The $99 Strategy Led Daphne To Be Besieged By Franchisees.

Affected by news, Daphne

Fell for two consecutive days.

This is not the only trouble. Yesterday morning, 17 franchisees referred Daphne company to the Shanghai industrial and commercial bureau and other relevant departments. If the industry and Commerce Department is under the jurisdiction, it will be investigated and dealt with according to law.

Insiders said that the impact of the incident on Daphne's stock price is limited. "These three or four tier city franchisees, it is not easy to shake off immediately, but also lose cooperation equity", and the pformation of Daphne is "at least not yet."

Franchisees complain to industry and Commerce Bureau

Yesterday morning, 17 franchisees brought complaint materials to Shanghai industrial and commercial bureau to report Daphne's alleged violation.

The complaint room of Shanghai industry and Commerce Bureau received complaints from franchisees.

The franchisee told reporters earlier that the company will open the store to the three level market, which is bound to infringe upon their interests. "The company must give in, and the company will not comply with our request. We should reflect to the business sector or seek a legal solution."

Shanghai city commerce and Industry Bureau said that if Daphne had illegal activities and within the jurisdiction of the business sector, it will be investigated and dealt with according to law.

If it is not within the jurisdiction of the industry and Commerce Department, it is suggested that franchisees should seek help from the industry authorities in charge of franchising, or hire lawyers to safeguard their rights in accordance with the law.

Subsequently, the franchisee went to the relevant departments of Shanghai to seek help.

According to the relevant department personnel, according to the long-term cooperation intention of Daphne previously publicly promised, the franchisee can seek the judicial department to solve. At the same time, it will also communicate with the relevant departments of Daphne headquarters, and the local responsible departments will consult with the company.

Franchisee hugs "rights protection"

Prior to this, Daphne said that it was willing to communicate with franchisees, saying that full time executives responded properly to the demands and problems of franchisees. Franchisees could seek help and resolve them through negotiations.

In an interview with reporters, a franchisee said he did receive a call from the company and asked for individual communication.

But the franchisee rejected the company's request, "we need to talk about collective talks, and do not want to talk individually, so as not to be defeated."

At present, this part of the franchisee adopts the strategy of holding together.

"When the merchandise sells for 99 yuan in the season, what should we do with inventory? Daphne has to give us a solution.

Renewal of contract

To ensure that the price is not lower than the cost of the franchisee, if we want to sell 99 yuan, we should subsidize the difference and ask the goods to synchronize with the direct store.

For franchisees who do not renew their contracts, they ask for money recovery, and demand compensation for market development costs and decoration fees.

The franchisee told reporters.

Yesterday, Daphne responded publicly by the reporter, "the newly launched brand is not within the scope of the franchisee's commodity business". The franchisee said it could not accept it. "We represent all brands, and new products also require agents."

Daphne pformation is not easy

On the 29 day, Daphne's stock price fell 1.24%, and it fell 1.76% again yesterday.

Chen Yingjie, chairman and chief executive officer of the company, has 147738920 shares, and the franchisee is so "noisy" that its value has shrunk by about 63000000 Hong Kong dollars.

Lin Shangyu, a commentator of the joint venture network, said that the impact of these events on Daphne's stock price is limited. What will really be affected is Daphne's partners other than franchisees. "At the moment, the pformation of the company is not yet the right time."

Lin Shangyu believes that enterprises think the direct chain stores are more chain oriented, and the information, brand and promotional activities of all outlets can move forward together. "But the franchisees of these three or four tier cities want to get rid of it immediately, and it is not easy to do so."

"They are too impatient."

An industry insider said.

She thinks Daphne's channel network is relatively open, "the plate is so big, it does not mean that pformation can be pformed."

about

In the pformation of business strategy, the industry said that if a smooth pition is handled reasonably, the outlook will be more optimistic.

"But if it is not handled properly, it may cause negative effects."