BELLE 2 Billion Smashed B2C Supply Chain &Nbsp; Blockade Strategy Conjecture

In June 5th, Gong Wenxiang, former vice president of the show network and self proclaimed "deep throat" of the electric business community, revealed on his micro-blog.

As early as 2008, BELLE had already laid out e-commerce, but until 2010, its online sales of nearly 1 hundred million of its network were still negligible compared with its sales performance of more than 200 billion under the line.

This crazy 2 billion yuan to force e-commerce, will it block the other B2C channels to improve the share of its own network marketing market?

According to the insiders, if Gong Wenxiang's prophecy comes true, BELLE will create a huge clothing and footwear brand online store, which will seriously affect the sales share of the whole line brand. It can be described as "killing one thousand of the enemy and losing eight hundred of its own".

King of channel

Less than 1% of online investment.

"The market value of BELLE is nearly 140 billion yuan, which depends on the advantage of the channel."

Fang Shang Li, deputy general manager, said to our reporter.

By the end of last year, BELLE had reached 11967 private retail stores in mainland China, of which 8312 were self-employed in footwear, 3655 in self-employed clothing stores, and 172 in Hongkong and Macao.

In 2006, BELLE became the largest agent of Nike and Adidas in China.

Besides, BELLE's sports and leisure brands such as Lining, Reebok and Kppa, which are represented by Reebok, are all looking at BELLE's numerous outlets.

On the other hand, after the listing of BELLE, the successive acquisition and merger of the shoe companies at home and abroad, such as Miao Li, San Da, Bai Shi, Yong Xu and so on, made BELLE a real brand of women's shoes.

More importantly, while the number of brands continues to increase, the acquisition also brings BELLE channel network expansion.

"At present, there are 28 brands of BELLE agents and agents."

Chen Hu, vice president of Le Tao net operation, told reporters.

He believes that in the shopping mall of the first tier cities in China, BELLE's channel is undoubtedly the best.

Under the line, the channel's performance is far from satisfactory.

According to BELLE's March earnings report, the sales of women's shoes, which occupy the largest market share in China, reached 23 billion 706 million yuan in 2010, while the sales volume of its e-commerce website Taoxiu network was only 100 million yuan in 2010.

According to AI data, China's overall footwear sales exceeded 400 billion yuan last year, including Taobao, which accounts for less than 5% of online footwear retail sales, while the size of online shoe sales in Japan and South Korea is about 40%.

In the face of this huge market and the obvious high rate of growth that can be expected, any traditional shoe enterprise will be heartstruck.

"At present, we invest less than 1% in the network, and will gradually increase the proportion in the future. We will invest 20% of our sales in Internet sales in 3-5 years."

Xie Yunli, general manager of BELLE group electronic commerce department, told our reporter.

Self built e-commerce channel

VS third party platform

For most of the traditional enterprises, the first three party e-commerce websites such as Taobao, Jingdong, Mcglaughlin, Le Tao and Hao Le buy first explore market experience, accumulate popularity, gain sales volume, and invest more in building their own e-commerce platform, which is a prudent path.

"Seven wolves set up shop in Taobao, which has brought us effective sales."

Seven wolves new channel manager Hu Jun told our reporter.

However, as the third party B2C platform, the disadvantages of Taobao network are becoming increasingly evident.

As a large number of brand owners embrace Taobao, the benefits of the rapid growth of a single brand will be weakened.

According to Hu Jun, the sales revenue from the three party platforms such as Taobao is less than 3% of the total revenue of the seven wolves. "We hope to increase the proportion of e-commerce revenue to 10%-15% in the next 3-5 years through self building websites and strengthening supply chain management."

"E-commerce is absolutely the only way for traditional brands."

Qian Jinbo, chairman of the Red Dragonfly Group, told the media that Red Dragonfly will invest 20% of its advertising expenses to the Internet. "This proportion may increase to 50% in 3 years."

More and more traditional clothing and footwear brands participate in the layout of e-commerce platform, but at present there are no enterprises that are widely recognized as successful operators on the Internet.

According to AI data, none of the domestic footwear B2C companies has annual sales of more than 200 million yuan.

For BELLE, in addition to self built e-commerce channels, but also with Taobao, Amazon and other more than 200 e-commerce sites cooperation.

BELLE started with the idea of "whole network marketing". In Taobao, there are 11 Direct stores, 100 franchises, and Jingdong, excellent, Dangdang, fan, Yintai, Le Tao, Xiu Xiu, red children and many other B2C distributors.

"If one day, e-commerce has become a subversive marketing mode, BELLE must be prepared.

This preparation means that BELLE should not only have a team, a channel, but also a position in the industry.

Xie Yunli told our reporter.

Tang Xin, a consultant of the strategic industry research institute, thinks that the traditional enterprise's development of e-commerce platform is too scattered but not conducive to promotion. Network sales pay more attention to market segmentation and supply chain integration, as long as a website can radiate the whole country and even the whole world.

BELLE does not belong to the initiative to expand e-commerce business, to a large extent, is worried about competitors to make e-commerce and passive response, which determines that BELLE's offline sales and online supplemented sales pattern will not be broken.

Brand VS platform business

In June 5th, Gong Wenxiang's revelations on micro-blog triggered comments from many people in the industry.

Some people in the industry believe that BELLE's performance today is due to its open channel sales strategy. The proxy's brand does not have the right to block, and it can only rely on sales to lay the right to speak at the brand holding side.

Supply chain blockade this "pinch your neck" way, will only "kill one thousand enemy, self harm eight hundred".

Zhou Hao, director of marketing of green box, believes that if Gong says it is true, it will be the story of brand players directly killing the platform business.

Like some of the third party B2C platforms such as Le Tao and hi Le buy, even with Baidu or Tencent traffic, it is horrible to lose the source.

He believed that in the electricity supplier campaign, the source and brand are more important than the flow.

Chen Hu told this reporter that BELLE is not only a shoe brand, but also a strong multi-channel agent. Its brand has 28 brands, so it is not surprising that it will increase its B2C investment or even block other supply chain channels.

However, as the most abundant footwear B2C in domestic products, Le Tao net has been stationed in 142 domestic and foreign brands, 14353 styles are available for consumers, and has won the authorization of many well-known shoe manufacturers such as ADI and so on. Therefore, BELLE is not worried about the blockade of shoes.

He doesn't think BELLE will do that either.

Zhang Ruize, a senior analyst at Jingwei, believes that the awakening of traditional production and supply giants like BELLE is a big challenge for Le Tao.

From the perspective of supply chain, BELLE controls commodities, and Le Tao uses the advantages of the Internet to control users.

Fang Xian Li believes that the retail industry is still brand oriented. BELLE should not block other B2C channels, but BELLE can make an issue on the price system.