Daphne Wants To Purchase Logistics Assets To Become A Problem

In 2002, we began to spare no effort to build our own logistics system, covering more than 30 provinces and municipalities directly under the central government.

Peng Gangxiang, an analyst with Guotai Junan international garment industry, told reporters that Daphne's move was not unusual, because of its own development needs.

"When the scale of shoe enterprises is bigger, they are faced with challenges from manpower and logistics. Especially in enterprises with annual sales growth of above 20% annually, such as Daphne, logistics must be kept fast."

Daphne sales in 2011 amounted to HK $8 billion 600 million, an increase of 29% over the same period last year.

According to Peng Gangxiang, Daphne's move is also in line with its pformation into a mode of selling products.

It is understood that Daphne had previously produced products and then look at the sales situation, once the sales decline, the stock will be sold at a discount, which directly led to the decline in gross margin of Daphne products.

It is reported that in 2010, Daphne began to compete with its competitors.

In order to ensure timely updates of goods, reduce inventory costs and increase delivery speed, the products are directly sent to all parts after being produced, and shipped through a unified logistics center after the distribution centers are assembled.

Peng Gangxiang told reporters that after the pformation of Daphne into the mode of selling production, gross profit increased significantly from HK $3 billion 800 million in 2010 to HK $5 billion 200 million.

On the other hand, it is constrained by the sluggish overall economic environment this year.

Huge, also makes shoe enterprises actively change the original mode in sales.

According to Daphne's 2011 Annual Report, its stock value increased from HK $1 billion 84 million in 2010 to HK $2 billion 59 million.

Zhu Qinghua, an analyst with CIC's light industry, said: "Daphne's inventory pressure is large, so it intends to slow down the expansion of shop expansion, in order to reduce operational risks.

These redundant funds are used in the logistics link, which is not only conducive to the flow of the company's logistics system, but also to the better allocation of enterprise funds. "

However, Peng Gangxiang believes that although Daphne's efforts to further improve the logistics system, but in the face of Daphne already has the logistics system, integration is still more difficult.

While Daphne is in talks about the acquisition, it is still uncertain about the next plan and remains to be seen.

Turning to Daphne's profit outlook, Zhu Qinghua believes that this year's development of shoe enterprises in China will not be too optimistic. On the one hand, due to the continued downturn in domestic and foreign economy, the overall development of shoe enterprises is facing great pressure; on the other hand, the cost of labor, logistics and shops is rising continuously, and shoe enterprises are facing great cost pressures, especially small and medium-sized shoe enterprises, and the pressure of survival will face great challenges.