Daphne's Big Losses, 1 Billion, How Did The Market Slide Down?

Daphne used to be the most popular footwear brand for female consumers. There were about 7000 stores at its peak. However, because the online market has given all the resources to the "Yao point 100" platform, it has completely lost the advantage of the online market, and Daphne has also had serious inventory problems on the Internet. Since 2015, Daphne has fallen to the altar.

Daphne used to be a very popular footwear brand for Chinese women. In 2005, Daphne sold fifty million pairs of women shoes in a year, occupying 20% of the market share. This also meant that in 2005, consumers bought five pairs of women's shoes and one pair came from Daphne. The name "Daphne" was originated from Greek mythology. It is said that the goddess with this name is one of the most beautiful Greek goddesses. However, the goddess who was once high above has fallen to the altar.

Daphne losses for 4 consecutive years

According to official data of Daphne, the total revenue in 2018 was 4 billion 127 million Hong Kong dollars, down 20.8% compared to the same period last year, and also created a loss of 787 million Hong Kong dollars. By the middle of July 2019, Daphne's market capitalization was only less than 300 million Hong Kong dollars. To know how Daphne was at its peak, the market value had reached 17 billion, and the number of stores was about seven thousand. According to this trend, Daphne might even have the risk of delisting. Since 2015, Daphne has been losing 4 years continuously, so what are the reasons leading to the decline of Daphne?

Daphne starts early, catch up late, and completely lose the advantage of electric business.

First of all, failed to do well in the electricity supplier. In recent years, online shopping has become more and more popular, which has made a great impact on the offline market. In fact, as early as 2006, Daphne had already tried to make an electronic business. It launched cooperation with more than a dozen well-known e-commerce providers including Jingdong, vip.com and Yi Xun. Sales increased even more. However, Daphne's next operation completely ruined its advantages in the electronic business platform. In 2010, Daphne bought thirty million shares of "Yao Dian 100" 1/10.

"Yao point 100" is an e-commerce platform based on fashion content. After investing in the bright point of 100, Daphne gradually reduced or stopped cooperation with other e-commerce platforms, fully supported the bright point 100. Even some shoes were sold only on the 100 platform. In 2011, Daphne completely stopped the cooperation with other e-commerce, focused on the point of 100, and then completely lost the advantage of the online market.

And this "shining point 100" electricity supplier, I believe many people have not even heard of their names, nor do they blame everyone for being ignorant, because only after running less than two years, the 100 of the investors burned three hundred million of the investors. After owning more than thirty million yuan in debt, the website failed to visit in July 2012. In 2013, it was officially bankrupt. Daphne poured all its online resources into the helpless fight. The outcome can be imagined, and the rise of the online market of competitors is squeezing Daphne's living space.

Daphne has serious inventory problems.

Quite serious, it is said that in 2010, a pair of Daphne shoes from production to consumer purchase, the whole process takes about 128 days, and in 2012, the time has increased to 188 days, and the number in 2018 is 198 days. But a pair of shoes must be designed by the designer before the production, and the time of designing a shoe is counted. A pair of shoes of Daphne can take nearly a year to see the sunshine, while the women are very picky about the shoes style. The fashion that was popular a year ago is a cliche in the eyes of female consumers, Daphne's shoes can not sell, a lot of stock is overloaded, and a discount sale is started, so a "cheap" label is added. And online market, Daphne's life is also very difficult, inventory problem.

Whether in the online or offline market, Daphne has done a lot of failure. At its peak, Daphne had nearly 7000 stores, but Daphne has been losing money since 2015. Data show that, in 2015, 805 Daphne stores and 2016 to 2018, three years of Daphne closed 1030, 1009 and 941 stores.