What strategies did Daphne employ to navigate challenging market conditions?

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Daphne's Strategic Initiatives Amidst Market Headwinds

Daphne International Holdings Limited implemented a multi-faceted strategy to address tepid consumer spending and insufficient domestic demand in 2024, focusing on enhancing its market presence, optimizing operations, and rejuvenating its brand portfolio. These efforts resulted in a notable increase in total revenue by 23% to approximately RMB322.3 million and a 43% surge in operating profit to RMB96.6 million for the year ended 31 December 2024. Profit attributable to shareholders saw a substantial 71% rise, reaching RMB106.6 million.
Expansion Across E-commerce and Social Media Channels

The Group leveraged its industry leadership position to strengthen its footprint across various online sales channels. This included bolstering its presence on traditional e-commerce platforms, continuing engagement on social media, and strategically positioning itself within emerging e-commerce platforms. This diversified online approach aimed to capture a wider consumer base and adapt to evolving shopping habits.
Optimization of Offline Operations and Brand Strategies

Daphne actively refined its offline distribution networks, supply chain management, and overall brand strategies. The "DAPHNE" brand underwent a rejuvenation initiative, marked by the appointment of a new brand ambassador and the launch of a refreshed offline store design in September 2024. Furthermore, the introduction of new product categories such as children's shoes and handbags, alongside the "CloudSoft" collection, aimed to broaden appeal and drive sales.
Cultivating Brand Identity and Consumer Engagement for "DAPHNE.LAB"

The avant-garde brand "DAPHNE.LAB" focused on originality and innovative spirit, successfully capturing the attention of young consumers. Collaborations with renowned artists and designers, including a "Quirky Romantic Collection" launched in May 2024 and the "Dare To Break Rules" collection debuted at Paris Fashion Week in September 2024, underscored its commitment to original design. The brand also enhanced customer interaction through social media influencers and expanded its market reach via online stores and a pop-up store in Chengdu in November 2024.
Enhancing Supply Chain Efficiency and Quality Control

To support its expanding product offerings and meet consumer demands, Daphne invested in optimizing its supply chain. The Group digitized workflows and unified large-scale transportation processes, leading to significant improvements in efficiency and quality control. This robust and mature supply chain infrastructure was crucial for maintaining high standards of quality and service across its product lines.

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What strategies did Daphne employ to navigate challenging market conditions?

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