Reflections On The Development Of China'S Footwear And Footwear Industry From The Perspective Of Daphne'S Closing Shop

Thinking of the next is who and why? Can we learn from it? An excellent brand is just a few years down the road, so how many Chinese shoes and hat brands can take the road of Daphne? It is worth pondering, from several shoe industry bases in China, such as Wenzhou, Shishi, Jinjiang, Dongguan, Chengdu, Yangzhou, Danyang and so on, with the continuous disorderly production of intensive industries, the pressure of inventory, the establishment of channels, and the investment of IP of electricity suppliers, so that large and small manufacturing enterprises are faced with tremendous pressure. Coupled with rising labor costs, it is really impossible for traditional businesses to survive, so people's livelihood products eat, live and wear are the basic needs of speech. Where are people's consumption going? In recent days, the hottest Daphne's closing shop tide, I think.

2017 in the fourth quarter, the Daphne group closed 328 stores. In 2017, it closed 1009 stores in the whole year, averaging 2.7 per day, plus 2015 and 2016 before that, and Daphne closed nearly 3000 stores in three years.

Faced with the challenges such as the upgrading of consumption mode, the rising of emerging brands and the aging of brands, Daphne's ability to survive the cold weather depends on its own ability to innovate. New growth points can be found through mergers and acquisitions.

Daphne also had a glorious time.

Founded in 1990, Daphne was founded in Taiwan by Zhang Wenyi, who sells shoes for women.

According to media reports, due to the unbearable increase in land and labor costs in Taiwan, Zhang Wenyi pferred the factory to Putian, Fujian, where the focus of production shifted to the mainland. Daphne's brand came from this.

Daphne arrived in the mainland, and not only has been the first brand of mainland women's shoes for 5 years in a row, but its market share has been close to 20%.

In November 3, 1995, Daphne listed on the main board of Hongkong.

Unlike BELLE, Daphne is positioned in the popular popular parity strategy, taking the street store mode.

This pattern has brought Daphne's super high-speed growth at one time.

The number of Daphne head shops increased from 739 stores in 2003 to 6702 in 2013, and the store grew by 9 times in ten years.

In 2012, the number of Daphne stores reached its peak. There were 6881 brand stores.

In the four years from 2009 to 2012, Daphne grew at a speed of almost 1000 a year.

In 2006, Daphne copied its successful operation and management in the mainland to Taiwan, set up a special store, and hired S.H.E and singer Rene Liu as spokesmen.

In the same period, Daphne was also a successful example of tree attack for small and medium-sized enterprises.

In 2008, the book "Daphne mode successfully monopolized" was published to analyze the story behind its success at that time.

Three years of continuous losses

In those days, Daphne once occupied nearly 20% of the market share of domestic women's shoes.

But today, Daphne is only losing money and closing stores.

That is to say, in 2015, Daphne began to encounter the tide of closing stores.

In those days, the number of sales outlets of Daphne's core brand business was reduced 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, 2017, Daphne's core brand business has 3589 outlets.

It takes only 5 years for a national brand to fall.

Seeing it rise high buildings, see it feast guests, see it collapsed!

Recently, the footwear giant Daphne released its Q4 earnings report in 2017. The earnings report is like a serious diagnostic book, but it is a sign that Daphne disease is probably in the bone marrow.

The annual loss was HK $800 million, which closed 1000 stores in the past three years, and the market value dropped from only 17 billion to more than 800 million. Is this the "public shoe king" that we are familiar with?

Think of the original Daphne, who knows no one in the world?

5 years ago, in 2012, when Daphne was in high spirits, Daphne had 4600 Direct stores and 1000 franchises in the whole country. It only opened 411 Direct stores in the first half of 2012.

In the first half of 2012, Daphne's turnover reached 5 billion 100 million, an increase of nearly 29% over the same period last year.

At that time, each pair sold 5 pairs of women's shoes in the mainland, and one of them was Daphne.

At that time, Chen Yingjie, the head of Daphne, said with pride, "BELLE is the Mercedes Benz of women's footwear industry, and Daphne is the" BMW "of women's shoes.

