Why Will The Joy Dragon Fall So Quickly?

According to the world clothing shoes and hats net, it has been very popular.

When the company declared bankruptcy, another brand collapsed.

When he was in his prime,

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Its name is the number one overlord in Jinjiang footwear industry. In 2001, the brand was created, and the superstar was asked to endorse it. In just 1 years, it became famous.

With its support from Goldman Sachs, it was listed as the first local sports brand listed in the US in 2009, with the support of Goldman Sachs.

However, the success came fast and went fast. After the decline in performance in 2012, it took only 5 years to go on the path of bankruptcy reorganization.

Why did he fall so fast?

1, shoe factory apprenticeship entrepreneurship when employers spend huge sums of money to ask superstars to speak for themselves.

In 1985, Lin Shui pan, a 17 year old man from Quanzhou, began an apprenticeship in shoe factories, which involved packaging, business and market development of products.

After being familiar with the shoe factory's business, in 1992, Lin Pan Shui founded a shoe factory as a foundry. This shoe factory is called jiuben Ben, which is very small. The workshop is a small workshed with simple structure, and the workers are relatives and friends of Linpan Shui.

But Lin Pan Shui said that his greatest characteristic is to endure hardships. He also has a high quality requirement, and there must be no deviation in every stitch.

From a small shoe factory built, his daily eating and drinking all in the inside, after several years of efforts, by the end of 90s, Lin Shui pan shoe factory expanded more than 150 times, is already a large local scale, high quality craft enterprises.

Around 2000, Lin Shui pan often traveled to Beijing, Shanghai, Guangzhou and other places to carry out on-the-spot investigation and study. The data obtained by him showed that the annual output value of the global sports industry was as high as about 400000000000 US dollars, with an annual growth rate of over 20%.

"At that time, the domestic sports industry started late and the scale was small, and the output value and international difference were 10 times."

Lin Shui Pan said, "this is the opportunity."

So, in 2001, Lin pan registered the brand.

In order to start this brand, Xi Long lung has made a strong move from the beginning, asking the superstar to endorse.

First, the former national table tennis coach Cai Zhenhua was invited to be the image ambassador. After a year, he asked the star Aaron Kwok to be the spokesman.

The strategy is based on the two or three line city development. Under the vigorous publicity of celebrities as spokesmen, it quickly opens the market and becomes the sports brand favored by teenagers.

In 2004, the annual sales of 6 million 800 thousand pairs of tourist shoes and clothing were 4 million 500 thousand and the annual sales volume was 620 million yuan.

In 2008, it became the strategic partner of the State Sports General Administration Institute of sports science, and the limelight was not two.

2. Take the NASDAQ high profile listing and take the road of brand management.

In 2008, the rapid development of the dragon was not only favored by the market, but also favored by capital, Goldman Sachs 400 million shares in Hongkong, and its sponsor was Goldman Sachs and Deutsche Bank, and auditor of Ernst & young.

IPO listed on the first ten days of the listing, the reason is suspected to be false loans, financial failure to pass the audit.

The failure of listing in Hongkong did not stop the listing of the company. In October 2009, with the help of Goldman Sachs, it was listed on the NASDAQ shell Market in the US and became the first sports consumer brand to visit the US capital market.

When the "EDS" was used as the stock code, when it was listed, the stock price was only 7.9 dollars, and the stock price reached 13.69 dollars at the highest time. After that, it was stable around 9 dollars all the year round.

With the support of capital, Lin pan began to expand vigorously.

In 2010, Xi Dalong added nearly 700 stores, and the total number of shops nationwide was over 4000. By the end of 2013, the company's retail network covering 28 provinces and cities nationwide has become the representative enterprise of the footwear industry in Jinjiang.

Since the registration of Xi De Long trademark in 2001, Lin pan has made great efforts to manage the brand. After listing, it has the support of capital.

In 2010, he made the sponsorship of CCTV1's gold column "inter city".

The brand leader of Xi De Long feels that the meaning of "inter city" and the fashion that it brings to the public is healthy and healthy, and the concept of brand created by Xi De Long has reached a similar degree to some extent, and is in harmony with each other.

In the same year, he worked with the State General Administration of sport to become a strategic partner of the national fitness program. This activity lasted for 5 months, attracting 22 cities and 32570 college students to participate directly, with a cumulative impact of nearly 2 million 200 thousand.

Before or after that, he invested a lot of money in sponsoring big and small events, becoming the sole sponsor of many sports competitions.

3, falling overnight into the altar is also a brand.

In 2011, Xi Dalong set a "Five Year Plan" for himself: by 2017, 10000 stores in the country have been sold.

However, since 2012, the performance of Xi Long lung has started to decline, and it is out of control.

In March 2013, after the release of earnings, the stock price plummeted by 13.99%, and its market capitalization was only $31 million 130 thousand.

The revenue of that year was only half that of 2011, and the profit was 7 times.

After that, the stock was privatized, and no earnings had ever been published. Until now, the news in the eyes of the public is: bankruptcy reorganization.

Why did he fail? Why did he fall so fast? It was attributed to the impact of the electricity supplier, the real economy is difficult to survive.

Actually disagree, Xi long long pays attention to brand operation from the beginning, success here, but also fail here.

The long-term strategy of Xi long long is to take the two or three line cities as the main position, ignoring the first tier cities. Compared with the first tier cities, the two or three tier cities are hard to form brand effect, plus the strategy of Xi Long is the national movement, which is a low middle end consumer market, and the competitiveness is greatly discounted.

Front-line brands are dominated by brands such as Adidas and Nike, and are mainly in the high-end consumer market.

Domestic brands, including XTEP, Anta and Jordan, are also very competitive in the middle and low end market. There is not much distinction between brands, and homogenization is more serious.

Under such circumstances, it is very difficult for the development of such enterprises as two or three tier cities.

In the face of fierce competition, Anta has increased its control over channels and attached more importance to franchisees' choice.

PEAK focuses on the basketball market, and pays more attention to the development of overseas markets, sponsoring Olympic events and so on.

In contrast, Xi De Long chose to expand the field of popular sports equipment and fashion leisure, and the result was not good.

In the impact of the electricity supplier, the famous sports brands have been pformed, and when the layout of the electricity supplier is large, Xi Long has been delayed. It was not until March 19, 2015 that he saw the layout of the network distribution system, and the products sold were basically old ones.

After issuing a bankruptcy statement, the company has closed down its flagship store such as Tmall and Jingdong, and has completely withdrawn from the electricity supplier market.

No matter how the brand is promoted, but no definite brand is positioned, no matter how to reform and pform, it is impossible to succeed.

Today's bankruptcy means that the famous brand of the famous domestic product went to death.

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