Hong Kong-based footwear company Daphne has reported significant revenue growth during the first half.
The company’s revenue surged by 54 per cent year-on-year to $US23.6 million (RMB 168.8 million), gross profit rose by 52 per cent to $12 million (RMB 85.8 million), while operating profit jumped by 67 per cent to $7.9 million (RMB 56.7 million).
Chang Chih-Chiao, CEO of Daphne, attributed the brand’s success to strengthening its core brand, launching the “Daphne.Lab” brand targeting younger consumers, and improving operational efficiency.
“Undaunted by the sluggish consumer market recovery, the group allocated resources to bolster the brand’s industry-leading position while integrating the management team to optimise operations,” he continued.
“These ongoing efforts enabled it to overcome market challenges and achieve impressive growth.”
The company also expanded its brand licensing and distribution activities by launching on major e-commerce platforms such as Douyin and Pinduoduo. This move resulted in increased sales and greater market exposure.
The online licensing fee income grew by 49 per cent year-on-year to approximately $9.6 million (RMB 68.6 million), and sales of goods under licensing arrangements increased by 46 per cent to $12.8 million (RMB 91.5 million).
Daphne also ventured into new social media-based sales channels such as Red and Poizon to reach younger consumers. It had implemented stricter quality control measures throughout its supply chain to maintain the consistency of its increasing online revenue.
Looking ahead, Chang said the company remains cautious due to ongoing economic challenges in Mainland China.
“In order to better navigate upcoming challenges and capture growth opportunities, Daphne will intensify efforts to optimise its offerings, supply chain management, licensing and franchising models, and brand management,” he concluded.
