It Needs Long-Term Attention For Chinese People To Support Hongxingerke To Become An Online Celebrity

"We must consume rationally, not wildly."

"It's too cold for people in Northeast China to wear our shoes now. You'd better buy snow boots."

In the fierce battle of the double 11, the young lady of Hongxing Erke broadcasting room often "dissuades" fans who want to buy wild shopping from time to time, compared with the broadcast owners of major brands who spare no effort to promote sales.

More than 100 days ago, on July 21, Hongxing Erke donated 50 million yuan of materials to the flood disaster in Henan Province under the negative situation of the enterprise in 2020, which attracted netizens to comment and express their heartache. At one time, tens of millions of netizens flocked to live broadcasting rooms and physical stores to show their support, which set a record for Hongxing Erke to sell more than 100 million yuan in one day and sell out in three days and one year in advance.

More than 100 days later, the noise of wild consumption began to fade, and hongxingerke studio continued to lose powder. In the past month, the fans in the shaking sound studio had dropped by 22.9w, and the sales volume returned to the level before "turning red". Hongxingerke, who had not been popular for more than 100 days, suddenly became the object of ridicule.

After the tide recedes, the lack of original product ability and low brand premium are obvious shortcomings of Hongxing Erke. It is difficult to support the brand for a long time only by the popularity of the brand. What Hongxing Erke needs to do most in this incident is to attract a large number of talents to join in, do a good job in the design and brand story, and seize the limited opportunity to turn it around completely.

　　 Note: the content of this paper mainly comes from the interview of pencil track reporters and the public information with authoritative sources. The argument is inevitably biased, and there is no deliberate misleading.

　　 One day after wild consumption

"Niang Le, feel you are going to close down and donate so much?"

"The star donates 500000 yuan directly to the hot search, the conscience enterprise 50 million yuan, comments more than 100, praise only 2000, I really feel a little difficult to calm."

More than 100 days ago, on July 21, Hongxing Erke announced that it would donate 50 million yuan of materials to Henan Province, which was hit by rainstorm, through Zhengzhou Charity Association and one foundation. In the case of the negative value of the enterprise in 2020, this "bankruptcy donation" has attracted netizens to comment and express their heartache. Later, hongxingerke's Micro blog comments were heartbroken and rushed to the top of hot search. As of today, it has read 1.06 billion and discussed 176000.

The enthusiasm of netizens gradually spread from microblog to other network platforms. On the night of July 22, more than 2 million people swarmed into the normally unpopular hongxingerke goods selling studio to participate in scavenging and gift brushing. With the growing popularity of the live broadcasting room, Wu Rongzhao, chairman of Hongxing Erke, arrived at the live broadcast by bike sharing in the early morning of the 23rd, thanking the netizens and calling on the fans to "consume rationally", which was wayward rejected by netizens: "no! Wild consumption!"

The wild consumption of netizens has boosted the sales of hongxingerke products. According to the sales situation of shaking sound studio, the average daily sales volume of Hongxing Erke was only 412 pieces from July 18 to 21, and exceeded 410000 pieces on July 22, and exceeded 50000 pieces for three consecutive days. From the sales situation of tmall's official flagship stores, since July 22, the sales volume of hongxingerke tmall's official flagship stores has soared. On July 24, the daily sales volume exceeded 100 million yuan, and the dynamic sales rate of store products increased from the previous average of 30% - 40% to more than 70%.

Photo: daily sales of live broadcast of Hongxing Erke exceeded 410000 pieces data source: Xinzhen, research department of CICC

Offline stores also have a lot of consumer influx, many stores were snapped up. Some male customers bought more than 30000 yuan of shoes in one breath, and there were even wild consumption behaviors such as "the man paid 500 yuan to pay 1000 yuan to run away" and "even the clothes on the models were stripped off".

However, consumer sentiment comes and goes quickly. According to the public opinion monitoring data of Huike, during the monitoring period from July to October this year, the total sound volume of hongxingerke reached the peak value on August 1, then fell off the cliff and became stable after September.

