Daphne Closed Shop 4000 Incoming Poor Business Operators Were Dragged Down

The cruelty of the market is beyond imagination.
In the casual shoes market, many 80 and 90's familiar brands are gradually marginalized, such as Daphne.
In the golden age, Daphne was once the pronoun of the trend. It was popular among young women, with a market share of 20%. A brand shop with SHE and Rene Liu's posters was posted from the first tier cities to towns in remote areas.
However, since 2013, Daphne has slipped from its peak, its revenue has declined year by year, and its market value has dropped sharply.
Marching into the field of sports shoes is Daphne's own prescription. In September 26th, Daphne International (0.3, -0.17, -36.84%) (00210.HK) announced personnel adjustment. Han Bingzu, who worked for 31st degree (1.77, 0.04, 2.31%) and Kappa, was an independent non-executive director of the company. On that day, Daphne's share price rose 26.67% to 0.475.
However, today (September 27th), Daphne international shares suddenly fell off the cliff, down 47%, hitting the biggest decline in twelve years.
At the close, Daphne international fell 36.84%, to 0.3 per share, with a market value of only 495 million, 97% higher than the peak.
　 Announcing personnel adjustment, Daphne entered the field of sports shoes.
In September 26th, Daphne International announced that Han Bingzu was an independent non-executive director of the company, the chairman of the audit committee, the Remuneration Committee and the nomination committee, and has been effective since September 25, 2019. Han Bingzu has entered into an appointment contract with Daphne. Han Bingzu served as director of Daphne for a term of three years, with an annual remuneration of 396 thousand.
Public information shows that Han Bingzu has previously served as an independent non-executive director of catering management (China) Holdings Limited, building blocks group (0.315, -0.13, -29.21%) Limited and 31st Degree International Limited, and chief financial officer of Kappa parent company of China (0.84, 0.03, 3.70%) (Group) Co., Ltd., 10.26 (-0.10, -0.96%) catering management (China) Holdings Limited.
It is worth noting that in April of this year, Daphne had told the media that Daphne has been extending to the sports and leisure market in recent years. In the mid 2019 earnings report, Daphne said it is increasing investment in product development and launching more fashionable footwear.
In recent years, the performance of Daphne, guinen bird and other shoe enterprises has declined, and net profit losses have been serious. While the sports giant Anta, Lining (22.85, 0.20, 0.88%), Nike and Adidas in 2018, the revenue growth of the Greater China market has been divided into 44%, 18%, 21% and 20%, and the trend is still continuing.
Ju Xinghai, chief analyst of Guosheng securities, analyst Yang Ying and Liu Jiawei reported last month that the global sports shoes and clothing market in 2018 exceeded US $330 billion and the Chinese market size was about US $40 billion 100 million. China's per capita consumption of sports shoes and clothing is only $28.8 per person, compared with Japan and Europe and the United States. It is estimated that the overall size of China's sports shoes and clothing market in the next five years will reach 65 billion US dollars from CAGR 9%+ to 2023.
　 It also surged 27% yesterday and plunged 37% today.
It may be stimulated by the war shoe market. Yesterday, Daphne international terminal rose sharply, once surged 28%, the intraday high 0.48, nearly a year high. At the end of the year, it rose 26.67%, to 0.475.
Up to now, Daphne has no significant bad news from the fundamentals. Why did it suddenly rise yesterday and plunge suddenly today?
Analysis points out that it may be related to the huge sell-off of profit making funds yesterday.
Daphne international surged 207% in less than 2 months, and its share price rose from 0.163 to 0.5 today, and its market value increased by 556 million. After 2 p.m., the big family accelerated.
According to the real-time data of Fu Road broker, the fortune 16 million 400 thousand of the Orient Fortune International has sold 10 million 480 thousand shares, the bank has sold 7 million 230 thousand shares, and Huasheng and Fu Road have sold more than 5 million shares.
Daphne international shares rose to its 11.172 peak in April 2012 and then fell all the way down to 0.15 in July 9th. Daphne's international market value reached 18 billion 900 million, but now only 495 million, evaporating 97%.
The fall of the Volkswagen shoe king
Daphne closed 3 stores in the first half of the year
Daphne was founded in 1987 and listed on the HKEx in 1995.
