Daphne Under The Impact Of Electricity Supplier And O2O

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The original growth mode of the brand is large-scale replication, and the product lacks individuality and expands the entity store on a large scale.

This mode has entered a difficult position in the Internet era.

In the future era of price performance and product customization, how to adjust is the problem that these shoe brands need to face.

At present, the shoe industry has been in a doldrums, which has accelerated the pformation and upgrading of many shoe brands to seek breakthroughs.

Daphne, as a well-known brand of shoes, is no exception, but the overall effect is not good at present.

Predicament, Daphne in the electricity supplier, O2O grope forward.

And the product is favored by the audience.

Whether this breakthrough is also unknown.

Daphne mid October, old parity

At the 2016 spring order meeting held by Daphne, the national franchisees staged a collective protest.

Subsequently, dozens of franchisees from all over the country went to Daphne headquarters in Shanghai to "ask for a view".

Franchisees listed Daphne's "number of charges", such as the collection of illegal fees, the use of franchisees to digest inventory products, Direct stores to sell goods below the franchisee and other ways of franchisee and so on.

These moves seem to be a way for Daphne to try to "join in".

The above scenes are familiar.

If the time is pferred back to 3 years ago, all kinds of domestic media have also reported all kinds of disputes between Daphne and its franchisees. At that time, businessmen questioned whether the brand was "going to join", or even accused Daphne of "breaking the bridge".

As for the aforementioned problems raised by franchisees, Daphne said: "the futures delivery period of franchisees is no longer later than the delivery date of Direct stores. The discount and promotion of direct sales have become a major feature of sales in recent years due to the changing market situation.

Including direct sales and franchises, the profit margins of the market are compressed, and the profits of franchisees may be affected.

To this end, after receiving the response from the franchisee, the company is planning the adjustment strategy for the futures price of franchisees, hoping to develop healthfully together with franchisees in the depressed market environment.

Gradual decline of franchise system

It is worth noting that Daphne's franchise system is declining.

The 2015 semi annual report shows that the group has 6221 core brand sales outlets, including 5631 direct outlets and 590 franchised stores, and the proportion of direct outlets is more than 90% of the total number of stores.

3 years ago, in the first half of 2012, Daphne had 4958 Direct stores and 1010 franchises.

According to the latest data, the growth rate of same store sales in the third quarter of this year was -19.7%, which was higher than that of the same store sales in the same period last year. The growth rate of same store sales in the third quarter of this year is -19.7%, which is higher than the same store sales growth rate of -16.9% and -17.7% in the first 6.3% quarters.

Meanwhile, in the first three quarters of this year, there were 400 stores (including 308 Direct stores and 92 franchised stores).

The decline is higher than the first two quarters of the same store sales growth rate of -16.9% and -17.7% respectively.

The decline in sales of the same store was mainly driven by the decline in the average price, while its sales declined.

In this period, Daphne integrated its sales network and closed 219 sales points in the third quarter (including 191 straight stores and 28 franchisees), so the total number of core brand sales points in September 30, 2015 was 6002.

In addition, its electronic commerce maintained sales growth in the third quarter.

By the end of June 30, 2015, Daphne's turnover was HK $4 billion 374 million 300 thousand (7.7501,0.0005,0.00%), down 13.9% from the same period last year. Gross profit was HK $2 billion 654 million 600 thousand, down 7.4% compared with the same period last year, and its operating profit decreased to HK $11 million, a decrease of 95.4% over the same period last year.

As sales decreased, inventory turnover increased to 238 days.

The profit attributable to the company was HK $2 million 500 thousand, down 98.5% from HK $172 million 400 thousand in the same period of 2014.

Basic earnings per share 0.2 Hong Kong cents, down 98.1% over the same period last year.

During this period, there were 6221 core brand sales outlets, including 5631 Direct stores and 590 franchised stores.

In the first half of this year, the number of outlets decreased by 181.

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Looking back at the whole year of 2014, Daphne's turnover was HK $10 billion 355 million 600 thousand, down 0.9% compared with the same period last year.

Gross margin decreased by 1.7% to HK $5 billion 737 million 600 thousand.

Operating profit was HK $262 million 400 thousand, down 49.6% from the same period in 2013.

The profit attributable to the company was HK $176 million, down 46.5% from HK $329 million 100 thousand in 2013.

The basic earnings per share were 10.7 Hong Kong cents, down 46.5% from 20 Hong Kong cents in 2013.

In 2014, Daphne's core brand sales point increased to 6402, including 5748 Direct stores and 654 franchised stores.

Net increase of 83 core brand sales outlets.

"This is at the moment when we are caught in the tide of closing shop."

Zhao Ping, a well-known consumer expert, said.

Daphne's performance slipped in 2012.

