Direct Sale Net Loss 900 Thousand Yuan Red Dragonfly Fashion Shoes How To Choose?

Due to the impact of the epidemic, most businesses have shifted their focus from offline to online. Online sales are just right. Red dragonfly is also opening up online sales with the pace of the times.

However, it is surprising that the red dragonfly has recently announced that it will stop the recruitment and investment projects, including the layout of offline stores. It is understood that the company's previous live sales net loss of 900 thousand yuan. Stop offline channel projects, live broadcast losses, red dragonfly enterprises how to choose, let the company take the right path?

According to public information, the Red Dragonfly brand was founded in 2007. It is a fashionable shoe and garment enterprise mainly based on the Red Dragonfly brand, which integrates the design, development, production and sale of leather shoes, leather goods and children's articles, and has stepped out of a fast development road of leather shoes and shoes and children's articles. In 2009, he was awarded the title of "China genuine leather shoes king" by the China Leather Association.

And 2020 this extraordinary year, let online live sales become a boom, many shoe and clothing enterprises have to close offline stores, fight online self help.

The famous shoe and clothing brand red dragonfly started its first live broadcast in March 8th this year, and Qian Jinbo, chairman of the company, also participated in the live broadcast. Thousands of employees of the Red Dragonfly went online to sell products, and launched live broadcasting activities.

But on the evening of June 23rd, the Red Dragonfly announced that the company had not yet covered the commercial mode of live broadcasting with goods. It is only the live broadcast of Tmall's flagship store and the live broadcast of the actual controller. The sales volume of the company's live goods was 1 million 900 thousand yuan, accounting for less than 1% of the company's sales revenue in 2019, accounting for a small proportion, a net loss of 900 thousand yuan, and no profit was achieved.

According to the Red Dragonfly's earnings report, in the first quarter of 2020, its operating income was 511 million yuan, down 36.5% compared to the same period last year. Net profit attributable to shareholders of listed companies was 17 million 691 thousand and 100 yuan, down 75.80% from a year ago.

With regard to declining performance, the external reason for the sluggish performance of fashion women's shoes is the impact of the electricity supplier. Some fashionable women's shoes, though wider, are mainly low-end products, which are more stressed than high-end brands, and sales decline is inevitable. The internal reason is that the overall design is facing aging problems.

By the end of 2019, there were 4166 Red Dragonfly stores, including 317 direct outlets and 3849 stores. Although the number of outlets has increased, it accounts for only 7.61% of the total number of stores.

Recruitment projects also have been forced to press the stop button, announced the termination of the recruitment project. For the online losses and the suspension of the investment projects, the Red Dragonfly company said that the market environment and consumption habits have undergone some changes, and the rental and human cost of the stores have risen sharply. The physical stores under the line have been unable to achieve the expected benefits.

With the rise of the tide of the country, despite the many challenges encountered on this road, I believe that the domestic fashion shoes and clothing brand red dragonfly can break through the self, rebloom and usher in the new life, let us expect together.