On the afternoon of July 31, the entry “Hongxing Erke donated another 100 million yuan” became a hot search on Weibo, attracting the attention of many netizens.
Since last year’s donation of 50 million in supplies to Henan became a hot topic, Hongxing Erke has been a hot topic many times because of its donations.
On July 30, Hongxing Erke posted on Weibo that it would donate 100 million yuan in money and materials to the Fujian Disabled Persons Welfare Foundation to help disadvantaged disabled groups.
In this regard, netizens said:
“I just made some money and donated it.”
“I used sewing machines for a year and donated them all.”
“The hearts of national enterprises are still full of the nation.”
…
Many times it has become a hot search topic due to donations.
Hongxing Erke appeared in the public eye as a donation operation when Henan was hit by floods in July last year.
At that time, Hongxing Erke announced in a low-key manner on Weibo that it would donate 50 million yuan in supplies to Henan.
Later, some netizens spontaneously believed that Hongxing Erke was about to go bankrupt, but now it silently donated a large amount of money during this crisis! This caused a large number of netizens to break their defenses and once dominated the hot searches on Weibo.
After that, Hongxing Erke frequently became a hot search topic because of his donation:
Donated 1 million yuan to Henan Museum in August last year.
Donated to Shanxi in October last year.
Donate to Quanzhou in March this year.
Last year, Hongxing Erke welcomed “wild consumption”
During the floods in Henan in 2021, Hongxing Erke suddenly donated 50 million yuan, triggering a public buying frenzy… For a time, words such as hot search, Internet celebrity, out of the circle, and hot orders frequently appeared on this company. A donation pushed it to the public , the popularity has been greatly improved, and the sales performance has been rising rapidly.
Suddenly, Hongxing Erke attracted national attention.
On the evening of July 22, 2021, the number of views for a single game in the live broadcast room skyrocketed to 2.017 million. In addition, its Douyin live broadcast room also generated more than 15 million sales on the night of the 22nd. According to China Business News, as of the evening of the 24th, the sales data of Hongxing Erke’s Douyin live broadcast room exceeded 100 million yuan.
According to statistics from third-party Gray Dolphin data, the average daily number of live broadcast views in the Taobao live broadcast room of Hongxing Erke’s official flagship store in the six days before it became popular was only 11,000.
Regarding the shopping wave ushered in by Hongxing Erke, some media called it “wild consumption.”
Wu Rongzhao, chairman of Hongxing Erke Industrial, had to call on consumers to “consume rationally” in the live broadcast room.
Wang Qiong, the fashion director of “Luxe.Co” who focuses on research in the fashion field, told the 21st Century Business Herald reporter, “Hongxing Erke is a unique case of strong resonance between more confident Chinese consumers and Chinese brands in a specific time window. . In fact, many Chinese brands are operating seriously and working hard to produce high-quality products, but they may not be able to find a breakthrough on the marketing side.”
She also believes that after this emotion, consumer enthusiasm will decline and social media attention will decline. This will be the real test of brand marketing.
Judging from the data, consumers’ current enthusiasm for Hongxing Erke has become more rational.
Baidu index monitoring data shows that Hongxing Erke’s search index began to climb on July 22 last year, reaching a peak of 1,214,600 on July 24, and has continued to decline since then.
Data from the Hongxing Erke Taobao live broadcast room also shows that the current number of viewers for each live broadcast is around 3000-200,000, which is far from the 20 million during the hot period.
The differences between Hongxing Erke, Guirenniao, and Li Ning Anta
Hongxing Erke still needs to think carefully about how to cultivate its internal strength and transform its brand popularity into long-term brand appeal.
Li Ning and Anta, which have transformed early, may be used as a reference.
Since Li Ning returned to the helm of the company, the company’s inventory turnover days have accelerated. After its return, an important decision was to target the consumer group at young people. He said: “We do not lead the new generation, the new generation leads us.”
