Daphne's decision making error is in trouble

IT Business News Network (reporter Murian) recently, the shoe Enterprise Daphne International Holdings Limited has fallen in recent days, the value of a large decline. In late August, was sent to Shanghai headquarters in the drastic layoffs of nearly 300 employees, the electric business Department of the three major executives are unfortunately cut, the move was interpreted by many in the industry as Daphne gave up the signal of the electric quotient. And Daphne responded that the new director of the Electric Business department has been in place, Daphne will never give up the electricity quotient, but in the future or will be the electric business Operation strategy Adjustment. It is understood that at present Daphne is sweeping reform, will be from the joining mode to direct business model.

"At present, offline brand transformation of the electric power provider has not been particularly successful cases, are groping and continuous development." "China E-commerce Research Center analyst Mo Dai told IT Business News network reporter," It is worth considering, whether to do offline or online to give users a good shopping experience. If only the electric business platform as a low-cost dumping platform, then a short period of time will have users, but not long. ”

For Daphne transformation of direct business model, the industry believes that this is the transformation of Daphne's business strategy, but Daphne plate too large, this approach is too hasty, too risky, if the smooth transition, the prospects will be more optimistic. However, if mishandled, it can have a negative impact.

Daphne Electric Business Investment Yao Point 100 Transition Direct Battalion encounter resistance

Daphne's decision-making error is in trouble investment Yao Point 100 is a mistake in decision making

August 22, Daphne layoffs news spread. According to the news, Shanghai headquarters was exposed to nearly 300 employees, the electric business department 3 executives were cut. Daphne has been on the road to the electric business, once brilliant, now on the failure.

Industry analysts said that from 2006 "electric shock" to mass layoffs, Daphne's business path for the general "outsourcing-net sales-vertical electricity dealers." From the rise into full bloom, Daphne spent 5 years, and from the heyday to the decline, Daphne only 10 months.

According to media reports, Daphne in 2006 "Electric Shock", set up a special E-commerce company in 2009, but the business has not picked up. Daphne International holding company CEO Chen Yingjie, Daphne's electric business has been a lack of precise positioning of the strategic planning, in 2010 before the lack of a more executive Power Corps team.

2010 years later, through the "whole network Marketing" approach, Daphne changed from the 2006 has been the use of all the electrical business complete outsourcing mode, through with including only goods will, good music buy, Amoy, name shoe storehouse, Jing Dong, Xun net to sign a dozen website to sell, underwrite or page link contract, although "do not spend a penny promotion fee" , but sales rose rapidly, the electric business has achieved millions of yuan profit.

In addition, in May 2010, Daphne Strategic Investment Yao Point 10.03 billion yuan, accounting for 10% shares. Yao Point 100 is the focus of the development of Daphne electrical business object. Yao Point 100 after getting Daphne tens of millions of investment, with its low-cost strategy, in the initial market for the business of the business, but the good momentum for only a few months.

In September 2011, through the "net sales" success of the Daphne Electric Corps team in charge of Daphne electronic Commerce general manager Wang Yufeng left, 1 months later, the replacement of Wang Yufeng Yao Point 100 Strategic Planning Department general manager Chen Bingwen also leave, after the Daphne Electric Business department will have no top supervisor, and business also with the stagnation.

And, since 2011, Daphne began to control online distribution channels, close jingdong, good buy, Amoy distribution channels.

Still, Daphne is trying to increase the online share by building up the website. The revision of Daphne's official website has not yet been completed since April this year. At this point, Daphne Electric dealers have been unable to curb the continuous decline in performance. It is said that the reason why Daphne board Chairman Chen Yingjie did not completely abolish the electric Business department is to maintain a basic "life support system", that is, to maintain the minimum size of operations.

It is understood that in 2011, Daphne Online Business total sales of about 90 million yuan, and 2012 sales target of only 70 million yuan.

