Analysis Of The Crisis Of "Daphne" Pformation

This autumn is the most popular.

There is no more business than Daphne: in the late August, the wave of massive layoffs was not yet smooth, and the trend of joining the group was increasingly intense. For a time, Daphne was pushed to the top of public opinion.

Face

Business losses and store share have been squeezed. Transformation is the trend.

On the way of future development, the development mode of "going to Affiliate" to direct battalion seems to have been doomed.

So, can we get rid of the sales strategy of joining the franchise to make Daphne move towards a successful road to pformation?

The dispute of "going to join" is becoming more and more intense.

At the end of 8 in 2012, more than a dozen franchisees gathered at Daphne headquarters in Shanghai to find answers for their "going to join".

Daphne unilaterally terminated the franchisee's contract renewal and promoted the "forced" franchisee's loss at a low price, which made the franchisee powerless to operate and had to rush to Shanghai to "seek justice".

The incident of "going to join in" was raging, until the relevant departments of the local government came to conciliation.

Although the franchisees strongly protest, it is still useless, Daphne "go to join" mentality has been determined.

Renewing contracts and compensation is just a "slow down" strategy.

In fact, as early as in November 2011, some of Hunan's Daphne franchisees received the letter about the expiration of the contract no longer with the franchisee.

Daphne was founded in 1987, its brand besides Daphne, including shoe cabinet, AEE and so on.

Relying on "multi category, multi brand, multi-level, multi-channel" business strategy, Daphne has been occupying a considerable proportion of the market share of women's footwear industry.

With clear market positioning and flexible pricing strategy, Daphne has established a good reputation and reputation in the low and middle end customers.

However, the dispute between Daphne and franchisees today has not only aroused the anger of franchisees, but also made the brand itself in an embarrassing situation of "self destruction".

Daphne stores in Beijing are basically located in supermarkets and universities, and high-end department stores can hardly see the Daphne counters.

Daphne stores located in Dacheng International are mixed up in Taobao area, which does not seem to match Daphne brand positioning.

During the visit, reporters learned that the price range of Daphne stores ranging from 200 yuan to 300 yuan was 99 yuan, while the second yuan that had just been put up was 25 yuan.

The discount strategy in the shoe store adjacent to it is more ferocious: 59 yuan for the summer, and one for the autumn, the salesperson of the Daphne store told reporters that the Daphne store had "crazy discount" for half a month, but the sales situation seemed to be less than expected.

This seems to have been borne out by the neglect of the court.

"Daphne shoes I rarely buy, design nothing new, quality is also general.

Now the discount is too great. I feel a little "down."

Ms. Zhang, who works in a foreign-funded enterprise in Beijing, was asked when asked why she did not buy Daphne shoes.

"Going to alliance" is not a whim.

Obviously, Daphne's intention to join the camp is not just a whim but rather a "deliberate" long time.

According to Daphne's 2011 earnings report, as of the end of 2011, Daphne's direct store grew by 16.05%, and its franchised store grew by 7.21%, a decrease of nearly 17% from 25.5% over the previous year.

Subsequently, the reporter called Daphne Shanghai head office's telephone inquiries to join the matter, customer service personnel said: "Daphne began in September last year to suspend the national franchise.

When to reopen the company, we need to wait for the company information announcement.

Reporters also found 51 business opportunities network, join the network and other business opportunities to join the website to understand the relevant information of Daphne's joining. The results were told that since last year, Daphne has no longer accepted the alliance.

"In fact, Daphne's pformation is more concerned with the development trend of the industry."

Liu Hongjun, a partner of the strategic consulting company, said in an interview with reporters.

"In recent years, shoe industry,

The development of other industries is not optimistic. Inventory backlog and sales sluggish are the problems faced by most brands.

The main reason why Daphne chose to give up its franchise and go direct is still the pressure of high inventory.

Liu Hongjun added further.

Due to the sluggish market environment, the volume of single orders has also shrunk sharply due to the sharp decline in export orders.

According to Daphne's first half 2012 earnings report, Daphne's average inventory turnover period increased to 202 days in the first half of this year, up 53 days from the same period last year.

Daphne has encountered unprecedented stock pressure.

The apparel industry is updating faster, and inventory should be digested within one year.

Overstock caused by excessive inventory will not only affect the cash flow of enterprises, but also increase the financial cost.

At the same time, due to the pressure brought by product renewal, inventory goods are unsalable, even resulting in a permanent backlog of inventory.

Is pformation a turning point or a crisis?

Although the road of pformation has been in store for a long time, the future is uncertain.

In the pitional period, Daphne encountered the siege of franchisees, and was named "discarding" and "treachery".

"In the early stage of enterprise development, in order to rapidly expand the scale, accelerate the channel development and enhance brand awareness, joining mode is an excellent choice for the company.

However, with the continuous expansion of the company's scale, in order to further establish brand image, enhance enterprise management efficiency and reduce costs, the direct mode has become the main choice of enterprises.

Du Yanhong, a retail researcher at CIC, has made comments on the way to join.

As a franchisee, the franchisee needs to provide capital guarantee, thus reducing the financial risk of the company.

Depending on the strategy of franchisees blossom everywhere, brands can expand rapidly and increase brand awareness.

Thus joining the chain is more suitable for the expansion of the enterprise brand scale, and can better penetrate into the three or four line city market.

However, because franchisees have limited business strength, they also bring certain difficulties for company management.

"For Daphne's pformation, the overall outlook is promising."

Liu Hongjun has a positive attitude towards Daphne's pformation.

The conditions of franchisees are uneven, which has caused some pressure on the standardization management of headquarters.

Due to the lack of economic strength of franchisees, the phenomenon of hardware failure, slow growth of shops and extrusion of brands are frequent.

It is an irreversible trend to join in the self run mode.

According to Liu Hongjun analysis, the direct chain operation is directly managed by the headquarters, thus abolishing the exploitation of agents and omitting the various redundant links in sales, thus strengthening the control of the headquarters to the terminal.

On the one hand, sales information feedback is more timely; on the other hand, the configuration of information system is more perfect.

The most important thing is to further deepen the building of brand channels.

"It will take a long way to go to join Daphne," he said.

Liu Hongjun believes that Daphne's three or four tier cities join a larger scale, and if the franchised stores are converted into self run stores in a short time, the risk will be higher.

Such instability will also affect Daphne's brand.

Daphne should take eclectic measures, which are both conducive to the pformation of self-management, and take care of the mood of franchisees.