How did Hongxing Erke suddenly get angry

How did Hongxing Erke suddenly get angry? Recently, "1, fans a day" made Hongxing Erke become a hot topic again after making a donation of 5 million yuan. On the 23rd, the sales of Hongxing Erke increased by 52 times year-on-year. Why did Hongxing Erke suddenly get angry? How did Hongxing Erke suddenly catch fire? 1 < P > The year of 221 was full of disasters. In July, Henan suffered heavy rains and suffered heavy losses, and the floods in Shanxi followed one after another. God is not reassuring. This time, Shanxi was seriously affected, the abutment of Changyuan River Bridge was washed away, the Xinjiang section of Shanxi Fenhe River burst, 6 coal mines stopped production, 2,849,6 mu of crops were affected, 4 traffic policemen were killed in Puxian landslide, and more than 1.75 million people were affected.

fortunately, when one side is in trouble, all sides will support it, and at the critical moment, we have to rely on our own people. In the face of every disaster, we can see Chinese people reaching out to help, and enterprises giving generously. Internet giants are still at the forefront of donations, with Tencent, Ali, Baidu, Byte and Pinduoduo each donating 5 million, Ant and Netease each donating 2 million, Xiaomi, OPPO,VIVO and Vipshop each donating 1 million, and Shanxi local brand Shanxi Fenjiu donating 3 million.

hongxing erke, a sports brand that was almost forgotten, returned to people's field of vision like a rocket after selflessly donating 5 million materials to the flood in Henan, which really made a fire, and then triggered a wave of buying in erke. After February, the flood in Shanxi, Hongxing Erke, was the first time to donate 2 million materials to help. It is common for enterprises to do charity, in order to give back to the society and contribute strength, but also for corporate publicity and good reputation. For Hongxing Erke, a company that has suffered losses all the year round and is rumored to be "closed down", it is not easy and commendable. Of course, there are many people who are red, and so are enterprises. Whether Hongxing Erke's motivation is to take the opportunity to publicize, advertise in disguise, and create traffic has also been debated. In fact, it is unnecessary. Everything is insignificant for life and survival in the face of disaster. At this time, you can stand up and donate money, and you should affirm and support it for whatever reason. Facts have proved that it is indeed the case. Hongxing Erke was bought by explosion, and its sales soared, even sold out of stock.

Then, a representative of a once-popular domestic sports brand, with the aura of the first overseas listed domestic sports brand, how did it get into today's predicament? Let's take a look.

The former Hongxing Erke

In 2, Wu Rongzhao and his brothers were independent from the family business Hongxing Shoes in Quanzhou, Fujian, and founded Hongxing Erke. At that time, the company was assigned a blank factory building worth 6 million, accounts receivable of 3 million to 4 million, bank loans of more than 1 million, and only a few hundred thousand of working capital. Wu Rongzhao and his brothers are determined to control the initiative in their own hands and gain more development space for this venture by establishing their own brands and channels. However, there is always an insurmountable gap between ideal and reality, and the tortuous opening seems to indicate that Hongxing Erke's growth is doomed to be extraordinary.

In 2, the clothing industry in China just started to form the brand concept. At the initial stage of its establishment, Hongxing Erke had no advantage in brand premium. In addition, the problem of accounts receivable was difficult to solve, and the serious lack of funds threatened Hongxing Erke's survival and development. Hongxing Erke decided to introduce foreign strategic investors, and at the same time, began to explore the establishment of an exclusive agency model. Wu Rongzhao made up his mind that he would rather eliminate some dealers with strong financial strength than choose dealers with high loyalty to Hongxing Erke brand. After this wave of desperate operation, Hongxing Erke gradually improved and the company's negative assets situation was effectively improved.

At that time, Jordan chan, a popular star, was invited to speak for her, and through the overwhelming advertising effect, she began to cooperate with important domestic and international competitions, especially in the field of tennis. She sponsored many competitions and signed tennis players, which gradually opened up her popularity and steadily increased her market share. In 25, it was successfully listed on the main board of Singapore, becoming the first sports shoes brand listed in China. At that time, the scenery was the same, and the revenue of that year even exceeded that of Anta, the industry leader later. In that year, it won the title of "Top Ten Influential Brands in China Industry" and "China Famous Brand", and was selected as "China 5 Most Valuable Brands" for the first time.

after the "crisis" cheers from the discovery data

TO BE No.1, the crisis came. In 27, Hongxing Erke shouted the well-known slogan at that time: "TO BE No.1". However, the crazy expansion will inevitably lead to the shortage of capital chain. Hongxing Erke has opened many stores all over the country, and there are more than 7, stores around the world. However, due to the unscientific "greed for perfection", site selection and management, many stores once fell into losses, resulting in large-scale losses for the company.

hongxing erke clearly realized that he must correct his mistakes and change his strategy at this moment, so he broke his arm to survive, "cut down" all the loss-making shops, and introduced ERP system to reorganize the channel structure with scientific management mode of digital presentation and evaluation.

