Home » Hongxing Erke donated 50 million yuan to “be closed down”: the truth is not so sad, the chairman of the board of directors live broadcast late at night thanks_体育

Hongxing Erke donated 50 million yuan to “be closed down”: the truth is not so sad, the chairman of the board of directors live broadcast late at night thanks_体育

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Original title: Hongxing Erke donated 50 million yuan to “be bankrupted”: the truth is not so sad, the chairman of the board of directors late at night live broadcast thanks

On the evening of July 22, #鸿星尔克的微博评论好心酸# rushed to the top of the hot search, because Hongxing Erke donated 50 million yuan in materials to support Henan’s disaster relief, but netizens worried that Hongxing Erke still made large donations because of poor performance, and they cried distressed.

“It feels like you are going bankrupt and you donated so much.” “Bao, it’s not easy for you to make money.” “Under publicity, I am worried about you.” In addition to posting concerns and comments under the hot search, netizens directly gifted Hongxing Erke for ten years. Weibo member.

As of 15:00 on July 23, the Weibo hot search has reached 700 million views and over 137,000 discussions. Hongxing Erke’s official donation amount of graphic reposts and comments also exceeded 200,000.

In addition to Weibo messages, many netizens have spontaneously entered Hongxing Erke Taobao and Douyin live broadcast rooms to purchase products.

According to the data provided by Ali to the Times Weekly reporter, on the evening of July 22, more than 2 million people in Hongxing Erke Taobao live broadcast room participated in the sweeping of goods, and one of them was put on the shelves. As of July 23, the number of fans in the Hongxing Erke Taobao live broadcast room has increased to 7.526 million, with 389,000 praises, and the data is still growing.

At 1 am on July 23, Wu Rongzhao, chairman of Hongxing Erke, even rushed to the live broadcast room to thank the netizens and urge them to consume rationally.

But the “distress” of netizens may be more subjective. In fact, Hongxing Erke is not “to go bankrupt” as netizens say. In October 2020, Hongxing Erke was selected in the list of “Top 100 Private Enterprises in Fujian Province in 2020” and “Top 50 Private Enterprises in Manufacturing in Fujian Province in 2020” released by the Fujian Federation of Industry and Commerce, and announced that its 2020 revenue will be 28.43. 100 million yuan.

However, if compared with the performance of its peers, Hongxing Erke is indeed far away from the previous slogan “To Be No.1”.

“We feel everyone’s enthusiasm and warmth on the social platform, and we will continue to do our best on our products and services, and use quality to rectify the name of the domestic brand.” On July 23, the relevant person in charge of the Hongxing Erke brand told the Times Weekly reporter, hoping everyone In the future, we can also cheer and cheer for national brands.

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Experienced many “life and death passes”

Hongxing Erke was established in 2000 and started in Jinjiang, Fujian, the “Chinese shoe capital”.

Similar to the start-up path of most footwear brands, Hongxing Erke started from OEM and OEM. However, the company gradually realized the passiveness and development limitations of foundry, and turned to build its own brand, and quickly started the brand with celebrity endorsements.

In 2001, Hongxing Erke heavily hired Chen Xiaochun as the brand spokesperson, gradually gaining popularity; when major domestic and international giants grabbed competition resources, Hongxing Erke mainly focused on the tennis field and cooperated with well-known tournaments to establish sports resources in tennis events.

In 2005, Hongxing Erke ushered in a bright moment and was listed on the Singapore main board, becoming the first sports brand in the Chinese industry to be listed overseas.

After listing, Hongxing Erke used the funds raised to increase expansion and open stores while investing heavily in marketing. But in 2007, Hongxing Erke’s business took a turn for the worse. As most of the stores were unable to make a profit, they fell into losses one after another, and eventually had to close a large number of stores.

During the regrouping period, Hongxing Erke fell into a period of industry adjustment again.

From 2010 to 2014, major footwear and sports brands generally fell into an inventory crisis after the competition. Not only Hongxing Erke, but Li Ning, Guirenniao and Peak also declined during this period. Among them, Peak’s net profit continued to decline, resulting in a downturn in the stock price, and finally delisted.

During this period, Hongxing Erke had other crises.

In February 2011, due to suspected financial data falsification, the audit found that its cash and bank deposits were actually only 263 million yuan, and the inflated cash and bank deposits reached 1.154 billion yuan.

In the support of this donation, some netizens revealed that Hongxing Erke’s warehouse had been flooded by a flood, but the source of this statement could not be verified. On the contrary, a fire brought a crisis to Hongxing Erke.

