Where Is The Way Out For Daphne?

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After the privatization of the delisting, Daphne's International (00210, HK) performance of the "public shoe king" once again aroused concern.

According to the world clothing shoes and hats net, recently,

The performance report for the first half of 2017 was released. The loss expanded to HK $209 million from HK $164 million in the same period last year. The turnover dropped by 19.65% to HK $2 billion 733 million.

Since 2013, Daphne's turnover has continued to decline.

Where is the way out for Daphne? Zhou Shiren, a marketing strategy expert, told reporters that Daphne was like this.

Enterprises must start with product design, develop more fashionable and comfortable shoes, and meet the needs of young people, so that they can meet the needs of new generation products.

Daphne lost HK $two hundred million in the first half

In August 29th, Daphne released its first half performance report in 2017. Data show that Daphne's turnover fell 19.65% to HK $2 billion 733 million, and the share loss of shareholders reached HK $209 million, an increase of 27.44% over the same period last year.

Under the influence of consumption upgrading, brand aging and other factors, sales of enterprises have experienced a decline. At present, domestic footwear industry, especially domestic women's shoes, are facing great challenges.

Since 2013, Daphne's turnover has continued to decline, with a turnover of HK $10 billion 446 million in 2013, a turnover of HK $10 billion 356 million in 2014, a turnover of HK $8 billion 379 million in 2015, a turnover of HK $3 billion 400 million in 2016, and HK $2 billion 733 million in the first half of 2017.

In the latest semi annual report, it attributed the decline in turnover in the first half of this year to a year-on-year decrease of 16.4% in sales points and a negative growth in sales of core brand businesses.

In order to know more about Daphne's offline store, the reporter came to Daphne shoe store on Xudong street. Far from the past, the shop area was not large, only two salesmen, and the customers' traffic was very few. The styles of shoes were relatively single, most of them were pointed and high-heeled shoes, and the price of shoes ranged from 190 yuan to 350 yuan.

Reporters saw that most customers left after looking at their shoes.

Gao lady, who is visiting Daphne shoe store, said in an interview with reporters, "Daphne's high-heeled shoes are backward and slip when they walk. Because of the instability of their heels, they often make noises when they walk.

When I bought two pairs of sandals, I was disappointed at that time.

Miss song is a makeup artist. In the face of reporters' questions, "how about Daphne shoes," she admits, "even though Daphne brand is not as big as some international brands, even some friends haven't heard much about it.

But the shoes of Daphne are really good. They are more comfortable to wear, and the quality is also good. The cost performance is relatively high, and it is more suitable for a friend who gets paid. "

In the interview with reporters, most women said that the styles of homemade women's shoes were rather old and not innovative enough.

Some women say that many styles of women's shoes now come back from overseas, and the price is not much different from that of domestic brands, but the style is fashionable and comfortable to wear.

It is reported that Daphne has invested in the expansion of diversified TV programs after the failure of choice, announced the pformation in early 2017.

At the end of June, Daphne announced the launch of a cross-border cooperation series with the US trend brand OPENING CEREMONY, hoping to connect with the international market.

Zhou Shiren, a marketing strategy expert, said in an interview with reporters, "this time we are hand in hand with OPENING CEREMONY, and Daphne focuses on the remodeling of brand image and store design.

For Daphne, product design is the most fundamental factor. Only by making shoes that are more fashionable and comfortable can we have the opportunity to return to the consumers' sight and attract young consumers' attention and consumption.

OPENIBG CEREMONY brand tonality just makes up for the shortage of Daphne, and the two sides cooperate on this basis, which is conducive to enhancing Daphne's comprehensive competitiveness.

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In the first half of the second half of the closure of the 306 stores contract line under the contraction of electric business

Daphne released unaudited core brand business operations in the two quarter by June 30, 2017, showing a net reduction of 306 stores in the first half of Daphne, 47 franchisees and 259 straight stores.

Among them, there were 182 stores in the two quarter, which reduced 11 stores and 171 Direct stores.

As of June 30, 2017, the number of Daphne stores nationwide dropped to 4292.

In fact, as early as 2015, Daphne entered the customs store mode, and the number of sales outlets of core brand business decreased by 805.

As of December 31, 2015, Daphne's core brand business has 5597 outlets.

In the whole year of 2016, the sales rate of Daphne core brand business was reduced by 11.7%, and the number of sales points decreased by 999, including 189 franchised stores and 810 direct outlets.

As of December 31, 2016, Daphne's core brand business has 4598 outlets.