However, 5 years later, not only "Mercedes Benz" BELLE has already passed away, but BMW Daphne has to follow suit.

Daphne defines the era.

In the early 80s of last century, the most dazzling figure on the world economic stage came from "the four little dragons of Asia".

At that time, the booming of labor-intensive processing industry helped Taiwan achieve economic development.

At that time, Zhang Wenyi, the founder of Daphne, was not satisfied with a shoe factory in a factory in Taiwan. In 1987, he and Chen Xianmin founded the wing en International Group in Hongkong, the predecessor of Daphne.

Hongkong, a land of gold, soon felt pressure on them.

An accidental chance, in order to digest inventory, they put their products in the mainland market. Unexpectedly, this "Hongkong brand" was sought after by the mainland users.

The result of this inadvertently planted willow is also the result of their decision to move the factory to the famous footwear capital in the mainland, Putian, Fujian. The brand of women's shoes "Daphne" came into being.

In November 1995, Daphne listed on the main board of Hongkong, and began to expand rapidly.

In 2003, the total number of Daphne's stores was 739. After ten years, the number of stores increased by 10 times to 6700, especially from 2009 to 2012. It kept the speed of opening 1000 stores every year.

But at this time, China can not wait to start the admission time of real estate developers. When the craziest time comes, commercial real estate is connected with several rising trends overnight. For Daphne, which is expanding by opening stores, this is the starting point from the end point: the pressure that came back in Hongkong was back.

In 2013, Q4 closed 245 stores in 2013. In 2016, it closed 1000 stores in the whole year, and the turnover was over 22%.

A brand that has defined the era has come to leave the last footnote?

Who threw Daphne?

Earlier, Daphne said that the erratic weather, including the delayed summer and the exceptionally warm winter, were the reasons for the unexpected performance.

Such introspection is clearly lacking in sincerity, because abnormal weather does not only affect Daphne.

Where was the "fast horse" Daphne being thrown away so quickly?

First, the pformation is too slow and it turns so carelessly.

In fact, there has been a clear trend in the development of footwear brands over the years: many people are throwing away their leather shoes and changing into more fashionable shoes, such as sports shoes, but Daphne's core business is still leather shoes. The main attack is leather shoes. Sometimes the leather shoes do not see the real leather.

Second, Daphne, who is beautiful, without discount and 100 points of beauty, has become a discounted lunatic.

Discount, playing brand confidence, playing the user's approval, at the beginning shouting no discount, but now they have become a big road product. Have you ever considered the feelings of those who liked you?

Third, Daphne is "everyone is a designer".

Many people like Daphne, which is largely in love with its design innovation.

But in recent years, even if copying foreign brands, even if Nicholas Tse was invited to be the creative director at a big price, Daphne's design was so old.

Finally, it is not the electricity supplier who defeats Daphne, but the innovative thinking.

As early as in 2006, Daphne foresaw the electricity supplier boom, and began to enter the electricity supplier, but until 2009, its electricity supplier business is still in the test stage, and by 2013, the electricity supplier business was the first to enter the financial report.

In 2015, Daphne was ready to seize the electricity supplier, and began to stop shop. However, it found that many competitors had already appeared on the line. When they tried to highlight the tight encirclement, the bonus of the electricity supplier did not go away.

Therefore, it is none other than his own conservative thinking and adaptability to throw Daphne.

First, take off, take off, remove the original logo!

The brand "Daphne" has changed from big to big. The main color of shop has changed from pink to purple to light and luxurious. Has your Get arrived?

Second, store upgrade.

But the key is that nowadays, even foreign brands like Muji have realized that they must plough three or four lines of cities, but Daphne has been screwing their bodies and refusing to put them down. To a certain extent, it is to reject users who like the "shoes of the masses".

Upgraded Daphne store

Third, create IP influence.

