Daphne Explores The Electricity Supplier Development Model For Ten Years

In recent years, Daphne has gone back and forth in the first tier business circle in the north, and many stores have moved to the two level business district. Some even have reached the shopping mall or supermarket in the shopping mall, and even the "Street store" has been decreasing.

In 2015, Daphne closed 805 stores, including 692 Direct stores and 113 franchised stores.

Independent commentator Ma Gang, a shoe and garment industry, said that apart from the bad environment, a large number of store closures were also the result of internal optimization. "Enterprises will choose to close some businesses with poor performance, or little room for improvement in the future, or a more repetitive location in the business circle."

Although Daphne believes that closing down the loss shop is conducive to upgrading the quality of the overall sales network in the future, but the consolidation measures such as the sharp closing of the whole year and the subsequent layoffs will result in an increase in the operating cost of Daphne, and the negative leverage effect will become another burden on Daphne's dismal earnings.

Daphne said it will continue to integrate stores, manpower and inventory in 2016.

In the first quarter of 2016, Daphne further reduced 176 sales points, and the total number of core brand stores decreased to 5421 as of March 31, 2016.

The winter of sales seems to have arrived.

Over the past ten years, from the outsourcing of e-commerce, the whole network marketing to independent B2C, "the popular shoe king" seems to have not yet touched its own e-commerce development model.

Although the deterioration of the environment can explain some of the reasons why Daphne's profits fall into the freezing point, the innovation of its products may be even more important to ask its essence.

According to Daphne International's 2015 earnings report, the net loss of HK $379 million was HK $315.24%, and net profit fell by 315.24% last year, the first loss in Daphne in nearly ten years.

The surprised media find the loss factors of Daphne in the announcement: 1, China's economy continues to slow down and consumption desire is weak; 2, 2015 winter is "exceptionally warm winter"; 3, "double 11" such online Festival dilute the physical store passenger flow; 4, the industry has a large discount in advance, so that the retail market competition is more intense.

In fact, since 2012, Daphne's

In the mire of negative growth, there is a loss today.

Although the deterioration of the environment can explain some of the reasons why Daphne's profit performance is frozen, it is probably Daphne's more essential question to ask its own product innovation than any external factors such as weather, market and economy.

Under the impact of fast fashion brands taking advantage of the mass market, Daphne's product innovation is becoming more and more urgent.

In the era of more rapid changes in consumer preferences than ever before, how to grasp the trend of consumption, how to introduce products with differentiated advantages, and how to provide services that satisfy customers are the key to success.

Daphne launched consumer research in the fourth quarter of 2015, visited more than 2600 consumers in 170 cities in China, and strengthened its pursuit of differentiation so as to win in competition.

Daphne also disclosed in its 2015 annual report that a group of children's shoes with global positioning function developed by the group and Tencent will be launched in 2016.

Although the group's strategic vision is abundant, it still can't stop the declining trend in the retail market in 2015. A large number of stores are closing down to send complex signals to the market. At the same time, the consumer loyalty and brand reputation are facing challenges at the expense of cost.

A tradition

The war of pformation has begun.

Under the background of low overall industry environment and insufficient internal consumption vitality, the downward trend of traditional offline operation has become apparent.

To some extent, the electricity supplier business has eased the sales decline caused by Daphne's continuous closing, but even if Daphne performed prominently in last year's "double 11", the aura effect is still limited.