The Rise And Fall And Self Rescue Of Daphne Over The Past Six Years In The Past Twenty Years

In the past thirty years,

After more than twenty years of rapid growth, it has been falling from its high position.

And it has been six years since entering the cold winter. The situation of Daphne is still not improving.

At the end of 8, Daphne International released its interim results in 2018.

As of June 30, 2018,

The turnover was HK $2 billion 259 million, a year-on-year decrease of 17.33%, and net profit deficit of HK $493 million, an increase of 135.19% over the same period last year.

In the first half of this year, same store sales fell 9.1%, closing 416 sales outlets.

In fact, when Daphne reached its peak in 2012, its performance began to decline year by year.

Data show that in 2013, Daphne achieved HK $10 billion 447 million in revenue, but fell to HK $5 billion 211 million in 2017.

Earnings are also deteriorating.

In 2015, Daphne recorded a loss of HK $3.79 billion.

2016 and 2017 were HK $819 million and HK $734 million respectively.

In the same period, Daphne began to close its stores on a large scale.

From 2015 to 2017, there were 805, 1030 and 1009 outlets in Daphne respectively.

At its peak, Daphne has nearly 7000 stores nationwide, with a market value of 17 billion, and now only 3173 stores, with a market value of less than 520 million.

What happened to Daphne, who once was the king of women's shoes, from eight sides to eight wastes?

Transfer to mainland enterprises to grow fast

In the early 80s of last century, Zhang Wenyi, one of the founders of Daphne, took 5 workers from scratch and hired a factory in Taiwan to make shoes.

In 1987, Zhang Wenyi pulled his brother-in-law, Chen Xianmin, and the two started a Prime Success International Group Limited in Hongkong. They produced and sold footwear products to the United States early.

The following year, due to the unbearable increase in land and labor costs in Hongkong, at the same time, the tide of reform and opening up swept across the whole country, and the business situation in the mainland was good.

After the opening of the two sides of the Taiwan Strait in the late 80s, Zhang Wenyi pferred the factory to Putian, Fujian, where the focus of production shifted to the mainland.

Seen in 1990

After the huge potential of women's shoes, Zhang Wenyi and Chen Xianmin and his wife Chen Mingyuan founded the brand of women's shoes.

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Daphne came into being. Its name comes from the goddess in Greek mythology.

In the pursuit of Apollo, who was shot by Cupid's arrow, Daphne became a laurel tree (Daphne also has the laurel goddess) to save her daughter.

Zhang Wenyi's romantic name behind his name is also a portrayal of his own feelings.

Unlike BELLE, a high-end line, Daphne's positioning is popular.

Scarcity of women's shoes

As well as the age of material abundance, this "parity fashion" soon caught the hearts of consumers.

"It was really unintentional. In 1992, it was only to solve the problem of export stock that it turned into the domestic market.

It can only be said that we got stuck early, and the ads were also fierce at the beginning, and our shoes were really comfortable and fashionable. The "noble and inexpensive" price strategy worked.

Zhang Wenyi answered in an interview with the media.

However, it is understood that Yong wing group's investment in the mainland just 15 million yuan, Daphne women's shoes launched the first year advertising budget of up to 10 million.

So it is "unintentional", but in fact, it is "very careful" in business.

For example, the after-sales service of Yong en emphasizes that the three package policy that guarantees "repair, replacement and refund" within three months will make mainland consumers feel very comfortable.

The vast market in the mainland has brought many Taiwanese businessmen a dream come true.

And as Zhang Wenyi reminded, "here is not gold everywhere, but by diligence, skill and system, we will succeed in doing business."

He used two words of "gamble" to describe the spirit of Yong en group.

Whether the mainland or Taiwan cadres, at 6:40 every morning to get up, 7 o'clock to open breakfast will be reported, busy until 10 in the evening to rest.

"We are very strict in management, and we are dismissal if we do not do well."

After the early success, in 1995, Yong en was officially listed on the main board of the The Stock Exchange of HongKong Limited.

