Daphne'S "De Franchising" Did Not Work.

Yonghui supermarket Ru Valley outside the rental area to see, before the normal business of Daphne yesterday closed the door,

This is not the first time Daphne has closed stores in Beijing.

For the brand of women's shoes, which has been declining for a long time, the way of layoffs and sales profits has not yet seen the end. It is also accompanied by a direct game between franchisees and franchisees.

Daphne's stores in Beijing are mainly located in supermarkets, shopping areas, shopping areas and shopping malls.

Independent counters and street shops are rare.

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.

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

In the same store sales growth rate, the first two quarters were -16.9% and -17.7% respectively, and the three quarter continued to deteriorate to -19.7%.

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

In addition to facing the domestic

The external problems of atrophy and the decline in the purchase rate caused Daphne's headache as well as the internal franchisee problem. In the 2016 spring order meeting in October, the national franchisees staged a collective protest campaign. Then dozens of franchisees from all over the country went to Daphne in Shanghai's headquarters.

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

This is not the first confrontation between Daphne and franchisees.

Poor performance directly affects revenue and profits.

Daphne's 2015 semi annual report showed that operating profit plunged 95.4%, down from HK $240 million in the same period last year to HK $11 million, which 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.

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 determined to join the alliance, one is to stop the decline in performance. The two fires Daphne wants to improve the market is not optimistic.