Hi Dragon Enters Bankruptcy Substantive Stage

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Quanzhou sporting goods enterprises, such as PEAK, PEAK, and so on, have released their performance bulletins in the first half of the year. Most of the performance reports are good, and the domestic sporting goods industry has ushered in a steady recovery.

But at the same time, it is another sports brand in Quanzhou.

Life may not be easy.

Hi dragon enters bankruptcy substantive stage

In August 31st, the people's Court of Jinjiang announced that the Quanzhou intermediate people's court formally accepted the bankruptcy reorganization of the Sino Dragon (China) Company in August 5th. After submitted to the Fujian Provincial Higher People's court for approval, it was handed over to the Jinjiang people's court in August 23rd for trial.

This news indicates that the case of the company's bankruptcy reorganization has entered a substantive stage.

Next, managers will conduct a comprehensive clearance of the company, and the flagship store opened by Tmall and Jingdong will be closed.

Development of Xi De Long

Since its establishment in 1992, Xi De Long has been developing a strategy based on two or three line cities, and has achieved great success in the early years.

In 2001, Cai Zhenhua, founder of Xi Long lung, registered the trademark of "Xi De Long" and invited the former national table tennis coach, as the image ambassador.

In 2002, the image spokesperson of Xi De Long changed to star Aaron Kwok. After that, he began to develop rapidly with the focus of the two or three line city.

In 2008, Xi De long tried to list in Hongkong, but it did not succeed. In October 30, 2009, he successfully listed on Nasdaq, becoming China's first sports consumer brand to visit the US capital market.

As the first big move after the listing, Xi De lung signed nearly 40 professional managers and placed all positions in senior management positions such as department managers and directors, so as to sort out the internal system and improve the management mechanism.

After the listing of Xi long long, the stock price is rising all the way, and the brand prospect is also valued by many people.

When the "EDS" was used as the stock code, when it was listed on Nasdaq, its stock price was only more than 7.9 US dollars. The peak value even reached US $13.69. After that, it remained stable around 9 US dollars all the year round.

In 2010, there were nearly 700 new stores and more than 4000 shops nationwide.

In 2012, he was awarded the title of "happiest enterprise". He was also the ten largest producer in Jinjiang in 2013.

By the end of 2013, the company's retail network covered 28 provinces and cities nationwide, with thousands of retail outlets.

The development strategy of Xi De Long

Since its listing, XD has begun to focus its focus on the field of life sports, and has made a layout for the new definition of sports, the way of movement and the demand for sports equipment. It signed a Singapore pop artist BY2 as a brand spokesperson, and made deep progress in the target market of 85 and 90, and achieved remarkable results.

In addition to naming the CCTV-5 large outdoor variety show "inter city" earlier, in 2009 and 2010, he joined the State Sports General Administration to become a strategic partner of the national fitness program.

Taking 2010 as an example, it lasted for 5 months, and in Beijing, Shenyang, Xi'an, Guangzhou and other 22 cities, more than 100 colleges and universities carried out the "nationwide fitness program", attracting 32570 college students to participate directly, with a cumulative impact of nearly 2 million 200 thousand.

With the help of this activity platform, the new brand culture system of Xi De Long has been effectively spread with its concept of "Life Movement", especially in the two or three line market.

In June 2010, the president of the company, Lin Shui pan, told the first financial interview that the company is currently negotiating with some high-end brands in Europe and America, hoping to acquire one or more high-end brands in Europe and the United States through the capital market, so as to achieve the strategic intention of entering the first tier cities in the country.

In the face of the rapidly developing e-commerce market, Lin Shui pan also revealed that the company is also planning an e-commerce platform, looking for an experienced and capable company as an e-commerce agent of the dragon, but it has not received much response.

But later, the development of Xi Long lung was not as smooth as they expected.

The decline of Xi De Long

2009-2013 years of financial report

We can see from the analysis of financial reports that since its listing in 2009, Xi Long lung has been showing growth trend to 2011.

But in 2012, the performance of Xi Long lung began to decline.

By 2013, its operating income was even less than that when it was first launched in 2009.

Not only the decline of performance, but also the trouble elsewhere.

In March 19, 2012, a micro-blog signed "Zhang Tianfu XD dragon Zhejiang general agent" aroused great concern, and aroused strong repercussions among XD's agents.

Zhang Tianfu is the general agent of Zhejiang, a listed company. He worked for 12 years in xislong, and had 34 stores and 70 stores. In October 2010, Zhang Tianfu was overgrown with vegetables.

According to Zhang Tianfu's wife, Xi De long promised to accept all the assets of Tianfu company on behalf of foreign debt, and then shirk its debts without any reason.

To a certain extent, it reflects that he has been exhausted in management.

In March 14, 2012, D.B. Research released an analysis report on the product.

According to the report, Xi Long lung announced a land purchase agreement in February 17, 2012. The Jiangxi Ruichang Industrial Park costs 198 million yuan to purchase 600 acres of land, with an average price of 330 thousand yuan / mu, but according to D.B. Research (D.B. Research, an independent research institution in the United States), the land price of the industrial park in the city is not more than 80 thousand yuan / mu, far below the price of the product.

In this regard, the D.B. Research report is not accurate, and there is deliberate misleading intention of investors.

At 10 a.m. on April 16, 2014, he held a special shareholders' meeting at the 10 floor of the unification centre, 95 Queensway, Hongkong, and voted through the privatization agreement concluded in December 2, 2013, and the company delisted from the Nasdaq stock market.

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Business and ups and downs

After listing in 2009, he joined hands with the "national fitness program for thousands of miles" to become the first joint venture of the State Sports General Administration's "nationwide fitness program" to enhance brand image.

By the end of 2013, when the performance of the dragon was in the decline stage, he had signed third "five year plans" with the State Sports General Administration, and was awarded the official only designated sports shoes and clothing equipment of the National Sports General Administration "national fitness China trip".

On this basis, Xi De Long continues to adhere to the sports leisure route, and mainly promotes sports fashion equipment.

After delisting in 2014, Xi Delun sponsored the 2014 asian beach volleyball competition.

In the face of fierce competition, in 2014, he launched a comprehensive brand upgrade, replacing the LOGO style, mainly sports and leisure products.

And relying on O2O e-commerce business mode, online based, to achieve online, offline integration of brand marketing.

At the awards ceremony of the China footwear industry brand event in 2013-2014, the brand was awarded the top ten most influential brands again, and Mr. Lin Shuipan, chairman of the group, was awarded the "ten great man of the year" award in 2013-2014.

However, this did not stop the performance of the company from declining, and finally came to bankruptcy.

Enlightenment of Xi De Long's bankruptcy

While expanding substantially, the sporting goods industry will expose a fatal short board: the homogenization of products is serious.

In the early stage of development, enterprises are very important for product positioning and specific market planning, otherwise, the homogenization of products in the market will be aggravated.

At present, the brand of sporting goods is still dominated by brands such as Adidas and Nike, mainly aiming at high-end consumer market, and the dominant position is hard to shake in the short term.

The two or three line brands, such as XTEP, Anta, Jordan and so on, are also very competitive in the middle and low end market. There is not much distinction between brands, and the phenomenon of homogenization is more serious.

In the case of cold business, some high-end brands such as Nike and Lining will also expand their low end market with the help of brand advantage.

In contrast, Xi De Long chose to expand the field of popular sports equipment and fashion leisure, but it seems that the result is not good.