A few days ago, Heilan House announced through its official Weibo: Wu Lei, a Chinese player who plays for Espanyol in La Liga, has become a new spokesperson. Just last month, Heilan House just joined hands with Beijing Guoan, Shanghai SIPG, and Shandong Luneng, the three oldest teams in the Chinese Super League, and signed a contract to become the official formal wear partner of the three major clubs. It is not difficult to see that in 2020, Heilan House will continue to work hard to integrate with the sports industry.
Attracting marriage with football Hardcore fans
Previously, Chinese player Wu Lei scored a key goal in the match against Barcelona to help the Espanyol team gain a valuable point. At the same time, it also became history The first Chinese player to score against Barcelona. This goal triggered a collective excitement among Chinese fans thousands of miles away!
Heilan House’s official Weibo wrote: He competes in La Liga and writes a new chapter for Chinese players! He has set many records and is truly the Chinese football king! He is the first Chinese player to score a goal for Barcelona, and he is Wu Lei, the new spokesperson of Heilan House.
From joining hands with the three major Chinese Super League clubs to officially announcing Wu Lei as an endorsement, Heilan House has made rapid moves in the field of Chinese football. It is not difficult to see that the cooperation between Heilan House and Chinese Football has begun, and the brand belief of Chinese men’s clothing in paying attention to Chinese sports is fermenting.
Football has always been one of the sports that have attracted much attention from the Chinese people. Earlier, PP Sports, the exclusive new media copyright operator of the Chinese Super League, and Suning Big Data released the “2019 Chinese Super League Season Attendance Data Report”, data show that the number of spectators in the Chinese Super League in the 2019 season increased by 12.1% year-on-year, reaching 1.599 billion.
This huge group is extremely attractive to any clothing brand. The fanatical fans behind the Chinese Super League gave Heilan House the idea to tap into the spending power of hard-core fans. It is logical to increase public attention and develop the football industry.
Football, a global sport, has a broad mass base in our country. According to statistics, 73% of football fans in China are male. The main fan group is between the ages of 30 and 39, and the number of young fans is also growing rapidly. These people are the main audience of Heilan House, which started out as a menswear company. Therefore, Heilan Home joins hands with Wu Lei to provide formal wear customization services for the three established teams in the Chinese Super League. It is undoubtedly actively enhancing the brand’s image and status in the hearts of sports fans, and using this to attract more target customers to expand brand cohesion. .
Heilan House has stated that cooperation with the three major clubs is only the first step. In the future, it will increase the research and development of sports and sports products and use better versions. The styles and fabrics create clothing that Chinese men like and promote the development of national fitness.
The retail model encounters bottlenecks and needs new growth points
Heilan House has been listed on the market through a backdoor merger in 2014. With its brand positioning of “mass cost-effective men’s clothing” and its innovative “platform + brand” chain operation model, it has achieved brand awareness and rapid expansion of sales channels.
It is worth mentioning that although the performance of Heilan House has been growing in recent years, the trend has gradually slowed down, and the growth rate has become The smaller. From 2014 to 2017, Heilan House’s net profits were 2.374 billion yuan, 2.953 billion yuan, 3.123 billion yuan and 3.328 billion yuan respectively; the net profit growth rates were 75.83%, 24.50%, 5.74% and 6.5% respectively.
According to the 2018 annual report of Heilan House, the revenue in 2018 was 19.01 billion yuan, a year-on-year increase of 4.89%; the net profit was 3.45 billion yuan, a year-on-year increase of 3.78%; deductions Non-net profit was 3.27 billion yuan, a year-on-year decrease of 0.63%. Compared with 2017, the growth rate of the three business indicators has slowed down across the board.
According to the 2019 semi-annual report, Heilan House’s revenue growth rate has declined significantly compared with the same period last year, and its net profit growth rate has hit a new low since its listing, and its cash flow from operating activities The net amount fell by 40.60% year-on-year. According to the third quarter report of 2019, Heilan House achieved operating income of 14.689 billion yuan from January to September. Its operating income from January to September last year was 13.042 billion yuan, a year-on-year increase of 12.63%. Net profit attributable to shareholders of listed companies was 2.616 billion yuan, a year-on-year decrease of 0.45%.
At the same time, the “Heilan House” model that Heilan House has always been proud of has encountered unprecedented bottlenecks. This asset-light model outsources the production process and opens stores mainly in the franchise model, thus promoting the rapid expansion of Heilan Home. However, after expanding to a certain scale, Heilan House’s growth has been slow, and the accompanying problems such as declining single store revenue and inventory pressure have become more prominent.
Perceiving the lack of growth, Heilan House has continuously made adjustments to its products in the past two years. Changing spokespersons to create new product styles to get rid of the rustic impression; successively launched a number of popular IP co-branded series, from Havoc in Heaven to Blizzard games, integrating passionate feelings with modern design concepts; in addition, we deeply explored the pain points of men’s dressing and launched sports LeisureThe dry series and the goose down series with upgraded warmth have also been highly recognized by the consumer market. Not only the domestic market, Heilan House has also made solid progress in internationalization, from entering the first-class business districts in Southeast Asia to being invited to attend London Men’s Fashion Week.
Heilan House has previously stated in interviews with the media that cooperation with popular IP joint series can, on the one hand, arouse a stronger response on social networks and gain greater popularity. Brand voice. On the other hand, this cooperation not only covers the original consumer groups, but also drives potential consumer groups. Some people will become “new fans” of Heilan House because of this cooperation, thus effectively stimulating sales and the brand “going out of the circle”.
At present, Heilan House’s first involvement in the sports industry is another bold attempt. Can the layout of the football market make the brand “out of the circle” again? The effectiveness still needs time to be verified, we will wait and see. </p
