Why did Red Star Hongxing Erke suddenly get angry? Recently, "10,000 fans a day" made Red Star Hongxing Erke become a hot topic again after donating 50 million yuan to the hot list. On the 23rd, the sales of Red Star Hongxing Erke increased by 52 times year-on-year. Why did Red Star Hongxing Erke suddenly get angry?
Why did the red star Hongxing Erke 1 202 1 suddenly get angry? Ugly years are full of disasters. The heavy rain in Henan in July is still fresh in my memory. Floods in Shanxi followed. God didn't let people live in peace. This time, Shanxi was seriously affected, the abutment of Changyuan River Bridge was washed away, the Xinjiang section of Fenhe River in Shanxi burst, 60 coal mines stopped production, 2,849,600 mu of crops were affected, 4 traffic policemen were killed in Puxian landslide, and more than 6,543,800 people were affected.
Fortunately, when one party is in trouble, all parties will support it, and we have to rely on our own people at the critical time. In the face of every disaster, we can see China people lend a helping hand and enterprises give generously. Internet giants are still in the forefront of donations, with Tencent, Ali, Baidu, ByteDance and Pinduoduo each donating 50 million, Ant and Netease each donating 20 million, Xiaomi, OPPO, VIVO and Vipshop each donating 65.438+million, and Shanxi local brand Shanxi Fenjiu donating 30 million.
Red Star Hongxing Erke, an almost forgotten sports brand, selflessly donated 50 million materials for the flood in Henan Province, and returned to people's field of vision like a rocket, which really made a hit, and then triggered a craze for buying Hongxing Erke. In February, after the flood in Shaanxi, Red Star Hongxing Erke donated 20 million materials for relief at the first time. It is common for enterprises to do charity, in order to give back to society and contribute strength, but also for corporate publicity and good reputation. For a company like Hongxing Hongxing Erke, which 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 popular, and so are enterprises. Whether Red Star Hongxing Erke's motivation is to take the opportunity to publicize, advertise in disguise and create traffic has also been debated endlessly. Actually, it's not necessary In the face of disaster, everything is insignificant for life and survival. At this time, you can stand up and donate money, and for whatever reason, you should affirm and support it. It turns out that it is. Red Star Hongxing Erke was bought by the explosion, and its sales soared and even sold out of stock.
Then, such a representative of a once-popular domestic sports brand, with the aura of the first overseas listed domestic sports brand, has come to today's predicament. Let's have a look.
Once the red star Kerr
In 2000, Wu and his brothers became independent from the family business Red Star Shoes in Quanzhou, Fujian, and founded Red Star Company. At that time, the company was assigned to a rough factory building with a value of 6 million, with accounts receivable of 3-4 million, bank loans of more than 6.5438+million, and working capital of only several hundred thousand. Wu and his brothers are determined to control the initiative in their own hands by establishing their own brands and channels to win more development space for this enterprise. However, there is always an insurmountable gap between ideal and reality, and the tortuous opening seems to indicate that the growth of the red star Hongxing Erke is doomed to be extraordinary.
In 2000, China garment industry just started to form the brand concept. At the beginning of its establishment, Hongxin Jieke had no advantage in brand premium, and the problem of accounts receivable was difficult to solve. The serious lack of funds threatens the survival and development of Hongxin gerk. Hongxing Hongxing Erke decided to introduce foreign strategic investors, and at the same time began to explore the establishment of an exclusive agency model. Wu made up his mind that he would rather eliminate some dealers with strong financial strength than choose dealers with high loyalty to the Red Star brand. After this desperate operation, Hongxing Hongxing Erke gradually improved and the company's negative assets were effectively improved.
At that time, the popular star Jordan chan was invited to speak for her, and through the overwhelming advertising effect, she began to cooperate with important competitions at home and abroad, especially in the field of tennis. She sponsored many competitions, signed tennis players, gradually opened up her popularity and steadily increased her market share. In 2005, 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 still the same, and the revenue of that year even exceeded the later industry leader Anta. In that year, he won the titles of "Top Ten Influential Brands in China Industry" and "Famous Brands in China" and was selected as "500 Most Valuable Brands in China" for the first time.
