Belle Sale Fila Brand Business Struggling, “movement”
Recently, Belle International in Shenzhen, announced to no more than 600 million yuan of the sale price of a unit of Fila brand business, then set those in the Hong Kong Stock Exchange for the same sporting goods business in Fujian Anta.
Belle notice that the sale of business development for the international sportswear brands in China’s technology and experience required, coupled with the recent economic downturn, the company that difficult to achieve in the short term goal, it was decided to sell the business.
Notice that, according to Anta, The Belle sale Fila brand in the business include Full Prospect Belle holds 85% stake and shareholder loans, and the Hong Kong retail Fila Marketing 100% of the equity, the transaction cost of 3.32 billion and attach the closing date of the contract price, Anta up to 600 million Hong Kong dollars may have to pay the price.
Full Prospect for the Belle subsidiaries, ownership and management in Hong Kong, Macau and mainland China Fila trademarks. The Fila Marketing is a wholly owned subsidiary of Belle, responsible for Hong Kong and Macao to China’s retail sales mark with Fila sportswear, footwear and accessories, currently operates 10 stores in Hong Kong,.
In 2007 shortly after the Belle of about 370 million yuan acquisition of international brands in Hong Kong and Macao Fila trademark ownership, then, Belle began to actively study the brand positioning and organization of R & D team for the China market, in sports product market, has been dependent on Nike, Adidas brand sales agent two hundred Korea hopes to train its own sports brand.
This time Belle has not succeeded, in 2007 and 2008, Fila brand business in China has 10.96 million yuan and 39.178 million yuan loss.
Not only did not cultivate its own brand successfully, Belle performance sportswear business is much drag.
According to Credit Suisse report said the first half of this year, Belle’s footwear products, same store sales growth of about 7%, while the sports products of the same-store sales fell 7%.
2008, 100 Korea 17.8 billion in general revenues, the sports apparel business income of 82 billion, accounting for the proportion of total operating income reached 45.9%, of which Nike and Adidas brand sports two first-line sales revenue to account for 82% of movement, the figure of the first half of Belle sports business will be reduced by close to 600 million yuan.
In 2008, due to the Olympic business opportunities expected to be too optimistic, combined with the financial crisis, Adidas and Nike brand sports such as stock distribution channels exist serious problems, as one of the largest agents Belle, is also facing huge stocks and discounts pressure.
According to Credit Suisse’s analysis, after the first quarter of this year’s promotions around the Spring Festival, Belle sports products inventory in the second quarter decreased to some extent to reduce inventory pressure.
But since last year, two major brands Nike and Adidas have all thrown out of the self-retail development, which Belle’s agency will be directly in competition pressure.
As at the end of Belle in the Mainland and footwear retail Total 6050, sports apparel retail is 3119; Belle latest reported fiscal 2009, the company will add 900 shoe stores, but sport business store the same amount.
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