Daphne'S "Closed Shop King" Is A Disaster Caused By Shopping Malls?

In the first half, only 8 domestic

Nearly 1000 stores were closed, men's wear and footwear were the hardest hit areas.

According to the insiders, China's local clothing brand has been seriously impacted by the electricity supplier and international brand. Now it is unable to protect itself. It is necessary to change product pricing and marketing strategies from within to find new consumer groups.

Daphne becomes "closed shop king"

According to the announcement of performance announced recently, in the first half of the year, 8 clothing shoes industry listed companies closed nearly 1000, and Daphne became "Guan Dian Wang".

Daphne's recent profit warning shows that in the first half of this year, the group's sales outlets dropped by 450, including 400 Direct stores and 50 franchised stores.

Public information shows that in the past year and a half, Daphne has closed 1277 stores.

The number of homemade men's brand brands was 50 to 2935 from 2985 in the beginning of the year.

Among them, the number of retail outlets of the main brand "LILANZ" decreased by 10, and the number of "L2" retailers decreased by 40; while the shoe brand Hasen closed down 156 outlets, including 106 stores due to poor performance and difficult profit margins; besides, there were 29, 47 and 148 shops in CABBEEN, costumes, and costumes.

Coincidentally, the clothing brand from Hongkong has been closed for the winter.

In the first half of the year, Goldlion group closed 30 stores with weaker operations, and insisted on the tailor made of Hongkong's Feng men group's high-end men's clothing retailer, Li Bang holdings, to close 19 mainland stores.

Is it a disaster caused by shopping malls?

Along with large-scale closure, the performance of domestic footwear brand has also plummeted.

In a semi annual report, a number of garment companies said that the industry was greatly impacted by e-commerce, profits were reduced, commercial prices and prices continued to rise, staff salaries continued to rise, and circulation cost increased.

At the same time, department stores are becoming increasingly flagging, which has also led to the sales predicament of clothing shoe companies.

Hasen's semi annual report showed that business income decreased by 178 million yuan, down 17.08%, gross profit margin fell 10.58%, reduced by 53 million 349 thousand yuan, and operating profit dropped 36.24% over the same period.

Hasen explained that due to poor management or business adjustment of cooperative shopping centers, 18 stores were closed, and 32 major stores were closed due to major changes in the terms of cooperation of the shopping malls, the adjustment of store counters and brands.

In a word, 32% of the total number of stores closed due to the reasons of the cooperative shopping malls.

As the main carrier of clothing footwear enterprises, department stores really have an important impact on brand sales.

Clothing industry expert and independent clothing analyst Ma Gang said that the number of department stores is increasing and its location is uneven.

The location of newly opened department stores is often not located in the gold trading area, and positioning is also more inclined to make up for the living consumption requirements of the surrounding residents.

The overall function coverage is not enough, it will affect the sales of clothing brand.

However, the industry believes that the decline in clothing footwear industry revenue is mainly caused by reduced demand.

In addition, as foreign fast fashion brands, light luxury brands and even luxury brands have gradually ploughed into the mainland market and sank to the two or three tier cities, the buyers of traditional domestic clothing brands have been diverted, leading to a sharp increase in the pressure of domestic clothing brand inventory, and enterprises have recovered the funds through price wars, but they have triggered a vicious circle.

Adapting to the environment and finding potential customers

In addition, the men's clothing brands such as Li Lang, CABBEEN, Lang Zi, Goldlion and so on are income and net profit double slide, performance decline trend is difficult to reverse.

According to the insiders, the men's wear market is narrower than that of women's clothing, and excellent designers and salesmen are even more scarce.

Zhao Pei, a clothing industry expert, points out that local brand men's clothing is generally not designed with strong sense, single color and homogeneity. Local men's clothing is widely managed by channels, and sales channels are mainly based on franchising and agency, often lacking retail experience.

"If the future performance is not strong enough, I'm afraid the men's clothing brand will repeat the mistakes of sportswear enterprises," Zhao Pei said.

"Every industry has cyclical laws.

In addition to adjusting the design, it is more important to strengthen the grasp of the market.

When the main consumer groups are shunted by fast fashion brands and foreign luxury brands, they change their products, prices and marketing strategies to find new customers instead of simply changing the style of their products.

Ma Gang said.