BELLE Closes The Last Shop In Hongkong.

Reporters noted that BeLLE withdrawal from the Hongkong market for BELLE group, the impact is not too great.

According to the financial report, as of February 28, 2015, BELLE group located in the Hongkong and Macao markets only had 158 stores, about 1% of the 14128 footwear stores in the mainland market, while the Hong Kong and Macao market accounted for only 2.9% of the group's revenue.

BeLLE Hongkong customs shop actually reflects the collective weakness of Chinese shoe enterprises.

Take BELLE's competitor Daphne as an example.

The interim results released by Taiwan shoe manufacturers and distributors last week showed a 13.9% decline in turnover and 188 stores in the first half of 2015.

Meanwhile, the Foshan women's shoes brand is also in the doldrums on Saturday.

Its operating income in the first half of the year dropped 3.81% compared with the same period last year, while net profit dropped by nearly 20% compared with the first half of that year.

According to Hongkong media reports, Belle International Holdings Ltd's namesake shoes brand located in Hongkong's last store was officially closed recently.

This means that BeLLE BELLE brand is completely withdrawn from the Hongkong market.

In fact, the news of BeLLE's withdrawal from Hongkong is not surprising.

BeLLE BELLE is located in Langfang, Mong Kok, Kwai Fong new town shopping centre and Tsuen Wan Tsuen Wan Plaza. The three branches have been closed from last month, while the latter is replaced by another brand Millie's, half a year ago, in Tsim Sha Tsui.

BeLLE in recent years, the brand influence in the Hongkong market has been far behind, and the rest of the shops are few.

According to statistics, since 2015, the brand has closed all 7 stores located in the Hongkong market.

The last one in Tseung Kwan O, Hongkong, was officially closed at the end of August.

The downturn in the retail environment has had an impact on BELLE.

In July of this year,

Chief executive Sheng Bai Chai said at a shareholder meeting that the group was affected by the deteriorating retail market in Hongkong.

According to the latest retail sales data released by Hongkong Statistical Office in July, footwear products in the Hongkong market showed a decline for the 5 consecutive month. So far this year, it has dropped 2.7%, or 1.7% higher than that of the retail industry.

The retail data show that clothing, department stores and footwear have begun a new round of adjustment, and fear of a continuous decline.

Sheng Bai Jiao said that as of the end of May, the sale of footwear business in the Chinese mainland market was down by 7.8%, and after closing many stores, the performance in 6 and July was equally bad.

However, according to him, the mainland market is linked to sales because of the variable cost of rental charges, so the profitability of the mainland market is less impaired. On the contrary, the rental market in Hongkong is fixed cost and has been stable, thus affecting profitability.

The rising rents in Hongkong make it difficult for many businesses to continue.

The first financial reporter has learned that there are 11 or 12 shoe stores on the whole street in the happy valley, Wong Nai Chung Road (commonly known as "shoe Street"), but as the rent goes up, the last shoe store on the street will also be closed in September.

Jewellery and watches, which are more affected by tourism, are also the hardest hit areas.

City Chain, the largest retailer in the Asia Pacific region, has closed many shops in Hongkong due to poor performance and high rents, including an otter store in Mong Kok and two retail outlets in Hongkong.

In addition, the Kowloon table bank also closed shops in Percival street. At that time, the Kowloon table said that the turnover in the first half of the year fell by 30%.

However, at present,

Under the worsening situation, the rental rate of the owners has slowed down, and some shops have begun to adjust their prices.

According to Gao Li International, a real estate consultancy, the rental of traditional shops such as central, Tongluowan, Tsim Sha Tsui and Mong Kok has been reduced to a level of mid 2011. The rent has dropped by 10.5% in the first half of this year.

The predicted rent will drop another 15% this year, down from 5.5% in 2014.

Seeking new growth points in pition has become an inevitable choice for these companies.

Take BELLE as an example.

In addition to the main business, BELLE also operates sports and clothing categories, especially sports category to a certain extent, hedging the weakness of footwear, which grew by 12.4% in the first quarter of this year.

Sheng Bai Jiao said that sportswear business has experienced a downturn in the past few years, and the market has finished its inventory. Its performance is better, and its profit margin trend is healthy. In the first three months of 2015, it has double sales growth in the same store.

BELLE hopes that in the current weak environment of footwear industry, it can help with sportswear business.

In addition, e-business is also highly regarded by shoemaker.

It is understood that at present, online business accounts for only about 3-4% of BELLE group, and the company will invest more resources in the future.

Last month, Daphne and Tmall reached a deep strategic cooperation, plans to extend the advantages of its All-Star marketing to the electronic business platform.

Market analysts say that for brands, the development of online business is already a major trend and a good thing. But at present, the brand regards electricity providers as a channel to clean up inventory, and the online interaction has not achieved the desired results.