From then on, the expansion of the group is more rapid, and the domestic footwear and export have become the two major focus of the group.

The Daphne of the three people went through a glorious period of time, but there was a crisis behind the prosperity.

Because Daphne is still dominated by wholesale, behind the rapid expansion, huge inventory pressure has been created. Channel access is limited and brand premium is too small.

In order to ease the pressure on inventory and better understand the needs of consumers, in 1996, Daphne changed its wholesalers from women's shoes to opening their own stores.

Zhang Wenyi analyzed the advantage of opening his own store: "not letting retailers control and being led by the nose". In the past, business was good for retailers to purchase, but at the end of the season, they were afraid they would not buy more goods, and many of them could not be dealt with.

"Sell now, the price can be completely controlled by yourself."

"Diligent" Daphne has identified the business model and expanded it in the form of street stores and franchises.

At that time, people's consumption habits remained online, while street shops were different from shopping malls, which was more conducive to building a complete and clear brand awareness.

Daphne's target audience is also very clear, divided into "D18" and "D28" two series of products, targeted at young women and mature women.

But obviously in the period of strategic adjustment.

It has not been able to adapt quickly.

At the end of the 90s, Daphne began to be in a serious downturn. Due to the outmoded style, low price and long discount, Daphne has become a discount brand in the eyes of consumers. A group of top managers including the general manager and sales director of the domestic sales department are jumping.

Daphne faced a major crisis at its early stage.

Taiwan enterprises often use ties of kinship as l to manage enterprises, and Daphne is no exception.

In 1999, Chen Yingjie took over as general manager of Daphne.

The 29 year old general manager, who was still on the sidelines of the old employees, showed enough courage and self-confidence to replace Daphne's logo with Chen Xianmin.

"I trained him at that time, but in private, I admired the new logo."

In retrospect, Chen Xianmin praised Chen Yingjie who was self asserting at that time.

Subsequently, Daphne group gradually developed diversified businesses.

In 2002, Adidas was granted the right to retail in China, and he was fully responsible for the retail development of the product in China.

So far, it also has AEE, dulala, AMEI, ALDO and other footwear, clothing brands and access channels.

At that time, Daphne judged that with the emergence of more and more communities, public consumption habits were moving from department stores to community business circles.

In order to further develop the market, the group launched a new format "ShoeBox" in May 1, 2004.

Entering the twenty-first Century, China's rapid economic growth has also provided tremendous opportunities for the development of many enterprises.

Through a series of reforms, Daphne has continued to grow rapidly.

At its most brilliant moment, Daphne claims to sell nearly 50 million pairs of women's shoes every year.

According to the twenty-first Century economic report, at the peak of sales in 2004, almost every five pairs of shoes sold in the mainland came from Daphne.

In 2006, Daphne copied its successful operation experience in the mainland to Taiwan, set up 30 stores in Taiwan, and hired the popular star combination S.H.E and singer Rene Liu as spokesmen.

The former endorsement of the 18 year old customer group -30 years old youth shoes, while the latter endorsed the 30 year old -45 years old crowd of classic shoes.

In the age of "sour sweet and sweet is me", S.H.E's "laurel goddess" also sang together.

"Like yourself, performance in the end" is the core spirit of Daphne's brand that has been used so far.

As a Taiwanese funded enterprise, Daphne had a different design style from mainland China at that time.

Independent commentator Ma Gang also observed that "the brand of Taiwan and Hongkong came from Southeast Asia and other places, and the impact on mainland China is more obvious."

So, in the hearts of girls who are still in puberty, this brand has its own status.

In order to always maintain the leading position in women's shoes market, the products have a certain texture and streamline modeling, and wing en group has specially invited designers to help Italy.

Basically, Daphne's women's shoes have a certain taste and are very similar to those imported from abroad.

At that time, the price was "a little expensive and not too expensive". Taking into account the needs of beauty and fashionable women, the hearts of most consumers were captured.

