Heng Yuan Xiang'S Multi Brand Development Strategy

Who would have thought that an old brand in a depressed industry can be ranked first among the old brands in Shanghai.

Who would have thought that a small shop in those days was now a huge economic consortium of 40 thousand employees?

How many people are interested in caring for wool nowadays? A company actually makes the eyes of the world's wool textile industry focus on the finest wool.

This is Heng Yuan Xiang.

Liu Ruiqi, the head of his door, is low-key and restrained, and his tone of voice is also slow.

But his business plan is passionate, and his business philosophy is bold.

He deliberately made the business operation into a legend, arranged the brand management into a story, and talked about it.

Heng Yuan Xiang originated in 180 square meters of wool shop. Liu Ruiqi first saw him, medium sized, young and handsome, and exudes vitality and vitality, giving people a feeling of deja vu.

Accompanied by the three voices of "sheep, sheep and sheep", the baby face full of spirituality and immature appearance is the picture of "cloned" Liu Ruiqi himself when he was young.

Liu Ruiqi is closely related to Heng Yuan Xiang.

In 1987, Liu Ruiqi, who was only 29 years old, entered "Heng Yuan Xiang" as general manager.

A small shop less than 180 square meters, business is slack, is in the wool industry downturn.

Liu Ruiqi thought hard: where is the road?

After studying the history of the shop, he found that "Heng Yuan Xiang" with a 60 year history is not a "gold mine" with huge wealth.

- "we can't beg for a gold bowl!"

Liu Ruiqi was suddenly enlightened, and resolutely decided to register with the gold lettered signboard of the enterprise, and produce the "Heng Yuan Xiang" and "Xiao Nan" brand knitting yarn.

Since 1991, Heng Yuan Xiang has gone out of trouble and developed miraculously at extraordinary speed.

In the past 75 years, only 6 years after the production of the yarn, the production and sales volume of the "Heng Yuan Xiang" consortium exceeded ten thousand tons, increasing by 130 times.

At that time, Wu Bangguo, member of the Political Bureau of the CPC Central Committee and vice premier of the State Council, wrote in an autographed inscription: "the king of wool, Heng Yuan Xiang."

At the end of 1997, Liu Ruiqi and his party were invited to visit Uruguay, which is rich in wool.

He also has an important purpose to meet his old friend, Dr. Julio Maria Sanguinetti, President of Uruguay.

Liu Ruiqi's friendship with the president should also be traced back to a visit by the Uruguay government delegation to China in April 1997.

President Sanguinetti led a delegation to China and visited Shanghai's first stop on the Jinling Road.

In fact, the president's understanding of Heng Yuan Xiang began with wool.

In 1996, Heng Yuan Xiang used 15% of the gross wool in Uruguay, and was the first customer in the world in Uruguay.

Speaking of "Heng Yuan Xiang" brand, this is the most proud work of Liu Ruiqi's experience. He regards it as precious as life.

Liu Ruiqi said, "Heng Yuan Xiang" as the company's total trademark, we must take the product's high quality and good after-sales service as the standard, with a new look in front of consumers.

Heng Yuan Xiang was founded in 1927 and was once a well-known company in Shanghai.

After the public-private partnership in 1956, only more than 100 yuan square meters of Nanjing East Road 711 Yuan Heng Yuan Xiang wool shop was left, and even three words of Heng Yuan Xiang were changed.

In 1978, the store resumed the name of Heng Yuan Xiang knitting yarn, specializing in the distribution of Shanghai famous brand wool yarn in Nanjing East Road, and business began to recover gradually.

Liu Ruiqi is willing to put his hand to his feet and restore the power of Heng Yuan Xiang.

Through advertising and marketing strategy, two years later, Heng Yuan Xiang was named the name store in Shanghai.

Before and after 1991, Heng Yuan Xiang knitting company was founded. Liu Ruiqi spent 900 yuan to trade and Industry Bureau to register "Heng Yuan Xiang" trademark.

Through the two strategies of fixed license processing and advertising bombing, the brand of Heng Yuan Xiang was re started.

The following year, Vientiane group was established, Heng Yuan Xiang knitting company became one of the group companies.

In 1994, Vientiane group went public.

Under the management of Liu Ruiqi, Heng Yuan Xiang became the main source of profits for listed companies. Liu Ruiqi was later promoted to general manager of listed companies.

In August 24, 2000, Xu Rongmao's Shanghai Shimao investment and Development Co., Ltd. purchased 26.43% stake from Wanxiang's largest shareholder, Huangpu District state owned assets Bureau, at the cost of 144 million yuan, becoming the largest shareholder of Vientiane shares.

When Shimao invested in the main business, he hired the new general manager of the listed company. Liu Ruiqi was demoted to deputy general manager.

The Shimao Group is a main real estate development company. Its entry to Vientiane group is to develop its real estate business. Liu Ruiqi and its Heng Yuan Xiang are in fact marginalized.

