturated and the profit margin is very limited. 
 Zhu Qinghua believes that apart from the current business growth, BELLE's entry into the garment industry is also related to its expansion strategy. 
 "if BELLE is looking for" value depressions "and taking precautions, the prospects for further development will be more worthy of expectation. Zhu Qinghua said. Barok's valuation of 40% years has shrunk by about 9%. BELLE's acquisition at this time is cheaper than two years ago. 
 in Zhu Qinghua's view, the risk of BELLE entering women's clothing is shown in a low level of profitability, while opportunities are shown to be more risk resistant or stronger.