China’s fallen shoe queen reclaims her crown

What happened Once dismissed for its outdated styles and frequent markdowns, Daphne has reentered the spotlight with renewed relevance among younger consumers through strategic digital transformation and repositioning efforts. Founded in 1987 in Shanghai, Daphne positioned itself as an accessible yet fashion-forward women’s footwear label. The company was listed on the Hong Kong Stock Exchange in 1995 and rebranded as Daphne International Holdings in 2008. In 2012, the company catapulted into national fame after enlisting pop trio S.H.E., then at the height of their stardom, for a high-profile ad campaign. At its peak, Daphne was the undisputed giant of China's footwear market, once commanding 20% market share and operating nearly 7,000 stores nationwide, according to the company’s historical records. When success turned sour But by 2013, things began to unravel. Aggressive brick-and-mortar expansion led to inventory pileups, forcing the company into heavy discounting that eroded its image. At the same time, Daphne failed to pivot quickly enough to e-commerce, missing out on the digital boom. The combination proved disastrous, pushing the company to the brink of collapse. The Jing Take According to Daphne’s 2024 fiscal report, revenue rose 23% YoY to 322.3 million RMB, while net profit attributable to shareholders jumped 71% to 106.6 million RMB, marking a return to form after years of decline. Since 2019, the company has undergone a strategic shift toward a lighter asset model: closing down a large number of physical stores while accelerating its online footprint. By 2020, the company had reduced its number of stores to 242 from 425 at the start of that year, and reduced its inventory by 74%. In September last year, Daphne launched a full refresh, announced a new ambassador and unveiled a new offline physical store design, reinforcing a more youth-oriented image. Targeting the next generation In April 2023, the group launched a sub-label, Daphne.Lab, aimed at younger consumers with higher spending power — part of a broader effort to expand market reach and elevate the company’s positioning. In September last year, Daphne.Lab collaborated with avant-garde designer label Didu and made its debut at Paris Fashion Week. The sub-label’s revenue grew from 7.8 million RMB in its founding year to 20.8 million RMB in 2024, according to company reports. The comeback owes much to digital platforms. Daphne leaned into trending styles — German trainer-inspired sneakers, chunky-soled “dad shoes,” Mary Janes — paired with prices well below luxury labels. Its legacy appeal, once dormant, helped the company find renewed relevance among today's consumers. “To address this cautious and conservative consumer sentiment, the Group will closely monitor policy directions and market trends, making timely adjustments to strategies in product design, category expansion, production techniques, supply chain, and sales channels for greater flexibility in order to cater to consumers who prioritise value and quality," CEO Chang Chih-Chiao wrote in the company’s financial report for 2024. The road ahead: Beyond revival to reinvention Still, affordability and nostalgia alone won't sustain long-term growth. For Daphne to move beyond revival and into reinvention, it must develop original designs with clear identity — products that don’t just follow trends, but define them. Daphne may not be positioned to rival luxury houses, but as a legacy Chinese company, it holds a unique edge. Its history, its narrative, and its deep emotional imprint on a generation of Chinese consumers form a solid bedrock for future growth. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

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China’s fallen shoe queen reclaims her crown