In 2015, a fire burned down a large number of Hongxing Erke production equipment, production stagnation and orders could not be supplied, and the return of stable funds was lost. At the same time, Hongxing Erke’s funding gap continued to expand.

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“The cash flow in hand is not enough to support a week at the hardest time.” In July 2021, Hongxing Erke Chairman Wu Rongzhao recalled in an interview with the media.

The most expensive shoe is less than 400 yuan

After the big ups and downs, the volume of Hongxing Erke’s voice has been different from its own highlight moment.

In October 2020, the Fujian Federation of Industry and Commerce released the “2020 Fujian Top 100 Private Enterprises” list. The report revealed that Hongxing Erke had a revenue of 2.84 billion yuan that year.

There is no harm without comparison. In contrast, Anta, Li Ning, Xtep International, and 361 Degrees have revenues of 35.51 billion yuan, 14.457 billion yuan, 8.172 billion yuan, and 5.127 billion yuan respectively in 2020. Hongxing Erke’s revenue is much lower than that of its competitors and not as good as Anta’s 10. %, Li Ning’s 20%.

With the gradual rise of the national tide in recent years and the increasing influence of domestic brands in the market, the domestic sports shoes and apparel industry is growing rapidly.

According to Euromonitor’s statistics, the domestic sports shoes and apparel market will reach 315 billion yuan in 2020, and sports shoes and apparel have ranked first in the growth rate of all sub-sectors of the apparel industry in the past three years. According to iiMedia Consulting’s data, the market size of China’s sports shoes and apparel industry is expected to reach 385.8 billion yuan in 2021.

Among them, Anta, Li Ning, Xtep, and 361 Degrees four domestic sportswear and shoes, the market share increased from 26.5% in 2018 to 29.4% in 2020. Among them, Anta has a market share of 15.4%, second only to Adidas and Nike.

On July 23, Wang Chengzhi, partner of Hejun Consulting, told Times Weekly that even though it was once the first domestic sports brand to be listed overseas, Hongxing Erke lost some of its advantages due to its market positioning and strategic loss.

On the one hand, Anta and Li Ning, which have steadily gained the upper hand in the market, have done their best to consolidate their market position; on the other hand, international brands and fast fashion are still catching up with the market and squeezing domestic share. In this context, Hongxing Erke can only catch up with self-help and constantly change its business thinking.

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In 2018, Hongxing Erke increased the development of smart supply chain, cooperated with Ant Financial for smart stores, adjusted the store layout structure, and placed the development of new stores in large-scale commercial complexes. In 2020, Hongxing Erke also emphasized “strengthening the county level and do “Excellent land-level” channel sinking strategy, and provided 500 million yuan subsidies to support dealers.

Today, Hongxing Erke is sinking significantly in terms of price. In the live broadcast room on the evening of July 22, many netizens joined in and placed orders, asking for the most expensive item on Hongxing Erke, and swiping the screen: “Support domestic products, conscientious enterprises”. But in fact, the price of Hongxing Erke is quite “close to the people”.

On July 23, a reporter from Times Weekly checked the official website of Hongxing Erke Tmall and found that most sports shoes are priced from 99 yuan to 320 yuan, and there are basically no shoes that exceed 400 yuan.

“With the current development status and situation, if Hongxing Erke regards the sinking market as a starting point and intends to start again, it is a better choice to target the sinking market.” On July 23, iiMedia Consulting CEO and chief analyst Zhang Yi In an interview with a reporter from Times Weekly, said.

However, the layout of the sinking market still has certain potential risks. In Zhang Yi’s view, the consumption characteristics of the sinking market will cause brands to deviate from mainstream consumer value recognition. “For Hongxing Erke, to return to the mainstream of the market, we still need to focus on consumer demand in the first and second tier markets.”

“In terms of the strategy of channel sinking, Hongxing Erke should pay attention to the improvement of product development, brand marketing, brand creativity, etc. in addition to the original products.” Wang Chengzhi believes that the development of the mobile Internet has rewritten the young people in small towns. Consumer habits, after all, everyone hopes that the products they buy have a certain brand premium, which is also a consumer characteristic that brands need to insight.

In fact, under Wu Rongzhao’s Weibo comments, many consumers have suggested, and even directly shouted: “Can you make more money for young people?” Wu Rongzhao replied: “In the future, I will work hard on design. I hope everyone can Change.”Return to Sohu to see more

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