Daphne: "The King Of Volkswagen Shoes" Is Hard To Overcome.

Recently,

The group issued a profit warning report to investors. The report showed that in the first half of June 30, 2016, the same store sales fell 11.7% in the first half of 2016, and the number of sales points decreased by 450, including 400 Direct stores and 50 franchisees.

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"Daphne's performance has continued to decline significantly. Public information shows that since 2015, the group has closed 1277 stores, and the" mass shoe king "is declining.

Bu Anxun, the founder of the big think tank and chairman of the Nanjing Internet Transformation Research Association, said that the main reason for the decline of Daphne's performance is that the R & D mode of the product has not been adjusted in time, and the R & D mode includes the fashion sense, experience and comfort of the product side.

The reason for the loss is due to the weather.

For the reasons for the loss in the first half of the year, Daphne warned in profit warning that it was affected by the negative growth of large net closing stores and same store sales.

During the review period, consumer demand was weak, and heavy rains and floods occurred frequently in mainland China in the second quarter.

This adverse weather has greatly affected the flow of shops.

The sales share of the over season products increased, resulting in a significant decrease in gross margin.

In fact, this is not the first decline in Daphne's sales performance, nor is it the first time that the company has attributed the decline in its performance to weather changes.

According to Daphne's 2015 annual report, Daphne's turnover in 2015 was 8 billion 379 million yuan, compared with 10 billion 355 million yuan in 2014, down 19.1% compared with the same period last year, while gross profit margin dropped to 17.7%.

In response, the company said that the slowdown in China's economy slowed down the consumer goods market in 2015, and retail stores were challenged. Meanwhile, the abnormal weather made the market of the fashion brand worse. The global warming effect prolonged the summer, and the winter in 2015 was extremely warm, which affected the sales of seasonal products including women's shoes.

In Bu Anxun's view, the main reason for the decline in Daphne's performance is due to the product itself.

The quality of Daphne products is good, but there is no quick follow up in terms of fashion and comfort.

The R & D mode of products has not been adjusted in due course.

"Daphne is also leading a large-scale system, including organizing high-end experts in the global footwear industry and full time shoe master. This model has been right before. The past luxury goods and fashion products were predicted by expert mode, and then pformed into shoes by teachers.

Now is the era of consumption change, more is the need to quickly understand the change of consumers in the front and turn it into a signal, not for the consumption forecast of experts, but for the consumer segmentation experience, and then turn it into a small batch of rapid production.

According to Lu Hua, deputy director of the China Leather Association Industry Department, the proportion of Daphne's electricity providers is not high. Meanwhile, the rise of shopping centers also has a certain impact on its performance. "These years, shopping centers are on the fast track. The shopping mall's entire shopping, leisure, gathering and entertainment integration situation has caused a blow to the traditional strategy of Daphne's original Street store, and has caused a certain diversion to the entire flow of people and sales."

Lu Hua also pointed out that the background of the national economic downturn has led to the rise of low price fashion shoes. "Low price fashion has become a very important consumption trend. Daphne still sticks to its original brand and market positioning. Its market share is indeed occupied by some new competitors."

"The king of Volkswagen shoes" is declining.

The continued downturn in marketing performance has resulted in large-scale layoffs.

As of June 2016, the number of Daphne sales outlets decreased by 450.

According to Daphne's 2015 annual report, Daphne's core brand business sales point dropped from 6757 in 2014 to 5930 in 2015, a net reduction of 827 sales points.

From 2015 to now, the number of Daphne's sales outlets has decreased to 1277.

In this regard, Daphne pointed out in the earnings warning report that the Board believes that the overall financial situation of the group remains stable.

At the same time, the group is still committed to implementing the improvement package, including integrating its store network and inventory, continuing investment in its e-commerce business and controlling expenditure, thereby improving its annual performance.

In the 2015 annual report, Daphne said that on the one hand, it would continue to integrate various stores and personnel, and on the other hand, it would enhance profitability through management and sales efficiency.

In terms of physical store strategy, some shops will be pformed into "multi brand" store mode, and the store performance can be enhanced through more abundant commodity selection and shopping environment.

In August 1st, reporters visited several stores in Daphne, and found that the Daphne store in Hongkong famous shop street near the people's square of Shanghai city has been closed.

In the interview of Daphne store on a street in Minhang District, Shanghai, the reporter learned that there was a Daphne store on both sides of the street. Another shop was closed because of the same competition.

At the same time, a number of Daphne store shoes are doing a discount in the season, the old money to 2~3 discount is not uncommon, the lowest price is around 80 yuan.

For Daphne's "closed shop tide", bu pointed out that closing stores should deal with losses, cash flow and inventory turnover. It is a natural move to deal with short-term business, but from the perspective of sustainable development of the company, it is obviously only a temporary pitional operation.

Daphne was once praised as the high growth model of small and medium-sized enterprises, and has the reputation of "the shoe king of the masses". Daphne brand was founded in 1990, and has been awarded the bestselling domestic product honor for many years since 1996. It has been one of the most successful domestic brands in China.

This surge of closing shop and declining performance has also attracted the attention of all circles.

In this regard, Lu Hua said that the traditional brand should pay close attention to the new consumption growth point. "At present, the traditional brand is not enough to grasp the new consumption growth point. It is suggested that they continue to study this new consumption demand, so as to enhance the fashion of the products, and further enhance the ability of the enterprises to adapt to the market quickly, and all commodities are small and varied, and respond quickly."