The Pformation Of Traditional Women'S Shoes Has Started.

Although the decline of the environment can explain some of the reasons why Daphne's earnings performance is frozen.

But apart from the external factors such as weather, market, economy and so on, the question of Daphne's own product innovation may be the essence of the question.

The cold winter of Daphne seems to have arrived.

In the past ten years, from the e-commerce outsourcing, the whole network marketing to the independent B2C, the "public shoe king" seems to have not yet touched its own electricity supplier development mode.

according to

Daphne International's 2015 earnings report showed a net loss of HK $379 million for the year and a sharp decrease of 315.24% in net profit compared with the first time in nearly ten years.

From the announcement, 4 factors are listed: 1, China's sustained economic slowdown and weak consumption intention; 2, 2015 winter is "exceptionally warm winter"; 3, "double 11" such online festivals dilute the physical store passenger flow; 4, the industry has a big discount ahead of schedule, so that the retail market competition is more intense.

In fact, since 2012, Daphne's net profit has been bogged down by negative growth.

Although the decline of the environment can explain some of the reasons why Daphne's earnings performance is frozen.

But apart from the external factors such as weather, market, economy and so on, the question of Daphne's own product innovation may be the essence of the question.

In fast fashion brands such as UNIQLO, H&M,

Under the impact of large-scale market grab, Daphne's product innovation is becoming more and more urgent.

In the era of more rapid changes in consumer preferences than ever before, how to grasp the trend of consumption, how to introduce products with differentiated advantages, and how to provide services that satisfy customers are the key to success.

Daphne launched consumer research in the fourth quarter of 2015, visited more than 2600 consumers in 170 cities in China, and strengthened its pursuit of differentiation so as to win in competition.

Daphne also disclosed in its 2015 annual report that a group of children's shoes with global positioning function developed by the group and Tencent will be launched in 2016.

Although the group's strategic vision is abundant, it still can't stop the declining trend in the retail market in 2015. A large number of stores are closing down to send complex signals to the market. At the same time, the consumer loyalty and brand reputation are facing challenges at the expense of cost.

In addition to the trembling loss figures,

The sale of winter is also directly reflected in the closure of a large number of stores.

In recent years, Daphne has gone back and forth in the northern Shang and Shenzhen first level business circle. Many stores have moved to the two level business district, some even have opened to the shopping centers or supermarkets in the community, and even the "street shops" are also decreasing.

In 2015, Daphne closed 805 stores, including 692 Direct stores and 113 franchised stores.

Independent commentator Ma Gang, a shoe and garment industry, said that apart from the bad environment, a large number of store closures were also the result of internal optimization. "Enterprises will choose to close some businesses with poor performance, or little room for improvement in the future, or a more repetitive location in the business circle."

Although Daphne believes that closing down the loss shop is conducive to upgrading the quality of the overall sales network in the future, the annual consolidation and subsequent layoffs will result in a significant increase in the operating costs of Daphne. The negative leverage effect has become another major reason why Daphne has been losing money.

Daphne said it will continue to integrate stores, manpower and inventory in 2016.

In the first quarter of 2016, Daphne further reduced 176 sales points, and the total number of core brand stores decreased to 5421 as of March 31, 2016.

Under the background of low overall industry environment and insufficient internal consumption vitality, the downward trend of traditional offline operation has become apparent.

To some extent, the electricity supplier business has eased the sales decline caused by Daphne's continuous closing, but even if Daphne performed prominently in last year's "double 11", the aura effect is still limited.

In the announcement, Daphne said that the proportion of electricity business in the overall sales of the group was not high, and its growth could not offset the negative effect of the dilution of the physical stores.

Under the condition of online homogenization of goods and serious competition between online providers and consumers, Daphne is worried and puzzled.

But in fact, the road of Daphne's electricity supplier is very representative, from red hot to glory.