Whether Daphne Can Survive The Cold Winter Depends On Its Own Ability To Innovate.

mainland

The cold winter is still continuing to ferment.

On the night of January 25th, the Daphne International Holdings Ltd (hereinafter referred to as "Daphne") issued a notice that the loss was expected in 2017, which means that

It has been losing for three years.

As a former "popular shoe king", Daphne's high market share is mainly due to public positioning and channel sinking in low line cities.

In recent years, the footwear industry in China has been under constant impact. BELLE's delisting, Daphne and its declining performance on Saturday have made the local shoe industry feel the chill of winter.

The industry believes that it is facing the upgrading of consumption patterns and the rising of emerging brands.

Daphne, such as aging and other challenges, can see through its own ability to innovate smoothly through the cold winter. New growth points can be sought through mergers and acquisitions.

Performance deficit

According to the world clothing and shoe net, in the evening of January 25th, Daphne issued the 2017 profit forecast that the company will record a net loss as of December 31, 2017, and the operating losses will be narrowed compared with the previous year.

The announcement shows that in the four quarter of 2017, Daphne's core brand sales in the same store recorded a year-on-year decline in the number of units, mainly due to the decline in average selling prices.

Overall, the year-on-year decline in same store sales for the year ended December 31, 2017 was 12.4%.

Daphne said the decline in the fourth quarter has slowed, mainly due to the improved product design and product mix of the autumn series, as well as customer satisfaction and increased sales efficiency.

Daphne said that the company continued to adjust its channel portfolio in the fourth quarter of 2017 to match the brand positioning and continue to integrate the store network, closing 328 sales outlets (including 317 Direct stores and 11 franchised stores).

After closing 1009 sales outlets in 2017, there were 3589 sales outlets for Daphne's core brand business in December 31, 2017.

Compared with the sales of 5597 core brands at the end of 2015, Daphne's net sales decreased by 36% in three years.

In fact, Daphne has been losing money since 2015.

In the first half of 2017, Daphne realized operating income of 2 billion 383 million yuan, a year-on-year decrease of 20.1%; net profit loss attributable to its parent company was 182 million yuan, a decrease of 28.04% compared to the same period last year, and its market value also shrank all the way to 891 million Hong Kong dollars in January 25, 2018.

In addition, Daphne online brand sales are not ideal.

Reporters log on to Daphne Tmall flagship store. After sorting all the brands of the brand according to the sales volume, only 1872 people sold the shoe with the highest sales volume in the shop.

On the other hand, another local shoe brand sold the highest Tmall flagship store on Saturday only 500 people paid.

The sales volume of local shoe industry is slightly shabby compared with the sales volume of fashion brands that are popular with consumers at home.

Shoe king fall

As a former "shoe king of the masses", Daphne has a glorious past.

It is understood that Daphne was founded in 1987 and entered the mainland of China in 1990. Its business is composed of core brands (Daphne and shoe cabinet), high-end brands (love and so on) and exclusive agency brands (such as ALDO). Its market share is second only to BELLE in recent years.

Since 2002, Daphne has been expanding rapidly at the speed of 100 franchised stores every year, which makes Daphne quickly occupy the streets and become one of the indispensable sites for consumers to shop.

However, the traditional public shoe king has not been able to escape the impact of the traditional footwear industry downturn.

Since 2012, the market share of Daphne has been declining. In 2014, the number of sales outlets of Daphne's core brand business is still growing, an increase of 83 compared to 2013, reaching 6402, but in 2015, Daphne quickly entered the closed shop mode, and the number of outlets closed to 805.

It is understood that Daphne's high market share in the past was mainly due to the positioning of the public and the sinking of the low line cities, the main product price of 200-300 yuan, and the sales channels that concentrated in the four to six tier cities, making 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.

The cold winter is coming.

In addition to Daphne, in recent years, the domestic footwear industry has been constantly affected. After the delisting of BELLE and Hasen's pre fall, the domestic footwear industry has shown weaknesses such as brand aging and channel conservatism. Coupled with the impact of the upgrading of consumption mode and the rising of emerging brands, the domestic shoe industry is approaching the cold winter.

In a series of attacks, Daphne gradually took the importance of pformation and upgrading, and began to face problems directly, adjusting marketing, sales channels, brand innovation and other measures.

From the two quarter of 2017, Daphne opened its first new image shop and launched the "D28" and "D18" series. In addition, Daphne opened online channel sales and strengthened online marketing and promotion activities, all of which achieved certain results.

Garment industry analyst Ma Gang said that from the perspective of channels, the current 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.

"Nowadays, the consumption tastes of consumers are more and more diversified, and more and more new brands are emerging. The traditional mode can not catch up with the changes of consumers, and enterprises need more agile supply mode.

We can first launch some commodities, and decide the quantity of production according to the consumers' feedback after the trial sale, and the shorter the middle time, the better the supply chain flexibility and the quicker product turnover.

Ma Gang said.

More interesting reports, please pay attention to the world clothing shoes and hats net.