On October 20, Heilan House officially announced on Weibo that it would like to introduce new spokesperson Jay Chou.
Some netizens lamented: “The young people who wore Metersbonwe back then have now reached the age where they should It’s old enough to wear Heilan House.” After all, Jay Chou had endorsed Meisterbonwe for more than ten years before.
Picture source: Sina Weibo @海兰之家
However According to media reports, compared to the overwhelmingly positive reviews when Lin Gengxin was selected as the spokesperson before, Jay Chou’s journey as the spokesperson this time was not smooth.
On the other hand, can Jay Chou single-handedly save the 8.2 billion yuan inventory of Hailan House?
Why Jay Chou?
On October 18, Heilan House released a silhouette poster as a warm-up, but not long after it was released, everyone not only guessed that the spokesperson was Jay Chou, but also discovered that the poster It seems to be adapted from the floor plan taken when Jay Chou endorsed Metersbonwe in 2012.
Although it did not respond directly to the relevant matters, Heilan House deleted the Weibo post. The micro hotspot word cloud shows that words such as “Metersbonwe” and “netizens question” have become high-frequency words mentioned in this incident.
After the official announcement on October 20, the first thing that attracted attention was Jay Chou’s promotional blockbuster for Heilan House. Compared with the tall and tall Lin Gengxin, Jay Chou is increasingly The fat figure first triggered a wave of complaints.
Some netizens said, “Jay should drink less milk tea.” Some netizens said, “It tastes like Metersbonwe.” He joked, “Youth Week represents Meibang, middle-aged Zhou represents Heilan, can Senior Week arrange Hengyuanxiang?”
Then there are two questions – “Why did he take it” and “Why did the brand choose him”.
According to China Business News’ “CBNData Consumer Station”, from Jay Chou’s perspective, he has previously said that he has two criteria for accepting endorsements, one is what he thinks is great The second thing is that fans can afford it. Therefore, whether it is Kuaishou (Jay Chou started his first live broadcast on Kuaishou on July 26 this year) or Heilan Home, they are all brands that meet Jay Chou’s spokesperson design.
From a brand perspective, choosing Jay Chou seems to have more profound considerations. When Lin Gengxin single-handedly pulled Heilan House out of the image of “middle-aged men’s wardrobe”, Heilan House also explored some star collaborations.
During 618 this year, we teamed up with “National Uncle” Wang Yaoqing to bring goods on the platform. In September, we also invited the idol group R1SE Yao Chen and Zhang Yanqi to promote limited fashion brand IP. We tried a lot, but There is still a long way to go before leaving the circle.
And Jay Chou happens to be a leader in getting out of the circle. According to incomplete statistics, including this year’s Kuaishou and “Call of Duty” mobile games, Jay Chou has at least 28 brand spokesperson identities since his debut 20 years ago. Among these endorsements are Youlemei, Metersbonwe, and Emma electric vehicles. The brand became famous because of Jay Chou.
CBNData consumer station believes that if the choice of Lin Gengxin is a consideration of brand rejuvenation, then the selection of Jay Chou must also be based on his ability to “lead people” , coupled with the wise selection of the official announcement of Double Eleven, Heilan House’s ambition to have a broader consumer market has become clearer.
Increased revenue last year but did not increase profits
When it comes to Heilan House, What is your first impression today? Is it a “man’s wardrobe” that is “only visited twice a year”? In the latest promotional copy, Heilan House attempts to define itself as a national brand that joins hands with national idols.
From Yin Xiaotian’s “local highness”, Lin Gengxin’s “cool quality”, to the fighting temperament of Chinese football king Wu Lei, to the mark of the times of “Lin Gengxin’s idol” Jay Chou … Along the way, Heilan House’s spokespersons have always attracted much attention and are a very important exposure resource for celebrities.
From the choice of “shopping twice a year” to “men’s wardrobe” to “of course it’s me”, behind the iteration of the theme is not only Jay Chou’s kingly confidence, It is also the confidence of a national brand that has been deeply cultivated in Chinese men’s clothing for 20 years.
Recent stock price trend of Heilan House
China Securities Report , from Yin Xiaotian to Lin Gengxin to Jay Chou, Heilan House is expressing itself through iterative spokespersons.��Determination to further expand brand influence. Of course, this determination comes at the expense of sales charges.
Wind data shows that Heilan House’s annual sales expenses increased from 186 million yuan in 2012 to 2.467 billion yuan in 2019. During the same period, Heilan Home’s revenue also increased from 1.368 billion yuan to 21.970 billion yuan. However, from 2017 to 2019, the growth rate of sales expenses was greater than the growth rate of revenue in the same period, which may indicate that advertising does not have the momentum to bring goods in the past.
Source: Wind
In addition, for the first time in 2019, Heilan House reported an increase in revenue but no increase in revenue. beneficial phenomenon. For the whole year of 2019, Heilan House’s revenue increased by 15.09% year-on-year, but its net profit attributable to the parent company decreased by 7.07% year-on-year. Affected by the COVID-19 epidemic, in the first half of 2020, Heilan Home’s net profit attributable to its parent company dropped by 55.42% year-on-year.
Can Heilan House, which is unable to carry goods and is trapped by the epidemic, be saved by top-notch Jay Chou? This still needs to be verified by future “real money” (sales).
The chairman once got angry on the spot when faced with inventory doubts
Heilan Zhijia is most criticized by the capital market for its high inventory.
Source: Wind
Wind data shows that since 2015, Heilan Home’s inventory It has never spent more than 8 billion yuan. From 2015 to 2019, the company’s inventory accounted for 60.5%, 50.8%, 46.7%, 49.6%, and 41.2% of revenue respectively. In the first half of 2020, Heilan House’s inventory reached 8.217 billion yuan, even exceeding revenue (8.102 billion yuan) in the same period.
Although inventory is a pain in the apparel industry, the inventory level of Heilan House is obviously high in the industry. Heilan Home’s high inventory problem may be related to its asset-light operating model. Data shows that Heilan Home adopts a quasi-direct management method for franchise stores. The franchisee owns the franchise store and entrusts the internal management of the store to the company, but does not bear the risk of unsalable inventory.
Guosen Securities analyzed that the COVID-19 epidemic and two consecutive years of mild winters have caused the company’s inventory to rise, but thanks to omni-channel marketing, the inventory problem in the past two years will be under control. and resolve.
It is worth mentioning that at the 2019 shareholders’ meeting of Heilan House, some shareholders had questioned the inventory and business model issues, and Chairman Zhou Jianping went crazy on the spot. “: “If you are good enough, you will be the chairman”, “Anyone whose revenue does not exceed that of Heilan Home is not worthy of questioning Heilan”, “No one is allowed to question Heilan’s inventory issues.”
Some people in the industry pointed out that in addition to inventory issues, the production design of Heilan House products also needs attention. It is reported that in the design process, the Heilan House brand is mainly responsible for the development proposal and final selection. The supplier’s design team is responsible for proofing and other work; other retail brands mainly focus on independent research and development, and the supplier is only responsible for the processing and production links. .
As of now, Heilan House still occupies a leading position among male consumer groups. According to the Chinese men’s clothing market report released by Euromonitor International, Heilan House ranked first in the men’s clothing industry for six consecutive years with a market share of 4.7% in 2019. Kaiyuan Securities believes that the effectiveness of Heilan Home’s new brand layout and the recommendation of online digital marketing strategies are expected to increase the company’s future performance.
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