Weak Electricity Supplier Consumption Intensified Competition Daphne Performance Decline

Mid October, the old parity women shoes "Daphne" held in the 2016 spring ordering meeting, the national franchisees staged a collective protest.

Subsequently, dozens of franchisees from all over the country went to Daphne headquarters in Shanghai to "ask for a view".

Franchisees listed Daphne's "number of charges", such as the collection of illegal fees, the use of franchisees to digest inventory products, Direct stores to sell goods below the franchisee and other ways of franchisee and so on.

These moves seem to be a way for Daphne to try to "join in".

"The growth rate of Daphne's same store sales has dropped sharply, and has gone to a large number of difficulties in closing the store. It has nothing to do with the big consumer environment changing and retailers are fighting price wars."

Shanghai Ding Feng Asset Management Co., Ltd. Tian Jiang said.

Daphne also explained the decline in its performance in the first half of this year: as the economic growth slowed down, coupled with the abnormal weather and delayed spring and summer in 2015, the consumption desire was affected.

Popularization

Some of the chain stores had a big discount early, forming a competitive environment with frequent promotions and discount.

Against this background,

The negative growth of the volume and the decrease in the number of stores reduced the turnover of Daphne's core brand by 13.9% to HK $4 billion 34 million 900 thousand in the first half of this year.

In 2014, the Daphne annual report also showed that it and other retailers used the way of promotion to deal with the seasonal inventory (mainly for the old brand), with a large discount to promote sales growth.

Due to the weakness of overall consumption in the year, regional competition is becoming more and more intense. The gross profit margin of core brand business has been reduced by 2.1 percentage points from 55.9% to 53.8%.

And the delay of the Spring Festival is missing before the Spring Festival.

In addition, the weather pattern is different from previous years, which has further affected the net profit rate.

In 2014, the turnover of Daphne's core brand business fell to HK $9 billion 492 million 600 thousand.

"E-commerce continues to grow rapidly, and also leads to intensified competition."

Zhang Tao, director of the women's shoes of Yin men, thinks that Daphne's products are mainly for young people, while young people are more than half of those who buy online, so they divert Daphne's customers, though it has a layout before.

Therefore, the marketing method that appears in front of consumers by increasing retail outlets, intensive stores and high frequency appears to have little effect before the new market background of electricity supplier prosperity.

But this is exactly what Daphne did in previous years.

Data show that Daphne has intensified its efforts in marketing in 2014.

In addition to celebrity oriented marketing activities, more than 600 stores were renovated and renovated.

Retail stores increased to 6402.