Good development strategy adjustment and brand positioning and other factors.

It occupies half of the women's shoes market outside BELLE, and helps Daphne survive the financial crisis in 2008.

Wing on international also changed its name to Daphne International Holdings Ltd in this year.

With the success of Daphne's chain operation mode, the expansion of Daphne stores is also increasing rapidly.

The total number of stores grew from 739 stores in 2003 to 6881 in 2012, and increased by 9 times in ten years.

Between the fastest 2008 and five years in 2012, nearly eight hundred Daphne opened each year.

At that time, almost every walk street in major Chinese cities could see the shape of Daphne store.

In 2008, Daphne also published a successful Daphne model, and confidently shared the business philosophy with the imitators.

In 2012, Daphne's turnover amounted to HK $10 billion 529 million, and its controlling shareholders accounted for HK $956 million and market value of 17 billion.

At that time, Daphne had boundless scenery.

Runaway management

However, behind the Daphne's infinite scenery and the trend of the tide, there are potential internal crises in the three generation's inheritance. This is beginning to affect and restrict the development of Daphne.

With the maturity and expansion of Daphne in China and even in Asia, Zhang Wenyi gradually pferred management to his children.

In 1996, he founded Dayu food company in Taiwan, and engaged in food processing and manufacturing.

Due to the large turnover of funds in hand, Dayu food company soon became unique in Taiwan.

However, when Zhang Wenyi was familiar with capital operation, he seemed to forget his original intention of doing business and began to covet the great benefits of capital operation.

According to Taiwan media reported on August 6, 2007.

Zhang Wenyi, the founder and former legislator of the women's shoes brand, was sentenced to one year's imprisonment by Taichung high court because he was accused of co operating with Ceng Zhengren, former president of Guang San group, for the 9 billion 200 million yuan NT $assets of.

In addition.

In order to avoid the risks brought by family businesses, Daphne introduced the 550 million yuan investment of private equity investment TPG from 09 to 15, and achieved "de familial" to a certain extent in the board and executive level.

Although the addition of the new group brings Daphne a standardized business operation mode and extensive operation space, problems also arise.

"They brought a lot of new people in, and what CXO," Chen Xianmin said, "they are not just shoes, but just a mouth, so that the people inside write the report every day, making our employees somewhat unbalanced."

In 2011, Chen Xianmin, who led the work of Daphne group, retired. The handover baton was initially handed over to Chen Yingjie.

Since then, Daphne's first generation of founders has come to an end.

At this point, Daphne began to become complex in the face of internal and external circumstances, to a certain extent, led to Daphne decline.

"If I could come back again, I would probably do ten more years to retire."

In an interview with Shanghai's interface news, Chen Xianmin said he had some reluctantly to speak.

At present, he lives in his old home in Taiwan. He writes books every day and talks around the world.

"The introduction of new investors, big changes in blood and big adjustments can only mean advantages and disadvantages.

In fact, many of the problems now began from the pformation at that time.

In 2011, Wang Chao, who resigned from Daphne's administrative post, told the new financial Observer newspaper that from 2009, Daphne began to face the strategic pformation of overall restructuring and business. Whether it was thinking about direct operation or joining, or the adjustment and abolition of personnel, it had foreshadowed that time.

Daphne has not only the friction of the old and new groups in the group structure, but also the conflict in the similar direction.

Chen Xianmin had a lot of incomprehensible things about Daphne after his retirement, such as Daphne's "discount" strategy in the face of inventory pressure. He thought he could not explain to shareholders. Daphne adopted a safe way to extend the crisis. In 2016, for instance, Daphne began to invest in a draft entertainment program called "bee girl team". It also started a girl fashion magazine "vivi Meimei" with Japanese publishers.

It didn't work much at all, and the TV program ended up losing 26 million yuan.

"You are distracted. If you are in a very good business today and your team is very strong, there will be no problem.

If your team is not very strong, you will have problems.

Chen Xianmin interpreted this behavior as the head of the time, and Chen Yingjie could not put aside his entertainment dream.

