Daphne Needs To Innovate To Break The Market

According to the world clothing shoes and hats net,

The unaudited operating data released by the International Holdings Limited (hereinafter referred to as "Daphne") in the two quarter of 2017 showed that the number of Daphne stores in the first half of the year was a net decrease of 306, the core.

The growth rate of business "Daphne" and "shoe cabinet" brand in mainland China was 10.7% lower than the same period last year.

Kang Lanxin, Dean of clothing and accessories, said that in recent years, the performance of traditional shoes and clothing industry was depressed, and many brands including Daphne chose to stop shop.

And economic development drives consumption upgrading. New generation of young consumers pay more attention to personalized products.

As a brand of traditional women's shoes, Daphne is innovating.

Lacking competitiveness, brand advantage is increasingly losing.

306 shops

A few days ago, Daphne released the unaudited core brand business data in the two quarter ended June 30, 2017. The number of stores in the first half of Daphne has been reduced by 306, closing 47 stores and 259 Direct stores.

Among them, there were 182 stores in the two quarter, which reduced 11 stores and 171 Direct stores.

As of June 30, 2017, the number of Daphne stores nationwide dropped to 4292.

In fact, as early as 2015, Daphne entered the customs store mode, and the number of sales outlets of core brand business decreased by 805.

As of December 31, 2015, Daphne's core brand business has 5597 outlets.

In the whole year of 2016, the sales rate of Daphne core brand business was reduced by 11.7%, and the number of sales points decreased by 999, including 189 franchised stores and 810 direct outlets.

As of December 31, 2016, Daphne's core brand business has 4598 outlets.

The announcement shows that in the past six months, the growth rate of Daphne's core brand business "Daphne" and "shoe cabinet" brand in mainland China has decreased by 10.7% compared with the same period last year.

Among them, the same quarter sales growth rate dropped 10.2% in the two quarter of 2017, and Daphne thought it was mainly due to reduced sales volume.

In addition, sales of Daphne declined in the first half of 2017 due to a sharp decrease in store numbers and a negative growth in same store sales.

The reporter sent an interview to Daphne on matters related to closing stores and sales decline, and Daphne indicated that it was not convenient to answer relevant interview questions on the basis of the silence of the annual report.

Save the market

Behind the massive closure of Daphne is the continued performance of the brand.

Reporters read Daphne earnings found that in 2012-2016 years Daphne achieved turnover of HK $10 billion 529 million, HK $10 billion 447 million, HK $10 billion 356 million, HK $8 billion 379 million and HK $6 billion 502 million.

Since 2013, the turnover of Daphne has been decreasing year by year.

In addition, in 2015, Daphne owners accounted for a 315.2% drop in profits and a loss of HK $379 million, which is Daphne's first performance loss in nearly ten years.

In this regard, Daphne said in its 2015 earnings report that the group took a series of measures to integrate the stores, inventory, factories and personnel in order to enhance its future business benefits.

The first is to integrate the shop network and close the loss shop in order to change the profitability of the overall store network.

In addition to self preservation, Daphne also tried to diversify its investments to save the downturn. In 2016, Daphne participated in the production of the TV entertainment program, the bee girl team. It hoped to optimize, strengthen and diversify Daphne's marketing activities and promote the brand image.

However, investment entertainment programs failed to add bright colors to Daphne's performance, but created a lot of losses.

In 2016, Daphne's deficit expanded to HK $819 million.

Industry experts pointed out that enterprises should seek to help themselves in the pformation process, combined with their own resource allocation status and advantages, and carefully choose the right way.

Daphne's diversification investment is failing. At present, self help is still the main concern. Whether we can adopt more effective development measures in the future is the key to the success of the brand's self rescue.

Innovation breaking

In fact, in recent years, the overall performance of the shoe and clothing market in China has been in a doldrums. Accelerating the pformation and expanding the diversified business development to maintain profits has become the choice of many shoe and clothing brands.

For example, the acquisition of British toy brand Hamm Reis by 100 billion to expand its international business; women's shoes brand on Saturday hatch red, invest in VR industry, change the scope of operation and other measures to pform.

It is reported that Daphne has invested in the expansion of diversified TV programs after the failure of choice, announced the pformation in early 2017.

At the end of June, Daphne announced the launch of a cross-border cooperation series with the US market trend brand OPENING CEREMONY, hoping to connect with the international market.

In addition, Daphne enhances brand fashion and youthful flavor by changing its brand image LOGO, reshaping store design and redesigning the design team.

Kang Lan Xin said that the low performance of traditional shoes such as Daphne was largely due to the aging of the brand, and could not follow the new generation of young consumers in pursuit of fashion and personality in design and innovation.

Daphne pformation is an inevitable choice to save performance.

Garment industry expert and independent fashion designer Ma Gang believes that Daphne is facing more problems and challenges as well as external challenges. How to gain advantage in the new retail industry is a major problem facing enterprises.

Daphne has expanded its product line through cooperation, increasing coverage of people, closing stores and saving costs.

New retail is more demanding innovative technology and advanced business models.

More interesting reports, please pay attention to the world clothing shoes and hats net.