Ten Years Of &Nbsp; Hongxing Erke Expects A New Outbreak.

After the Beijing Olympic Games, China's local sports brands are more mature. Both the leading position Lining or the Jinjiang department have identified their own positioning, and the competition between them is more intense.

In the 2010 World Cup, despite the fact that the top sports resources are still monopolized by the two giants of Nike and Adidas, China's local sports brands are still looking for their own focus.

Hongxing Erke is a very typical example. Because it is the first overseas listed company in all sporting goods industry in China, it has been listed in Singapore in 05 years. Therefore, in terms of capital market grafting, Hongxing Erke is also in the forefront of the whole industry.

Mr. Wu Rongzhao, vice president of Hongxing Erke, said in an interview recently that a new round of strategic offensive has been ready to take place at the moment when enterprises are approaching 10th anniversary.

According to Hongxing Erke's 2009 performance report, its sales volume was 1 billion 999 million yuan, down 30.8% from 2 billion 889 million in 2008, which is indeed a sign of concern.

However, Wu Rongzhao said that this decline is only on the digital level, and most of China's sports clothing enterprises are similar. Hongxing Erke is not affected by the global financial crisis.

"In fact, the reason is very simple."

Wu Rongzhao said, "all sports brand shipment is expected to be a bit high in 2008, including us.

In 2009, we were in a process of de stocking, and the factors of dealers were very important.

Let's take an example: in 08 years, we sell 10 thousand pairs of sneakers to a dealer, but in fact, the dealer only sells 8000 pairs of sneakers, and then 2000 pairs of sneakers will be left. In the 09 year, the dealer may sell 10000 pairs of shoes, but in fact they only need to enter 8000 pairs of goods, because there are 2000 pairs of stock before.

Wu Rongzhao said that from 08 to 09 years, the overall business Hongxing Erke is still on the rise, and this rise is more valuable than the rise in peacetime, because this rise is often the status of the enterprise has been consolidated and strengthened, representing this significance, so Hongxing Erke cherish this growth.

Because this growth is not just about sales, but also the expansion of the number of networks.

What's different is that Hongxing Erke has been advocacy of relatively small tennis in the media rather than basketball and soccer in China.

Wu Rongzhao thinks this is the result of many years' efforts: "the recognition of the combination of tennis and Hongxing Erke has been quite high, and Hongxing Erke's tennis shoes have accounted for 15 to 20% of the whole footwear, which is quite high. Usually other tennis shoes only account for less than 5% of all footwear.

This shows that users have approved the strategy and positioning of Hongxing Erke's tennis promotion.

Compared with the main sports events such as football basketball, the attention degree of tennis in China is far from enough, and it belongs to the movement of minority groups.

But precisely because of this, the current development speed of tennis in China is unmatched by other sports, and it is a rapid growth.

"Hongxing Erke's promotion concept is" youth, fashion, sunshine ". These three points have been fully reflected in tennis.

So our tennis strategy will not change.

Recently, Hongxing Erke sponsored the Madrid Masters competition, and sponsored the Shanghai masters competition for 5 consecutive years, which means that he has been striving for new ideas of overseas market development.

In addition to the Chinese market, Erke is sold in more than 20 countries and regions, especially the Middle East market.

"Our sales in the Middle East account for the top four ranking of all sports brands in the region, and Iran, Qatar, Dubai, UAE and other new cities sell well.

The main reasons are the following:

1. we entered the early time, as early as 5 years ago, we entered the Middle East market; 2., we have specifically aimed at the Middle East market R & D team to design products that meet the needs of local people; 3., we also have strong dealer network in this area, especially this key.

Besides, in addition to the Middle East market, we have made quite good achievements in the Southeast Asian and South American markets.

"Brand promotion will be our clear future strategy, and internationalization and global leading is our goal.

We should not only make the sports brand well, but also enlarge the concept and march towards the comprehensive sports clothing brand.

In the past, our benchmarking was like Nike and Adidas, but in the field of sportswear brand, more brands did better than Nike and ADI. This requires us to learn more about Hongxing Erke.

In the future, we will invest more in R & D and increase our budget. "

Wu Rongzhao said so.

Wu Rongzhao also systematically expounded the strategy of local sports brand.

At present, as Nike Adidas occupies the first tier cities, it is pushing forward like the two or three line market. Lining Anta is unwilling to stay behind. As well as PEAK, 361, XTEP, including Hongxing Erke, how do they own the dominant brands in the two or three tier cities? How to keep the market share? In the case of international brands becoming more and more sinicization and price becoming more competitive, what are the coping strategies of China's local sports brands in addition to price cuts? These are the problems that the local sports brands will face directly.

However, Wu Rongzhao did not worry too much about the invasion of the two or three line cities such as Nike and Adidas. He believed that the local brands, including Hongxing Erke, were more aware of the two or three line cities because they had more experience in the past.

Price is also a very important factor. In fact, the price of Nike ADI and other brands can not be reduced to the same price as local brands.

On the contrary, the cost of the first line brand is higher due to the reasons for early investment.

"But on the contrary, there is no obvious advantage in the first tier market, but we must see that in the first tier cities, the effect is even more obvious."

"Actually, we did a market research, and we were very encouraged that in China, there were still 7-8 billion people who couldn't afford to buy Hongxing Erke's products. He might like this brand, but he could not afford it, which means that there are still a lot of potential markets to be excavated in the future.

China's economy continues to develop. I believe that the future low-income groups, especially low-income groups will gradually grow into a middle-income consumer group. They will become a middle-income consumer group and will naturally become our target consumer group.