Chen Yingjie worked as a band when he was young, and he was a good friend with Richie Ren.

"It's a pity that he was not there at last," Chen Xianmin said.

In addition, around 2012, Daphne began to adjust channels.

To ease operating pressure,

At that time, it decided to reduce the proportion of franchising and launch the terms of "unilateral non renewal", and even adopted a high-pressure policy for franchisees.

This practice has triggered a joint protest among the franchisees across the country, accusing it of "killing and killing".

In November 2011, 46 Daphne franchisees gathered in Daphne Changsha Distribution Department to protest the above provisions.

At the end of 8 2012, 17 franchisees reported Daphne's alleged violation to the Shanghai Bureau of industry and commerce.

In the same period of profit margins and average selling price decline, Daphne online business effect is poor, Daphne's focus of return to offline business.

Eliminating intermediate links, speeding up turnover speed and improving storefront operation efficiency have become an important means to improve performance.

This is also an important reason for Daphne to "survive" and "sink" directly.

However, the process of "de Affiliate" has a greater negative impact on Daphne.

Chen Xianmin also believes that Daphne is giving up the opportunity to get in touch with consumers. "Where is the profitable shop?"

And it can be used as a way to eliminate inventory, I can not sell well or relatively poor inventory, you can get five level six tier cities, for them is still new.

Zhang Zhiqiao also heard Chen Xianmin's dissatisfaction, but he had different opinions.

Zhang Zhiqiao is executive director of Daphne, and his brother Zhang Zhikai took over Daphne's board chairman in May last year.

The brothers became the third generation leaders of Daphne, and their father was Zhang Wenyi, one of Daphne's founders.

"Investment entertainment business should also be looking for other businesses to do security at that time. Franchisees did not do well for a period of time."

Zhang Zhiqiao said, "I don't think franchisees are going to stock, but let them go deeper into the community to manage."

He stressed that Daphne did not adjust franchisees on a large scale.

However, Daphne's annual reports show that the proportion of group franchisees has been adjusted from 23% in 2011 to 8% in 2016.

The lost electricity supplier

The development of domestic enterprises in the past decade or so is inseparable from a topic -- the electricity supplier, and Daphne has been swaying and wandering for several years on the road of the electricity supplier.

In the early days of Internet popularization, Daphne began to try the business of e-commerce in 2006. When it entered Tmall, it also set up a self operated e-commerce provider.

In 2009, Agel Ecommerce Ltd was set up to provide online funds and operate women's shoe products.

By 2010, Daphne signed a consignment agreement with dozens of websites such as Jingdong, Holle, vip.com and so on. The electricity supplier's performance has been able to achieve 2 million monthly, and is in the forefront of footwear industry.

However, soon, Daphne management decided in 2010 to invest in e-commerce platform with Baidu, "Yao point 100".

According to Chen Xianmin, in order to fully support the development of 100, Daphne has squeezed the development of its own e-commerce business.

And closed Jingdong, Le Tao and ho Le buy and other advantages of distribution channels.

However, Daphne invested 30 million of the shares in 10% of the "Yao point 100" project, and soon ended in failure.

Subsequently, electricity business accounted for only 5% of Daphne began to lay off staff.

In September 2012, media reports reported that more than 40 of the 100 people from Shanghai headquarters were from the e-commerce sector, resulting in a sharp reduction from nearly 70 to 30.

"It can only be said that the remaining customer service personnel, image processing personnel, basic data maintenance personnel, I think Daphne basically gave up e-commerce business."

Speaking of the status quo of the team that had worked, Chen Gang was filled with helplessness.

After the failure of the "Yao point 100" project, Daphne's electricity supplier business was once in a state of stagnation. It was not until 2014 that it paid attention to the development strategy of the electricity supplier. In the 2014 and 2015 double eleven, it won the first prize in the category of women's shoes.

However, electricity business accounts for less than 1/10 of the total sales of the group. Daphne group said its growth could not offset the loss caused by the drop in the store's passenger flow.

