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    Close Shop 4000, Slump 166 Billion Generation Shoe King Daphne Fell To The Altar

    2019/4/11 14:42:00 9507

    Daphne

    In this world, there is no myth that can never be defeated! There is no giant that stands forever!

    The "Daphne" was once a well-known brand of Chinese women's shoes. Its stores were all over the streets, and the products were selling well in the north and south of the country. At the peak, "one of the five pairs of brand shoes in Chinese women's shoes is from Daphne."

    And such a giant is also facing the fate of the fallen altar.

    "A generation of shoe king", this is cool!

    Recently, Daphne International released its annual performance report for 2018.

    In the report, Daphne's turnover was HK $4 billion 130 million, down 20% compared with 2017, a loss of about HK $990 million, and gross margin decreased from 52% to less than 50%.

    No worst, only worse! This is Daphne's fourth consecutive loss.

    According to statistics, in 2015 -2018, Daphne had accumulated a deficit of HK $2 billion 930 million, and it still showed a downward trend, without any signs of reversing.

    You know, Daphne's market value has been as high as HK $19 billion 500 million, but now only HK $550 million, shrunk nearly 9, and the share price is only HK $0.25 per share.

    In just a few years, Daphne's channels have shrunk, and nearly 4000 have been closed in four years.

    In 2012, the sales point of all the brands of Daphne had reached 6881. However, as of the end of 2018, the total number of sales outlets of all the brands of Daphne was only 2820!

    A startling data confirms the decline of Daphne, so what is wrong with Daphne from the boundless scenery to the altar?

    One

    Daphne's English name Daphne is also the name of laurel goddess in Greek mythology.

    In 2005, many young girls knew Daphne through the S.H.E combination of "the goddess of laurel". They began to fantasize about wearing Daphne, and they would "be more extraordinary than anyone."

    At that time, Daphne was indeed innovative in design, bright in color, and beautiful in products. When other women's shoes were often dominated by black and white brownish colors, the launch of Daphne series shoes immediately captured the hearts of young girls who love beauty and love fashion.

    In 2012, it was the peak time of Daphne, which broke through HK $10 billion for the first time. At that time, Chen Yingjie, Daphne's head, said: BELLE is the Mercedes Benz in women's shoes, Daphne is the "BMW" of women's shoes.

    However, although self advertised as "BMW", but Daphne in order to restore the failure of the electricity supplier to further enhance their performance, actually played a "self dropping" trick!

    Like countless traditional enterprises, Daphne's initial development strategy is to occupy the market through the expansion of physical stores. Since 2002, the number of shops has exceeded 100 stores per year. However, this extensive mode of development, which only emphasizes quantity and quality, has made the cost increase, but sales volume has not seen much improvement, resulting in a serious backlog of inventory.

    At first, the price of Daphne was generally around 3000 yuan. However, since 2012, in order to deal with inventory, Daphne has gone on the road of reducing sales promotion. It has played as low as 99 yuan, buy one get one, buy one to send two, and "cabbage price reduction".

    Such a move makes Daphne instantly collapse in the high-end image of consumers. The price promotions can be played two times at a time, but if we do this often, it is absolutely fatal to the brand image, which will make the consumers feel that you are the representative of "stalls".

    If the price is one point, the price of Daphne will shrink, so it will affect the quality of the product.

    The shoes of Daphne were strong and pure leather, but later they sneaked on the quality secretly, and the shoes were worn out for a long time.

    We know that shoes and clothes are different. Apart from good looks, it is more important to have good quality and comfortable clothes.

    The quality of Daphne later gave people a feeling of being "fooled".

    The rise of Daphne is due to its innovative design, which makes it stand out in the monotonous women's shoes market. But later, the design of Daphne is getting uglier. Even if it cost a lot of money to invite Nicholas Tse to be the creative director, Daphne's design is also so old that it can no longer attract consumers' attention.

    All those who are successful are at the mercy of the trend.