In 28, the Beijing Olympic Games, in addition to the jubilation, brought fire to many sports brands, and the whole sports market was prosperous. Hongxing Erke also took advantage of this to earn 2.88 billion yuan in that year. The sponsored Korean Olympic delegation won two gold medals, one silver medal and three bronze medals at the Beijing Olympic Games. Sponsored by China women's weightlifting team, Chen Xiexia won the first gold medal in China at the Beijing Olympic Games. In the same year, he was selected as one of the 2 best enterprises in Forbes and entered the top 5 Asian brands for the first time.

The good times did not last long, but a bigger crisis came. In 21, Hongxing Erke was exposed to financial fraud, with a huge loss of 1.69 billion yuan. In 211, Hongxing Erke was suspended due to financial data fraud until it was delisted.

Wu Rongzhao said: "The inventory crisis from 212 to 214 once again pushed Hongxing Erke to the brink. Most of my white hair is contributed at this stage. "

the concept of fast fashion was a craze in the clothing industry at that time, including ZARA, h&; Brands such as m quickly attacked the city at that time. This fast fashion craze made Hongxing Erke "itchy", and it began to blindly imitate and follow the trend of fast fashion products. However, the concept of Hongxing Erke as a sports brand has long been deeply rooted in the hearts of the people, and its fast fashion transformation has not been "bought" by consumers.

the house leaks and it rains continuously. A fire in 215 burned nearly half of the production facilities in Hongxing Erke. It took a long time to put out the fire, and the customer's purchase order could not be guaranteed, and the enterprise was caught in the dilemma of capital chain break. Wu Rongzhao recalled, "At the most difficult time, the cash flow in our hands was not enough to support a week."

after so many negative effects, hongxing erke's market share in domestic sports brands continues to decline, and the gap is widening. According to Euromonitor data, from 21 to 219, the market share of Hongxing Erke dropped from 2.9% to 1% in 1 years, a decrease of 65.5%. By 219, the market share of Hongxing Erke has dropped to the lowest level in 1 years. And it has suffered losses for 1 consecutive years, with an average annual loss of about 4 million yuan.

data from Euromonitor

regression and innovation

after a heavy blow, Hongxing Erke finally realized the importance of returning to the main sports industry, determined the development route of product and technology integration, put forward the enterprise development vision of "building a leading sports brand in the world", and began his own scientific and technological transformation and transformation. Promote the transformation of the team from managers to operators; Continuous investment in technology and product research and development, accumulated more than 2 patented technologies, and became a national-level intellectual property demonstration enterprise in one fell swoop. The value of products is also rising.

Data from Discovery

Data from Discovery

In 218, Hongxing Erke stepped up the construction of smart supply chain, cooperated with Ant Financial, and selected the opening of new store in a large comprehensive commercial MALL. In 22, Hongxing Erke put forward the channel sinking strategy of "strengthening the county level and making it superior at the prefecture level" and provided 5 million yuan in subsidies to support dealers.

While returning to tradition, Hongxing Erke is also actively innovating and adapting to the trend. From OEM to imitation to the accumulation and application of technology, Hongxing Erke's concept is constantly changing.

Hongxing Erke launched black technology running shoes: Tian Shu Qitan in 219

While playing with the concept of "tide shoes", Hongxing Erke embarked on a brand-new scientific and technological route, and launched a new generation of technology-"Erke Qitan" in 219. This midsole cushioning technology is based on the traditional "non-Newtonian fluid cushioning material technology", which mixes the new scientific and technological material α-flex of Hongxing Erke with different chemicals. After hundreds of foaming and tens of thousands of folding tests, this midsole material is finally mass-produced with soft elasticity and unique performance. The first-generation sports shoes of Erkeqi Bomb also use reflective yarn uppers and luminous sole materials that will change color in light environment, which makes the running shoes with full sense of science and technology more attractive, and the carbon plate support of the midsole makes the overall scientific and technological functionality seamless and eye-catching.

At present, Hongxing Erke has gradually exported its products overseas, and its brands have been distributed in Southeast Asia, the Middle East, Eastern Europe, North and South America, Africa and other regions. It has more than 1, exclusive stores overseas and has exclusive trademark rights in more than 1 countries around the world. By the first half of 22, Hongxing Erke's financial data had improved and narrowed for two consecutive years.

However, the resumption of trading is still far away. During this period, in 219, Hongxing Erke acquired MMJV PTE gold mine enterprise in the Philippines, MMJV PTE owned the mining right of copper and gold mines in the Philippines, and hoped that SGX would delay the exemption conditions and reconsider and cancel the mandatory delisting. However, the outbreak of the epidemic made the blockade policy adopted by all countries useless, so Hongxing Erke could only accept the fate of delisting.