When the electricity supplier started to become popular, more online competitors came in.

A large number of brands for consumers to choose, overseas purchasing and Hai Tao are also taking away Daphne's share.

According to Amazon's "2016" cross border electricity supplier trend report, clothing and footwear are the most popular category among Chinese consumers.

The brand price of Daphne's online sales is mostly in the range of 100-200 yuan, and the relatively low price is exactly the point of competition for sellers on Taobao online.

"

The frustration of e-commerce business is related to its positioning, strategic planning and team execution.

Mo Dai Qing, an analyst of China Electronic Commerce Research Center, said.

In fact, Daphne has lacked precise strategic plan for e-commerce.

Daphne's hesitation made it not succeed in the development of the electricity supplier, but also missed the opportunity to develop the electricity supplier.

At the same time, due to the excessive expansion of offline stores, Daphne has also created new problems in the new economic environment in China.

2012 is a turning point in the history of Daphne development.

With the pfer of consumers to the Internet, competitors in the offline market are increasingly competitive under the rising cost of labor and materials. With the increase in the price of Chinese real estate over the past decade, the rental of shops has become a huge pressure, and the upgrading of consumption has also made Daphne positioned more and more in a dilemma.

Shops that helped Daphne expand the market gradually became a drag.

Daphne staff once said, in some cities, there are 7 Daphne stores on one pedestrian street, and the shops are looting each other.

Shops that spread far and wide also make logistics and management difficult, and communication between groups and stores is not smooth.

Same store sales are decreasing year by year.

Since 2012, Daphne has accounted for almost half of sales revenue. Meanwhile, labor costs have been rising.

From the annual earnings report, the number of employees in 2009 was 21 thousand, and the salary and welfare rate was HK $670 million.

By 2015, the number of employees has decreased to 18 thousand, the salary and welfare has reached HK $1 billion 330 million, and the labor cost has nearly doubled.

More fatal is the inventory problem.

Because of the huge supply chain system, Daphne's production cycle and structure can not be adjusted immediately.

A large number of products are produced every year, which eventually become an inventory product that can not be sold out, and squeeze cash flow and shop space.

The average stock cycle of Daphne jumped from 128 days in 2010 to 188 days in 2012.

Daphne has not yet adjusted its inventory cycle to 2010.

In 2017, the average stock cycle of Daphne will take 198 days.

As of June 30th this year, the remaining stock of Daphne still amounted to HK $960 million.

"Online and offline conflicts are intensifying, and the problem is also focused on the tough and ruthless way of Chen Yingjie's judgment and handling of things at that time."

Chen Gang believes that the difficulties faced by Daphne are due to internal and external factors, but Chen Yingjie's "hard landing" means played a role that can not be ignored.

Because forced to push forward the mode of e-business, Daphne spent five years to push its e-commerce business from its rise to the full bloom. Then, it took almost 10 months to bring it from full swing to near decline. Because of the rapid progress of "going to join" process, Daphne pushed its former partners into the corner, caused the rebounding of the franchisee, and pushed itself into the abyss of public opinion.

Disappointed customers

"Beautiful, no discount, beautiful 100 points".

In the field of Chinese women's shoes, Daphne's slogan has been particularly brilliant.

It is a pity that in recent years, the price of Daphne has been continuously discounted, and beauty has also been discounted.

The development of Daphne seems to be in a vicious circle. Generally, it can only be promoted by a large discount, but this further compresses profits and leads to losses.

On the other hand, after 2015, Daphne began to close its stores to stop losses.

But even after closing nearly three thousand stores in the past three years, Daphne's losses are still expanding.

Daphne's products seem to have not made much breakthroughs in design and function, and can even see the popular elements such as muffin and rivets, which appeared a few years ago.

In 2015, Daphne began to reorganize and strengthen the concept of product lines for complex product systems with expansion.

When all brands began to learn fast fashion mode and catch up with the new rhythm, Daphne's new products only appeared in the season change, a total of four times a year.

