What Is The Reason Why Daphne, A Former Popular Shoe King, Stepped Down From The Altar?

In ancient Greek myths and legends, Apollo was madly in love with Cupid's arrow of love.

However, the Daphne, who was blunted by the blunt arrow, was very disgusted with love. When faced with Apollo's pursuit, Daphne could not bear its troubles and eventually became a laurel tree. But Apollo felt deeply and passionately. This love finally touched Daphne, and her vlaway tree was also evergreen and growing all the year round.

The brand name of "Daphne" is derived from Greek mythology, its LOGO.

A lot of Greek elements are used.

This brand, which has been injected with good moral meaning, has always been as green as the laurel tree in the mythical legend. At the peak stage, the mainland sold five pairs each time.

One of them is from Daphne.

But in recent years, Daphne has been plunged into a "mire": losing money and closing stores.

These words gradually wound up the once brilliant brand.

Afterward, UNIQLO is slowly losing its way along with Daphne's footsteps.

Once a popular shoe king: 5 pairs of women shoes have a pair of Daphne.

As one of the famous women's shoes brands in China, I believe many people have visited Daphne stores. I believe you have many friends who loved this brand very much.

Since 2000, Daphne has begun to pform, replace the brand logo and shop decoration style, and set up self built stores. The business scope is shifted from the shopping mall counters to the shops on the street. There is a Daphne store on the way to Xiaobian daily commuting, and it is these stores that many people remember.

According to the world clothing and shoe net, Daphne's market share of women's shoes is close to 20% at the peak of its performance. This means that one out of every five pairs of women's shoes sold in the mainland comes from Daphne.

At 2003, OEM business accounted for half of the total. In 2008, the proportion of OEM business decreased to 12%, and only 2% in 2015.

Daphne today is a bit miserable: its market value has shrunk from 17 billion to 1 billion 500 million.

The precise brand strategy position enabled Daphne to expand the mainland market rapidly, and helped Daphne spend 08 years' financial crisis.

It was also in this year that Yong en international group was renamed Daphne international.

Daphne, which was listed at the end of 1995, began its rapid rise in 2004, rising from HK $0.5 to HK $9.8 in 2007. Its share price picked up in early 2009 and came to HK $11.84 in 2012, with a total market value of HK $19 billion 500 million (about 17 billion yuan at current exchange rate).

But after its glory, its share price began to decline in 2013.

As of today's close, Daphne's share price is HK $1.06, and its market value is only HK $1 billion 700 million (about 1 billion 500 million yuan) based on the latest stock price.

Behind the decline in stock prices is the embarrassment of Daphne's continued weakness. According to Daphne's first half performance, Daphne's revenue fell 22.3% to HK $3 billion 400 million.

Despite an annual reduction of 18.3% in operating expenses, operating losses still amounted to HK $250 million, compared with HK $11 million 20 thousand in the same period last year.

In addition, the group lost a net loss of HK $163 million 600 thousand in the first half of this year, or about 140 million 370 thousand yuan.

According to the 2015 annual report released by Daphne in March this year, the loss attributable to its owners amounted to HK $379 million, a sharp decline of over 300% compared with last year.

This is Daphne's first loss in nearly 10 years, and it goes back to 2001.

And Daphne blamed the closure and bad weather as an important factor in operating huge losses.

In addition, since the closure of 805 sales outlets in 2015, Daphne has closed 450 stores in the first half of this year. The closing speed is equivalent to closing 2 stores a day. The speed of closing stores has not slowed down. It has become a "Guan Dian Wang", and Daphne is facing a dilemma.

In the face of the rapid change of consumer behavior in China, Daphne has also been left behind.

In the four to six line cities, which are advertised by Daphne as the core of sales, the crisis is slowly expanding.

According to Beijing business news, in the city of four to six lines, although the number of Daphne stores is 2350, accounting for 46% of the number of stores, the number of closed stores is the most, reaching 204.

Not only Daphne, many brands are not good

Faced with the decline in performance is not a Daphne family, the entire women's shoes industry is facing such a situation, including BELLE, Saturday and some other Chinese women's shoes in the "big card".

Although some people think that the electricity supplier shock is an important reason for the decline of these brands' performance, most of the view is that the electricity supplier is only a small part of the reason.

"There are many reasons for this. First, the new brand has become more and more contention for the market, leading to a decline in the share of these original brands.

In addition, the nature of brand launch and its location groups do not match, leading consumers to choose other brands.

Another is that they do not match the commodity structure of the terminal and the market demand structure.

As the current rental of stores, labor costs rise, coupled with the footwear market saturation, weak demand and so on, footwear brand entities will continue to shuffle.

It remains to be seen whether we can restore the glory of the past.

What causes the old shoe king to walk down the altar?

It has been counted that China sells five pairs of shoes, of which one must be Daphne.

But after the glory, Daphne's share price seems to be on the decline and red light is on the way.

Even now we have to close the door.

