The loss of 4 billion yuan in 6,000 stores and the decline of Daphne, the "king of shoes", are all caused by the red face

"The spring night is bitter and short, and the day is high, and the king will not be early from now on"

never expected such a plot to happen in the 21st century, Chen Yingjie, the ruler of Daphne, fell in love with Han Yuqin, the "Zhang Guoli beloved apprentice", and chartered Sanya Island for her to propose, and 12 Bentleys to welcome her relatives.

Since then, Chen Yingjie has spoiled his wife, the company is also casual, and the career is also casual, focusing on Han Yuqin, and even customizing diamond-encrusted high heels for his beloved wife, a pair of tens of thousands of costs, who knows that in the end it has become a stall that no one wants for 5 yuan, until then Chen Yingjie realized that his company was full of holes, but everything was too late.

So why can such a person become the president of Daphne? What is Chen Yingjie's current situation?

Taiwan's road to footwear OEM

The Daphne brand was founded in the nineties of the last century, and Chen Yingjie just caught up with the good time, and the founders were all his relatives, so in the end the family business fell into his hands.

In the early 80s of the last century, the global economic pattern is undergoing profound changes, Taiwan's manufacturing industry is booming in this wave, Chen Xianmin's wife comes from a shoemaking family, and his family has been deeply involved in the field of footwear manufacturing for several generations, accumulating rich experience and deep industry resources.

This provides a very full preparation for Chen Xianmin's entrepreneurship, he is keenly aware of the potential of the footwear OEM industry, and decisively pulls his brother-in-law Zhang Wenyi to co-founded the "Qiao Zhi Enterprise" and devotes himself to the footwear OEM business.

Zhang Wenyi was born in the Wang clan of Shalu District, his father ran a food factory, a flour mill, a rice mill and a hospital, and Zhang Wenyi himself also ran a shoe factory in Shalu, with a certain industry foundation and network resources, so the two hit it off, with the family's shoemaking skills and preliminary insight into the market, started their entrepreneurial journey.

In the early days of the business, the shortage of funds and the instability of orders were the primary problems they faced, in the small factory, the equipment was poor, and the only few workers were busy in the dim light, in order to save costs, Chen Xianmin and Zhang Wenyi often wore multiple hats, both managers and workers, personally involved in every production process.

However, Taiwan's market space is limited, the competition is fierce, the development of the footwear OEM industry is gradually encountering bottlenecks, in the face of increasingly fierce market competition and limited development space, Chen Xianmin and Zhang Wenyi realized that they must seek new development opportunities.

In 1988, when the spring breeze of reform and opening up was blowing through Chinese mainland, Chen Xianmin and Zhang Wenyi keenly seized this historical opportunity and moved the factory to Putian, Fujian.

Putian, known as the "footwear capital of China", has abundant resources in the footwear industry and skilled labor, which provides unique conditions for their career development.

In 1990, a landmark moment came, Chen Xianmin, Zhang Wenyi and Zhang Wenyi's other brother-in-law, Chen Mingyuan, co-founded the women's shoe brand - Daphne.

The name "Daphne" originates from the beautiful laurel goddess in Greek mythology, which means beauty, elegance and nobility, and complements the positioning of women's shoes.

In order to enhance brand awareness, Daphne has invested a lot of resources in advertising, and Daphne is famous for the slogan "Be your own goddess", and many women who love beauty are going to this advertising slogan.

In order to further expand the brand effect of Daphne, they invited well-known celebrities to endorse and place advertisements in major media, for a time, Daphne's advertising was overwhelming, deeply rooted in the hearts of the people, and Daphne actively expanded sales channels, opened stores and counters in major cities across the country, and built a huge sales network.

In 1995, Daphne's parent company, Yongen International, was listed on the main board of the Stock Exchange of Hong Kong Limited, a milestone that injected a strong impetus into Daphne's development, making it run wild on the road of expansion.

Later, in order to inject new vitality into Daphne, Chen Yingjie joined Daphne, but this rich second generation has no talent for business, before taking over the family business, he is a young man who loves music, and he co-founded the "Red Snake" rock band with Ren Xianqi in middle school.

Under the pressure of the family, Chen Yingjie took over as general manager in 1999 and became the helmsman of the family business.

Chen Yingjie fell in love with Han Yuqin at first sight, and after half a year of fierce pursuit, the two held a grand wedding banquet on May 15, 2010, Taichung Jindian Hotel, with hundreds of tables, the wedding was extremely luxurious, 12 Bentley teams, hundreds of millions of wedding expenses, became a hot topic in the entertainment and business circles at that time.

The sweetness of love and the initial change of business

However, everyone never expected that after marriage, Chen Yingjie's investment in the family gradually increased, and he began to be distracted in the management of Daphne.

Daphne's management was also slow to respond to market changes due to Chen Yingjie's distraction, and the brand image and product design began to be out of touch with market demand, and sales showed a downward trend.

Chen Yingjie realized the potential of e-commerce and tried to lead Daphne in the transformation of e-commerce, but made serious mistakes in key decisions, and chose to invest heavily in the little-known start-up e-commerce platform "Yaodian 100".

He thought that this was a bold attempt by Daphne to enter the field of e-commerce, but he did not expect that "Yaodian 100" would collapse due to the rupture of the capital chain, and Daphne not only lost all his money, but also missed the golden period of e-commerce development, and his brand image and market share suffered a heavy blow.

Not only that, in order to please his wife Han Yuqin, Chen Yingjie began to pursue an unrealistic luxury style in product design, and he customized luxurious crystal high heels for Han Yuqin, which were promoted at extremely low prices, resulting in a loss per pair of shoes far exceeding sales revenue.

He even stubbornly demanded that all new products must incorporate princess elements, believing that such designs could meet the pursuit of romance and fantasy among female consumers, but he ignored the changes in market trends, when young people preferred minimalist style shoes, so Daphne's intricate designs of shoes were seriously unsalable, and the inventory was overstocked.

In the case of the company's declining performance, Chen Yingjie's private life also began to be affected, the company questioned his decision-making, and the contradictions between family members gradually surfaced.

The country that the elders worked hard to build was sent into the long history by Chen Yingjie, hoping that Chen Yingjie could realize his wrong decisions and let more capable people redeem Daphne.

Source of this article: Sina Finance "Family Infighting, Three Changes, Losing Stores and Closing Stores...... The Fallen Past of "China's Shoe King" Daphne

https://baijiahao.baidu.com/s?id=1676600526134811673&wfr=spider&for=pc

Xinhuanet "Completely Withdraw from Entity Operation, Is Daphne's "Road to the Internet" Easy to Take"

https://baijiahao.baidu.com/s?id=1676503225260765868&wfr=spider&for=pc

The Paper "Daphne Announces Complete Withdrawal from Physical Retail: A Generation of Shoe Kings Comes to an End"

https://m.thepaper.cn/baijiahao_8898824