According to the data of feigua, in July, hongxingerke's official account number 15 million won the first prize of the anchor's rising fan, becoming the "dark horse" of the shaking sound platform. Now, the number of fans of Hongxing Erke has gradually dropped to 1452.5w, with an increase of - 22.9w in the past 30 days, while Wu Rongzhao, chairman of Hongxing Erke, lost 195000 fans in nearly 30 days.

In addition, fans' online consumption enthusiasm tends to be rational. According to the data of feigua, in the past month, the sales volume of 60 live broadcast of hongxingerke brand's official flagship store was 15.018 million yuan, with an average daily sales of 50600 yuan. In recent 7 days, thanks to the blessing of "double 11", the sales volume of 14 live broadcasting rooms in Hongxing Erke exceeded 5.741 million yuan. In hongxingerke's live broadcasting room, the anchor will occasionally appeal to "we must consume rationally, not wild consumption" between introducing commodities and answering questions from fans

At the same time, the flow of people in offline stores has also decreased significantly. The shop assistant said that the average passenger flow has returned to normal compared with the peak period in July and August. Except for a few shoes with broken size, the goods are complete.

Now, after the noise of wild consumption, "hongxingerke is cool" and "hongxingerke is just a flash in the pan" is rampant.

　 Is hongxingerke really "cool"?

Is hongxingerke really "cold"? Not necessarily.

In the view of the industry, Hongxing Erke's rapid powder dropping is inevitable. Li Qian, founder of relationship brand office and famous brand expert, said to pencil: "from my understanding, hongxingerke is a popular online red brand. The online brand generally consumes the curiosity of customers for the brand. In the process of planting grass and pulling grass, the curiosity of consumers is consumed, and the patriotic emotion is released. It is natural to take off the powder."

Although, compared with the base number of 14 million, the data of more than 200000 powder loss is not enough threat. But sometimes the flowers and applause are false and even confusing. What is really worth noting is that hongxingerke's fans' turnover rate is generally not high.

According to the data of feigua, the official flagship store of hongxing'erke brand with 14.525 million fans has sold 15.018 million yuan of live broadcast in the past month, contributing 1.03 yuan per capita.

Li Ning, also a domestic brand, has only 4.213 million fans, less than a fraction of hongxingerke. However, in the past month, the sales volume of 63 live broadcasts reached 85.233 million yuan, more than 5.6 times of that of hongxingerke, with an average contribution of 20.2 yuan.

In addition, Anta sports, which has 3.859 million fans, has 46 live broadcasting of shaking sound in the past month, with a sales volume of 24.74 million yuan and an average contribution of 6.41 yuan per capita. Tebu China, with 758000 fans, has sold 989000 yuan in 58 live channels in the past month, contributing 1.3 yuan per capita.

The huge flow of "pie" fell on hongxingerke, but hongxingerke was still difficult to digest. For consumers, although hongxingerke's products are of high quality and low price, the premium rate of the brand is not high. Many consumers say frankly that Hongxing Erke is really insufficient in design and image, and various popular brands can be seen on the products.

As one netizen put it, "at the beginning, you agreed to support Chinese products together, but you couldn't wait to buy reike. Only I was wearing Hongxing Erke, which looks like skeke, reike and adidak alone."

"For an evergreen brand, consumers' repurchase of product quality and the payment of brand premium are the key to the sustainable development of the brand. It is difficult to support the brand for a long time only relying on the temporary popularity of fame," Li Qian said.

However, Hongxing Erke and Wu Rongguang are not unaware of this. Some netizens commented on Wu Rongzhao's Micro blog that Hongxing Erke's clothing style and product page design were not simple enough. Wu Rongzhao accepted the suggestions modestly and invited reviewers to join the company. "In the past, we pursue wearing experience, and we will work hard in design in the future. If you are a professional, welcome to join Hongxing Erke."

