The Way Forward Of Hongxing Erke Is Still Continuing.

In China

Market, if super line or first tier cities are

The world of ADI, then in the second tier and below cities,

PEAK, Hongxing Erke and other domestic brands have a strong audience.

For domestic brands, the competition for brand loyalty in the first tier cities with decades or even hundreds of years of foreign brands is not a realistic problem. But for the brand of shoes and clothing that has been pursuing the strategy of "encircling the cities from the countryside", "to seize the first tier cities and New Youth" is the goal they have never given up.

According to the world clothing and shoe net, in recent years, through the new retail pformation in the supply chain, logistics system and offline stores, more and more domestic shoes and clothing brands have been developing, and Hongxing Erke is one of them.

Hongxing Erke, born in 2000, now has more than 7000 stores in the country, most of which are located in cities below two or three lines, walking along the downtown streets in the coastal towns of retail frontiers, and the signs of Hongxing Erke can be seen everywhere.

However, it is not always a happy thing to have a logo and many stores, because there are few stores that can really attract customers or even make profits.

"There are shops that are short of passenger flow, difficult to convert passengers, and difficult to get back to buy," which is the embarrassing situation of sports shoes and clothing brand entity stores.

According to Roland Begg's statistics, the growth rate of sports shoes and clothing market in China was less than 1% in 2011, and the inventory overstock was more than 100 billion yuan. This agency has provided consulting services to Anta, the first sports shoe and clothing brand in China for a long time.

It is understood that in 2011, Anta has been expanding the scale of its stores to catch up with Lining. By the end of the year, the total number of Anta stores has reached 8665. However, there has been little change in the number of Anta stores in the following 5 years. The phenomenon of "shut, stop, merge and pfer" is common. Similar to Anta, the same challenges and problems exist in the sale of stores at the end of Hongxing Erke more than 7000.

What is the problem of "closing shop tide"? The reason why Hongxing Erke first found is the confusion of members and inventory information management system.

Despite its large offline sales network, Hongxing Erke's membership management and inventory system has been in chaos for a long time. Headquarters have long been unable to control the actual sales and inventory turnover of the offline stores, which makes headquarters unable to give management advice based on the sales performance of each department.

According to Lu Xiaohu, vice president of Hongxing Erke, in the past few years, many shops that choose to shut down because of poor performance are mostly caused by poor inventory management and extremely poor marketing for members.

"Before Hongxing Erke various business sectors provide information services system are independently deployed, there are information islands, the paction cycle is very long, and the suppliers and brands of different systems are also different," Lu Xiaohu told the retail front office.

In order to solve this problem, Hongxing Erke broke the system apart from inside, and built up its own intelligent central system through integration of different periods, different brands and different language software systems. Then, the decision was made decisive by Lu Xiao Hu. "Because it opened up all the platform systems at the front and rear ends, and realized the integration of sales and warehousing and goods distribution". It not only helped Hongxing Ke to solve the problem of lax control of offline stores to a certain extent, but also set up a good foundation for cooperation with Alipay later.

When the whole management and operation system of Hongxing ERK gradually improved, and the data and charts began to be visualized and intelligently gradually, the "olive branch" of ant gold clothing was thrown.

In August 2016, thousands of stores in Hongxing Erke officially joined Alipay's payment and membership system. In 2017, "double 11", Hongxing Erke and Tmall cooperation further upgraded, and jointly built a smart store project, linking the most core information platform POS system with mobile phone Taobao to realize interaction between online and offline.

In order to match Alipay's active members and stimulate new users and repeat purchase rates, Hongxing Erke has made great efforts inside the company. "Joint Alipay makes the card market, hand brand name, personalized shop recommendation, etc., through a lot of content marketing methods to promote the growth of the membership base, and drain Online members to offline entities," Lu Xiaohu said.

It is understood that in the past, Hongxing Erke has never opened a position independently for content marketing. In order to cooperate with Alipay in membership management, Hongxing Erke now added this position, and even set up a group in the Department, such as a similar financial analyst and a member data analyst.

It is worth noting that offline stores do not have a "rush to eat" online sales share on the line, but rather solve online inventory problems.

According to feedback from Hongxing Erke sales data, during the 2017 "double 11" period, online orders were pushed to regional warehouses and direct store stores, effectively sharing the peak value of double 11 freight and reducing the pressure of e-commerce inventories.

Alipay's access has led to an exponential growth in Hongxing Erke's store members. It has never been connected before 1% to 99% now. For this growth rate, the Ant King service business director, Xi Yan, is very calm.

