It may cause memories of women after 80,90. In the past, Daphne is also a “shoes king” in women’s shoes, and many people are called “BMW of women’s shoes”. However, there have been many brilliance, now there is a lot of, now Daphne has no longer the spirit of the past, and even how to survive into a difficult thing. “BMW of the women’s shoes”, why did you fall to this? What happened to Daphne’s year? What are the things we deserve to think in the process of entrepreneurship? Today, let’s come to Liao Daphne’s ups and downs.
In 1988, Chen Xianmin and Zhang Wenyi set up a shoe factory in Taiwan, named “Joe Enterprise”, focusing on the foundry of footwear. Although the business is not bad, but how long, the entire industry began to take a slope, and the sales of shoes factory that they just opened were getting worse. Although the business of footwear manufacturing can’t do it, the domestic high-quality footwear market still has unlimited potential. So they committed Hong Kong and prepared to create their own brands and continue to develop in the footwear market. In 1990, Chen Xianmin and Zhang Wenyi set the Yong En Group and began to develop to women’s shoes. Daphne is a brand in the founding of the company, and the main source of income of Yong En Group.
After creating your own brand, they are also accurately graced, that is, the female market. So in Daphne’s official website, there was such a sentence “companionship to walk more.” Under such a propaganda, Daphne quickly established a good business image. Of course, as a company just created, it is far less than the market. Later Daphne directly cast a total of 10 million to advertise, with a classic advertising word, soon attracted many women’s attention.
Daphne’s brand is as romantic and fortunate, from the founding to the market, only 5 years. In 1996, Daphne has become one of the most successful women’s shoes brands in China, and has also won the titles of the best-selling products in China for many times.
In the outside world, Daphne at this time is very successful, but Chen Xianmin does not think so. Although Daphne’s brand is dominant in the manufacturing, it is therefore sold to a company’s short board. In the first few years, Daphne can rise rapidly and seize extremely high sales, because depending on the model of proxy wholesale. Although this method can improve sales, the profit is too low for Yong’an Group. So since 1996, Chen Xianmin decided to engage in retail. Soon after, Shanghai was born in the 1st Daphne retail store. Opening a store is easy, but it is hard to sell shoes.
At the beginning of the opening, because of the lack of management experience, it caused serious loss in the store. Chen Xianmin has been questioned, and many people in the company began to oppose their approach. During the difficult development of these years, Chen Wenyi, Zhang Wenyi, often quarreled. Especially in 1998, the two contradictions were gradually integrated. In the end, Chen Xianmin chose to withdraw, and the heavy responsibility of management is given to Zhang Wenyi. Zhang Wenyi felt that he was strong than Chen Xianmin, and he had the ability to put the sales volume, but the next thing happened but he hit his face. After Daphne opened the first store, the sales of shoes were not bad in the summer, but once the season, the business became very bleak. How can I drive three seasons in a season? So basically the benefits of the specialty stores are negative, but it is therefore, Daphne is facing the crisis of funds. It turns out that Zhang Wenyi is not strong than Chen Xianmin. Zhang Wenyi’s operation made Daphne in a dilemma. At this time, everyone thought of Chen Xianmin. Fortunately, Zhang Wenyi did not insist on insisting, and the position gave the position, but he also had a condition, that is, let his own foreign martial arts Chen Yingjie as the general manager of Daphne. For the development of the company, Chen Xianmin also agreed.
Chen Yingjie’s arrival, both of the Daphne got it, and Daphne fell again into the bottom of the valley.
The first thing to do after Chen Yingjie is the first thing to make the company’s internal management. Although at that time, Daphne has developed a few years in the mainland, but many employees and even high-rise are from Taiwan. Chen Yingjie feels that this is unreasonable, and even thinking is a reason for the development of Daphne. Chen Yingjie’s ideas also have certain truths. After all, there is a difference in geographic position in Taiwan and the mainland. The market management model is also different, so only local people can make Daphne rooted in the mainland as soon as possible. Have to say, Chen Yingjie is still very smart.
After the management is fine, Chen Yingjie began to study products. Shoes this kind of thing, you need to wear all year round, then why Daphne is only selling in summer? The problem is that the team is not very localized. In front of it, there is a certain difference between Taiwan and the mainland, in the geographic location. Taiwan’s climate is hot, so the demand for sandals is high. But the mainland is different, and many parts are divided into four seasons. The sandals are only only to wear for a few months. And Daphne’s designer, mostly from Taiwan, although it has been in the mainland for a few years, but because of the long-term in Taiwan, in most cases, it is designed in summer shoes. The product design for autumn and winter is not good at, so even if it is coming. The mainland, ideas can also be difficult to change. In the past few years, Daphne’s designer also tried to design a lot of autumn and winter women’s shoes, but the market was flat. After Chen Yingjie discovered the key to the problem, once again selected the blood, the designer team was localized, and further opened the market.
