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    Daphne Is In Deep Trouble. How Can It Be Broken?

    2015/11/20 14:34:00 39

    DaphneGo To FranchisingClose Shop Tide

    In the first three quarters, Daphne, the brand of women's shoes that closed 400 stores, was afraid that it would be difficult for them to get out of the shop.

    Reporters at Yonghui supermarket Ru Valley outside the rental area to see, before the normal business of Daphne closed yesterday, the shelves have been emptied, this is not the first time Daphne closed shop in Beijing.

    For the women's shoes brand that has been declining for a long time, the way of layoffs and sales profits has not yet seen the end, and it has been accompanied by direct competition between franchisees for several years.

    The Daphne store, which is located outside the rented valley area of Yonghui supermarket in the West Fifth Ring Road, suddenly closed, the product was packaged and placed in the store at random, and the brand LOGO was also taken off.

    At the beginning of this year, a Daphne in Zhengyang bridge in Nancheng, Beijing, was quietly closed. Such a situation occurred synchronously in other cities of the country, more frequent than in Beijing.

    In addition to facing the external problems of shrinking domestic consumption demand and declining purchase rate, let Daphne also have an internal franchisee problem. In October, at the 2016 spring order meeting, the franchisees staged a collective protest. Subsequently, dozens of franchisees from all over the country went to Daphne in Shanghai.

    In the view of franchisees, it is a serious way to hurt the normal business operation that the franchisees digest the inventory products, the franchisees digest the inventory products, and the direct stores are selling less than the franchised stores. These actions seem to be a way for Daphne to try to "join the company".

    This is not the first confrontation between Daphne and franchisees.

    As of the end of June, Daphne accounted for less than 10% of the franchise.

    When Daphne started, the proportion of franchisees was about 80%.

    One is firm.

    De franchising

    At the end of the day is the inevitable decline in performance. Daphne, who has two fires, wants to improve and is not optimistic.

      

    Daphne

    The published financial reports showed that 219 outlets were closed in the three quarter on the sales outlets, and 181 in the first half of the year. The total number of stores closed in the three quarter exceeded the total number of stores in the first two quarters.

    As of the first three quarters, Daphne has closed 400 stores.

    The growth rate of sales in the same store in the first two quarters was -16.9% and -17.7% respectively, and in the three quarter, the situation continued to deteriorate to -19.7%.

    The decline of Daphne's performance has already appeared in 2012. In the 2011-2014 years of the company's earnings report, the growth rate of the same store was 21%, 9%, -10.4% and -3.4% respectively.

    Poor performance directly affects revenue and profits.

    Daphne 2015 semi annual report shows that

    operating profit

    A sharp fall of 95.4% over the same period last year, from HK $240 million in the same period last year to HK $11 million, was mainly affected by the significant pressure of revenue decline, the high fixed cost structure of retail business and the inflationary pressure of major operating costs. The operating profit rate dropped to only 1%, compared with 5.7% in the same period last year.

    Net profit also decreased by 98.5% to HK $2 million 500 thousand, compared with HK $170 million in the same period last year.

    Daphne said it would focus on improving sales, improving inventory management, controlling spending and strengthening e-commerce development.

    However, Daphne's improvement plan has not been implemented very well since the number of stores in the three quarter and the more serious sales data in the same store.


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