This seems to be a disadvantage to Liu Ruiqi, but behind the negative appearance is the timing.

In fact, as long as Shimao shares entered the Vientiane group, Liu Ruiqi had the idea of MBO.

With Liu Ruiqi's talents and his contribution to Heng Yuan Xiang, Liu Xianran is not satisfied with the returns that he can get in state-owned enterprises.

In 1998, Zheng Peimin, chairman of Shanghai Rong Zheng Cci Capital Ltd, found that Liu Ruiqi was one of the entrepreneurs who were seriously undervalued in Shanghai. That is, he planned Liu Ruiqi's acquisition of Heng Yuan Xiang through some channels. However, due to various conditions at that time, the purchase plan failed to get support from the relevant departments.

After "Shimao Group", the "Heng Yuan Xiang" is really chicken ribs for Shimao, but it is not easy to find suitable external buyers for Heng Yuan Xiang assets quickly, because these assets left Liu Ruiqi's core management team will not be able to maintain operation.

MBO becomes the best choice for Shimao Group and Liu Ruiqi.

As a Chinese "Coca-Cola", after the MBO, Heng Yuan Xiang has been developing rapidly.

From a single "Heng Yuan Xiang wool" brand to four major product lines, including wool, knitting, home textiles and clothing, hundreds of varieties and thousands of product groups have been used by Liu Ruiqi for only two years.

In June 2002, Liu Ruiqi integrated the 7 subsidiary companies, such as knitting wool, home textiles, socks, clothing and daily chemicals, and established Heng Yuan Xiang (Group) Co., Ltd.

Liu Ruiqi also paid off MBO's money in two years through the huge profits created by Heng Yuan Xiang.

Heng Yuan Xiang is the first enterprise to implement brand operation in China after entering the market economy (1991). It is also the first Chinese franchising enterprise (1999).

Heng Yuan Xiang currently has 40 core affiliate factories, 575 franchisees, distributors and 6961 affiliate sales outlets. The sales coverage in China's provincial market is 100%, the market coverage at the municipal and municipal level is 90.79%, and the county level market coverage is 55.67%.

Mr. Milton Kotler (Milton Kotler), the world marketing master, vice chairman of the international brand alliance, the chief consultant of Coca-Cola, Mr. Francis Mcguire, known as "brand gold finger", gave high praise to Heng Yuan Xiang's brand management, and praised Heng Yuan Xiang as the "Coca-Cola" of China. "Francis" is a highly valued brand of Coca-Cola.

These achievements come from the brand strategy and positioning of Heng Yuan Xiang.

"Heng Yuan Xiang's industrial positioning is to make the end products of the textile major category of sheep and wool.

Business positioning is a strategic, consulting and management consulting firm with market consumer brands.

Liu Ruiqi said, "the future profit of an enterprise lies not in how long the value chain is, but whether he can focus on a field that he is best at, and then make it to the top.

Heng Yuan Xiang is committed to concentrating on the core expertise - the operation of the intangible asset of the brand.

At present, around the word "Heng Yuan Xiang", there are more than 40 thousand of the 3 people in the country, who constitute a vibrant "Heng Yuan Xiang" consortium.

He will take control of Heng Yuan Xiang's Liu Ruiqi, and turn his eyes on the re listing.

In 2002, the media disclosed the listing plan of Heng Yuan Xiang, that is, buying the shell of a listed company, injecting the brand of Heng Yuan Xiang into the listed company, and then selecting the high quality and high management level to join the listed company's equity, so that the franchisee can enjoy the brand of Heng Yuan Xiang directly on the property right.

"As a mainstay enterprise, Heng Yuan Xiang will hold shares with each other, so that the interests of both sides can become a community. This will provide a basis for the system management of Heng Yuan Xiang.

However, the details of the two sides have not been determined.

Liu Ruiqi said.

Liu Ruiqi said at that time that after the listing of Heng Yuan Xiang, he would absorb more high-quality assets into Heng Yuan Xiang under the brand banner of Heng Yuan Xiang, so that the products of Heng Yuan Xiang could be further enriched and expanded.

Thereafter, Heng Yuan Xiang took advantage of the shell of the listed company to merge and reorganize some related enterprises, so as to make Heng Yuan Xiang realize the strategy of developing from single brand to multi brand.

By then, Heng Yuan Xiang will not only be a Heng Yuan Xiang, but also only one Liu Ruiqi.

A few years later, at the end of August, the market once again reported that Heng Yuan Xiang would open the industrial listing on the back of the shell. Under the weak market situation, only two weeks later, the share price of the industry opened almost doubled.

Despite the announcement that there was no reorganization, Heng Yuan Xiang also kept tabs on the matter of backdoor borrowing, but Heng Yuan Xiang's backdoor should be sooner or later.