In the first half of this year, same-store sales increased 17%, while the second quarter of the same-store sales growth of 14%, there is a slowing trend. This year, cat store sales accounted for Daphne's total sales of 80%, for this year's sales estimates Daphne is not optimistic.

For Daphne transformation of direct business model, the industry believes that this is the transformation of Daphne's business strategy, but Daphne plate too large, this approach is too hasty, too risky, if the smooth transition, the prospects will be more optimistic. However, if mishandled, it can have a negative impact.

Meanwhile, this year, the 100 of Daphne's investment has been closed down, arrears of many suppliers, the boss has fled to Taiwan with money.

It is noteworthy that, although the sales of Daphne electric business is declining, but has been in a profitable state. In this case, the layoff is due to the failure of Yao Point 100, a heavy blow to the Daphne electricity business. This kind of blow is not in the money, but psychologically, some senior level has already lost the confidence to the electricity merchant business.

Aramus, deputy director of China Electronic Commerce Association Policy and Law Committee, told it Commercial News network reporter, the current electricity business is depressed, the elimination rate is improving, although the market expands, but the competition is increasingly fierce. At the same time, consumers are more and more mature, the price of the demand is very sensitive, there are more options. Daphne layoffs may be a good thing, which means that its electric operators are too expensive to operate and have to cut costs. After such an online adjustment, perhaps better development of the line.

Mo Dai Green pointed out that the fault of Daphne management decision-making and lost led to the plight of Daphne electric business today, and then is Daphne positioning is not clear, lack of e-commerce experience of the team; In addition, Daphne devoted most of the resources to Yao Point 100, is a mistake.

Daphne transformation Straight Camp is desperate to lose cooperation fair

Daphne said that the future development direction of the main channel, the current stage will not accept new join. This move by the franchisee's objections, many Daphne franchisee in a "petition" signed, joint to Duff NI Company to express their demands, hope the company to protect their legitimate economic interests.

In the petition, the franchisee for the "Tanabata Festival" launched a week before the full promotion of 99 yuan sales activities, the demand for Daphne's promotional price can not be lower than the franchisee cost price.

And, franchisee requirements of the company no term renewal, that the company should be in accordance with the previous commitment to the "Life of the cause of cooperation and mutual benefit." ”

In this respect, Daphne related responsible person said, indefinite renewal is impossible, at this stage will not accept new joining application. For the existing franchisee to renew the issue, the company will be depending on the business management capacity of individual franchisee, local market demand and other conditions for comprehensive consideration of the decision.

Aramus that if the contract expires, there is no problem with the renewal, Daphne's practice does not violate the law.

But things did not end, the morning of August 30, 17 franchisee will be the company "" to the Shanghai Trade and Industry Bureau and other relevant departments, the Industry and Commerce Department said that if the jurisdiction, the case will be prosecuted.

Daphne responded that the company is in consultation with the franchisee, in adhering to the company's direct store development model, will consider in the transition period with a number of specific measures and policies to the franchisee to some degree of compensation. For the franchisee's demands and problems, the company has a dedicated supervisor to respond properly, franchisees can seek assistance to negotiate the best solution.

Every enterprise transformation must have a period of fluctuation, there are insiders pointed out that in fact, Daphne transformation straight camp, those who made money to join the most dissatisfied, because after all, their own interests damaged. Now Daphne's handling of this interest will be key.

Lian Shang Network special commentator Lin Xiangyu said, in fact, the real will be affected by Daphne in addition to join other partners, "and the company's transformation at least now is not the time."

Lin Xiangyu that, enterprises feel that the chain of direct stores more strong, all the information, brand, promotional activities can advance together, "but these three or four-level city franchisee, want to immediately get rid of not easy, but also lose cooperation and fairness."

Mo Dai Green told IT Business News network Reporter said: "I think Daphne transformation straight camp has a desperate feeling." But I have to say is a try, the result is hard to say. Daphne is now just hoping to bring chance to it through this transformation. ”