It is easy to find out why it is closed. The pressure of Daphne's huge stores is very large.

First of all, rents and sales costs rose year by year. Since 2012, Daphne's sales cost almost accounted for half of its sales revenue; followed by higher stock prices; sales of Daphne in 2013 amounted to HK $10 billion 447 million, inventories reached HK $2 billion 643 million, and funds were in great pressure.

In the fourth quarter of 2013, Daphne shut down 245 core brand shops that did not perform well.

In addition to the rising pressure on store funds, the development of the electricity supplier is not smooth, and it also puts pressure on Daphne.

Daphne began to enter the electricity market in 2006. At that time, Taobao had just been online for 3 years, and Daphne's e-commerce sales channels did not bring much revenue.

When the electricity supplier started to become popular, more competitors came in.

Numerous brands are being selected for consumers, and numerous overseas purchasing and Hai Tao are also taking away Daphne's share.

According to Amazon's "2016 cross-border electricity supplier trend report", clothing and footwear are the most popular category among Chinese consumers.

The brand price of Daphne's online sales is mostly in the range of 100-200 yuan, and the relatively low price is exactly the point of competition for sellers on Taobao online.

At the same time, some social networking software "red" has begun to enter into clothing and women's shoes. They know better how to cater to the young people's preferences than Daphne.

In the fierce competition, Daphne is still trying to get a slice of the electricity supplier.

In 2013, e-commerce business began to enter Daphne's earnings report.

According to Daphne's 2016 China Daily, sales of Daphne's e-commerce business continued to grow rapidly, continuing to make profits, and offset the decline in sales of high-end brand portfolios and other sales.

Daphne once won the "double 11" brand of women's shoes in 2014 and 2015, and this ranking dropped to the top three in 2016.

Daphne continues to shrink the line stores, and will continue to force the electricity supplier business.

Daphne said that during the reporting period, e-commerce business continued to maintain sales growth and maintain profitability.

In addition, Daphne will also launch self-service stores, consumers can place orders online at Daphne designated stores to pick up goods.

Garment industry expert and independent fashion designer Ma Gang believes that Daphne is facing more problems and challenges in the shoe industry as a whole. How to get the advantage in the new retail industry is a major problem facing the company.

Daphne is expanding its product line through cooperation, increasing coverage, closing stores and saving costs.

New retail is more demanding innovative technology and advanced business models.

Innovative products are needed to meet the needs of new generation products.

According to the operation data released by Daphne, its turnover accounted for nearly 90% of the core brands (private brand Daphne and shoe cabinet). The same store sales growth rate was -10.7% in the first half of this year.

Among them, the same store sales growth rate was two in the first quarter of 2017, and it was considered that the decrease in the same store sales in the same quarter was mainly due to the decrease in sales volume. -10.2%

Compared with the decline in turnover, Daphne's profit performance has attracted more attention.

In fact, in 2013 and 2014, the profit attributable to Daphne owners has declined sharply for two consecutive years.

In 2015, Daphne turned a surplus into a deficit.

In the past two and a half years, the loss of the company's owners has reached HK $1 billion 400 million.

Daphne noted that it is now committed to major innovations, including comprehensive brand reinventing and product upgrading.

"Some measures may take some time to fully implement and achieve results.

The group is well prepared to meet the challenges that may arise in the implementation process. "

According to relevant analysts, in recent years, there are many brands of shoes and clothing, which are mainly due to problems in product design, consumer cognition and so on.

Nowadays, consumers pay more attention to personalized products, which are too homogeneous and lack competitiveness, and the impact of electricity providers on traditional mass brands from price and style is very great. Therefore, the brand advantage that Daphne has accumulated for many years is gradually losing, and the decline of performance is reasonable.

Faced with the same problem, other traditional women's shoes brands are seeking diversification in order to save their declining performance.

For example, the brand of women's shoes expanded the fashion scene on Saturday, bought fashion fad and Beijing Hsin Hsin's two fashion media, and then bought the famous British toy brand Hamm Reis.

Zhou Shiren, a marketing strategy expert, said in an interview with reporters: "the channel should be diversified and extended from the traditional offline store advantage to online, and the comprehensive channel of mobile Internet should be established. The offline shop should upgrade from traditional selling style to experiential shop, so as to meet the diversified needs of consumers.

Daphne enterprises need to diversify from a single female shoe business, vigorously develop the fashion industry, control the vogue vane, and do the upstream and downstream integration of the industrial chain.

More interesting reports, please pay attention to the world clothing shoes and hats net.