Middle And Low End Women'S Shoes Fall Into Predicament

Recently,

The year-end results were released as at the end of last year, while the turnover decreased by 19.1% to HK $8 billion 379 million. The company's share of losses was HK $379 million, a sharp decline of over 300% compared with last year.

This is Daphne's first loss in nearly 10 years.

In recent years, the strategy of joining and pforming into battalion is one of Daphne's strategies. However, at present, this strategy has little effect.

In fact, according to the press, it includes

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(13.89, 0, 0.00%) many domestic women's shoes enterprises are experiencing growth bottlenecks.

The industry said that because of the current physical store rents, labor costs rise, coupled with the footwear market saturation, weak demand and so on, footwear brand entity shop or will face a shuffle.

In this regard, an associate professor of Beijing Institute Of Fashion Technology and a member of the China textile industry standard setting Committee, Gong Gong, admitted in an interview with reporters: "Daphne's store closing mode can not fundamentally solve the problem of loss, but will narrow the company's entire sales channel. It is the most important consideration to realize automation and reduce costs.

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Daphne is accused of shortage, broken code, new type.

Compared with noisy neighborhoods, Wuchang Mau shop, Daphne District, Wuhan, Hubei, appears relatively quiet.

A few days ago, the reporter came to the door of Daphne store. The most striking thing was the promotion sign at the center of the shop. The latest sales promotion message was "go on the journey with the" Ni ", the 149 yuan from the whole house, and second pieces were reduced by 50.

Daphne salesperson told reporters: "this year's business is not good, there are still many people to visit, but sales have declined significantly.

"The reason for this is," the clerk admitted. "It is mainly that the discount rate of the company is not large compared with other brands, and the preferential activities are not as many as in the past years.

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On the other hand, shortages and broken codes are also one of the reasons for poor sales.

It is said that the inventory of traditional industries is serious, but it seems to be a case in the shop.

"Some of the hot products sold in the time of delivery itself is short of code, and the manufacturers also have not yet replenishment. Consumers like the style but can not buy the appropriate code number.

Some of the less popular styles are large inventories and backlog, resulting in slower new sales and less sales.

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Middle and low end women's shoes fall into predicament

On the evening of March 29th, Daphne announced its year-end results as at the end of last year, while its turnover decreased by 19.1% to HK $8 billion 379 million. Its owner's share of losses was HK $379 million, a sharp decline of over 300% compared with last year.

Daphne said that the group's performance was weaker than expected, which was affected by the following factors: adverse market conditions, erratic weather including delayed summer and unusually warm winter, operating costs rising with inflation and increased negative leverage.

In addition to Daphne, China's women's shoes market structure of the "big card", Saturday, BELLE's situation is not very good.

The 2015 performance Bulletin released at the end of last Saturday showed that its operating income was 1 billion 619 million yuan, down 7.94% from the same period last year.

It also announced its annual performance in March 15th.

Last year it reduced 33 self operated retail outlets and 65 third party retail outlets with poor performance.

Now the business form of all walks of life is changing.

Li Haibing, director of the Department of fashion art design at Hubei Institute of Fine Arts, said: "Daphne brand has not made a correct direction for the current and future market.

It is said that traditional industries are impacted by the Internet, but as far as I know, actually doing well in line work and doing well in products is an effective way to resist losses.

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Li Haibing believes that at present, the low-end women's shoes market is homogenized and the brand personality is poor, so we have to rely on price war to attract customers.

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Experts: close shop, temporary solution is not effective

In the comparison of data, it is easy to find that Daphne's franchise system is gradually decreasing.

In 2012, Daphne closed 113 franchises all year round; in 2013, Daphne reduced 114 stores and increased 64 outlets; in 2014, Daphne closed 174 stores and opened 257 Direct stores; as of December 31, 2015, Daphne group had 5597 core brands, including 5056 Direct stores and 541 franchisees, with less than 10% stores.

In the early days of Daphne, the proportion of its franchisees was about 80%.

In addition, the reporter found that in the fourth quarter of 2015, the number of online stores in Daphne group exceeded the total in the first three quarters, reaching 405 (384 Direct stores and 21 franchised stores), and 805 closed stores (692 Direct stores and 113 franchised stores) throughout the year.

In fact, closing the shop with poor performance is nothing more than an enterprise's choice of timely stop loss. Turning off the unprofitable stores will obviously reduce the stock of goods, labor costs and return on investment, and focus on the shops where they can operate well and efficiently.

In recent years, to join and pform into direct camp is one of Daphne's strategies.

Daphne is closing down its franchised stores in the long run of its main business, which is intended to unify the channels and reduce the cost of circulation so as to increase revenues and profits.

Reporters found that due to further deterioration of the market situation, it has taken many measures, including closing down the loss shop, streamlining personnel, relocation of factories and tighten up the inventory level.

In stores, Daphne cut 827 sales points last year.

However, judging from the current performance of Daphne, the battle for direct closure of a large number of franchisees did not let the performance get warmer.

"Closing stores only streamline costs, optimize the results of enterprises, and fundamentally avoid the downward trend of performance. This is a temporary solution.

If the root cause of the problem can not be fundamentally solved, this trend will continue.

"Gong Yan, an associate professor of Beijing Institute Of Fashion Technology and a member of the China textile industry standard setting Committee, told the Changjiang Daily reporter:" Daphne's shop closing mode can not fundamentally solve the deficit problem, but it will narrow the company's entire sales channel, and realize automation and reduce costs. This is the main consideration.

"He said,"