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    Hongxing Erke: Feelings Can Only Be Regarded As Products With High Added Value

    2021/11/2 15:29:00 2

    Erke

    Products are the core of an enterprise, and feelings can only be regarded as added value.

    Three months ago, the silent sports brand hongxingerke suddenly became popular on the Internet.

    Under the catalysis of a series of donations, hongxingerke suddenly became the "top stream". Not only did the daily sales volume increase 52 times on the same day, but even the anchor of other sports brands directly "defected" to Hongxing Erke. For a time, many consumers are proud to buy a pair of hongxingerke. Even Wu Rongzhao, President of Hongxing Erke, urged everyone to spend rationally in the live room. Many consumers left messages: "wild consumption".

    Driven by many consumer sentiment, hongxingerke was once out of stock, and some consumers even did not "let go" the broken code goods.

    In July, Hongxing Erke's Twitter platform has gone up by more than 15 million, and fans from other platforms and live broadcasting rooms have also seen a large number of growth. The number of viewers in the live broadcasting room is also millions, and the members of its microblog have been filled by "Crazy" netizens for 100 years.

    On July 23, Hongxing Erke set a number of historical records in recent years, including sales growth of more than 52 times, total sales of more than 22 million, cumulative attention of more than 24 million, and cumulative online number of more than 1 million

    Offline stores, many people from all over the crowd, many stores were snapped up.

    Consumer sentiment comes and goes quickly.

    This is an advantage and a disadvantage.

    As long as the business can complete the transformation before the audience mood ebb, and develop new products leading the trend, for enterprises, it can fight a beautiful "turnaround battle".

    Obviously, both Hong xingerke and Wu Rongguang understand this truth. Facing the choice and support of consumers, Hongxing Erke has been adapting to the new environment and launching new products in the past two or three months. Among them, cooperation with Chen Xiaochun was also included, but the news did not cause much response.

    For the audience, the speed of hongxingerke is obviously too slow, and the premium rate of the brand is not high.

    Many consumers frankly say that there are not many occasions to wear hongxingerke. Compared with Nike, ADI and other brands, hongxingerke is really lacking in design and image.

    At present, the popularity of Hongxing Erke has improved a lot than before, but this is far from enough. For an enterprise, the product is the core of its development. Just like Li Ning's "second spring", it relies on the trend brand of China's Li Ning, rather than the emotions of some consumers.

    Obviously, these factors are not possessed by hongxingerke.

    Just three months later, the number of customers in Hongxing Erke's offline stores has dropped sharply. From the initial "hot buying" to the present, hongxingerke seems to be back to its original appearance. Everything seems to have changed, and everything seems to have not changed.

    According to media statistics, the cumulative sales of nine live broadcasts of Hongxing Erke recently did not exceed 3 million yuan, and its chattering sound is losing powder at the rate of 10000 yuan a day. If there is no subversive product, the speed of dusting may be accelerated in the future.

    According to the monitoring data, after the exposure of hongxingerke reached its peak in early August, with the decrease of event heat, its attention also showed a cliff like decline.

    Short term business can rely on gimmicks, but long-term business must rely on value.

    For the understanding of value, Hillhouse capital Zhang Lei once said: "there is only one moat in the world, that is, continuous creation of value. And long-term doctrine is the core of supporting value.".

    However, it is a pity that hongxingerke's current products do not have such value. Compared with first-line brands ADI and Nike, the gap is still very obvious. Although Hongxing Erke has also launched co branded funds with IP such as Guoman's under one man, silver soul, Henan Museum, Qingming shangheyuan, and even has co signed activities with Chery and Xiaomi, none of which has fundamentally solved the problem.

    Although hongxingerke has no consumption flow and even harvests by flow, the "weakness" of products is always an unavoidable problem.

    Adhere to the main business, the times will reward excellent companies. From 2005, when Wu Rongguang led Hongxing Erke to be listed on the main board of Singapore, and then it had more than 7000 stores, the brand value exceeded 10 billion and became the top 200 in Asia of Forbes. All these past histories show that Hongxing Erke has been brilliant, and the reason for the current situation is the result of consumer choice.

    Hongxingerke experienced, Li Ning and Anta have also experienced, so why can Li Ning and Anta go through the cycle and rise again? The answer lies in innovation and value.

    Li Ning once said: we still focus on sports, and the strategy of the whole company is to enter into more subdivided professional markets, such as basketball, running, badminton, table tennis, fitness and sports life. This is our general direction.

    According to the latest financial report of Li Ning, in the first half of 2021, Li Ning achieved revenue of 10.197 billion yuan, a year-on-year increase of 65%; Net profit also reached 1.962 billion yuan, up 187% year on year. Behind Li Ning's rise is to make products in a down-to-earth manner, not anything else.

    Some time ago, the market value of Li Ning leaped over the 300 billion Hong Kong dollar mark.

    Facts have proved that Li Ning was the only one who saved Li Ning. Similarly, it is only hongxingerke himself who can save hongxingerke.


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