What Mistakes Can Daphne Make In The First Ten Years Of Loss Pformation?

According to the brand of women's shoes

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

The surprised media find the loss factor of Daphne in the announcement: 1, China's economy continues to slow down and consumption intention is weak; 2, 2015 winter is "exceptionally warm winter"; 3, "double 11" such online Festival dilute the physical store passenger flow; 4, the industry has a big discount in advance.

Competition is more intense.

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

Although the deterioration of the environment can explain some of the reasons why Daphne's profit performance is frozen, it is probably Daphne's more essential question to ask its own product innovation than any external factors such as weather, market and economy.

Under the impact of fast fashion brands taking advantage of the mass market, 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.

A battle for the pformation of traditional women's shoes has started.

Integration actions continue, stores shut down

In addition to the trembling loss figures, Daphne's sales 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 said publicly that in addition to the bad environment, a large number of store closures are also the result of internal optimization. "Enterprises will choose to close some of the business performance is not good, or the future can not enhance the space, or the location of the business circle is more duplicate shop."

Although Daphne believes that closing down the loss shop is conducive to upgrading the quality of the overall sales network in the future, but the consolidation measures such as the sharp closing of the whole year and the subsequent layoffs will result in an increase in the operating cost of Daphne, and the negative leverage effect will become another burden on Daphne's dismal earnings.

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 situation of serious homogenization of online goods and the continuous diversion of consumers from online businesses, Daphne is troubled and puzzled.

In fact, the road of Daphne's electricity supplier is very representative, from red hot to glorious.

Daphne stores, which once created sales success, are now subject to a lot of closes.

The way to test the water supplier is quite calm.

Daphne is one of the first traditional brands in the field of electricity supplier, but its way of testing water business is rather calm.

In 2006, Daphne tried out e-commerce through outsourcing.

Until 2009, Daphne began to set up a self operated electronic business company, "love to carry", really in the electricity business.

Daphne, which built its own e-commerce team, divided the electricity supplier strategy into two parts: one is the female platform strategy.

As a new business, this project focuses on the creation of women's community; the other is the marketing of footwear, with the help of Daphne's brand advantage for full network marketing, and for online market development network dedicated contributions.

However, Daphne's good idea in the field of electricity business has been stranded in the "100 point" investment.

In May 2010, Daphne and B2C platform "Yao point 100" reached a strategic cooperation injection of 30 million.

Within half a year, "Yao point 100" burned Daphne's first round of investment, and Daphne further gave support to resources.

By the end of 2011, Daphne electric business department even closed Jingdong, Le Tao and ho Le buy and other advantages of distribution channels, and turned to support 100.

According to the source, "when Daphne has no money to buy goods, it will sell the goods first to 100."

Without adopting the mature mode of Taiwan electricity supplier's common practice, Yao point 100 put forward a high demand for the supply chain in the way of combining platform self-operation and consignment on the mainland, but the shoe and clothing suppliers of the platform are extremely limited.

In addition, Yao point 100 basically used investment in advertising resources, but in logistics and customer service construction, there was little action, warehouse outsourcing outsourced delivery confusion, customer shopping experience low degree of business, main business confusion, market positioning vague, low price strategy unable to continue, unable to make ends meet.

In less than two years, Yao point 100 burned 3 hundred million of investors and about 30000000 of net assets.

In July 30, 2012, Yao point 100 disrupted the operation of the website. At the same time, Daphne's attempt to operate its own business was also hit hard and lost for a while.

In April 2012, Daphne will outsource Tmall, which has the largest share of sales.

Since then, Daphne has laid off 300 employees in Shanghai headquarters, and 3 other electricity suppliers have been cut off. The development strategy of the electricity supplier has almost stagnated, and the channel strategy has shifted to direct stores.

Some people once put forward the view of Daphne's dilemma. E-commerce needs to solve three basic pain points: cheap, convenient and authentic.

For Daphne, authentic products can be guaranteed, but convenience and cheapest are no advantages.

On the price, Daphne's main price is 200-300 yuan, which is also the key point of competition for many non brand products in many Taobao shoe stores. On the convenient side, Daphne has more than 6000 stores in the peak period, which basically meets the requirements of shopping convenience. Daphne's advantage in the electricity supplier is not obvious.

For Daphne, retail business has always been the core business of the group.

In March 2013, Chen Baofen, the head of Daphne's new electricity supplier, once said to the "Internet operator of the world": "Daphne will reshape the electricity supplier."

Three years later, in 2016, Daphne remained flat in its business.

In May 2012, Daphne's CRM system had accumulated more than 5 million 500 thousand members. CRM tried to link up online and offline integrals to cultivate consumers' stickiness and eliminate the gap between Daphne's e-commerce providers.

But the follow-up effort of CRM system on Daphne's e-commerce business seems to be unsatisfactory.

In the trend of traditional sales channel dividends, Daphne's core brand business sales outlets are frequently closed, and new sales channels are slowly expanding. Daphne is now facing the embarrassing situation of both sides.

Daphne said in its 2015 annual report that the group will continue to invest more resources to expand its business, upgrade its exposure to major online shopping platforms, and expand its sales network to new online shopping platforms.

Through the O2O program, we can achieve synergy between offline sales and offline sales.

The cold winter of Daphne seems to have arrived.

Over the past ten years, from the outsourcing of e-commerce, the whole network marketing to independent B2C, "the popular shoe king" seems to have not yet touched its own e-commerce development model.

As a traditional business enterprise, Daphne still needs to think calmly.

The electricity supplier channel is still a blue ocean for Daphne.

And the future Daphne online business and the traditional offline sales will be how to force the ratio to regain profits, Daphne has not yet made a clear answer.

There is still much uncertainty as to whether Daphne can make full use of the electricity supplier.