Hongxing Erke, a red star that once kept pace with Anta and had unlimited scenery, fell into a bottleneck of development and fell into silence. In the trend of domestic product development, Red Star Hongxing Erke has been "behind the times" for a long time.
All the shoes in the world come from Jinjiang.
China has two shoe capitals, Putian and Jinjiang. Both places made their fortune by OEM, and Putian went further and further in counterfeiting. After the fermentation of events such as Putian Hospital, Putian has become synonymous with counterfeiting in the hearts of Chinese people. There is a famous saying in the martial arts Jianghu that Shaolin is the best martial arts in the world, and Jinjiang is the "Shaolin Temple" of China sports brand.
Jinjiang embarked on the correct road of independent development, and the OEM shoe factory in Jinjiang began to establish its own brand in the mid-1990s. Anta, 36 1, Xtep and other brands have settled in Jinjiang, and Jinjiang has become a training base for sports brands in China. The agglomeration of sports brands in Jinjiang has produced a strong cluster effect, attracting more and more manufacturers to establish sports brands in Jinjiang.
Red star Kerr, a latecomer.
In 2000, 25-year-old local Wu Rongguang founded many sports brands in Jinjiang? Red Star Keer Red Star Hongxing Erke was founded in 2000, which started several years later than Anta and 36 1. At that time, the sports brand market was dominated by foreign brands in the high-end market, while the mid-end market was occupied by brand rookies such as Li Ning Anta and low-end brands such as starling, which had already established a sound sales network throughout the country.
In the brand close to the solidified sports market, Wu Rongguang sensitively grasped the market demand and just broke out a broad road of his own. Red Star Hongxing Erke avoided the competitive basketball and football stadiums at that time. After 2000, seeing the popularity of tennis in China, Hongxing Erke won the tennis match and sponsored it.
Successfully entered the tennis market.
In 2004, the first China Open Tennis Tournament began. At that time, the popularity of tennis was almost equal to that of NBA and football. The name of the red star Hongxing Erke has also spread all over the country because of the spring breeze of tennis. The English advertising slogan (TO BE No. 1) that always strives for the first place makes the red star Hongxing Erke give teenagers a sense of fashion and youth. For a time, teenagers all over the country set off a craze to wear red star Hongxing Erke.
2005 is the most brilliant year for Red Star Hongxing Erke. The tennis shoes of Red Star Hongxing Erke and Adinik are called the three major brands of tennis shoes in the world. Red Star Hongxing Erke launched a comprehensive attack and launched many sports shoes, all of which were successful. At that time, Red Star Hongxing Erke slightly surpassed Anta and Li Ning.
Take the lead in listing and become 1, resulting in "indigestion"
Under good circumstances, Red Star Hongxing Erke was listed in Singapore. This is the first clothing enterprise in China to be listed overseas. Compared with Anta Li Ning and other predecessors, Hongxing Hongxing Erke completed the feat of listing in only five years, becoming the sports marketNo. 1. After the listing, Wu Rongguang, who held a lot of money, began to expand on a large scale.
The expansion of Red Star Hongxing Erke is divided into two ways, one is to continue to seize the tennis market. In 2006, Red Star Hongxing Erke sponsored many events such as Shanghai Masters and WTA Annual Finals. Wu Rongguang is also uncompromising in signing tennis stars. In the 2005-06 season, a large number of tennis stars were taken under the banner of Red Star Hongxing Erke.
These actions are successful in brand promotion, and sponsoring large-scale sports events has always been the best choice for sports brand promotion. Another way is large-scale expansion. In order to seize the market, Wu Rongguang put forward the strategy that Hongxing Hongxing Erke should have stores in every county-level unit. In 2006, the number of stores in Hongxing Hongxing Erke has expanded to 7,000.
The rapid expansion of store scale has brought many problems. Soaring costs, increasing management difficulties and fierce competition are all headaches for Wu Rongguang. In order to solve these problems, Red Star Hongxing Erke invested a lot of energy and paid less attention to the market.
After 2006, with the further upgrading of sports consumption market in China, brands such as Li Ning and Anta gradually withdrew from the low-end market of sports brands and began to try to expand in the high-end market. Around 2006, brands such as Li Ning and Anta took advantage of the booming NBA in China, boldly learned Adinik mode, signed the NBA Death Star, and launched exclusive signature shoes belonging to high-end products.
The red star Hongxing Erke, who was "indigestion" due to expansion, began to be conservative instead. Looking at Anta and 36 1, he is determined to attack the stable low-end market. Under the guidance of the idea of "deepening the third line", for many years, the main products launched by Hongxing Hongxing Erke are mostly below 200 yuan.
The low-price strategy makes Red Star Hongxing Erke unable to gain an elegant reputation in the market. Red Star Hongxing Erke, which has no explosive products since 2006, has completely become a second-tier small brand in the sports market. For Hongxinke who only focuses on expansion, the biggest problem is not the increase of investment, nor the weakening of the market appeal of products. The biggest problem of Hongxin gerk is that the management has lost its keen sense of market changes.
The reason why Red Star Keer is "backward"
Today, Red Star Hongxing Erke has become a brand without name, strategy, fame and marketing. There are many reasons for the plight of the red star Hongxing Erke.
The primary reason is that the brand layout is indecisive. Look at the opponent of Red Star Hongxing Erke, Xtep suppressed by Red Star Hongxing Erke, insisting on the running shoes market and sponsoring the domestic marathon. Xtep, which continues to consolidate the market position of running shoes, is now the boss of running shoes. Based on the comprehensive sports market, Li Ning and Anta have gradually become the representatives of domestic brands through the star strategy, and their products can even cause a wave of buying in the United States, the Nike base camp.
Hongxing Erke, who made his fortune by tennis brand, has been unable to become a high-end brand in the tennis market. After Hong Xingerke went public, he was busy expanding and solving the problems caused by the expansion. Red Star Hongxing Erke is not deeply involved in the tennis market, resulting in its tennis market share being eroded by Adinik. Red Star Hongxing Erke has also entered the children's wear market, and this strategy of rushing to the beach hospital can only fail.
The second reason is the lack of accurate marketing creativity. Anta can achieve a breakthrough in brand recognition, and the signing of NBA star Thompson is an important reason. Thompson, who signed an NBA non-first-line star with huge sums of money, seemed to be an adventurous move at that time, but now it seems to be a classic marketing case.
In order to regain its former glory, Hongxing Erke, which has fallen far behind the mainstream market, is still trying to catch up. Spend a lot of money to invite celebrities to publicize and invite famous designers to launch new shoes. These are the performances of Red Star Hongxing Erke after he never gave up. The marketing director of Red Star Hongxing Erke admits that building the brand power of products is the most important task of Red Star Hongxing Erke at present. Red Star Hongxing Erke, can you be the former 1?