In 2018, Li Ning proposed the basic strategy of “single brand, multi-category, multi-channel” and carried out comprehensive reforms in brand positioning and pricing, precision marketing, channel operations, supply chain optimization and other aspects in order to seek rejuvenation.
Li Ning develops its model with Li Ning’s main brand as the main brand and Double Happiness, Lotto and other brands as supplements. The consumer group is positioned at Generation Z people aged 18-25.
The 2020 financial report shows that the company achieved total revenue of 14.457 billion yuan, an increase of 4.2% compared with the same period in 2019. Gross profit increased by 4.2% to RMB 7.094 billion from RMB 6.805 billion in 2019. The overall gross profit margin was 49.1%, which was the same as the previous year.
Since April 2021, Li Ning’s stock price has soared by 80% on the basis of continuous rise.The main reason is that the market is optimistic about Li Ning’s role in the rise of the national trend.
Different from Li Ning, Anta has adopted a “single focus, multi-brand, omni-channel” development strategy, and achieved the aggregation of internal and external brands through the external “buy, buy, buy” model to enhance brand strength and popularity.
While Li Ning is targeting Generation Z, Anta’s FILA brand is targeting all age groups.
Through “buy, buy, buy”, Anta has become a company with SKU positioning across low, mid and high-end, focusing on fashion, leisure and professional sports brands. According to statistics from a reporter from the 21st Century Business Herald, it has successively purchased FILA’s business in Greater China, leading brands in skiing, baseball, bicycle and other market segments. It has also acquired SPRANDI, KINGKOW, Arc’teryx, and SA. Well-known mid-to-high-end outdoor sports brands such as Lomond and Wilson.
Unlike Guirenniao, Anta’s acquisitions are not blindly diversified, but still focus on footwear and apparel brands.
“Domestic footwear brands have experienced the development process from single brands to multi-brand groups, from product-driven to design-driven, from self-operated incubation to acquisitions of overseas brands. Compared with the beginning, the market environment and consumer changes faced by domestic brands have After earth-shaking changes, only brands with deep perception, quick judgment, timely response and sincerity can win the love of consumers in the future.” Wang Qiong said.
Behind the emergence of Hongxing Erke is a profile of the rise of the national trend.
The root cause is the continuous improvement of my country’s shoe and clothing supply chain, the continuous improvement of product strength, the promotion of diverse marketing and channels, and the cultural confidence of Generation Z.
Ma Li, the new consumption team of Zheshang Securities, pointed out that domestic brands are showing a trend of specialization, youthfulness and segmentation. Brands such as Li Ning and Bosideng have made significant breakthroughs in fashioning and high-end products by combining traditional Chinese culture with design directors from international brands. At the same time, they have taken advantage of the big shows to create buzz about the brand during the peak season. Anta and Xtep are no longer inferior to top foreign brands in terms of product technology. In addition, domestic brands such as Peacebird, Biyinlefen, and Jiumuwang have clear and segmented product positioning, and their products are both fashionable and comfortable.
All in all, the major brands have different paths to the rise of the national trend, but the core is the same, which is nothing more than good products, channels, and brands, and now these all serve the same goal: young people.
Anta’s recently announced development goals for the next five years also propose that on the brand side, “win the Z generation and open up a billion-plus emerging track.” In order to create a young and trendy brand image, Anta invited top spokesperson Wang Yibo as a young representative It is a breakthrough point to capture the hearts of Generation Z through cross-border co-branding and the establishment of event IP “Go Crazy”.
The reorganized Guireniao is also preparing to start anew. “The national trend definitely belongs to young people. We will focus on youth in design and keep up with the trend of the times. Platforms such as Douyin have also given us some inspiration. The company did not do much publicity before, but we will consider positive expansion in the future. Influence. The main thing is to do a good job in one’s own business, and it is not enough to just rely on words.” said the aforementioned person.
With the rise of national trends, shoe and clothing brands will also form new divisions according to the preferences of Generation Z.
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