Many of Chen Yingjie’s approach, although many people inside the company feel, but Daphne’s next development has really happened to change. Chen Yingjie insisted that the retail model proposed by Chen Xianmin is different. He pays more attention to the development of “quality”. Daphne after the change of the face, not only the more the store is getting more, but the sales issued in the four seasons have improved. Daphne finally got a favor of lucky goddess, since then on the peak.
In 2001, Daphne won the sales champion of domestic women’s shoes with super high sales. In 2004, sales have exceeded 50 million, and the market share is as high as 20%, which has become a veritable “king of women’s shoes”. In 2012, Daphne’s annual income reached HK $ 10 billion, with more than 7,000 stores across the country, and can see Daphne’s store in the streets of many or two-tier cities. At this time, Daphne is the “BMW of the Shoes”, but I don’t know, the next Daphne is about to go on the downhill.
Let’s take a look at Daphne’s current situation?
From the first half of this year, Daphne’s year-on-year revenue decreased by 77%, and the performance was low. The revenue data in 2020 was as high as 83% compared with 2019. In addition, Daphne’s closed store in 2020 has more than 7,000 stores. Now there is only 321 million HK $ 321 million. Recently, the news about Daphne’s “selling” is constantly, this is also shocked by many people. The BMW of the women’s shoes, why did you fall to this situation?
Daphne’s peak and Chen Yingjie efforts are unlike, but Daphne’s decline has a great relationship with him. In 2004, Daphne took the first throne of women’s shoes, but Chen Yingjie was not satisfied. In 2006, Chen Yingjie found Taiwanese star to make a endorsement in order to further enhance the brand influence. Although Chen Yingjie did business in the mainland, there were many people in the entertainment circle in Taiwan, so he found the combination of red combination she and Liu Ruoying. Soon after, a song “Moon God” related to Daphne is all over the country, and the movie “I love Daphne” is also born. With a star effect, Daphne’s name is getting bigger and bigger. After Daphne and Entertainment, Chen Yingjie also got a female star, that is, Han Yuqin. At this time, some people began to predict that Daphne may have to go downhill. Because there are too many examples, many entrepreneurs have begun to be with entertainment, and then a female star go home, so that the company will start to take a downhill. Although I don’t know what to link in this, it seems that it has become a default “law”. Some people think that choosing and giving marriage, it is the beginning of changing. It turns out that Chen Yingjie did turned.
In 2010, the domestic e-commerce industry has risen, many companies turn to the online development. Many lines under the physical store are therefore hit, the BMW of Daphne’s shoes is no exception. Since the time, Daphne relies on the advantages of store sales in the market to occupy a stable position, and the quiet rise of the e-commerce industry has impacted it. However, Chen Yingjie did not think of it, he felt that he was successful, Daphne’s status was uncomfortable. He is not only wrong, but also a big mistake, such self-confidence gives Daphne’s only decline. In the next time, Daphne is still sticking to the original position, relying on the sale of the store.
But at this time, online sales have been developed very mature. Many companies have leaving the world’s water, and the sales of many peers are also large. When Chen Yingjie realized the importance of online sales, it was late. In this case, you want to catch up with your peers, then pay more than someone else. Therefore, Chen Yingjie hurriedly found a foreign aid TPG. After the help of foreign aid, Daphne is to keep up with the footsteps of online sales. However, when Chen Yingjie has a mistake, the online sales of others will choose to cooperate with major e-commerce platforms, but Chen Yingjie is not willing to with the power of the e-commerce platform. When he said, he was too confident, so he refused to cooperate with Jingdong, turn it together and Baidu set its own e-commerce platform “Yao Point 100”. Perhaps Chen Yingjie feels that he is strong enough, Daphne is strong enough, so there is no need to rely on the power of other e-commerce platforms. Chen Yingjie is not a stupid, but floating, Daphne has done the first women’s shoes for so many years, let Chen Yingjie feel that he has no one can enemies.