Faced with the opportunity to turn red, Hongxing Erke has been adapting to the new environment and launching new products in the past two or three months. On October 29, hongxingerke also cooperated with Chen Xiaochun, who was also the first spokesperson of hongxingerke, who recently became popular because of variety shows, to jointly promote a series of "under one person". However, it seems that the linkage has not produced much noise so far.

Today, although the daily drop of 10000 fans, but still holding more than 14 million fans of Hongxing Erke, has not been reduced to the situation of no chance.

How to seize the opportunity of turning red?

Now hongxingerke, which has become popular because of "bankruptcy" donation, was the first sports shoes and clothing brand to enter the capital market in China. Similar to Anta, Tebu, peak and other sporting goods companies from Jinjiang, Fujian, the "shoe capital", Hongxing Erke has also experienced the development path from OEM, OEM to independent brand.

In 2000, Wu Rongzhao, who was not willing to only do OEM business, established his own brand "Hongxing Erke". In 2001, the unknown Hongxing Erke invited Chen Xiaochun, the popular "pheasant brother" at that time, to speak for the brand. Hongxing Erke also turned into the "fashionable shoes" at that time, and its brand awareness rose.

In 2005, hongxingerke, which has been established for five years, was successfully listed in Singapore, becoming the first sports brand to be listed overseas in China, and also the shortest sports brand in China from its establishment to listing.

By the 2008 Olympic Games, local sports brands have made great efforts to expand and prepare goods. However, due to blind expansion, the inventory is high and the whole industry is in a low ebb. In the next few years, domestic sports brands fell into a difficult de stocking stage, and their performance and stock prices continued to be depressed. It was not until 2014 and 2015 that Anta, Li Ning, Tebu and peak gradually recovered their vitality, regained their momentum and entered a new round of competition.

During this period, hongxingerke encountered a series of changes. In 2007, hongxingerke's stores across the country suffered losses; In 2010, hongxingerke was exposed to a financial fraud scandal, which led to the suspension of trading and delisting; From 2012 to 2014, Hongxing Erke experienced a three-year inventory backlog crisis; In 2015, a fire destroyed nearly half of Hongxing Erke's production equipment

As time goes by, the domestic sports brand market has been divided into different echelons. According to the China Industrial and commercial times, Anta's revenue in 2020 is 35.51 billion yuan, Li Ning's is 14.457 billion yuan, Tebu's is 8.172 billion yuan, 361 ° revenue is 5.127 billion yuan, while Hongxing Erke's revenue in 2020 is only 2.843 billion yuan, only 1 / 12 of Anta's.

The reason why Anta, Li Ning and so on can come out of the inventory crisis and regain the upward momentum is that they have found a clear product positioning and realized their own differentiated development in addition to the drastic shutdown and transfer of inventory.

In 2018, Li Ning's design team transformed and used the brand's qualifications and historical capital to launch Guochao style works, which appeared in New York Fashion Week in 2018, and became the representative of Chinese fashion brand. In 2018, Li Ning's revenue broke through the 10 billion mark, with a year-on-year growth of 18.44%, and has maintained a continuous growth trend since then.

Anta has 9 sports brands, 7 of which are overseas mergers and acquisitions.

Peak, on the other hand, is positioned as a "new domestic product of science and technology". Since the launch of state pole 1.0 plus, state pole flash series basketball shoes, state pole slippers, state pole hole shoes and other technology products, peak has built its own technological moat and formed its own competitive advantage in the market.

For Hongxing Erke, how to establish differentiated cognition and differentiated products is the key after becoming the online red brand.

"It still depends on what is lacking in the market, what you do. If all domestic brands are doing the same thing, others do national trend, you also do national trend; others do science and technology, you also do technology; others do running, you also do running. What difference can it make? In the end, you can only compete in cost performance and low price, how can there be a way out?" The founder of a sports shoe brand said to pencil track.

At present, although the popularity has declined, Hongxing Erke has also received a "national level" attention, and has accumulated enough brand volume. "What hongxingerke needs to do most in this event is to attract a large number of talents to join us. Only when we do well in design and brand stories can we have the opportunity to turn the tables." Fa, a consumer racing track, told pencil track.