When Henan was hit by heavy rains, major companies donated money and materials to Henan. Undoubtedly, the donations to Henan this time were mainly from Chinese companies. First of all, the total donation amount of dozens of central enterprises has exceeded 1 billion. Secondly, Private enterprises also make a lot of donations. There are already 7 individual enterprises that have donated more than 100 million, such as Alibaba and Tencent.
One of the companies has received great attention from netizens and the public, and once became a hot search. It is Hongxing Erke, a low-key donation 50 million, there was no publicity and reports, and it was not discovered by netizens until the next day, and even Weibo members were not willing to top up. In response, enthusiastic netizens renewed Hongxing Erke’s membership until 2140, which is more than 100 years later.
The reason why netizens are so “touched” is because Hongxing Erke donated money and materials to Henan despite its own business decline and continued losses. This is what a domestic brand should have The appearance also made netizens very “distressed”. Some netizens said: You are almost going bankrupt, why do you still donate so much!
After donating 50 million, the live broadcast rooms of Hongxing Erke’s major platforms are “hugely crowded”, and one-day sales have exceeded 1,000,000 Ten thousand, and the number continues to rise. As the president of Hongxing Erke, Wu Rongzhao said that everyone should consume rationally, but netizens said: I want to “consume wildly.”
Now, another domestic brand has donated 30 million, and the company president has led a team to provide assistance to the disaster area. It is Guirenniao , but the current situation of Guirenniao is not optimistic. You must know that Guirenniao has suffered losses for three consecutive years. It just achieved bankruptcy and reorganization this year, and the company still has 3.5 billion in debt to repay. In this case, it also donated 30 million. It is indeed a Chinese own business.
According to financial report data, Guireniao lost 680 million in 2018, and even lost 1.09 billion in 2019. Under the influence of the epidemic in 2020 It also lost 380 million yuan, and lost 2.1 billion yuan for three consecutive years. Entering 2021, Guirenniao’s performance has not improved yet. It continued to lose 59 million yuan in the first quarter of this year, and there is a high probability that it will still lose money this year.
At its peak, Guirenniao had more than 5,500 stores nationwide, but now there are only more than 1,000 left. In seven or eight years, 80% of Guirenniao’s stores nationwide have been closed. The once best-selling sports brand across the country has seen a large number of stores close in just a few years, its market value has evaporated by tens of billions, and its performance has been losing money year after year.
Just in 2020, Guireniao was unable to repay 2.5 million yuan, and its creditors filed for reorganization with the court. In April 2021 , Guirenniao’s reorganization plan began, and reorganization investors were introduced. A company in Heilongjiang invested 400 million yuan to hold 20% of Guirenniao’s shares, and the company’s actual controller Lin Tianfu held 66% of the shares. Until July this year, the reorganization Finally done.
On July 14, Guirenniao canceled 14 domestic branches, and all the assets and liabilities of the branches were transferred to Guirenniao’s listed company. As of now, Guirenniao’s liabilities have accumulated to 3.5 billion yuan. Even when the company’s own situation is so pessimistic, Guirenniao still insists on donating 30 million yuan to Henan. After all, it is our Chinese own national brand that is reliable.
However, Guirenniao is already facing problems such as debt pressure, performance losses and a sharp reduction in the number of stores. Can it make a comeback in the future? I’m afraid it’s difficult. After all, the domestic sports brand market already has two leading industry giants, Anta and Li-Ning. Xtep and 361 Degrees are still maintaining their position. At the same time, they also have to face competition from international brands such as Adidas and Nike.
It is not easy for domestic brands to get to this point. Now they are still facing competition from domestic giants and international brands. Guirenniao should first solve its own debt problem and resolve debt pressure, and then pass Internal management, brand marketing, product innovation and other means gradually achieved a recovery in performance until it got rid of losses and achieved profitability. </p
