Daphne: Joining Together With Direct Camp

The dispute between Daphne and franchisee is getting more and more intense. Mainland media reported that Daphne was "forced to withdraw" from the franchisee's complaint, and some of the franchisees were not renewed.

　　 Direct sales promotions, franchisees under pressure

However, Chen Yingjie, chairman and chief executive of the company, reiterated that the company had no intention of large-scale retreating franchisees, but it would internally rectify and increase revenue and reduce expenditure.

Industry analysts pointed out that Daphne had not heard the news of "massive" reduction of franchisees, but in the first half of this year, the core of the company was Brand direct operation The proportion of shops has increased, so it is expected that Daphne will "slow down" the number of franchisees. In the current economic environment, the retail industry to optimize franchisee structure is "understandable", but we need to pay attention to the company's capital and inventory backlog. Daphne also has promotional activities to reduce inventory this year, so the analyst expects that the group will not increase the scale of "de franchising", which will only worsen the overall inventory level.

It is reported that Daphne's Direct stores have launched promotional activities since August, and they have been hit hard by cheaper prices. Franchisee The business has been complained by more than ten franchisees in Hubei province. The franchisee pointed out that the move was like a forced withdrawal from the franchisee. The franchisee also said that it had not yet received the renewal notice. Some of the more cases that the contract had not yet expired was stopped by Daphne. Similar cases occurred in Henan, Chongqing, Zhejiang and Shaanxi.

　　 Chen Yingjie: complementary relationship

Chen Yingjie thought earlier that the relationship between Direct stores and franchisees was complementary, so it was impossible to give up franchisees. Brand strategy In the important cities of the mainland, direct or franchised stores will be adopted, but in remote areas it is necessary to expand business by franchise stores.