Jae Hee rock seems to make Alipay's technology solutions more open to many traditional enterprises, which is the pursuit of returning to the retail essence. "Driving back to the users under the driving force of big data, returning to the perspective of people, let the brand and users have more contacts, help brands identify more people, know people, insight, analyze, and touch him, that's what retail industry should do", and Hongxing Erke just caught it.

Alipay membership system access also brought a benefit, that is, Hongxing Erke can be based on user portrait feed back marketing and personalized customization.

According to Lu Xiaohu, through the user portrait, Hongxing Erke learned that some users are very sensitive to price, but they did not pursue the fashion for the style. So the company used many other channels to subsidize the price of products, which helped Hongxing Ke to achieve efficient storage.

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From the technical side, and constantly improving the membership system, at the end of logistics warehousing, Hongxing Erke's pace has not stopped.

In order to promote the integration of warehouses and distribution and enhance logistics efficiency, Hongxing Erke built more than 10 thousand square meters of total warehouse in Fujian Zhangzhou Industrial Park in 2016, and adopted WMS warehouse management system to carry out product inventory management.

In warehousing, Hongxing Erke before the change of traditional electricity business from the CDC warehouse unified sorting and dispatching mode upgraded to allow its RDC warehouse, DC warehouse and FDC warehouse, and even shops have the function of the distribution of e-commerce business.

In the process of visiting the retail frontiers, we found that in the general warehouse in Zhangzhou, except for a very small number of manual sorting (usually from the main warehouse), the whole process is almost automatic, whether it is packaging, labeling or final allocation.

According to Ma Xin, deputy director of Hongxing Erke logistics management center, at present, the total warehouse of Hongxing Erke adopts the water sorting of cross belt sorting machines. In sorting and sorting the Hongxing Erke sportswear sorting machine, the reporters found that each sorting band has 108 tapes, and each belt represents a style or a store. "The processing efficiency of each day is about tens of thousands," Ma Xin said.

It is understood that the main warehouse of Hongxing Erke in Zhangzhou is mainly responsible for three tasks. One is direct delivery of goods to the direct outlets of the country (official data show that 70% of the more than 7000 stores in Hongxing Erke store are direct stores), the second is sent to the regional warehouses in Southern China, and third is sent directly to Tmall or Jingdong flagship store.

"From the main storehouse to the direct store, point to point shipments have saved many of the intermediaries through distributors, which makes store sales more manageable at prices," Ma Xin told the retail outlet.

Despite improving the traditional store management, optimizing the supply chain and logistics system, Hongxing Erke has gradually found its own direction, but in order to really catch the hearts of consumers, Hongxing Erke has a long way to go.

According to statistics from Euromonitor Internationa, in 2016, Nike and Adi accounted for the top two in China's sports shoes and clothing market respectively by 18.6% and 16.4% respectively.

In the domestic brands, Anta ranked first, the market share was 10.3%, and Hongxing Erke was located in Anta, Lining, XTEP, and 361, and was fifth in China's domestic brands, with a market share of only 2.4%, and the competitive advantage was not large.

Market share gap is reflected in the product end is too popular and peaceful products, although in the three or four tier cities such thinking may be effective because consumers "sensitive to price", but in the first tier cities, such a train of thought is obviously not feasible.

What is even more embarrassing is that the product lines of the international first-line brands have already achieved the full coverage of high, medium and low prices, and there is no lack of popular products that are inferior to the local brands in the low and medium stores. At the same time, they have the ability to combine technology and fashion together and continue to create explosive assets. This is the lack of many domestic brands including Hongxing Erke.

To Adidas's Boost series running shoes, these explosions in the market are obvious to all, and vice president Lu Xiaohu is also very frank about the ability of Hongxing Erke to lack liquidity. "As a business, if you want to make consumers your loyal customers, you must first learn to change your iteration, keep up with the changes of young people, and constantly create new products at the product level, and have the construction of genetic genes, but obviously the domestic brands do not do anything in this respect." but Lu Xiaohu also said, "the existence of explosions is not only about improving sales volume, but also enhancing brand influence and gaining more brand premium." in recent years, from Nike's AIR series

By thoroughly washing away the "popular" label, we really have the opportunity to leap from a local brand to an international brand recognized by consumers and industry colleagues.

But self subversion is always the hardest part. Hongxing Erke's progress is still going on.

More interesting reports, please pay attention to the world clothing shoes and hats net.