With the rise of domestic products and the changes in the international environment, the upsurge of buying domestic products has been stimulated, and more and more people support domestic products, which once again gives domestic sports brands an opportunity. All brands have made a qualitative leap in style design and product quality. They not only invited international masters to design, but also acquired some high-quality assets to connect with international first-line brands. Hongxing Erke also held the "Erke 33 Sports Science and Technology Day" in Beijing on March 3, 221, showing the long-developed artificial muscle technology and the latest running shoe product, the strange bullet lite series.

what will happen in the future

judging from the current product and market positioning of Hongxing Erke, it still belongs to the cost-effective route, and the product price is cheap. The market layout is mainly in second-and third-tier cities, focusing on scientific and technological sports, and young people are the main consumers. The donation to the disaster in Henan in July has greatly increased the sales of Hongxing Erke, but after all, it is essentially impulsive consumption and will not last long. The data also shows this point.

Sales change of Hongxing Erke Tmall flagship store in July

Now Hongxing Erke is steadily improving. In the future, if you want sales and brand to continue to improve, you still need to work hard on product quality and design and make products in a down-to-earth manner. After all, this is an enduring guarantee and an unchanging truth. The situation of Hongxing Erke is still grim. In addition to foreign brands such as Nike and Adi, many brands have attacked the city in China. Domestic brands Anta and Li Ning also occupy a large market share. Hongxing Erke wants to break through and it is not difficult to catch up. In any case, support more domestic products and national brands. Of course, the choice is two-way, consumers support you, and you need to use better things in return, which is a virtuous circle. I also hope that Hongxing Erke can get on the right track, remain sincere and become an excellent domestic brand. How did Hongxing Erke suddenly become popular? 2

Recently, "1, fans per day" made Hongxing Erke once again a hot topic after making a donation of 5 million yuan. According to the data released by Feigua, the number of Tik Tok fans of Hongxing Erke decreased by about 29, in 3 days, with an average of 1, people entering the customs every day. In the past week, the sales of 9 live broadcasts in Hongxing Erke Live Room were less than 3 million yuan, which was a "cliff-like" decline compared with its sales of 2 million yuan in the week after donation.

on July 21st, hongxing erke donated 5 million yuan to help Henan flood, and staged an enterprise version that touched China. hongxing erke once became a hot brand that domestic independent enterprises were responsible for the society. According to public information, Hongxing Erke lost 22 million yuan in 22 and 6 million yuan in the first quarter of 221. The donation of 5 million yuan is equivalent to one-sixth of its own valuation, and "loss" and "generous donation" have aroused netizens' feelings of home and country and their sympathy and support.

At this time, Hongxing Erke is no longer just a low-priced sports shoes and clothing enterprise, but has become a symbol of patriotism and trend in the hearts of the public, and it has exploded from offline stores to online live broadcast. At that time, the offline stores of Hongxing Erke were swept out. Online, its official account in Tik Tok alone rose by as much as 15 million in July. As of July 25th, the sales of official live broadcast rooms of Hongxing Erke exceeded 1 million yuan, while the sales of other related live broadcast rooms exceeded 6 million yuan. During the peak period, more than 6 million people poured into the live broadcast room of the official flagship store of Hongxing Erke Tmall to participate in the "sweeping goods". On July 23rd alone, it broke many records in the brand's history: the total sales exceeded 22 million yuan, the cumulative number of viewers exceeded 24 million, and the cumulative number of online users exceeded 1,. According to the news released by JD.COM, on the 23rd, the sales of Hongxing Erke increased by 52 times year-on-year.

Compared with July, the popularity of Hongxing Erke brand began to "cool down" three months later. It is generally believed in the industry that although consumers have an unprecedented tolerant attitude towards Hongxing Erke's products, when the enthusiasm passes, consumers will still focus on the products themselves, and the fundamental reason for the decline in popularity is that their products have not really retained consumers.

Yang Dajun, an investor in fashion industry, told Consumer Titanium that public welfare marketing can indeed increase attention and influence, but the continuous growth of any brand must be based on the good quality of its products, and the brand itself and consumers' value demands can be heard. Hongxing Erke has entered a recession in recent years, and its scale has declined. It cannot save itself through several public welfare marketing.

In recent years, the income of the global sportswear market is on the rise, and the domestic sports industry is also booming. According to the data of the State Sports General Administration, the scale of sports industry in China is increasing from 215 to 22, and the scale of sports industry in China is about 3 trillion yuan in 22, up by 1.69% year-on-year.

Song Qinghui, an economist, said that domestic sports brands are facing a new round of development opportunities, and the market scale is expected to be further expanded. Some domestic sports apparel brands with strong core competitiveness are expected to maintain strong growth in the number of brand stores, overall profitability and other aspects, and achieve greater and longer-term development. At the same time, China