"Now brands want to be new two weeks."

Ma Gang said.

Picky consumers and harsh business societies will not give Daphne enough breathing time.

Observer network reporter survey shows that a number of female consumers said Daphne shoes are not good-looking, cheap, but the quality can be.

In recent years, they have begun to choose some international brands or purchasing products, which means that the styles are fashionable and new, the quality is acceptable, and the price is acceptable.

Interestingly, one of the women said, "if you give it away, you should not consider Daphne."

Daphne has tried to save the brand or upgrade it. In 2014, it launched the "high-end brand" and other high-end brands, and invited Gao Yuanyuan to endorse it.

But for a long time, their contribution to business remained below 10% and failed to support group performance in time.

Daphne has a strong desire to upgrade its brand, but it is "decentralized".

Nicholas Tse was hired as creative director in 2014.

In the case of "bad breath" of the original spokesperson, Daphne has hired Gianna Jun and Liu Shishi as brand new spokesmen.

But superficial behavior has not changed much for the downward trend of performance.

Americans Ai Chis and Jack Traut have proposed the concept of "positioning" as the most influential concept in American marketing.

They point out that the essence of modern enterprise management (for customers), and the key to clarify the key to winning a business, the core of marketing, is to win customers' minds.

Obviously, since its establishment, Daphne is the positioning of popular women's shoes, and has been selling for a long time in a large discount.

To break this "qualitative" need Daphne's strong innovation and change and stick to it for a long time.

But obviously, the previous Daphne did not.

"The whole women's shoes industry is homogenized.

Daphne's own brand positioning is not clear, the distinction between brands is not obvious, and management is more confusing.

Xu Xiongjun, a strategic positioning expert, said to China business newspaper.

Zhu Dan Peng, a researcher at the China Brand Research Institute, also said that for Daphne, the most important thing is that the product has not kept up with the core needs and demands of the new generation.

There is no quick response to consumers.

As a result, it has fallen into a cold spell with the brand of BELLE.

Daphne's self rescue

The market faced by Daphne is actually rather complicated, not only with its endogenous factors, but also with the continuous changes of its external environment.

At the channel end, Daphne has thousands of Direct stores and large organizations of agents, and is faced with a complex and changeable market in China and the trend of consumption upgrading.

In addition, the former competitors also faced a cruel reality.

In July 2017, BELLE officially delisted from the Hong Kong stock exchange.

The last annual report before the delisting showed that as of February 28, 2017, BELLE group's revenue was 41 billion 707 million yuan, up 2.2% over the same period last year, and net profit was 2 billion 403 million yuan, down 18.1% compared with the same period last year.

In the mid 2016, BELLE's sales of footwear business decreased by 12.7% compared with the same period last year.

The traditional women's shoes industry is weak, and the major brands have been hard in recent years. They are facing downward trend. They also start the "self help" program respectively, and Daphne is no exception.

Since the beginning of 2017, Daphne has been actively seeking pformation and striving to create a brand image that is more fashionable and young.

In June 2017, led by Centrino fashion brand management company, Daphne cooperated with the brand Opening Ceremony of New York buyer's shop.

The cross-border cooperation between Daphne and Opening Ceremony will start in August 18th at DAPHNE flagship store, offline flash store and national select store in DAPHNE.

Opening Ceremony has always been good at creating the image of "New York Cool girl".

The chief executive official of Centrino said that the joint name with Opening Ceremony is only a start. It does not mean that this style is the style that Daphne will follow after all. After all, pformation is a very long process.

In fact, the popularity of Opening Ceremony in the Chinese market is very low, and after 2010, the street breeze and sportswear appear frequently in the major fashion week.

This fashion movement or sports fashion trend has promoted the sports brand to achieve beautiful results in recent years.

With the promotion of core brands, personalities and culture, the mainstream aesthetic of young people is changing.

However, it is certain that through this cooperation, Daphne will enable consumers to see the action Daphne has begun to change.