Daphne had a glorious period. In 2004, Daphne claimed that 1 out of every 5 pairs of women's shoes in China came from Daphne. In the best performance period, Daphne can sell 50 million pairs of women's shoes in 1 years, and sit firmly in the chair of the first brand of mainland women's shoes for nearly 5 years. The market share is nearly 20%.
Since 2013, Daphne's revenue has declined year by year. From 2013 to 2018, Daphne's operating income decreased by 0.78%, 0.87%, 19.09%, 22.4%, 19.86% and 20.8%, respectively.
Since 2015, Daphne's performance has been bogged down in losses and its losses have gradually expanded. In 2015 -2018, the net profit of shareholders of the company was -3.79 billion, -8.19 billion, -7.34 billion and -9.94 billion respectively.
In August 27th, Daphne International released the first half results announcement in 2019. Data show that during the period, Daphne international once recorded a double profit in net revenue, achieving a turnover of 1 billion 403 million, a year-on-year decrease of 37.9%, a gross profit of 651 million, a decrease of 39.7% compared to the same period last year, a loss of 390 million for shareholders, a decrease of 20.86% over the same period last year, and a basic loss of 23.6 per share. That is to say, since 2015, Daphne has accumulated a total loss of 3 billion 316 million.
In fact, Daphne has closed over 2/3 stores in the glorious era. According to Daphne's annual report, by the end of 2014, the company had 6402 entity stores (of which 89.78% were direct stores and 10.22% were franchised stores). As of the first half of this year, there were only 2075 stores in the company, which closed 4327 stores in the peak period, down 67.59%, and closed 2.6 stores a day.
Daphne International said in the China Daily that the company closed 612 sales outlets during the period, equivalent to 3 stores a day.
Media: blind expansion, electricity supplier failure, quality decline
According to the China fund newspaper, there are articles analysis, blind expansion, poor quality e-commerce providers, old brand design, resulting in the Daphne which has reached its peak in 2012 all the way down.
1, blind expansion, cheap promotion
Since its inception, Daphne has adopted the way of "direct operation + affiliation + affiliation", and has begun to attack the city area, and its performance is also very good.
After the saturation of the first tier market, Daphne began to turn its attention to the low line market, and even to the remote counties and townships. But after all, the consumption capacity of low tier cities is not as big as that of second tier cities. In order to break through this market quickly, Daphne has to use low price promotion to attract consumers.
The consequence is that Daphne has to take the risk of losing money and risk the collapse of its brand image. When all the people in the street wear Daphne, it is far away from the image of "high-end, fashionable and atmosphere".
After all, Daphne still has to pay for its original "capricious". Unable to cope with the huge store costs, Daphne began to close its stores to protect its strength.
Information map, source: every reporter Zhang Yun photo
2, incoming low-quality electricity providers, dragged down
With the rapid popularity of e-commerce and mobile Internet tools, people's shopping methods have undergone tremendous changes. By the impact of the electricity supplier, the traditional footwear retail industry generally encountered the winter market.
At this time, Daphne also sniffed the business outlet, trying to get a slice of the Internet traffic. In 2010, Daphne invested 30 million yuan to invest in the B2C platform, "Yao point 100", officially entered the field of e-commerce.
Unfortunately, the wrong choice led to Daphne's failure.
Six months later, Daphne's first round of investment was burned up by 100. But Daphne did not stop the damage in time, but on the contrary, it had to further sink into this "mire". At the end of 2011, it even shut down Jingdong, Le Tao, good fun and other distribution channels, giving full support to the 100.
Less than two years later, Yao point 100 burned 300 million yuan, and net assets had already lost about 30000000 yuan. And in July 30, 2012, Yao point 100 was directly declared to be breaking up the website operation.
3, the quality is down, the design is old-fashioned.
Another important reason for the decline of Daphne is that the quality of its shoes is declining and the design is so old that it is hard to get consumers' favor.
On the one hand, Daphne's original advantage has been gradually lost. With the effect of market expansion and low price promotion, the original noble quality of Daphne brand has gradually disappeared. In the streets full of Daphne, some of the original loyal fans have gradually abandoned their love for it. After all, many female consumers do not like their favorite brands, and then one day they become "cheap goods" that everyone can afford.
On the other hand, Daphne brand's innovation ability and design ability are weak, so it can not keep pace with the upgrading of mainstream consumers. An old customer of Daphne once said that in recent years, Daphne has become more and more styled, and its comfort is far less than before.