From discovery data
Become the crisis of 1
After the cheers, the crisis came. In 2007, the red star Hongxing Erke shouted the well-known slogan at that time: "Do 1". However, the crazy expansion will inevitably lead to the shortage of capital chain. Red Star Hongxing Erke has opened many stores all over the country, and there are more than 7,000 stores all over the world. However, due to unscientific "greed for perfection", site selection and management, many stores once fell into losses, leading to large-scale losses of the company.
Red Star 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 loss-making shops, introduced ERP system, and reorganized the channel structure with scientific management methods of digital presentation and evaluation.
The following year's 2008 Beijing Olympic Games, in addition to the jubilation of the torch, also brought fire to a number of sports brands, and the whole sports market was prosperous. Red Star Hongxing Erke also took this opportunity to achieve a revenue of 2.88 billion in that year. The sponsored Korean Olympic delegation won two gold medals, one silver medal and three bronze medals at the Beijing Olympic Games. Under the sponsorship of China Women's Weightlifting Team, Chen Xiexia won the first gold medal for China at the Beijing Olympic Games. In the same year, he was selected as the best enterprise in Forbes 200 and entered the top 500 Asian brands for the first time.
The good times didn't last long, and a bigger crisis came. Red Star Hongxing Erke 20 10 was exposed to financial fraud, with a huge loss of 169 billion yuan. 20 1 1, Red Star Hongxing Erke was suspended due to false financial data until it was delisted.
Wu Shuo: "The inventory crisis from 20 12 to 20 14 once again pushed Red Star to the edge of the cliff. Most of my white hair is contributed at this stage. "
The concept of fast fashion was the upsurge of clothing industry at that time, including ZARA, H& etc. M and other brands quickly attacked the city at that time. This fast fashion craze makes Red Star Hongxing Erke "itchy", and it begins to blindly imitate and follow the trend of fast fashion products. However, the concept of Red Star Hongxing Erke as a sports brand has long been deeply rooted in people's hearts, and its rapid fashion transformation has not been "bought" by consumers.
The house leaks rain and it keeps raining. A fire on 20 15 destroyed nearly half of the production facilities in Hongxing Hongxing Erke. It took a long time to put out the fire, the customer's purchase order could not be guaranteed, and the enterprise was caught in the dilemma of capital chain fracture. Wu recalled, "At the most difficult time, the cash flow in our hands was not enough for a week."
After experiencing so many negative effects, the market share of Red Star Hongxing Erke in domestic sports brands continues to decline, and the gap is getting bigger and bigger. According to Euromonitor data, from 20 10 to 20 19, the market share of Hongxing Hongxing Erke 10 decreased from 2.9% to 1%, with a decrease of 65.5%. By 20 19, the market share of Hongxing Hongxing Erke has dropped to the lowest level in 10 years. And it has lost 10 years, with an average annual loss of about 400 million yuan.
Data from Euromonitor
Regression and innovation
After heavy blows, Hongxing 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 world-leading sports brand", and began his own technological transformation and change. Promote the transformation of the team from managers to operators; Continuous investment in technology and product research and development has accumulated more than 200 patented technologies, making it a national-level intellectual property demonstration enterprise in one fell swoop. The value of products is also rising.
From discovery data
From discovery data
20 18, Hongxing Hongxing Erke stepped up the construction of smart supply chain, cooperated with Ant Financial to open smart stores, and chose to open new stores in large-scale comprehensive commercial malls. In 2020, Red Star Hongxing Erke put forward the channel sinking strategy of "strengthening the county level and improving the prefecture level" and provided 500 million yuan in subsidies to support dealers.
While returning to tradition, Hongxing Hongxing Erke is also actively innovating and conforming to the trend. From OEM to imitation, to the accumulation and application of technology, the concept of Red Star Hongxing Erke is constantly changing.
Red Star Hongxing Erke 20 19 launched black technology running shoes: Shu Tianqi Tan.