2011-2014 years of company earnings showed that the growth rate of Daphne same store sales was 21%, 9%, -10.4% and -3.4% respectively.

Although the growth of performance in 2014 has slowed down, the growth rate of same store sales in the first three quarters of this year has been further accelerated.

Keen on celebrity endorsement

Reporters opened Daphne Tmall [micro-blog] flagship store, found that the overall website page design beautiful atmosphere, the biggest bright spot is that many celebrities are making endorsements for it, the lineup is luxury.

On his website, Nicholas Tse became a creative director, while Gianna Jun, Liu Shishi, Guo Xuefu and Gao Yuanyuan represented him.

In fact, celebrity endorsement is no longer a novelty. For enterprises, finding stars to endorse their products is nothing but to improve the corporate image and attract consumers' eyeballs, so as to drive the sales of products.

Compared with other shoe brands, Daphne has been keen on the star effect. From previous Richie Ren, SHE, Rene Liu, and now to Nicholas Tse, Gianna Jun and other stars, it is easy to find that Daphne endorsement has always been a first-rate star.

In 2014, Gianna Jun attracted many female fans in China with the TV drama "you from the stars". At that time, popularity reached its peak. In the same year, Daphne invited her to work with Nicholas Tse to launch the latest commercials.

In 2015, Daphne successfully invited the goddess Liu Shishi to endorse it. In July 22nd, he created the Daphne super brand day on the Tmall platform, and launched the "goddess in person surprise delivery" activity: on the Daphne Tmall platform and the mobile Taobao platform, each of the lucky consumers who bought the product on the day of the selection of an activity day received the opportunity to face Liu Shishi's shoes with the goddess.

From above, it is easy to see that Daphne has always regarded star endorsement as a big weapon in the business battle of enterprises, trying to win a wider market for them by star endorsement, and thus defeats its competitors.

According to Daphne International Holdings's first quarter 2015 earnings report, the same store sales of the core group fell by 15.9% on a year-on-year basis, while its retail turnover was a double-digit year-on-year decline.

In terms of sales performance, the financial report pointed out that the following two reasons led to the following: erratic weather is not conducive to seasonal merchandise sales and regional competition in the popular market is still fierce, but the group decided to maintain its original brand new discount strategy when the new product just came into the market.

Daphne also said that although the decline in the same store sales in the first two months was a high number of units, sales in March were even weaker, thus dragging down the overall performance in the first quarter.

In the meantime, Daphne is also trying to stimulate sales through other ways. In order to further differentiate the market, Daphne adjusted its product mix in spring and summer this year and divided it into 7 product lines to attract a wider range of customers and enhance differences with competitors.

For example, by inviting Liu Shishi, a well-known young actor, to endorse "metropolitan fashion", one of the main products, and build up a more distinctive brand image by increasing the links between the product series and its spokesmen.

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Electricity providers, consumption weakness and intensified competition

"The growth rate of Daphne's same store sales has dropped sharply, and has gone to a large number of difficulties in closing the store. It has nothing to do with the big consumer environment changing and retailers are fighting price wars."

Shanghai Ding Feng Asset Management Co., Ltd. Tian Jiang said.

Daphne also explained the decline in its performance in the first half of this year: as the economic growth slowed down, coupled with the abnormal weather and delayed spring and summer in 2015, the consumption desire was affected.

A number of chain stores in the popular women's shoes market have been greatly discounted early, forming a competitive environment with frequent promotions and discount.

Against this background, Daphne's core brand turnover decreased by 13.9% to HK $4 billion 34 million 900 thousand in the first half of this year, due to the negative growth in the same store sales and the decrease in the number of shops.

In 2014, the Daphne annual report also showed that it and other retailers used the way of promotion to deal with the seasonal inventory (mainly for the old brand), with a large discount to promote sales growth.

Due to the weakness of overall consumption in the year, regional competition is becoming more and more intense. The gross profit margin of core brand business has been reduced by 2.1 percentage points from 55.9% to 53.8%.

And the delay of the Spring Festival is short of the peak season before the Spring Festival, and the weather pattern is different from previous years, which has further affected the net profit rate.

In 2014, the turnover of Daphne's core brand business fell to HK $9 billion 492 million 600 thousand.

"E-commerce continues to grow rapidly, and also leads to intensified competition."

Zhang Tao, director of the women's shoes of Yin men, thinks that Daphne's products are mainly for young people, while young people are more than half of those who buy online, so they divert Daphne's customers, though it has a layout before.

Therefore, the marketing method that appears in front of consumers by increasing retail outlets, intensive stores and high frequency appears to have little effect before the new market background of electricity supplier prosperity.

But this is exactly what Daphne did in previous years.

Data show that Daphne has intensified its efforts in marketing in 2014.

In addition to celebrity oriented marketing activities, more than 600 stores were renovated and renovated.

Retail stores increased to 6402.