Former Shoe King Daphne'S "Struggle"!

Daphne, once a well-known female shoe brand, has suffered losses for four consecutive years. Up to now, Daphne's market value is only HK $400 million, and its market value has shrunk to a peak of less than 3%.

In the past 4 years, Daphne has closed three stores a day.

Recently, Daphne group released its 2018 performance report.

According to the announcement, in 2018, Daphne realized a turnover of HK $4 billion 127 million, down 20.8% from the same period last year, and increased its operating losses by 97 million 800 thousand to HK $787 million. The deficit of shareholders accounted for about 994 million Hong Kong dollars, up 35.4% over the same period last year.

In 2018, Daphne closed 1016 sales outlets in the year, and the number of outlets in 2017 reached 1009.

Plus 2015 and 2016 before, Daphne closed nearly 4000 stores in 4 years.

According to the announcement, Daphne believes that the decrease in turnover is mainly due to the reduction in the number of stores in its core brand business by 26.2% to 2648, and the decline in sales in the same store, 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%.

Business changes so fast, who can remember that at the most brilliant time, Daphne has a total of 10000 sales outlets, with a market value of 17 billion.

Both of them have shrunk dramatically and have been badly hit by Waterloo.

Let us feel regrets, a generation of shoe king fall!

Former shoes King scenery

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.

Four 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.

By the end of 2018, Daphne had only 2820 sales outlets.

In the past, Daphne's high market share was mainly due to public positioning and channel sinking in low line cities - the main product price of 200-300 yuan and the sales channels that concentrated in four to six line cities, which made it expand rapidly in the early stage of development.

There is a voice in the industry that low - line city consumers have a high price sensitivity and low loyalty. As industry competition intensifies, Daphne has to join the price war, with a decline in the store income and the closure of inefficient stores, which leads to a decline in the company's income.

For today's Daphne, most women say their style is relatively old, not innovative, and the cost performance is not high.

Some women say that many styles of women's shoes now come back from overseas, and the price is not much different from that of domestic brands, but the style is fashionable and comfortable to wear.

In addition, some women say that casual or casual shoes are generally purchased at random, regardless of whether they are online or offline, and the style and comfort are the most important ones.

Where is China's shoe business?

In fact, in addition to Daphne, in recent years, the domestic footwear industry has been constantly impacted. BELLE's delisting, 100 thousand discount, Daphne and Saturday's performance decline and other 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 emerging brands, the traditional women's shoes brands 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 enterprises 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.

Chinese shoe companies are currently faced with three big Puzzles:

1, first of all, the positioning of the brand itself can not keep up with the consumption upgrading needs of the consumer groups. The focus of early development lies in the simple and crude channel expansion, and the product can not finish the iterative update.

2, the impact of the Internet and Hai Tao is very difficult for local shoe companies to set up their own barriers.

3, the personnel training echelon has not been upgraded, and there is no operational talent for deep ploughing channels.

Facing the upgrading of consumption and the new consumer groups, how to embrace the younger generation of consumers is the key to the success of strategic pformation.

In the face of the new retail environment, Internet giants are moving towards the line. For traditional brands, how to do their own strategic deployment will also face great challenges.

But in any case, the market is always the best.

Anta, Lining, Bosideng and so on have all gone through Waterloo before, but they have made efforts to adjust their posture and return to the right track. In the past two years, they have handed in a beautiful pcript.

Today, as a brand of shoes and clothing, if you compare Daphne with Anta, it is simply too bad to see.

There are always opportunities in the market. As an old Daphne, if we can adjust our posture as soon as possible, we will still have the chance to wear crystal shoes again.

But this is very difficult.

Nowadays, "brand strategy" has risen to the highest level and has become the core and focus of world economic competition.

As the carrier of development, "brand" has become the "strategic starting point" to participate in international market competition. From the establishment of "China brand day", the proposal of "one belt and one road" initiative, the vigorous promotion of "national brand plan" and the call for building a "community of human destiny", the big ball country is gradually being introduced into the orbit of "development".

In June 13, 2019, the brand new change summit will be held in June 13, 2019. The location of the brand new change summit will be held at the Shanghai Hongqiao world trade exhibition hall.