While playing with the concept of "tide shoes", unlike some internationally renowned brands, Hongxing Hongxing Erke embarked on a brand-new scientific and technological route, and launched a new generation of master technology-"Erke Qitan" on 20 19. This midsole cushioning technology is based on the traditional "non-Newtonian fluid cushioning material technology", which is made by mixing 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 of Erkeqi elastic sports shoes also adopted reflective yarn uppers and luminous sole materials that will change color in light environment, making 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 integrated and eye-catching.
Now, Red Star Hongxing Erke has gradually exported its products overseas, and its brands have spread all over Southeast Asia, the Middle East, Eastern Europe, North and South America, Africa and other regions. There are more than 65,438+0,000 specialty stores overseas, with exclusive trademark rights in more than 65,438+0,000 countries around the world. By the first half of 2020, the financial data of Red Star Hongxing Erke has been improved and narrowed for two consecutive years.
However, the resumption of trading is still far away. During this period, from 2065438 to 2009, Hongxing Hongxing Erke acquired the MMJV PTE gold mine in the Philippines, and MMJV PTE owned the mining right of copper and gold mine in the Philippines. It is hoped that SGX will postpone the exemption conditions, reconsider and cancel the compulsory delisting. However, the outbreak of the epidemic has made the blockade policies adopted by various countries ineffective, so it can be said that Red Star Hongxing Erke can only accept delisting.
With the rise of domestic products and the change of 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 opportunities. 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. Red Star Hongxing Erke also held the "Hongxing Erke 303 Sports Science and Technology Day" in Beijing on March 3, 200212000, which showed the long-developed artificial muscle technology and the latest running shoe product-the strange elastic lite series.
What will happen in the future?
Judging from the current product and market positioning of Red Star 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, with scientific and technological movements as the mainstay and young people as the consumers. The donation to the disaster-stricken areas in Henan in July greatly increased the sales of Red Star Hongxing Erke, but after all, it is essentially impulsive consumption and will not last long. The data also illustrates this point.
Sales Changes of Red Star Hongxing Erke Tmall Flagship Store in July
Now the red star Hongxing Erke is steadily improving. In the future, if we want to continuously improve sales and brand, we 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 eternal truth. The situation in Hongxing Hongxing Erke is still grim. In addition to Nike, Adi and other foreign brands, there are also many domestic brands attacking the city. Domestic brands Anta and Li Ning also occupy a large market share. Red Star Hongxing Erke wants to break through and it is not difficult to catch up. In any case, support domestic products and national brands. Of course, the choice is two-way, consumers support you, and you need something better in return, which is a virtuous circle. I also hope that Red Star Hongxing Erke can be on the right track, remain sincere and become an excellent domestic brand.
Why did Red Star Hongxing Erke suddenly get angry? Recently, "10,000 fans a day" made Red Star Hongxing Erke become a hot topic again after donating 50 million yuan to the hot list. According to the data released by Feigua, the number of Tik Tok fans of Red Star Hongxing Erke decreased by about 290,000 in 30 days, and the average number of customs clearance people reached 6.5438+00,000 per day. In the past week, the sales of 9 live broadcasts of Red Star Hongxing Erke Live Studio were less than 3 million yuan, which was a "cliff-like" decline compared with the sales of 200 million yuan a week after the donation.
On July 2 1 day, Hongxing Hongxing Erke donated 50 million yuan to help Henan fight floods and staged an enterprise edition that touched China. Red Star Hongxing Erke once became a popular brand of domestic independent enterprises responsible for society. According to public information, in 2020, Red Star Hongxing Erke lost 220 million yuan, and in the first quarter of 2002/KLOC-0, it lost 60 million yuan. The donation of 50 million yuan is equivalent to one-sixth of its own valuation. "Loss" and "generous donation" have aroused netizens' feelings of home and country and 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, from offline stores to online live broadcast. At that time, the offline store of Red Star Hongxing Erke was swept away. On the Internet, the official account of Tik Tok alone increased by150,000 in July. As of July 25th, the official live broadcast room sales of Red Star Hongxing Erke exceeded 1 100 million yuan, and the sales of other related live broadcast rooms exceeded 60 million yuan. During the peak period, more than 6 million people poured into the live broadcast room of the official flagship store of Red Star Hongxing Erke Tmall to participate in the "sweeping goods". On July 23rd alone, it broke many records in brand history: the total sales exceeded 22 million yuan, the cumulative number of views exceeded 24 million, and the cumulative number of online users exceeded 654.38+10,000. According to the news released by JD.COM, on the 23rd, the sales of Red Star Hongxing Erke increased by 52 times year-on-year.