The cross-border cooperation is even seen as a comprehensive upgrading of DAPHNE brand.

"I personally like OPENING CEREMONY very much.

In fact, we did a lot of big moves this year. Before this cooperation, we have upgraded the store, and redesigned the brand logo and filmed the new commercials, "Zhang Zhiqiao said." this subversive change is almost new, but we have not deviated from the original intention of the brand, hoping to provide consumers with comfortable, fashionable and cost-effective products.

After taking over Chen Yingjie to form a new generation of Daphne group in May last year, Zhang Zhiqiao set the first goal of the new leadership team -- attracting the most post-90s generation with the most potential consumption.

From the image, products and channels, let the brand look younger and fashionable.

They closed down the loss and poor image of the store and laid out the shopping center.

In June last year, Daphne's first new image demonstration store was set up in the pedestrian street of Huaihailu Road, Hefei. It replaced the crowded shops in the front street with crowded black and white lines, and the original logo was replaced by a more concise English mother DAPHNE.

Analysts say Daphne's reasons for entering the shopping mall are similar to those of most brands that want to innovate.

In fact, China's consumption environment is different from that of Daphne just now.

Consumers no longer use street shops or pedestrian streets as shopping channels under their lines.

They like to eat in the shopping centres of commercial real estate, watch movies and even visit art exhibitions.

Consumption is not "shopping" for them, but "experience".

Daphne is also changing its products, adding sports shoes, board shoes and other items that are more popular among young people, as well as raising the proportion of leather shoes.

They invited Michael Zawadzkl, a designer who worked for Charles Keith, to join the team. They will participate in the international trend conference every year and make popular element reports.

Daphne's attitude towards shopping centers that had been "scorn" developed products also changed.

According to the new team's plan, Daphne will continue to increase the proportion of shopping center stores nationwide this year. The ideal proportion is that shopping centers can account for four to 50% of the total channel.

In all products, fashion, core and basic shoes can reach the 4:3:3 ratio.

"But Daphne can't become a fashion brand completely. Its historical brand value is still cost-effective, so the market can't completely overturn it," Zhang Zhiqiao said.

It may be the experience of working with Opening Ceremony. This autumn they chose to work with mainland artists and Disney.

More importantly, Daphne began to pay more attention to the electricity supplier.

Although the two started late, Daphne's electricity supplier is still the only profitable project in all businesses.

Daphne has even slowed down the discount, hoping to enhance the image of the product.

"This strategic move has put a lot of pressure on our group's sales, especially in the third quarter, compared with the same period last year," Daphne said in its earnings report.

Now Daphne is trying to show all the young fashions first on the electricity supplier. It has set up a special electricity supplier content creative center, which is responsible for the shooting, material and page design of the products, allowing the product elements to have a clearer output on the web page.

At the same time, according to the consumer characteristics of the electricity supplier channel, we will provide special electricity providers, and strengthen the construction of O2O and the maintenance of membership relations.

This seems to have the shadow of Daphne vigorously developing the electricity supplier.

But these changes have not yet been shown in the market, and Daphne still faces huge losses.

"Now that the retail environment is changing rapidly, Daphne must put forth new ideas so that the market can feel their changes."

Ma Gang said.

In the 2017 annual report of Daphne group, Zhang Zhikai wrote: "like all difficult tasks, business pformation and pformation usually bring short-term pains before they generate their earnings."

"From within the enterprise, Daphne is still in the process of conflict between a traditional processing enterprise and the modern enterprise management concept. From a market perspective, Daphne's design ability and its ability to grasp the market still need to be strengthened."

Wang Chao used to work for his old family.

After several years of exploration, Daphne still recorded a huge loss of 493 million yuan in the first half of 2018, and shut down more than 400 stores.

"Change takes time, and there will be bumping. When the enterprise reaches a certain scale, it is difficult to completely adjust."

Zhang Zhiqiao said.

At this point, he agrees with Chen Xianmin: "it takes time to change or reform. Let young people try to do it."