Is There Any Opportunity For Daphne To Have A Brand Crisis?

Declining demand for luxury goods

No improvement has been made, and Daphne, a luxury shoe brand, is also in trouble.

In July 23rd, Daphne International Holdings Ltd (hereinafter referred to as "Daphne") released the first half of 2015 performance preview showed that as of June 30th, the same store sales growth rate of Daphne fell 16.9%, closing 181 stores, including 117 outlets, 64 stores.

Among them, there were 14 stores in the first quarter and 167 stores in the two quarter.

In the face of such a rapid closing speed, Daphne attributed the reason to "being affected by the overall downturn in the retail industry and peer competition".

Chen Yingjie, chairman of Daphne's board of directors, said that consumer confidence remained weak in the first half of this year, and the abnormal weather also hit people's desire to buy shoes in summer.

At the same time, some radical peers made a big discount earlier, resulting in popularization.

There is fierce competition.

As for the second half of the business, Chen Yingjie said, "the outlook is still uncertain."

In fact, not only Daphne, but also another BELLE giant in the women's shoes industry is not optimistic.

As early as June this year, BELLE International announced the first quarter retail operation.

It showed that the largest shoe production and retail companies in China dropped 167 retail outlets in the mainland in the first quarter of this year, and its footwear sales decreased by 7.8% compared with the same period last year.

The company's chief executive Sheng Bai Jiao said that the slowdown in group business growth would become normal, and there would be no explosive growth in the short term, and the pace of opening stores will further slow down in the future.

Sheng Bai Jiao said that the poor performance of footwear sales was mainly due to structural problems rather than cyclical problems.

This phenomenon will not improve in the short term.

According to Sheng Bai pepper forecast, the footwear profit margin of the group will also decline in 2015, and the same store sales will fall more than in 2014.

According to Yang Dayun, President of excellent international fashion brand investment company, under the common constraints of many factors such as market saturation, rising cost and continuous impact of electric business, the extensive development mode of women's shoes brand simply scale, assemble production capacity and reduce costs has not worked.

"In the era of cost-effective and personalized products, how to make strategic adjustment is the footwear industry.

Problems that need to be faced. "

Daphne is undoubtedly aware of this and actively distributing online channels.

According to Chen Yingjie, in mid July of this year, Daphne signed a cooperation agreement with Tmall, extending its advantage in All-Star marketing to the electronic business platform.

"We will build Daphne Tmall super brand day on Tmall platform, and we will launch" goddess coming to surprise "and other activities.

I understand that for a long time, Daphne has always had a good eye in the entertainment and marketing of celebrities. The artists who have successively endorsed it are popular stars, many of whom are SHE, Rene Liu, Nicholas Tse and Gianna Jun.

However, insiders pointed out that, as far as Daphne's sales are concerned, celebrity endorsement has little effect on improving the performance of the company.