On July 2 1 day, Hongxing Erke, a long-unknown and almost forgotten red star, announced in Guan Wei that it would donate 50 million yuan of materials to Henan Province, which was hit by heavy rain. Many netizens commented: "How can you donate so much when you are going out of business?" "Why don't you promote it? I am anxious for you. "
On the evening of 22nd, # Red Star Hongxing Erke's Weibo comment was so sad that # rushed to the top of the hot search list that the whole network began to "feel bad" about Red Star Hongxing Erke. The data shows that on July 24, nearly 20 million people watched the Taobao live broadcast room of Red Star Hongxing Erke. In the online live broadcast room and offline stores, Red Star Hongxing Erke's products were snapped up wildly. According to statistics, the total sales of the two Tik Tok accounts "Red Star Hongxing Erke Official Flagship Store" and "Red Star Hongxing Erke Official Flagship Store" reached 654.38+0.37 billion yuan.
This is in stark contrast to the poor data of Red Star Hongxing Erke in the past. From thousands of people in the past to tens of millions of people, in just a few days, the inventory of Red Star Hongxing Erke has been in a hurry.
The mood was quickly reversed. It was found that as of 23rd, only 200,000 bottles of ice dew mineral water donated by Hongxing Hongxing Erke were worth more than 200,000 according to 0 yuan 65438+ 1 bottle. Public opinion began to turn, suspecting that Red Star Hongxing Erke was speculating.
Subsequently, the One Foundation and Zhengzhou Charity Federation, which signed a donation framework agreement with Red Star Hongxing Erke, clarified one after another. One Foundation received 20 million yuan of donated materials, and Zhengzhou Charity Federation received 30 million yuan, including 3 million yuan in cash and the rest as charity materials, which will be sent to the disaster area in batches.
Although all parties have publicly responded, I am afraid that the real elimination of doubts will have to wait until Red Star Hongxing Erke completes the donation of 50 million materials. Whether this can become a turning point in the rise of Red Star Hongxing Erke still needs market test.
On the morning of July 26th, Lei Jun, president of Xiaomi, took a photo of wearing red star shoes in Weibo, and commented that he "responded to the call of netizens".
Weibo, president of Red Star Wu, became active again after donating 50 million materials after the fire broke out.
On July 2 1, 24 and 26, Wu appeared in Weibo for three times. The contents of the three Weibo are to forward the donation information, take the opportunity to recruit talents, and review the development process of themselves and the company.
The last time Wu was so active, it was the Xinjiang long-staple cotton incident in March this year.
202 1 March, H &；; M became the first foreign brand to "eat China rice and smash China pot" in Xinjiang's long-staple cotton incident, and then a report covering Uniqlo, ZARA and H & BCI listed most clothing brands, such as M, Adi, Nike and New Balance. It caught the eye of the Chinese people and soon became silent in the consumption list of the Chinese people.
At that time, Wu Santian sent five Weibo articles to support China brand and Xinjiang cotton, and there was also a news that Ebo had joined.
In stimulating domestic consumer sentiment, Red Star Hongxing Erke's ambition is no less than Li Ning's ambition when he won Sean.
On March 25th, after Ebo announced the termination of cooperation with Nike. Red Star Hongxing Erke immediately came out and shouted: Red Star Hongxing Erke sent a cooperation invitation to Mr. Yi Bo to support young people in China, be proud of the country and let China brand go global.
However, the red star Hongxing Erke is obviously not as popular as Li Ning. A month later, Yibo announced the signing of Anta.
Regardless of whether the ambition of Red Star Hongxing Erke can be realized, today is indeed the best time for local brands.
On the night when Red Star Hongxing Erke announced the donation, more than 2 million people poured into the live broadcast room of Red Star Hongxing Erke to participate in the goods sweeping activities. The netizen who thought that Red Star Hongxing Erke "had no money to be a member of Weibo" helped him become a member until 2 140. Wu, president of Red Star, had to appear in the live broadcast room, calling on netizens to "consume rationally".
Orient securities quoted JD.COM. According to the report of COM, on July 23rd, the sales of Red Star Hongxing Erke increased by 52 times compared with the same period of last year, and on July 22nd and 23rd, the overall sales of Guo Chao sports brands increased by more than 280% compared with the same period of last year. This once again reflects the continuous return of Chinese people's preference for local brands, and the national trend in the field of consumer goods is unstoppable.
Compared with Red Star Hongxing Erke, Nike is not so lucky.
On July 22nd, Nike announced that it would donate 20 million yuan in cash and materials to the China Foundation for Poverty Alleviation for emergency rescue and post-disaster recovery and reconstruction in Henan.
In the Hupu community, netizens responded by saying "support domestic products, support Red Star Hongxing Erke" and "use Xinjiang cotton?" Don't buy cotton without Xinjiang. "
In this wave of snapping up, Hongxing Hongxing Erke is a "low-key" domestic brand, which usually lacks clothes and food, but as long as the country needs it, even if it sells iron, it must take out all its possessions.
Therefore, people return goodwill with goodwill and send the red star Hongxing Erke to the hot search.
The news that Red Star Hongxing Erke lost 220 million yuan in 2020 is an important catalyst for this wave of fermentation.
