Belle International Holdings (01880.HK) will embark on a product restructuring plan after shutting its standalone branded shoe stores in Hong Kong.
The company decided to close all its seven shoe stores in the city as there has been a mismatch between expectations and consumer demand, Belle’s chief executive told the Hong Kong Economic Journal.
In contrast to sportswear and apparel, demand for formal shoes is on the downtrend, Sheng Baijiao (盛百椒) was quoted as saying.
Given the market realities, Belle is revisiting its product and business strategy.
The current economic environment is also weighing on the export front, Sheng said, but added that things could improve in the coming years due to China’s ‘one belt, one road’ policy.
Belle is aiming to reduce the share of profit contribution from its shoes division to about 50 percent.
In the first half of this year, the shoes division accounted for 50.8 percent of the profit, compared with 55.9 percent the same period last year.
The company, meanwhile, is seeking to expand its online to offline network and leverage various platforms for sales and marketing.
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