    In the environment of increasing economic strength and escalation of consumption, if we want to win the favor of the market, we should make efforts in "quality", and the price war will never win the market. Daphne's "self depreciation" is undoubtedly a dead road which runs counter to the direction of the times, resulting in its merciless being eliminated by the market and being abandoned by consumers.

    Two

    "You have defeated all opponents, but lost to the times."

    The failure of Daphne resulted from its strategic mistakes and missed the development opportunities of the electric business.

    But to tell you the truth, the time of Daphne's layout of the electricity supplier business is not too late. In 2006, it began to test the water business. Taobao was only founded for three years.

    However, choice is more important than hard work. Unfortunately, Daphne has missed the treasure, causing it to start early but catch up with a late night episode.

    Yao point 100 is located in the focus of fashion department store business platform, set up in 2009, the management team from YAHOO, Taiwan.

    It is the main B2C mode, that is, no inventory, only for sale.

    Although it can reduce its inventory risk, it brings challenges to suppliers.

    In May 2010, Daphne's strategic investment was worth 100 yuan and thirty million yuan, accounting for 10% of its shares.

    After gaining 100 of its investment, Yao point gained some success in its initial B2C market by virtue of its low price strategy, but it didn't last long. The business of Yao's point 100 was very quick and urgent, and only completed the first round of investment in half a year.

    In order to support the shining point, Daphne has poured a lot of resources into it. A large part of Daphne's shoes are required to be sold to 100 points, rather than on other online channels.

    The most extreme performance is: by the end of 2011, the Daphne electric business department, under the guidance of senior executives, shut down the advantages of Jingdong, Le Tao and ho Lok, and turned to support 100.

    "When the 100 is not available, we will borrow the goods to sell them."

    However, even if this kind of devotion is put into full play, it will be impossible for A Dou to lose 100. In less than two years, he has burned 3 hundred million and debts about 30000000 yuan.

    In July 2012, Yao point 100 terminated the operation of the website, but until the closure, the 100 of Daphne still owed some of its loans.

    Because of the 100 point, Daphne can be said to be a heavy loss and lose everything, but more importantly, it has experienced a failure of 100. Daphne has failed in the business of e-commerce, and no longer attaches importance to the development of e-commerce.

    After the 100 point of the incident, Daphne electric business department has no top executive, although it has not been completely abolished, but it only maintains a minimum scale basic operation.

    When other women's shoes keep up with the business of the electricity supplier, the pioneer Daphne is addicted to mistakes in the past, unable to extricate itself, resulting in another lags behind the times.

    Until 2014, when Daphne finally began to pay attention to the business of electronic commerce, the market was no longer the market and the era was no longer the era.

    Because the layout is too late, the Internet has long been the world of more individualized and younger brands. It is hard for Daphne to find a foothold. But on the line of Daphne's survival, it has encountered the winter of the whole industry.

    Daphne stores lost a year in a year. In 2018, Daphne's turnover fell by 20.8% over the same period last year, with a loss of HK $994 million.

    He saw the tall building, the guests and the building collapsed.

    Three

    The failure of Daphne is not only the failure of the enterprise, but the failure of the whole traditional mode. Once the brand of "shoes king" that has been famous for a while, it has declined in recent years and is no longer in sight.

    BELLE, who has been on the scene for a short time, has staged the legend of "opening a new store on average in less than two days". But because of missed opportunities for the development of the Internet, it has been regretted that the market has ended.

    Once a leading position in the industry, the rich and precious birds were once in the leading position in the industry. But in the past 27 years, only 4 billion 200 million huge debts were exchanged. Half of the enterprises stopped working and their employees were out of commission.

    ...

    No competition is permanent, no business model is unbeaten.

    The empty room, the hut full of beds in the year, the withered poplar, was once a dance floor.

    Too many examples of giant decline tell us that in the face of the tide of the times, if you can't innovate and subvert yourself, you can only be overthrown by others and abandoned by the times.

     

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