In The World Of "Cat And Dog", Can Daphne Of New Retail Wave Get Out Of Trouble?

In recent years, a lot of people have heard that someone has gone bankrupt! The general plot is often very well-known in China many years ago, and then suddenly disappeared. When you heard it again one day, it seems to have lost its way to be miserable.

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Two enterprises were once called "women's shoes king": one is BELLE, the other is Daphne.

There are many similarities between the two companies - they all started as foundries. They launched their own businesses in the early 90s of last century.

Brands choose to open their own counters in department stores and take the domestic market.

Few of them own the whole industry chain from manufacturing, design to terminal sales.

Unlike BELLE in the middle and high end, Daphne has been positioned in a low and medium position. This positioning difference also determines Daphne and BELLE's completely different development path.

In terms of products, in order to reduce costs, Daphne mainly relies on its own team to design, with "basic money" as the main factor. Daphne has a good profit margin at the same price.

At a particularly brilliant time, Daphne claims to sell nearly 50 million pairs of women's shoes every year, and its market share in China has been close to 20%.

This means that every 5 pairs of women's shoes in China come from Daphne.

At the peak of 2012, the total number of Daphne stores reached 6881.

However, after 2012, Daphne began to go downhill.

At that time, almost all the clothing companies in China encountered the "midlife crisis": brand aging, products are not fashionable, ordering mode led to backlog of inventory, manpower, property and circulation costs rose, and were affected by the electricity supplier.

Daphne, too, has a single category, and the cost of design and development at the beginning of the year has come back.

According to the announcement issued by Daphne in July 27th, the company closed 416 core brand sales outlets in the first half of 2018, closing 294 in the two quarter, including 287 Direct stores and 7 franchisees.

The announcement also shows that the company's losses in the first half of 2018 will be similar to that in the second half of 2017.

Daphne has shut down nearly 3000 stores in 3 years. It can be seen that there are some problems in the layout of stores, which is also related to the overall cost of labor and materials and the rising cost of materials.

In addition, Daphne also faces problems such as product aging, unclear brand positioning, serious inventory backlog and so on.

In 2014 and 2015, Daphne continued to live in the "double eleven" women's shoes and ranked fourth in 2016.

But it is worth noting that Daphne has never publicized its online performance.

It is reported that the share of Daphne online is not as high as 1/10 of the whole plate.

Daphne has also said that the proportion of electricity business in the overall sales of the group is not high, and its growth can not offset the loss volume caused by the drop in physical stores.

It is worth noting that

Daphne seems to have overlooked this trend when the company stepped into the electronic business platform.

For Daphne, which is heavily closed, it is still difficult to balance the line and offline due to the large number of stores on the line.

Now, in the face of the impact of new retail sales, Daphne has been promoting O2O business since the beginning of 2017, and has launched online ordering stores and other businesses in designated stores.

This time, Daphne, who is trying to catch up with the new retail wave, can get out of the predicament?