In 2014, Daphne spent a lot of money to invite Gianna Jun as spokesperson, but this is indeed a very unwise decision. At this time, Gianna Jun just married Cui Junhe, and Gianna Jun, who was in the window of his career, was fed up all day. He didn't even know his mother. How much help could Daphne sell?

In 2016, Daphne participated in the production of the TV entertainment program, the bee maiden team. It hoped to harvest the hearts of people through this program, but the program not only failed to bring the expected results, but also caused Daphne's huge losses.

Before the road is dark, the road is boundless. The so-called beautiful woman is on the side of the water. Without saying the tender Daphne, now there are only songs left.

In contrast, let us see how Anta sports brand pcends itself.

Next, let's take a look at the sports brand Anta: in 2017, Hongkong released its annual report. Its annual report shows that its performance has created the best in history.

During the period, the realized income was 16 billion 690 million yuan (the same below), an increase of 25.1% over the same period last year, the profit attributable to shareholders increased by 29.4% to 3 billion 90 million yuan, and gross margin increased 1 percentage points to 49.4%.

At the same time, its free cash inflow increased by 40.3% to 2 billion 660 million yuan, and the net cash position was 9 billion 410 million yuan.

2017 throughout the year, Anta group sold more than 60 million pairs of shoes, more than 80 million clothes, more than 10000 stores, broke 10 million members, and directly created more than 100 thousand employees.

Anta's market value exceeded 100 billion Hong Kong dollars, ranking third in the global industry.

Earlier, a list of 2017 entrepreneurs died in the circle of friends crazy, but that is just the tip of the iceberg!

Not only is it a start-up company, but for many famous enterprises, 2017 are equally sad, or break their arms to save themselves, or feel sad to quit.

The era has changed, and the big shuffle is on the way.

Let's see how Lining can win the battle.

From 2012 to 2014, in the three years, it lost 3 billion 100 million yuan, closed nearly 1800 stores, closed 2016 stores, and overall profitability continued to decline.

Self analysis: four problems: cost problem, channel building, rough management, board and management relationship.

External evaluation: 5 years ago, the brand positioning after 90 is a big mistake, retired Lining in 1988 is more after 60, 70 and 80 after the memory and feelings, but this person was abandoned completely.

In addition, the positioning of the high-end line is the Adidas Nike discount which once let consumers abandon Lining and choose the same price.

Thankfully, the adjustment made by Lining has achieved remarkable results in 2017.

Beginning in 2015, Lining will pform from sports equipment provider to "Internet + sports life experience" provider.

Lining, who retired behind the scenes, went back to the stage to open micro-blog, interact, sell Meng, write chicken soup, work hard to improve exposure and integrate himself with young people.

In the year of 2015, when net profit was 14 million yuan, net profit reached 189 million in the first half of 2017 and nearly 44 times.

It is obviously not appropriate to put Lining in this article.

But let's call it a positive textbook, a depressed home.

Of course, we can't help but see that the market is merciless and can survive. It must be applied to the new age and stick to the rule and end up like them.

Lotte Mart: 87 stores are deserved.

In April 20th, from Lotte Mart in Korea, the number of stores that were ordered to shut down in 99 Lotte Mart stores in China reached 74, while 13 others ceased their own businesses.

As a result, Lotte Mart's loss in China has reached 200 billion won (about 1 billion 200 million yuan).

In December 12th, Lotte said that the $300 million fund for Lotte Mart's blood pfusion in China at the end of 8 had already been bottomed out, and Lotte Department store was unable to routinely not raise wages, which was the first time in 21 years.

External evaluation: do not die!

However, Lotte's heavy losses were certainly affected by South Korea's deployment of Sade, but its founder and President were involved in the corruption case and made the army unstable, which was the more critical factor in the operation of Lotte Group.

Yi bought: China is totally defeated, it seems that it is not acclimatized.

E-Mart, the largest discount group in the new world group of South Korea's largest retail group, plans to close its 6 existing stores in China in the coming months, ending the 20 year's "journey to China" and withdrawing from China.

In fact, retail business has been closed for several years, and there seems to be no stopping trend.