In the case of the major e-commerce platform, Chen Yingjie chose its own e-commerce platform from zero, and wants to catch up with the peers in this way. Why is it easy? It is better than the 100-meter run, others are running half, you just start, then what do you think you can exceed others? “Yao Point 100” was established quickly, and the reverse stage was fast. After a few months of time, because the funds were issued, bankruptcy was finally announced. And the savvy tpg, I have already left after making money. Daphne missed the key phase of e-commerce development, which also stepped into the beginning of fading.
In 2013, Daphne’s business situation was terrible, and even a loss of losses. Under the wave of fire development in the e-commerce platform, Chen Yingjie is clear that it is not only available. Under the road, he chose to cooperate with the electric business platform such as Taobao and returned to the mainstream wave.
On the road of e-commerce, Daphne’s starting than others, the middle of the road, so even if it returned to the right track, it was difficult to save the previous losses. In the process of the development of these years, Daphne’s sales have fallen all the way. In 2014, Daphne’s net profit fell 120 million. In 2015, the situation was worse, the turnover fell by 19.1%, and the loss was as high as 320 million. With the decline, there is Daphne’s share price and market value. In 2015, Daphne’s market value was only $ 585 million, this is only 3% of the brilliant period.
The BMW of the women’s shoes will not be cleaned after going to the downhill. This kind of madness, even if there is god, I am afraid it is difficult to save Daphne. In 2019, Daphne is still struggling in dying, but the loss amount is still up to HK $ 1.07 billion. In 2020, under the impact of new gown pneumonia, Daphne’s loss was worse, and the stock price fell all the way. From 2015 to 2020, Daphne lost to HK $ 4 billion in just 5 years. Although I have been self-rescue, I have never rushed to the situation.
In addition to missing the key period of e-commerce development, there is another reason for Daphne to go to this point today, that is, the position of the brand. At the beginning of the founding, in order to open the market as soon as possible, Daphne chose precise positioning and quickly got the women’s consumer market, and has always been a high-end women’s shoes route. But since I took a downhill road, Daphne’s market positioning has also become ambiguous, especially in terms of price. Since the development of development, Daphne is often substantially discounted and sold, and has become a cheap shoes that have been sold by many women, so that many people have questioned Daphne’s brand. For those old customers who love for many years, it is difficult to accept when seeing Daphne women’s shoes that are sold by the street. BMW image of the women’s shoes in one hand, in such a discount sales process, the price positioning is gone, means that the brand is going to develop low-cost development, the public’s interest naturally disappeared. Original Daphne wants to improve sales in this way, returning to funds, but it is not as definitive, even exacerbated the seriousness of the problem.
One step is wrong, step by step, Daphne’s choice seems to have not been. Under the circumstances of continuous losses, Daphne has a serious financial issue. So, in August last year, the company announced a full-scale news of the high-end brand entity retail business, and then closed its brand business sales point, and intended to transform to light asset mode. Daphne in the peak, the number of official stores in the line is nearly 7,000, but at the end of 2019, only 360 in the official store in Daphne’s offline. And in this year, Daphne’s physical store has only 170, and the online store is only about 250. Such options have not been subject to some extremes. Although the online sales industry has developed rapidly, but since the year, Daphne has still been sold in the line in the store, and the public’s consumption is also inadvertently inadvertently. At the most difficult time, Daphne is too difficult to give up his own advantages.
The same is to do women’s shoes, although Dadong is a parity route, the development is better, what is the reason? After the e-commerce industry, Dadong is in the position of the physical store, there is also a place in online sales. But Datong is very clear about where his own advantage is, although the line has low operating costs, but the competition is more intense. Because the mainstand is cheap, it is the least good product on the e-commerce platform. If it is too focused on the online sales, then you will go to the dead end. Therefore, in recent years, Dadong still pays attention to entities, when Daphne is crazy, Dadong expands the store in the madness, successfully sweeping offline women’s shoes affordable area.
Although two brands are different, their advantages are physical stores, and under the wave of e-commerce industry, Dadong is more important than its own advantage. And Daphne is too extreme, at the beginning, it is disdainful to do line development. These two years have thoroughly abandoned the store, intended to focus on the development, which also leads to the situation of Daphne today.
After two years of continuous closing, Daphne suddenly realized the importance of the online store this year. Recently, Daphne said that the company has developed the relevant plan, and will expand the offline shop. I have turned off, closed, Daphne is so tossing to tell what?
Daphne’s fallen, the most critical reason is not because of the rise of the e-commerce industry, but a mistake choice. It is already in the era of Daphne, and if you want to renounce the original throne, it is impossible.
What should Daphne still survive? Can the path of transformation go smoothly? let us wait and see.
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