Fuguiniao, Guirenniao, JeansWest, Delhui, Baleno, Metersbonwe, Jordan, Kappa, Adidas and other brands that were popular all over the country ten years ago, how many do you remember now?
In the past ten years since the rise of e-commerce, the model of rapid expansion of offline stores in the early years has come to an end. Most of the above-mentioned brands have ended sadly in this e-commerce carnival. Jeanswest, once a "famous brand in China", has gone from being a regular guest in major shopping malls to now being only seen sporadically in stores in third-, fourth- and fifth-tier cities. As of last year, Jeanswest has closed nearly 1,200 stores and laid off more than 6,000 people. , performance dropped by about 70%. Its encounter is not an isolated case; its end represents the end of an era.
Among the above examples, King Adi is an anomaly. In the turbulent wave of copycats more than ten years ago, one brand after another was born, and one brand disappeared into the vast sea of ????people. Those brands that followed the popularity of Adidas and Nike rarely persisted to the end, and Adidas was no exception. Adiwang was born in 2006. From the day it was born, it has taken a different route from some copycat brands. Many of its styles are designed by themselves. Except for the particularly high-end style Adiwang, which has no technology, the general style Adiwang is already familiar with the road.
After five years of development, Adiwang is very clear about its positioning in the market and its shortcomings. At its peak, Adiwang could compete with Li Ning and Anta. In 2011, Adiwang became the first investment partner of La Liga in China. In February 2012, Adiwang became the official partner of the "Washington Wizards". The advertising slogan of Adidas in La Liga is "Your legend, I will develop it", writing its most glorious legend.
According to rumors in 2012, its sales exceeded 400 million yuan and its net profit exceeded 100 million yuan. After years of intensive cultivation in the third and fourth tier markets, the price of 100 yuan to 300 yuan has been well received by the market. The rapidly growing Adidas always has a sword of Damocles on its head, and in the trademark dispute with Adidas, Adidas has always been at a disadvantage. From 2008 to 2013, the trademark dispute case between Adidas and Adidas came to an end. It is said that under the mediation of the Ministry of Commerce, Adiwang gave up the "Adiwang" trademark, and Adidas no longer insisted on compensation of over 100 million. With this superficial victory of Adidas, the boss of Adidas has already accumulated hundreds of millions of wealth.
Compared with Adiwang, another brand in Fujian, Guirenniao, does not have such good luck. Guirenniao just experienced a sharp decline in June last year, with its market value falling from tens of billions to only about 3.6 billion currently. If King Adi persisted all the way until now, he would probably be more miserable than Guirenniao.
2012 was a watershed year for domestic sports brands. Around this year, domestic sports brands entered a period of decline, and Guirenniao was no exception. At first, Guirenniao still increased its focus on its main business in order to achieve greater breakthroughs, but the successive new products were not welcomed by the market, which gave the management a huge blow. . The diversification strategy was quickly put on the management's desk, and the management agreed to implement the diversification strategy with almost no objection.
Guirenniao went public in 2014. After the listing, Guireniao began a series of capital operations. In 2015, Guirenniao invested 240 million yuan in Hupu Sports; later it invested 200 million yuan to control a Spanish football agency; and later acquired equity interests in a series of companies such as Jie Zhixing, Ming Shoe Library, Kangpaisi, and BOY. The superficial prosperity and ever-expanding revenue have not brought actual benefits to the company, and successive years of declining net profits have sounded the alarm to the company's management.
However, none of these attracted enough attention from the company. In 2016, Guirenniao joined hands with many companies to jointly establish Ankang Insurance, which was involved in the insurance industry. In addition to insurance, it also invested 100 million in 2016 The capital increase in Shenzhen Xingyou Technology is an entry into football-themed mobile game projects. Large-scale acquisitions, declining performance and a high proportion of stock pledges by major shareholders have become the straw that broke the camel's back.
In 2018, Guirenniao wanted to return to its main business. In order to reduce the financial pressure on the company, it began to sell off its assets. In August 2018, Guirenniaobu announced that it planned to sell the equity of Kangpaisi 37 for 130 million; it then planned to sell Zhonghu for 273 million In the end, it sold the equity of Jie Zhixing 50.01 for 300 million yuan. In this transaction alone, Guireniao lost 116 million yuan in two years.
On January 31, 2019, Guirenniao issued a pre-loss announcement, stating that the company’s net profit in 2018 is expected to be a loss of 640 million yuan to 820 million yuan. Subsequently, United Ratings decided to include the long-term credit rating of Guirenniao's main body and the debt credit rating of "14 Guirenniao" on the rating watch list for possible credit rating downgrades.
The development path of Guirenniao is not an exception. It has long become a microcosm of many sports brands in my country. From a market value of 40 billion at its peak to a market value of 3.6 billion today, even if there are factors in the external environment, the management cannot escape its blame. Today's noble bird seems to have had its wings clipped, and I don't know when it will take off again!