Last Year, Shoe Companies Generally Failed.

Several leading enterprises in the domestic women's shoes market have encountered development bottlenecks, such as BELLE, Daphne, 1000 degrees, and Saturday. From the recent 2015 financial year reports, the performance is generally not ideal.

Shoes are hard to sell. Companies are looking for breakthroughs in pition. Some sell jeans, some sell toys, others want to build a fashion ecosystem.

Daphne has suffered its first loss since 2002.

According to its earnings report released in March 29th, Daphne's revenue last year was HK $83.79, a decrease of 19.1% compared with the same period last year, and net profit loss of HK $379 million, a sharp decline of over 300% over the same period last year.

This reality is even more severe than Daphne's previous expectations. In January, Daphne issued a full year profit warning, saying that the same store sales of core brand business in the fourth quarter of 2015 had a 20.2% decline, so it is estimated that the annual core brand store sales will be 18.5% down.

In the earnings report, the reason for the sharp decline in performance is that it is affected by unfavorable market conditions, erratic weather, including delayed summer and unusually warm winter, operating costs rising with inflation, negative operating leverage, and the increase in expenditure caused by prudent inventory, shop, factory and personnel integration.

In fact, Daphne has made internal optimization through the way of closing stores and shrinking. Last year, it reduced net sales by 827 points, while vigorously developing e-commerce business, but with little success.

Not only Daphne, but also the decline of the footwear business in the 5% quarter and the fourth quarter of the same quarter. BELLE also issued a profit warning in March 29th, saying that the net profit of 2015/16 in February 29, 2016 will be reduced by about 35%-45% as of February 29, 2016.

Earlier in March, the annual performance announced by the company showed that sales growth in the same store decreased by 0.7% over the same period last year, despite the increase in revenues and profits. The company also adjusted 33 self run businesses with poor performance.

And 65 third party retailers.

The performance Bulletin released on Saturday showed that revenue was 1 billion 619 million yuan in 2015 and net profit was 24 million 550 thousand yuan, down 7.94% and 31.72% respectively.

Facing the recession of footwear business,

The process of diversification has long started, including agency brand and clothing business. In 2013, BELLE acquired 31.96% of its Baroque fashion group and set up a joint venture with China to expand its apparel business.

After several years of development, by the middle of 2015, the revenue of BELLE's sports and clothing business was almost equal to that of footwear business.

BELLE CEO Sheng hundred pepper once said at the shareholders' meeting that the sports and clothing business has gone through a downturn in the past few years, the market has finished the inventory, the performance is better, and the profit margin trend is benign.

In the near future, BELLE has made further changes in the layout of clothing business.

Recently announced the acquisition of Italy Cowboy brand Replay parent Fashion Box SpA 29% equity, to become its second largest shareholder, and will establish a joint venture with its brand in the Greater China market operation.

Reporters learned that Fashion Box SpA, besides Replay, has children's wear brand Replay&Sons and high-end Cowboy brand We Are Replay, which has 5000 sales outlets and 220 retail stores worldwide. In 2014, the group's revenue was about 204 million euros, of which 87% came from the international market.

BELLE said that the reason for choosing Replay is not only that it has all kinds of dress lines, but also that Replay's overseas market can help BELLE widen its way in overseas markets.

In addition, due to the rise of high-end tannins, Replay has a very strong advantage in terms of its focus. This will add more to BELLE, which currently has only two Japanese fashion brands, Moussy and Sly.