How Can The Old Shoe Industry Decline?

According to the world clothing shoes and hats net, "double eleven" brings.

The remaining temperature is still there. "

And then came running.

Discount, spike, gift giving...

Or familiar with "formula", or familiar "flavor".

But consumers are already shy. The "double eleven" overdraft purchasing power has led to the "double two" that has fallen behind.

As in previous years, as of the time of the author's release, the specific official data, the mainstream electricity supplier has not yet been announced.

It was not announced directly in 2016, and it is not known whether it will be announced this year.

Transformation of electricity providers, traditional brands are doing, but what is the profit?

Will the platform be the "rescuing artifact" of the old brand? How big is the relationship between the new clothing retail business and the electricity supplier?

After BELLE, another "shoe king" fell.

In 2015, "double eleven" ranked the first among women's shoes.

In 2016, "double eleven" and women shoes ranked fourth.

In 2017, "double eleven" and women shoes ranked ninth.

Behind the scenery of "double eleven", however, is a continuous tragic decline in annual turnover and sustained losses.

In 2015, the total annual turnover was HK $8 billion 379 million 100 thousand, with net profit of HK $-380 million.

In 2016, the total annual turnover was HK $6 billion 501 million 700 thousand, with net profit of HK $-837.5 million.

In 2017, as of June 30th, the turnover was HK $2 billion 732 million 700 thousand, with net profit of HK $-211.2 million.

Despite the rapid growth of Daphne's electricity business, sales continued to make profits, but still can not stop the decline in total performance.

According to the first three quarters of Daphne International Holdings Ltd operating data released, the first 9 months of this year, Daphne core brand business, same store sales and number of stores declined sharply.

As of September 30th, Daphne's core brand business and same store sales fell by an annual decrease of about 15%.

As a matter of fact, compared with similar brands, Daphne shoes are not ugly. Why is their performance declining? It is understood that the overall decline in Daphne's overall performance is directly related to large-scale closes in recent years.

Affected by the downturn in the overall footwear industry, Daphne started its closing mode since 2014.

In 2016 alone, Daphne closed 1030 sales outlets, with a total sales of 4900.

In the third quarter of this year, 375 sales outlets (including 367 Direct stores and 8 franchised stores) were closed. As of September 30th, there were 3917 sales outlets for Daphne's core brand business.

Compared to the most brilliant 2 sales point, this kind of shop speed concerns the industry.

The "shoe king" of fashion is declining and its scenery is no longer.

Looking back at the brilliant days of Daphne, Taobao did not reach the level of "chopping hands nationwide". Fast fashion brands were also rare. The most fashionable shoes that consumers could buy were the styles from Daphne posters.

Its fire degree even once occupied the domestic women shoes market share nearly 20%.

However, under the influence of the rise of the electricity supplier and the popularity of fast fashion, the concept of consumers has changed rapidly, and the competitiveness of popular women's shoes has become less and less. Daphne has not responded promptly, and the design is far behind the consumer demand, resulting in a vicious circle of unlimited discount and inventory clearance. The wrong market strategy, Daphne's investment entertainment program "the bee girl team" has yielded little effect, but it has resulted in a loss.

All the above, Daphne has gradually lost its glory.

I believe that the reason why Daphne has come to such a conclusion is that it concentrates on channel promotion and neglects products, stores and brands.

In the face of the dangerous market environment, Daphne has not launched effective strategies to save its sluggish performance.

Business support? Continuous years of continuous investment, but also did not bring obvious returns.

Long term solutions, and long-term discount will lead to a sharp decline in brand recognition, self-confidence and reputation, and more difficult to attract consumers. Star Marketing is really hard to attract consumers, but the star effect is really strong, but the product can not keep up with it. More star spokesmen can not save it. Closing shop stops bleeding. In a short time, the store strategy can effectively reduce the injury, but the store has not been promoted. At present, the remaining 4000 stores are the same as usual. How can it change? Daphne's problem lies in the lack of brand appeal of the offline terminals, and the lack of explosive tension in online sales, so that it gradually breaks away from the buying habits of consumers in the new era, and brands are becoming more and more aging. Daphne has put in discounts, attracting consumers by price advantage?

Taking Daphne as an example, we see that the pformation of electricity providers is not the only life-saving medicine for traditional retailers. Instead, they should use the commercialization capability and brand service to return to the commercial quality, activate the terminal value, let the products re ignite popularity and rebuild the opportunity to interact with the target customers. This is the real "self saving" good medicine of the traditional industries.

How can we turn things around?

The decline has not only made Daphne, but also France's 100 year old brand, Esprit, the ONLY of the Danish Fashion fashion brand, all of these brands are in the same boat.

After nearly thirty years of rapid development, China's clothing industry has entered the "mature stage" from the "barren" stage. Especially after 2000, the rise of the electricity supplier, fast fashion brands, international brands have entered China, the local brands have grown rapidly, and the sports brand has changed from top to bottom.