A picture widely circulated on the Internet shows that compared with domestic brands such as Anta, Li Ning and 36 1 degree, Hongxing Hongxing Erke not only has less revenue, but also suffers serious losses.
According to the official micro-news, Anta, Li Ning and 36 1 donated 50 million yuan,100000 and100000 respectively, which is in the same order of magnitude as that of Red Star Hongxing Erke.
Compared with Anta's net profit of 5 1 100 million, Li Ning's net profit169.8 million and 3610.41500 million. Red Star Hongxing Erke, with a loss of 220 million, can donate 50 million materials, which is really commendable.
But whether this 220 million is true or not remains to be verified. On the Singapore Stock Exchange, the financial data about Red Star Hongxing Erke was only updated to the first half of 2020, with a loss of 600,000 yuan. Moreover, compared with the loss of 298 million yuan of 20 18, the loss range of Red Star Hongxing Erke is shrinking year by year.
The "Fujian 100 Top Private Enterprises Ranking" released by Fujian Province shows that in 2020, Hongxing Hongxing Erke ranked 82nd with an operating income of 2.843 billion yuan. From 20 18 to 2020, the operating income of Red Star Hongxing Erke has been increasing. In 2020, World Brand Lab released "Top 500 Most Valuable Brands in China", and Hongxing Erke ranked 18 1 with a brand value of 35.836 billion yuan.
What is the profitability of Red Star Hongxing Erke?
Since Red Star Hongxing Erke delisted from the New Stock Exchange in 2020, there is no public financial data, and its profitability can only refer to domestic similar brands.
According to the research report released by Guosen Securities, in 2020, the gross profit margin and net profit margin of domestic brands Anta and Li Ning all showed an upward trend, outperforming international brands Adidas and Nike.
Among them, the gross profit margin of Anta is close to 60%, and that of Li Ning is nearly 50%. The relatively poor Xtep and 36 1 degree remain at around 40%.
If we only calculate the industry average, Red Star Hongxing Erke's revenue of 2.8 billion can still be profitable, and its gross profit is between 65.438+0 billion and 65.438+0.5 billion.
Wu also responded in Weibo that the process of transformation is still very difficult, but it is not "on the verge of bankruptcy" ridiculed by many netizens.
"I firmly believe that as long as we keep our initial heart, stick to the industry and create quality products for users with our heart, we will be recognized by users one day." Wu said to:
A generous donation pushed the red star Hongxing Erke to an unprecedented height.
Some netizens commented that "if Red Star Hongxing Erke can't turn losses into profits on 202 1, the people of the whole country will be responsible."
Hongxing Hongxing Erke is the first sports brand in China to open the layout of e-commerce, and completed the layout of national retail channels on 20 1 1. However, in 20 17, Hongxing Hongxing Erke failed to catch up and fell behind brands such as Li Ning and Anta.
In 20021year, according to the transaction data of 6 18 outdoor sports categories released by Tmall, among the national sports brands, Anta, Li Ning, Peak, Xtep and 36 1 occupy the top five in brand and store turnover. Red Star Hongxing Erke failed to make the list.
After all, domestic products and national trends are different. Today's red star Hongxing Erke is really low-key, taking a completely opposite road to Li Ning and Anta.
After "China Li Ning" became an explosion, Li Ning quickly set a sky-high price under the hype of scalpers. The original price of Li Ning's co-branded sneakers-Way of Wade 4 was fired to 48,889 yuan, and the overall price rose by 3 1 times; Then, Li Ning also canceled the offline discounts on almost all running shoes, basketball shoes and casual shoes he could get, and ate this wave of dividends.
Red star Kerr is trying to continue to sink. At the Red Star brand strategy cloud conference in 2020, Lu, the company's vice president, said that the company would "strengthen the county level and make it superior at the prefecture level", innovate the marketing system and upgrade the image of products and stores.
2021July 17, Hongxing Hongxing Erke opened a super-large Pro store in Zunyi, with professional shopping guides and a children's play area. According to Red Star Keer's idea, taking root in sinking the market and opening new stores is the goal of future development.
This price is really close to the people. However, Red Star Hongxing Erke also faces a group of extremely picky consumers and netizens. Wild consumption is like a sword, a mountain and a sea of fire to the red star Hongxing Erke. If you advance, you will be famous all over the world, and if you retreat, you will be ruined.
When the epidemic raged in early 2020, Red Star Hongxing Erke announced the donation of100,000 yuan of materials. However, in the annual audit report of One Foundation, the donation threshold of the top ten is 2 million yuan, but Red Star Hongxing Erke failed to make the list. 100000 yuan donation has become an unsolved case.
This time, with the endorsement of One Foundation and Zhengzhou Charity Federation, Hongxing Hongxing Erke barely escaped the criticism of the whole network, but I'm afraid it's hard to forget it like last time. The targeted red star Hongxing Erke must throw out 50 million materials, regardless of whether it can get the same amount of income from this wave of wild consumption.
Once consumers lose their rationality, whether they win or kill, it is an extremely dangerous signal to Red Star Hongxing Erke.
Author Intern Xin Xiang Editor Zhang Yixiao
Do you think Red Star Hongxing Erke can use this donation to become a new explosive brand?