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    "Cheap Shoe King" Daphne Actually Turned Off 2288 Stores In 2019.

    2020/2/19 8:48:00 0

    DaphneGuan Dian

    Daphne International announced in February 18th that the sales of group core brand businesses fell by about 20% year-on-year as of December 31, 2019, mainly due to the adverse economic environment that led to a decline in sales and average selling prices.


    Daphne said that in 2019, the company continued to adjust the pipeline portfolio and integrate the retail network, resulting in a net closing of 2288 sales outlets (including 2174 Direct stores and 114 franchised stores). As of the end of the reporting period, Daphne's core brand business reached 360 sales points.


    Daphne said that due to the impact of the epidemic, the core brand sales point of the Chinese market now accounts for less than 10% of its total. If the epidemic restriction is extended, it may further restrict the operation of the core brand sales point, or may have adverse effects on the operation and financial performance of the group.


    Public information shows that in 1988, Zhang Wenyi and Chen Xianmin from Taiwan created the Daphne brand, and with the experience of deep foundry shoemaking and the grasp of the whole industry, Daphne's main advantage of "parity" and its relative fashion made it quickly occupy the Chinese mainland market.


    On the sales channel, Daphne opened the retail terminal store to the street store. Its number of stores rapidly expanded from 739 in 2003 to 6881 in 2012. At the peak, 800 new Daphne stores opened each year, and in 2012, Daphne's revenue exceeded HK $10 billion for the first time, and its market value was 17 billion Hong Kong dollars. This year is the most brilliant year for Daphne, but it is also the beginning of a turning point.


    In 2013, Daphne's performance began to decline. In the final analysis, consumers' tastes changed. For female consumers, the style directly determines whether there is a desire to buy, which hinders the overall development of Daphne.


    According to the financial report, in the first half of 2019, Daphne international achieved HK $1 billion 402 million operating income, down 37.90% from the same period last year, a loss of HK $394 million in the period, a 20.96% change in the previous year, and a loss of 389 million yuan in the company's profit, a 20.86% change over the same period last year.


    Daphne International said that in the first half of 2019, its core brand (Daphne and shoe cabinet) had a 19.6% decline in same store sales. The decrease in sales data and poor performance in the same store resulted in a decrease in core brand sales from 38.4% to HK $1 billion 281 million, compared with HK $2 billion 80 million in 2018. In addition, although the operating losses of Daphne and shoe cabinet narrowed to HK $359 million, the operating profit rate was -28%, which was -23.2% in 2018. In addition, the company closed 612 sales outlets during the period, equivalent to 3 stores per day. As of June 30, 2019, it had 2208 sales outlets.


    At that time, Daphne International said that the operating loss of Daphne and shoe cabinet narrowed to HK $359 million, but due to the impact of Customs stores, the operating profit margin was -28%, and -23.2% in 2018. In addition, the company closed 612 sales outlets during the period, equivalent to 3 stores per day. As of June 30, 2019, it had 2208 sales outlets.


    In addition, since 2019, the textile and garment industry has been affected by factors such as the downside of the economic environment. The basic performance of the industry is still relatively dull. Most of the shopping centers have to suspend business and shorten their business hours due to the epidemic.


    Roland Begg analyst Wang Xin said that at present, the loyalty of consumers to the brand of shoes and clothing has gradually declined, and the demand for rapid response and iteration has become increasingly intense, making the speed of replacement of brand seats for shoes and clothing brands faster. In fact, the change of online retail channels and formats is essentially the structural change of the flow of traffic sources and flow attributes. Mapping is the value stratification of consumers' specific needs for different retail channels.


    Observation shows that consumers' differences in channel cognition and the continuous operation of enterprises' full channel will raise higher requirements for information sharing among different channels.


    In Wang Xin's view, the traditional Chinese shoes and clothing retail brands generally adopt the growth driven mode with the expansion of stores as the core. Therefore, the thinking of supply chain, the thinking of bulk goods and the expansion of the number of stores have dominated the business philosophy of the shoes and clothing retail brands in the past 10 years. But it may be seen that the change of the external environment requires that the brand of shoes and clothing should be comprehensively remodeled and reformed in the business philosophy. In the future, supply chain pull thinking, user and market oriented thinking and lean thinking will become the important development direction of the next 5-10 years.
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