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Chengdu'S Overseas Fast Growing Brand Rises, Daphne Stores Shut Down

2014/7/22 8:32:00 33

> the world's < a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > a target= "_blank" href= "_blank" > shoes < < hat net "Xiaobian to introduce the strong rise of overseas fast brand, Daphne stores 85 stores decompression.

July 20, 2014, Daphne store in Chunxi Road sold shoes at a low price to reduce inventory.

Daphne International (00210, hereinafter referred to as Daphne) recently issued a notice. In the first half of this year, the core brand business declined by 5.5%, closing 85 stores, 18 of which were direct stores.

"in the operation of brands, some stores will not be ideal if they fail to operate. This is not what happened recently."

Huang Yingzhe, director of public relations of Daphne, said in an interview with our reporter on 21 th.

Not only is Daphne in the shop, Baleno, Metersbonwe and other local fashion brands have been closed shop, behind it has the impact of ZARA and other fast fashion, and high inventory pressure.

Daphne announced in July 18th that the sales of its core brand business (Daphne and shoe cabinet) in the two quarter were down 2.4% compared with the same period last year, plus 9.5% in the first quarter, and 5.5% in the first half of the year.

Chengdu Daphne new product less sales less than half

July 20th and July 21st, the West China Metropolis Daily reporter visited Daphne shop and found that the new model was much less than in previous years.

On the morning of P 21, in the Daphne store of Shu Han Road in Jinniu District, Chengdu, the words "summer clearance" and "big sale" stuck to the outer wall glass were very conspicuous. After entering the shop, reporters found that the old shoes with "processing price of 100-200 yuan" occupied about 2/3 stores, with less new ones.

wealth and another underground shopping mall, the salesperson of Daphne direct shop told reporters, "Daphne's new products are obviously less than in previous years."

Xiao Qian, who lives in Chengdu, used to like Daphne very much. She just graduated from university. Now she seldom visits Daphne.

"When I was in high school, I thought Daphne's shoes were very fashionable. Now Daphne's style always seems to be out of fashion. Many shoes are outdated."

reporters visited Daphne stores in many business districts in Chengdu. Besides the three stores in Chun Xi Road, the business of other business circles was rather deserted, and the shopping malls were worse.

reporters observed half an hour in the shopping mall of Yanshikou Hualian Commercial Building, Carrefour of Tai Ye Road, and fortune one city. Although there are 60 percent off discounts, there are not many customers visiting Daphne, and few consumers are buying.

"New shops will be opened, and some stores will be closed if they are not running well. This is not what happened recently."

Huang Yingzhe, director of public relations of Daphne, said in an interview with our reporter on 21 th.

For Sichuan area, whether there are newly opened or closed stores, Daphne said it needed to check and confirm with relevant departments.

"now we buy shoes in our stores, all ages, ranging from 15 to 50 years old," the salesperson of Daphne fortune store has revealed that the sales performance of last year and this year is not good because of the unclear positioning of the brand. "In 2012, there will be a turnover of around 100 thousand yuan a month, only fifty thousand or sixty thousand this year."

< a > href= > //www.sjfzxm.com/news/index_c.asp > fast fashion > /a > brand China has broken thousands of shops.

not only is Daphne in the store, Baleno, Metersbonwe and other local fashion brands are going to inventory, streamlining the store.

there were 4 storefront Baleno on Chun Xi road. Now there are only one.

According to the results released by Baleno's parent company, the 465 stores in mainland China and Hong Kong, Macao and Taiwan have been closed in the past year.

As of the first quarter of 2014, it closed 388 stores in the mainland, accounting for 10% of the total number of stores, and the number of salespersons also decreased by 3782.

in addition, Metersbonwe's 2013 annual report shows that the company has nearly 5000 direct and franchise stores nationwide, a decrease of more than 200 compared to 2012.

Not long ago, the largest flagship store in Beijing on the Wangfujing pedestrian street was also bleak.

The annual report shows that the company's operating income in 2013 was 7 billion 890 million yuan, down 17% compared to the same period last year.

Compared with P, as the first fast fashion brand in Chengdu, since 2009 March, UNIQLO has opened 15 stores in Chengdu. Nowadays, Chunxi Road, UNIQLO, ZARA and H&M have all won the gold port, but local brands have been closed to win the breathing space.

statistics show that as of the end of last year, ten fast fashion brands opened nearly 1000 stores in China.

Among them, UNIQLO opened 82 new stores, H&M opened 62 stores, gap opened 28 new stores, ZARA opened 18 new stores, MUJI opened 42 new stores, C&A opened 9 new stores, and U&R opened 9 new stores.

Inventory is too high, supply chain system has loopholes

the reason for the decline of performance is that Daphne's announcement shows that the crowd in the street store in May was affected by widespread rainstorms and flooding and dragged down the overall sales in the two quarter.

In addition, the announcement also pointed out that the main operating costs, such as the pressure of rent and staff costs, will further affect the operating profit margin of Daphne's core brand business.

Less than P, as early as last year, Daphne had already closed its stores, and the number of stores was reduced by 50 in that year.

The number of shut down in the first half of this year is 85 times 1.7 times that of 50 last year.

In this way, Daphne's closing speed is accelerating.

analysts pointed out that the extrusion of foreign brands is the external force that these local brands fall down, but the common weaknesses of these local brands, such as extensive management mode and closed management mode, backward business structure, lack of product brand building and high inventory, are all the internal factors that overwhelm these local fashion brands.

Du Yanhong, a researcher at CIC's retail industry, said the biggest difficulty facing Daphne is that its inventory is too high. Inventory reduction has become the top priority of this year.

In addition, there are still some loopholes in the supply chain system of Daphne, and the market demand is not strong enough, resulting in too much backlog.

Despite the vigorous implementation of direct outlets, the operation is still not optimistic.

Ran Lichun, President of Sichuan commercial chain association, said that not only Chengdu, fast fashion foreign brands are also expanding rapidly in major cities across the country.

The advantage of local brands is mainly that they have a deep understanding of clothing consumption in the domestic market and a more popular trend. At the same time, the sales network resources built by local brands and local brands over the years should be good at expanding into the three or four line cities that foreign brands do not yet have.

reporter's notes .

are all imitating but do not go to stock strength. /p >

when the domestic clothing and footwear brands are deeply in the stock market, fast fashion brands are rising rapidly in the domestic "a href=" //www.sjfzxm.com/news/index_s.asp "clothing market" /a by its weekly rhythm.

There is no doubt that American fashion brands such as ZARA, UNIQLO and other fashion brands have been improving their response speed in the past years, including Baleno, Daphne and other local fashion brands.

reporter noted that compared with the previous 50 percent off sales promotion, ZARA's anti season promotions reached 70% this year. The men's winter jacket with a price tag of 799 yuan is being cleared for 299 yuan.

Retail industry experts believe that dealing with inventory has always been the absolute advantage of fast fashion brands calling for domestic clothing brands. Short cycles, many styles, few quantities, and discounted prices are all ways for fast fashion brands to avoid inventory.

The local fashion brand is always hesitant in handling inventory. There is no courage to break arm to survive. It is also a try to discount, first 20 percent off, no more, 30 percent off 50 percent off...

However, this process will only lead to more and more stocks, and goods will become more and more obsolete.