Hengyuanxiang, a time-honored brand in Shanghai, China, was founded in 1927. It was first an enterprise mainly engaged in the production and operation of wool yarn. In 1927, Mr. Shen Laizhou, the founder of Hengyuanxiang, opened an artificial velvet thread company. Hengyuanxiang brand name was born. The three characters "Heng Yuan Xiang" are taken from the couplet "Heng Luo Department Store originates from Qian Xiang", which implies the artistic conception of everlasting (Heng), long-lasting (Yuan) and good luck (Xiang).
Hengyuanxiang has gone through five large-scale transformations since its development from a wool store.
The first transformation occurred in 1935, when Hengyuanxiang moved from retail to manufacturing. As a store, Hengyuanxiang encountered many obstacles in its development, such as the monopoly market for foreign goods. In order to seek a breakthrough, Shen Laizhou co-founded the first woolen mill, Yumin Woolen Mill, in 1935, which produced Earth brand, double With foreign brands of thick and thin wool, Hengyuanxiang's business and capital scale have been rapidly expanded. By 1949, Hengyuanxiang already owned 7 factories, 3 stores, and participated in 25 industries, becoming the famous "King of Velvet Yarn" in Shanghai.
The second transformation occurred in 1956, when Hengyuanxiang moved from private to state-owned. The national public-private partnership policy allowed Hengyuanxiang to transform from a private enterprise to a state-owned enterprise. During the era of the planned economy, as Hengyuanxiang's property rights changed significantly, its business areas also shrank significantly. From an enterprise involved in wool spinning, weaving, dyeing and finishing and other related industries, it became a store specializing in wool again. During the Cultural Revolution, Hengyuanxiang Wool Store was renamed Dahai Wool Store. In 1978, the name of Hengyuanxiang Wool Store was restored.
The third transformation occurred in 1991, when Hengyuanxiang moved from a trade name to a brand. Hengyuanxiang was originally the brand name of the store. In 1987, Liu Ruiqi, the second "head" of Hengyuanxiang, became the general manager of Hengyuanxiang Wool Store. In 1988, the three-character shop sign "Heng Yuan Xiang" was legally registered as a trademark by Liu Ruiqi. In 1991, Hengyuanxiang began to cooperate with factories to produce Hengyuanxiang brand hand-knitted wool and entered the market, which quickly opened up the situation. By 1996, Hengyuanxiang had become the largest production and marketing enterprise of hand-knitted wool in China and the world. In 1993, Hengyuanxiang yarn store entered the listed company "Wanxiang Co., Ltd.". In 1998, the "Hengyuanxiang" brand became the general trademark of "Wanxiang Co., Ltd."
The fourth transformation occurred in 1998, when Hengyuanxiang moved from single products to multiple products. While implementing further brand expansion, Hengyuanxiang discovered that the profits generated from hand-knitted wool could no longer support the development of a brand, so Hengyuanxiang began to expand into home textiles, clothing, knitting, daily chemicals and other fields, establishing the industrial framework of the modern Hengyuanxiang Group. . Although it was difficult at the beginning, after years of development, it has gained market recognition. During this period, Hengyuanxiang implemented an MBO acquisition from the listed company "Wanxiang Shares" in 2001, and the company underwent restructuring.
The fifth transformation occurred in 2005, when Hengyuanxiang moved from strategy to strategy. Hengyuanxiang has formulated a national and differentiated development strategy and clarified the direction of transformation from brand management strategy to cultural strategy. In 2006, Hengyuanxiang fully launched the "cultural strategy introduction" work; in 2007, Hengyuanxiang intensified its fifth transformation and confirmed its long-term strategic goals; in 2008, based on the laws of brand development and years of accumulated experience, the group summarized the " The circular law of brand value creation and realization" and is widely used in brand management activities.
After five transformations, Hengyuanxiang has been reborn, and its various industries have entered the top ten in the country. Today, Hengyuanxiang is developing rapidly with its own profit model.