Daphne'S Parity Strategy Achieves The Myth Of Single Product First.

At present, Chen Yingjie, chairman of the board of directors of Daphne international holding company, said in an interview with the media that Daphne international is ready for the next 10 years of change, announces the coming of the new era of "multi brand, multi category, multi class and multi channel".

He hopes to form a multi brand competition, but this revolution is not easy to succeed.

How to maintain the high growth of Daphne international and how to give investors a good handle in the difficulties of increasing wages, increasing inventories and declining cash flow is the first factor to consider in the pformation of multi brands. After all, to make consumers accept new brands and compete with competitors at the same time, and to reduce the execution risks of multi brand operation, all kinds of problems are testing Chen Yingjie and his team.

Because of his family's importance, Chen Yingjie was raised as a successor, but when he took over the Daphne International Holdings Ltd's predecessor, wing en International Group, mainland business, it was the lowest time of the company.

At that time, Daphne's operations were in crisis. The shops were old and the styles were old. They were always on sale with a high turnover rate.

The elders at home want to let young people go all out to pull the company's mainland business out of the mire.

In 1999, Chen Yingjie, who was in danger, repositioned Daphne to replace the brand logo and shop decoration style. Daphne, who started again, began to bring back to life.

And competing with it is the development path and some other similar shoe brand BELLE (1880.HK).

It was also a foundry. It also launched its brand of women's shoes in the early 90s of last century. It is also the first step to open a special market in the department store.

But on the road to growth, the two companies showed very different characteristics.

In Chen Yingjie's words, BELLE is the Mercedes Benz in the women's shoes industry, while Daphne wants to be TOYOTA.

Unlike BELLE, which is in the middle and high-end line, Chen Yingjie adopts a parity strategy that is targeted at popular popularity.

At the price level, the average price of women's shoes is 200~300 yuan, which is almost half of that of BELLE.

On the channel terminal, unlike BELLE's main shopping mall and shopping center, Daphne mostly adopts Street store mode.

In order to grasp the power of discourse and pricing in negotiations with shopping malls, BELLE has created a multi brand "shoe Empire" by means of mergers and acquisitions and agency.

At present, BELLE's own brands include BELLE, Teenmix, TATA, Staccato and more than 10. At the same time, BELLE is also a domestic agent of Bata, Geox, Clarks, Mephisto, BCBG, ELLE, Merrell and Caterpillar.

With so many brand resources, BELLE has a strong voice. Many shopping malls, in order to improve their grades and rich categories, often invite BELLE to come in with preferential rent.

In some high-end shopping centers, it is hard to see the figure of Daphne now, because the "customer price" is low, and the rents of shopping malls increase year by year. As early as a few years ago, Daphne counters were gradually withdrawn from the high-end shopping malls and began to focus on their own stores.

After gaining investment from the US TPG, Daphne increased its expansion speed and slowed down the growth of franchised stores.

Data show that at present, Daphne group's core brand "Daphne" and the shoe cabinet brand "Shoebox" have 4547 Direct stores, an increase of 629 from 3918 in the same period last year, an increase of 16.05%. While the franchisees, Daphne's core brand has 1055, compared with the same period last year 984 new 71, an increase of 7.21%.

Daphne said that this year will add 700 stores, Daphne and Shoebox, and all new retail outlets will be direct outlets.