On the evening of July 22, the topic “Hongxing Erke’s Weibo comments are so sad” suddenly ranked first in Weibo’s hot searches, with more than 6 views so far 100 million.
Origin of the incident On July 21, Hongxing Erke announced to Henan donated 50 million yuan in supplies. This news was discovered by netizens the next day, and then became popular. Under the comments on his Weibo, many netizens posted a comment saying “I feel like you are going to go bankrupt and yet you donated so much” as a hot topic. Rating first.
As netizens said, if it hadn’t been on the hot search this time, many people would have forgotten this sports brand that was founded more than 20 years ago.
“Bao, you are so confused, I am worried for you”
On the 21st, Hongxing Erke announced on its official Weibo that it was concerned about the disaster area, and Hongxing Erke donated 50 million yuan in materials through the Zhengzhou Charity Federation and One Foundation to assist the disaster area in Henan. The first batch of supplies also arrived that afternoon.
Netizens expressed their impressions in the comments Hongxing Erke was about to “go bankrupt”, but unexpectedly it silently donated up to 50 million yuan in supplies without even publicizing it.
Some netizens discovered that Hongxing Erke “cannot bear to be a Weibo member”, and many netizens said that they would give him a membership. On the 22nd, Hongxing Erke posted on Weibo, saying, “I have been busy for a long time and found out that I am already a Weibo member.” A screenshot of his Weibo showed that the membership expiration date is January 23, 2031. Calculated in this way, netizens gave Hongxing Erke Member of Weibo for about 10 years.
On July 22, the number of people in the Hongxing Erke Taobao live broadcast room After soaring, when netizens asked “Will it go bankrupt if you donate so much?”, the male anchor replied: “It won’t go bankrupt. Our industrial chain is very big.”
In the face of enthusiastic netizens, Hongxing Erke female anchor quickly reminded everyone to consume rationally: “You can buy the styles you like, but you don’t have to buy the styles you don’t like.”
However, netizens ignored it and jokingly said: “It is our netizens’ dereliction of duty not to let the Hongxing Erke sewing machine smoke.”
When the live broadcast ended at 11 hours and 55 minutes, the boss of Hongxing Erke appeared in the Taobao live broadcast room. However, he did not bring the goods, but responded to the hot search and called on netizens to “consume rationally.”
According to relevant data, Hongxing Erke’s live broadcast yesterday had 2.017 million views, 21.116 million likes, and sales of 996,000. It became a hot search on Taobao Number one on the anchor list.
When it comes to “Hongxing Erke”, I don’t know what everyone will think of. The first reaction of many people may be the slogan “To Be Number 1”. But this advertisement has not appeared in the media for several years. Behind the distress of netizens is the fact that Erke’s market share and revenue have lagged far behind its former competitors Anta, Li Ning and other brands in recent years.
Like Anta, Xtep, 361°, etc., Hongxing Erke was born in Jinjiang, Fujian, known as the “Chinese Shoe Capital”, and Hongxing Erke (Xiamen) Industrial Co., Ltd. was established In June 2000, the headquarters was located in Xiamen.
In 2001, Chen Xiaochun became the image spokesperson of Hongxing Erke, making him famous among young people.
On November 14, 2005, Hongxing Erke was listed on the Singapore Stock Exchange, becoming the first clothing brand in the industry to be listed overseas, ushering in a highlight moment. The turnover also grew from the initial more than 10 million yuan to 600 million yuan in 2005, and then to 2.8 billion yuan in 2008.
At that time, domestic brands were ushering in a golden age. From 2007 to 2009, Anta, Xtep, 361°, Peak, etc. were successively listed on the Hong Kong stock market. .
But in February 2011, Hongxing Erke was suspended due to financial fraud.
Image source: Daily Economic News Data Map
Between 2005 and 2015, Hongxing Erke’s marketing focus was on tennis events, and it has carried out apparel sponsorships with the Shanghai ATP1000 Masters, China Tennis Open, Australian Tennis Open, and WTA year-end finals.��Cooperation.
In the 2016 Rio Olympics, Hongxing Erke was the sponsor of the Croatian Olympic delegation.
However, due to product positioning deviation, the brand’s attempt to advance into the high-end market by sponsoring tennis events was not ideal, and its market share continued to decline.
Entering the transformation period, Hongxing Erke chose to continue sinking. In April 2020, Hongxing Erke released the brand strategy of “strengthening the county level and optimizing the prefecture level” to re-implement the popularization.
This time, Hongxing Erke’s return to popularity is aimed at the positioning of low-tier cities and the direction of channel sinking. According to its official website, most of the shoes currently on sale are around 100-200 yuan, and the product pricing is relatively low.
The fate of domestic leading brands in the past was very different
In recent years, domestic sports brands have re-emerged , while Adidas and Nike are trying hard, some once-splendid domestic brands have become more “low-key” and even disappeared.
Xidelong, which once had annual sales of more than 3 billion, has declared bankruptcy; at the end of 2017, many Delhui assets were put up for mortgage auction; once the leading running shoe brand Kinglake , there is almost no sound now, and the official Weibo has stopped updating in 2016.
In July this year, Guireniao, “the number one A-share sports brand”, announced that it would cut down its production line and adjust to an outsourced processing and procurement model. Guirenniao annual report data shows that the company has suffered losses for three consecutive years from 2018 to 2020.
Compared to these brands is the rise of national fashion sports brands. The 618 sports and outdoor category transaction data released by Tmall in 2021 shows that the pre-sale transaction volume of national fashion sports brands increased by more than 500% year-on-year, and the number of members increased by more than 60% year-on-year. Anta, Li Ning, Peak, Xtep and 361° occupy the top five brands and store turnover.
On June 17, 2021, ANTA Sports released a promising interim financial report for 2021 , the operating profit is expected to grow by no less than 55% in the mid-term of 2021, that is, the operating profit is expected to exceed 5.58 billion yuan (approximately 3.6 billion yuan in the mid-term of 2020).
On June 25, 2021, Li Ning announced a promising profit forecast for the company’s first half of the year. Li Ning’s expected net profit in the first half of 2021 is no less than 1.8 billion yuan, with net profit rising 163% year-on-year and revenue growing more than 60%, far exceeding market expectations.
Xtep International also disclosed that its unaudited comprehensive profit attributable to ordinary equity holders in the first half of 2021 increased significantly by no less than 65% year-on-year. .
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