Four Years, 3 Billion HK Dollars, Daphne Closed Shop "Hemostasis" To When?

Four years, 3 billion HK dollars, Daphne closed shop "hemostasis" to when?

Daphne, the goddess of laurel, has fallen to the altar.

Recently, Daphne released its 2018 full year report showing that Daphne continued to lose nearly HK $1 billion.

It is noteworthy that this is Daphne's four consecutive loss.

In the meantime, Daphne has been using a store strategy to stop bleeding.

Data show that in four years, Daphne closed 3860 stores and closed 2.6 stores a day.

Although Daphne has been reforming and pforming, it has never been effective.

According to the insiders, in the era of new retail and sportswear, Daphne not only failed to seize the opportunity, but at the same time, the high cost and the excessive price discount and the problem of material consumption were constantly eroding Daphne's profits.

In the future, if Daphne wants to regain its position in women's shoes, it will need further reform.

On the evening of March 27th, Daphne released its 2018 results, with a turnover of HK $4 billion 127 million, down 20.8% from the same period last year, and a loss of HK $994 million in profit attributable to shareholders, down 35.4% from the same period last year.

It is noteworthy that Daphne has been losing money for four consecutive years, with a total loss amounting to HK $2 billion 926 million.

At the same time, Daphne closed 3860 stores.

Daphne's first loss after listing came back to 2000.

At that time, Daphne's revenue was HK $1 billion 14 million, shareholders should account for a loss of HK $51 million 151 thousand in profits, and Daphne lost another HK $99 million 779 thousand in 2001.

After a brief downturn, since 2002, Daphne has turned a profit into a profit of HK $25 million 849 thousand.

After that, Daphne's performance began to pick up steadily.

After more than ten years, Daphne suffered another loss.

In 2015, Daphne shareholders accounted for a loss of HK $379 million, a net loss of 805 stores. In 2016, the loss of Daphne expanded to HK $819 million again, and closed 1030 stores. In 2017, Daphne still lost 734 million HK dollars and closed 1009 stores.

The latest report shows that Daphne has closed 1016 sales outlets.

As of December 31, 2018, Daphne had a total of 2820 sales outlets, including 2648 core brand business outlets and 172 sales outlets for other brand businesses.

In this regard, Daphne said in its announcement that the decrease in Daphne turnover was mainly due to the reduction of 26.2% to 2648 stores in Daphne's core brand business and the decline in same store sales, leading to a decline in its sales.

Due to the increase in the proportion of over the past inventory in the sales mix, the gross profit margin of the group decreased to HK $2 billion 61 million, and the gross profit margin dropped to 49.9%.

In addition, in the face of the deteriorating business environment, Daphne has accelerated the closing of the loss shop to enhance the overall business efficiency. In addition, Daphne has also tried to increase its market penetration through a more fashionable shopping center sales channel, so as to adapt to the fast changing consumption patterns and consumer preferences.

Daphne International Holdings Ltd, formerly known as Prime Success International Group Limited, was founded in Hongkong in 1987, and then developed into a diversified fashion group based on footwear, apparel research and development, manufacturing and brand management. Its business is in the Greater China region (mainland China, Hongkong, Taiwan), Asia, Europe and North America.

Its brand includes Daphne, Daphne impression, Daphne life, shoe cabinet, AEE, dulala, d:espina, ALDO, AEROSOLES, Ameda Moda, etc.

In fact, the name of Daphne also implies profound meaning.

Daphne is the goddess of Greek mythology, the goddess of laurel. The ending in Greek mythology also seems to presage the future of Daphne.

In 2006, Daphne began to try the business of electronic commerce and incorporated into Tmall. Daphne also built a self operated e-commerce platform.

In 2010, Daphne increased the layout of electricity providers, together with Baidu to invest in the electronic business platform - 100.

But this does not seem to satisfy Daphne's ambition. Since the fourth quarter of 2010, Daphne has implemented the core brand remolding plan. It not only adjusted Daphne's brand positioning, but also took the measures of changing brand logo, adopting new shop design and more active market promotion activities. During this year, Daphne also acquired 59.96% stake in Fu Zhen International Co., Ltd., which focused on high-end shoes in Taiwan and Hongkong, and reintegrated the existing business of Daphne at that time.

2012 is the most brilliant year of Daphne.

This year, Daphne's revenue also exceeded HK $10 billion for the first time to HK $10 billion 529 million.

However, the income of HK $about 10000000000 seems to be bright and bright, but in fact it has been bought from a reduced price.

Data show that Daphne increased its brand promotion efforts in 2012, and the average selling price of core brands dropped by 3.9%.

The decline in the average selling price and the increase in production cost led to a 60.8% drop in gross profit margin.

The continuous rise of wages and rents in the mainland market has also increased Daphne's cost burden.

Daphne said in the announcement.

However, Daphne executives believe that a stable store expansion plan is important for sustainable development and will turn all the stores into direct stores to cope with market changes.

Cheng Weixiong, general manager of textile and clothing management and Shanghai Liang Qi Brand Management Co., Ltd., bluntly pointed out that from the beginning, the choice of the business mode to join all the businesses directly from the beginning is improper decision-making. After all, such a big market in China still needs to integrate social resources and participate together to make it bigger and stronger, otherwise it can only narrow down and become smaller.

In fact, Cheng Weixiong's view also confirms the development of Daphne.

Beginning in 2013, Daphne's performance began to show negative growth.

Revenue fell 0.78% to HK $10 billion 447 million, and profit attributable to shareholders fell 65.56% to HK $329 million.

Although the revenue is almost the same as that of the previous year, the profit attributable to shareholders is only about 1/3 of the previous year.

Daphne has not really recognized the reason for its decline in performance, but attributed it to the economic environment and weather anomalies.

"The bad weather and the unusual cold spring, affect the shop people flow, the sales performance further pressure.

As the group's sales network is dominated by street shops, the continued adverse weather conditions have more obvious impact on the group. "

Daphne said in its 2013 announcement.

In seeking to return to its peak, Daphne relies mainly on promotion to boost its performance.

In the eyes of the industry, "it's just a superficial task, which can get a quick start, but it is difficult to sustain sustainable development for a long time".

A young woman who had bought Daphne shoes said that Daphne was considered to be the representative of high-end elegance, but frequent discounts reduced it to a bargain. At the same time, Daphne shoes were basically not pure leather materials. After wearing them, they began to stop buying.

This normalized discount has also greatly reduced Daphne brand.

"Daphne's current dilemma is that brand positioning, product positioning, channel positioning can not keep up with the development of similar brands under the online and offline industry. There is no access to the popular brand, and there is not enough capacity to take it down."

Cheng Weixiong pointed out that Daphne is not the same as BELLE. Although BELLE self brand also encounters Waterloo, BELLE has Nike, ADI and other international brands to help them stand. The advantages of BELLE channel providers have not been abandoned, while the brand is self owned from brands, products and channels.

Wang Yongjun, general manager of Dongguan Ju Feng Network Technology Co. Ltd., believes that the traditional women's shoes industry is facing Waterloo as a whole.

At present, there is no obvious improvement in the brand of women's shoes. Of course, Daphne can not avoid it.

The reform of Daphne only started at the periphery of the traditional reform and never stepped on the spot.

In this regard, the reporter interviewed Daphne, but as of press time, the other side did not reply.