With the growth of consumers in the new era of Internet, the brand of Chinese clothing still has a lot of inherent "gameplay", which is naturally abandoned by consumers.

Especially in the past two years, for the old brand of clothing, it can be said that it has been in the cold winter.

France's 100 year brand, IgG, has fallen 12.3% from 2016 to 12.3% in the whole year, from 417 million 300 thousand euros to 365 million 900 thousand euros, operating loss of 19 million 400 thousand euros, down 162.3% compared to the same period last year, and 281 stores in the Chinese market, from 2877 in 2015 to 2596, accounting for about 10% in the Chinese market.

In August 9, 2017, agge formally withdrew from the Paris stock exchange.

In the first quarter of September 30, 2017, the US apparel brand Esprit declined by 7.4% to HK $4 billion 8 million in the first quarter of last year, and retail channel sales decreased by 8.9% over the same period last year, accounting for 37.6% of the group's revenue. The decline in the same store sales in the Asia Pacific region was down 18.9% due to a large decrease in the volume of Chinese department stores.

In the third quarter of fiscal year 2017, the sales revenue of Si Jie global was HK $3 billion 888 million, a 8.4% decrease compared with the same period last year, which has increased considerably compared with the annual reduction of 0.1% in the 2016 fiscal year.

In 2016, the number of Esprit global stores decreased by 1376, while the Asia Pacific region closed 108 stores, with only 158 remaining.

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Slow production and inventory backlog is serious. Tide card is now the "discount king".

After more than 10 years of development in the Chinese market, Esprit reached its peak in 2008. But before and after 2008, fast fashion brands such as H&M and ZARA entered China, and after two years of latent development, they became the main force in the clothing market.

During this period, not only Esprit, but also other local brands and early foreign brands entering China will face huge crises and challenges.

Slow updating is a major reason why Esprit has been abandoned by the market.

Previously, the speed of Esprit from design to shelf was not only faster than that of the fastest fashion brand of "12 days", but even far behind the regular cycle of ordinary garment production.

The traditional enterprises in clothing industry usually take about half a year from design to raw material purchase to production and processing, while the Esprit operation headquarters is located in Germany and the design department is located in Hongkong. Past information shows that Esprit products usually start from the beginning of the design to sell on the shelves for more than 9 months.

The old style makes Esprit lose a lot of young consumer groups.

Esprit today's difficulties are mainly in the brand that can not be young, can not keep up with the pace of the times brand, even once the "old", it is difficult to escape the fate of the elimination of the market.

Especially after 90 or even after 00 have become the main force of consumption, the Esprit of "conservative thinking" is increasingly out of touch with the times.

In view of the Esprit shop in Paris, Changshou Road, Shanghai, there is not a small appearance, a cold gray overall tone, and an old-fashioned European design that can not see a bit of individuality. Even if you like this brand, you will not be able to cut it down.

In order to reduce inventory, Esprit began to walk on the old road of Daphne and discount.

We started seeing double discount promotions at Esprit store, but the excitement of the promotion lasted only for a while and eventually cooled down.

Why? Because, compared to H&M, UNIQLO and other fast fashion brands, the new speed of "slower", the more "Earth" design and the higher pricing, so that the "discount" of this big sales promotion is not so attractive.

At seventy percent off, half off, and season discounts, it has become a direct killer of Esprit brand value, and has closed a negative cycle with clearance.

"Discount offer" did not work, and Esprit tried to make profits through e-commerce channels.

But Esprit has only 1 million 488 thousand fans on Tmall platform, only 10% of UNIQLO 11 million 597 thousand and ZARA1140.3 million. There is a big gap between fast fashion brands and fast fashion brands.

In the three quarter of 2017, the Esprit reported a 35.3% increase in revenue from electricity suppliers, of which China's market rose by 39.9%.

Beautiful results can not hide the slow down of the entity business under its line.

Esprit has entered the store, and its global group, the 681 direct retail outlets in the world, has closed 122 in the past 12 months. The sales outlets of wholesale distribution channels have dropped by 1253 to 6137.

However, as of the third quarter of March, the total revenue of Si Jie in the three quarter amounted to HK $3 billion 888 million, which was 11.5% lower than that of HK $4 billion 391 million in the same period last year.

If consumers abandon Esprit, it is precisely because of the loss of interest in brands and products and expectations, then only the core of the sales channel from the line down to the line, and how much can it play? The core problem of Esprit is still! I think the terminal stores do not perform well, and the online industry is also facing many fast fashion brand competition. Relying solely on the electricity supplier is difficult to reverse the decline. The focus of Esprit development should be to adjust the industrial chain and enhance the overall efficiency.

Traditional clothing retailers only recognize their own advantages, understand the needs of consumer groups, provide customers with the most appropriate product and service experience, use the new retail marketing mode, and enhance the efficiency of enterprise management, so as to achieve brand sustainable development.

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