BELLE International Acquisition Leads Or Aggravates The Shoe Industry's Hegemony

Two major mergers and acquisitions Brand of children's shoes After that, BELLE Recently, international news came out that the acquisition of Shenzhen leading sports products Co., Ltd. (hereinafter referred to as Shenzhen leading runner) will intensify the competitive situation between BELLE and Baosheng two giants.

Yesterday, reporters learned that BELLE international and Shenzhen's leading race has reached a strategic cooperation agreement, and the details of cooperation have yet to be announced.

"BELLE has indeed acquired the lead in Shenzhen, which is actually no secret in the industry." A person familiar with the matter told reporters.

　　 BELLE leads Southern China

BELLE International's Tao Bo sports, Baosheng International (03813, HK), Shenzhen leading, Shanghai sharp and Sichuan strong wave, the main agent for domestic sporting goods, control Nike, Adidas With the market share of 70% of the famous international sports brands, BELLE's wholly-owned acquisition or holding of Shenzhen will lead to another consolidation of China's sports brand agency industry.

It is understood that at present, domestic sporting goods retail channels are dominated by two shoe Giants: one is the domestic shoe industry giant, that is, the BELLE international with Hong Kong background; the other is Baosheng international with Taiwan capital background, and its parent company is Yuyuan Industrial Group, the largest footwear manufacturer in the world.

BELLE's Tao Po sports is China's largest sporting goods Agency, which occupies about 20 billion yuan market share each year. Hongkong Baosheng international market share is about 13 billion yuan.

Ma Gang, a senior observer, told reporters that BELLE, Baosheng and Mai Sheng Yue are the three major sports brand channels in China. The acquisition of BELLE will be a powerful complement to the original channel Tao Bo sports. "If BELLE chooses to build its own channels to expand the market, it will be more difficult, and the pressure to compete against the other three major channels will be very great. In addition, the rent of the current retail sector is like sky high price. Leading the race now needs to have a big tree to enhance its ability to resist risks."

CIC consultant light industry researcher Xiong Xiaokun said that although BELLE group has an absolute voice in women's shoes, but in recent years, its sport has shown a weak growth trend, leading sports is Southern China's largest sports brand agency business, through the acquisition run, can help BELLE make up for its weakness and enhance its competitiveness.

"This cooperation is a good thing for BELLE and the lead race, but Baosheng and Mai Sheng Yue two will face greater competition pressure in the Southern China market." Ma Gang said.

It is understood that the Shenzhen leading sports products Co., Ltd. was founded in 1988, the largest sports brand agency in Southern China, and owns nine major products such as Nike, Adidas, Reebok, Kappa, Puma and so on. The business area covers more than 35 cities in 5 provinces, including Guangdong, Guangxi, Guizhou, Hainan and Fujian, and has nearly 800 kinds of shops. {page_break}

　 Brewing transformation

In fact, in recent years, BELLE has been constantly acquiring M & A in the industry. Its takeover actions include the acquisition of trademark rights of the sports brand Fila in the US $48 million, and the promotion of its products with a joint venture of 12 million dollars with the ultimate owner of the brand; the purchase of hundreds of retail terminals with a brand name of 600 million yuan and a purchase of 1 billion 600 million yuan for Jiangsu's famous shoe company, Sunda and Shanghai's shoe industry, etc., with the purchase of 563 million yuan for all rights and interests of Shanghai's footwear industry, and the acquisition of 1 billion 574 million yuan for shoes production, wholesale and retail enterprises, and so on.

According to insiders analysis, BELLE's frequent takeover behavior is laying the groundwork for the transformation of enterprises in the process of brewing.

Xiong Xiaokun said that in order to break through the bottleneck of growth in recent years, BELLE began to adjust its business structure since 2009. Its annual income in 2010 was 23 billion 710 million, of which footwear business accounted for 61.8%, with an annual growth rate of 24.9%, indicating that its growth was better. Sporting goods would become a new business growth point for BELLE.

According to the third quarter earnings report, BELLE regional footwear sales in China increased by 18.5% compared with the same period last year. The mainland opened 693 retail outlets in the mainland, including 391 footwear shops and 302 sports shoe clothing stores. By the end of September, BELLE had directly managed 9544 footwear products stores in China and 4306 sports shoe clothing stores.

BELLE CEO and executive director Sheng Bai pepper said in the interim results conference this year, the group will still focus on the mid end market this year, but plans to increase investment in the low-end mass market, that is, the product with an average price of about 200 yuan, while increasing the investment in research and development of high-end men's shoes products. {page_break}

　　 Incorporate past rivals

In August 2007, in order to fight against the two sports giants such as BELLE and Bao Yuan, Shenzhen dragon Hao, Sichuan Jin Lang, Zhejiang sharp and Shenyang Peng Da jointly formed the leading company.

With the intensification of competition, the 4 regional sporting goods giant decided to form a United Sport Group (USG) in 2007 to fight against a strong competitor.

Due to the excessive market security of Beijing Olympic Games and the impact of the financial crisis, the funds of venture capital companies were not in place, resulting in the fragmentation of the capital chain. USG was dissolved at the end of 2008 and continued to take over by Shenzhen Long Hao. Three years later, the "lead" or eventually BELLE was compiled into a page history.

Earlier this year, it was reported that Baosheng Group intends to acquire Shenyang Peng da. Now BELLE holding Shenzhen leads the industry, and the industry concentration is further improved. The trend of BELLE and Baosheng two giants to compete for hegemony is more and more obvious.