Compared with July, it became the first in the anchor powder list. Three months later, the brand awareness of Red Star Hongxing Erke began to "cool down". It is generally believed in the industry that although consumers have an unprecedented tolerant attitude towards the products of Red Star Hongxing Erke, when the enthusiasm has passed, 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 sustained growth of any brand must be based on good product quality, and the brand itself and consumer value demands can generate enthusiasm. Red Star Hongxing Erke entered a recession in recent years, and its scale declined. It can't 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, from 20 15 to 2020, the scale of China's sports industry is increasing. In 2020, the scale of China's sports industry will be about 3 trillion yuan, a year-on-year increase of 1.69%.
Economist Song Qinghui said that domestic sports brands are facing a new round of development opportunities, and the market scale is expected to further expand. Some domestic sportswear brands with strong core competitiveness are expected to maintain strong growth in the number of brand stores and overall profitability, and achieve greater and longer-term development. At the same time, the rise of the national tide, Huawei, Xinjiang cotton and other events have also made "supporting domestic production" a high-frequency vocabulary. China people who have experienced the test of fighting epidemic and flood have felt the national righteousness of local brands, and the attention of domestic brands has been greatly improved.
However, in order to make great progress in the current opportunities, the core is the quality of the brand. In fact, in order to make the products still worthy of consumers' support after returning to the commodity attributes, after the explosion, Red Star Hongxing Erke made frequent moves: it launched joint models with some well-known IP's such as Under One Man, Silver Soul, Henan Pavilion and Riverside Garden on Qingming Festival in Guo Man, and even jointly launched the retro national tide series sweaters with Chery Automobile, and jointly conducted marketing activities with Xiaomi.
At present, Red Star Hongxing Erke holds the first CNAS-certified national shoes and clothing testing center in the industry, cooperates with the world's top sports research institutions to build a first-class biomechanics laboratory, looks for revolutionary artificial muscle materials, and launches the strange bomb lite series, creating a new trend of heavyweight sports brought by the new data collection method connected with the Internet ecology.
Compared with Hongxing Erke, domestic sports brands such as Li Ning and Anta have already increased their investment in product research and development, improved their product design, quality and three-dimensional brand image, and gained stable customer stickiness by relying on the hard strength of their products. According to the latest financial report, in the first half of 200210197 million yuan, a year-on-year increase of 65%; The net profit was 65.438+0.962 billion yuan, a year-on-year increase of 654.38+0.87%. In the third quarter of 2002120%, Anta brand achieved a low level of positive growth in 2020, and its online business increased by 25%-30% year-on-year, which was more than 90% compared with the same period of 20 19.
According to industry analysis, Anta Sports has expanded its brand breadth through "single focus, multi-brand and omni-channel", while Li Ning has extended its brand depth through the strategy of "single brand, multi-category and multi-channel", constantly building its own professional sports technology platform for Shell, enhancing the professionalism of Li Ning's sports equipment, and successively launching domestic leading shock absorption technologies such as structural shock absorption "Li Ning Arc" and material shock absorption "Li Ningyun". With high R&D investment, cutting-edge sports technology including wormhole technology, hydrogen technology, elasticity technology and nitrogen technology has become Anta's innovative IP.
"Li Ning and Anta have slightly different development strategies, but both of them are in line with international standards in the early days, and they have accumulated rich experience in both products and marketing. At present, Red Star Hongxing Erke may still have a way to go in grasping brand positioning, development strategy, product quality control and marketing promotion. " Yang Dajun said.