First, the industry is fiercely competitive, but has not kept pace with it.

At the beginning of Daphne's founding, Zhang Wenyi, one of his founders, took only 5 workers to rent a factory in Taiwan and began to start from scratch.

At that time, the footwear industry was not very developed, so in 1987, Zhang Wenyi and Chen Xianmin founded the wing en International Group (Daphne international predecessor) successfully in Hongkong.

Later, due to the rising cost of land and labor, Zhang Wenyi chose to shift the factory to Putian, Fujian, where the focus of production shifted to the mainland. The Daphne shoes brand began.

1, footwear industry tends to be saturated.

Daphne's early market positioning is very accurate, they only do women's shoes, because compared to men, women spend more money on shoes and clothing than men.

This positioning enabled Daphne to walk unimpeded without delay in the early days of creation.

But now, unlike Daphne's recent start up business, the current shoe and clothing industry is growing, and the supply and demand volume is much larger than demand.

And in publicity, many new brands are full of tricks.

In this case, Daphne seems to be struggling, and some customers are also taken away by competitive companies.

In addition, because the main price of Daphne's shoes is 200-300, and many new stores to steal the tourists, they will make the price very low and put them at the price of 100 yuan to 200 yuan, so many customers will not give priority to Daphne in terms of price alone.

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2, innovation can not keep up.

The shoe and clothing industry sprung up to give Daphne a fatal blow. At the same time, the innovation of these enterprises is also enough for Daphne to have a headache.

Not only that, they also have strong learning and imitation ability, but the challenges faced by Daphne can be imagined.

Nowadays young people are very enthusiastic about fashion, and their ability to capture fashion is also extremely keen.

Daphne's managers seem to be less sensitive in this regard.

"The beautiful 100 points, beautiful without discount" this widely circulated advertising word Daphne is still in use, and now in the eyes of young people, it is almost the language of the grandmother.

In addition, on the design of shoes, the products of Daphne always seem to be behind the fashion elements. This is absolutely unacceptable for a brand specializing in women's shoes and women's shoes.

Failure to grasp the trend of fashion is perhaps the main reason why Daphne has been down in recent two years.

Two, the earliest layout of the electricity supplier, but did not welcome the draught.

The electricity supplier is a very good sales channel. If we did not make the electricity supplier well, it would be easy to be eliminated by the market.

But the electricity supplier is not blind to do it, it has certain rules to follow.

As early as more than ten years ago, the electricity supplier was not so popular, but just a few years ago, online sales suddenly became hot.

Success or failure depends on whether you can grasp the draught.

1, early do not welcome time

The general trend of the electricity supplier, Daphne can not do not know.

But the problem is that interest is there, but whether you can grasp it is a real problem.

The fact is that in addition to Ma Yun and Liu Qiangdong, Daphne started to do business as early as ten years ago.

At that time, Taobao was only online for 3 years, and Jingdong was just beginning to do business.

For most people, the electricity supplier is still a distant and unfamiliar word.

The problem is just out here. As we said before, the electricity supplier has a certain outlet, and Daphne can get up so early to catch a market in the early hours of the night. The consequences can be imagined.

Ten years ago, consumers said that the first idea in buying their brains was to go to the physical stores, so the sales channels of Daphne online could not bring much revenue to them.

At that time, the annual income of millions of people online was only half a day's income from the offline stores, thus we could know how much Daphne had suffered in the electricity supplier.

If we did not seize the right time and did not really understand the real consumers' situation, it would be a pure blueprint for Daphne to make no propaganda at the later stage. This is why the electricity supplier has not achieved any results.

2, late competition

By the end of the year, everyone became familiar with the Internet, and the electricity supplier began to become popular. Daphne's performance remained unchanged.

First of all, this bottleneck is not only encountered by the Daphne family. Under the situation that the shoes and garments are growing more and more saturated, many enterprises have begun to adopt policies to deal with this situation. Many enterprises are beginning to pform to the electricity supplier, and the results are good.

So this is why the late Daphne is still facing the pressure of competition.

The three basic characteristics of e-commerce are: cheap, convenient and authentic.

For Daphne, genuine products are entirely guaranteed, but there is no advantage in convenience, because there are too many stores before the peak. Daphne stores have more than 6000 stores in the peak period, which basically can meet the shopping needs that people can find out. Therefore, Daphne has no obvious advantage in convenience.

In the early days, Daphne suffered a dumb loss because of the electricity supplier. Most of the brands sold at the later stage were mostly cheaper because of online sales. This is the competition point for sellers of Taobao online, while Daphne price has never been able to drop and lose competitiveness.

Offline stores have shut down 1277 stores a year, while online sales are sluggish. In this case, Daphne's stock fell to its lowest level.

In fact, for an enterprise and brand, it is very important to seize the market trend. Many times, it is because of the neglect of the market and consumers, resulting in serious losses.

The status of the kings before Daphne is no longer there. We can wait and see whether the former shoe king can attack them in the future development.

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