In the first quarter of 2017, nearly 2100 stores closed and 9 retailers filed for bankruptcy protection, even exceeding the high level during the great depression.

WAL-MART: 11 stores in three months are not without electricity.

In 3, 4 and May this year, the total number of stores that WAL-MART closes and closes in three months has reached 11.

This myth, which had no business to sell in retail stores within 5 kilometers, is being broken.

In recent years, WAL-MART has closed stores in China every year.

In 2017, there is no latest statistics, but the situation is not optimistic.

Self analysis: over the past few decades, WAL-MART's performance has been dragged down by too dense layout and too many stores.

Outside evaluation: don't say anything. It's Ma Yungan's!

What is the relationship between Xin Yi Jia and the electricity supplier?

It sold 18 billion annually and ranked 22 in chain stores.

Now the capital is broken, suppliers are blocking, bankruptcy is clearing!

Once and for all, Huarun, known as the new giant of the three giants of the Guangdong supermarket, has a brilliant history, with a turnover of 18 billion at its peak. However, after a series of disturbances such as chain breaking of funds, suppliers' debts, employees' rights protection, closing shop and unsuccessful reorganization, Xin Yi Jia finally failed to get rid of the doom and go bankrupt, causing the retail industry to sob, and sounded a wake-up call for the traditional entity store.

BELLE: is there any possibility of the turning of the shoe king?

BELLE closed more than 400 stores in 2015, and close to 500 stores in 2016.

In the most frenzied days of opening stores in 2011, BELLE international opened 2~3 stores every day, and now the situation is reversed.

In July 27th, BELLE international formally announced the withdrawal from the Hong Kong stock exchange.

Self analysis: affected by the difficult environment of retail sales, and online competition; blind expansion of the number of stores; lack of anticipation of the market.

BELLE chief executive Sheng Bai Jiao said he still could not drive a computer, not even WeChat.

External evaluation: the "shoe king" sighs down, which means department stores.

Self analysis: large scale shops are designed to cope with sluggish market conditions and rental pressures.

External evaluation: consumer demand has changed and has more international perspective. Rumours of too many franchisees, capital chain breakage, layoffs, and electric business have been abandoned.

Finally, we have to think deeply that from production to retail is not just Daphne. In recent years, the domestic footwear industry has been constantly impacted. BELLE's delisting, Hasen's pre fall, Daphne and Saturday's performance slipped and so on, showing that traditional women's brands no longer meet the needs of consumers, coupled with the upgrading of consumption mode, the impact of the Internet and the rising of new brands, the traditional women's shoes are facing the problem of brand aging, and sales are all affected.

It is undeniable that new brands are competing for growth. The pformation of traditional women's shoes is rather difficult and requires a long process.

From the perspective of channels, the domestic shoe industry is in a state of excess channel.

Before the enterprise is open shop, to the end group infiltration, but after too many stores cost increases, sales will not rise, the rise of new channels such as the Internet, micro business is also grabbing consumers.

In addition, the local shoe industry is facing a problem in the mode of ordering. Before, the enterprises adopted the mode of ordering first, then producing regularly, and then listing the goods, which easily caused the aging of the brand and the aging of consumption structure.

Here we have to say a few words about the monopoly of the big business tycoons. The first generation of knowledge in China's manufacturing industry is short of knowledge, and the second generation is out of touch. With the blind expansion, two teams competing with each other, two stocks, two brands, the same products and different product numbers, the result is undead. On the electricity supplier, I compare his analogy with drug abuse, the greater the drug addiction, the more money I pay, and I desperately invest in a 1111 session of brilliant performance. The team is exhausted and the platform is full.

We appeal to China's clothing and footwear enterprises:

Innovative thinking is the only way for enterprises to develop. Do not complain about the market. The change of thinking is the foundation of the next success. The strategy of relying on individual platforms is past. The key to opportunities is always your grasp. No brand culture construction will always run out of interest. The construction of brand culture is not overnight. Pay attention to the world's clothing and shoe net platform, and let your enterprises start from culture, knowledge and technology innovation.