More than 100 days ago, a company that was wandering on the brink of bankruptcy "came back to life" because of 50 million donations, becoming the object of the whole network! More than 100 days later, the passion of "wild consumption" has receded, and the brand, which has encountered a double decline in traffic and popularity, seems to have returned to the forgotten time
Compared with the hot July and August on the hot search every three forks and five, today's Hongxing Erke, just like the weather in November, discusses the "cooling" of the heat in sight.
Image source: Huike News Industry Public Opinion Monitoring
From July to October 2021, the peak of Hongxinger's communication power was on August 1, that is, a few days after the fermentation of the Henan donation event on July 23, after which, the voice of Hongxing Erke fell sharply at a speed visible to the naked eye, and there was a slight upward trend in October, or because of the node of October 11, Hongxing Erke donated sub-payments to Shanxi.
Is it possible that without donations, Hongxing Erke does not deserve the rest of the highlight moments?
Not necessarily, in the 2021 "China's 500 Most Valuable Brands" list, pure sporting goods track, Hongxing Erke with a brand value of 40 billion to suppress Li Ning of 32.7 billion, ranked second in the domestic brand, second only to Anta, this is more or less counted, since 2021, Hongxing Erke is one of the few brilliant medals earned by strength.
However, in the past 10 months, in addition to 2 donations and 1 listing, what impressed everyone most was the huge contrast between traffic and popularity.
Tens of thousands of people take the customs every day
In July, the official account of Hongxing Erke rose to 15 million astronomical fans, strongly won the first place in the anchor's fans, becoming the biggest dark horse on the Douyin platform, and now, Hongxing Erke is dropping powder at a rate of about 10,000 fans per day, and the account of Wu Rongzhao, chairman of Hongxing Erke, has also lost 210,000 fans in the past 30 days.
Figure: Feigua data
Even on the Kuaishou platform, the number of fans of Hongxing Erke is also falling at a scale of 2,000 fans per day, so far, it has become a fact that fans cannot be retained, online traffic is weak, what about offline?
Offline stores are deserted
According to the Red Star Capital Bureau's visit to a number of Hongxing Erke stores, the original name of the famous market that swept away the crazy shopping has long become a cloud of smoke, and now the store traffic has decreased significantly, and the consumers who used to support Hongxing Erke under the banner of "wild consumption" seem to have disappeared.
Online powder drop, offline cold, that is reflected in the sales data, it is conceivable that it will not look good.
Sales are only ranked
In the past week, Hongxing Erke, which has conducted a total of 9 live broadcasts, has sales of less than 3 million, which is a world away from the single gmv of Henan when it was donated to Henan.
According to Feigua data, Hongxing Erke's 55 live broadcast sales in the past month were 12.941 million yuan, which was converted by the number of fans, about 0.88 yuan per capita, while Li Ning's 63 live broadcast sales in the past month reached 81.585 million yuan, which was converted down, and the average contribution of fans was 19.6 yuan, and the sales of Hongxing Erke in the past month were only 1/6 of Li Ning's.
Sound volume sales "double kill" critical hit, just like the fate of the unforgiving cycle of pulling, Hongxing Erke's time to run, why is it as short as fireworks?
"The standard to measure a person's success is not to see him standing at the height of the peak, but to see his rebound from the peak to the bottom", this famous saying is used in Wu Rongzhao, which can be described as the most appropriate, looking back at the 20 years of entrepreneurship, Wu Rongzhao can be said to be more memorable than who is more "elastic".
"In 2000, Hongxing Erke was seriously short of funds and almost closed its doors, in 2007 Hongxing Erke's national stores lost money in a large area, from 2012 to 14, Hongxing Erke experienced an inventory backlog crisis that lasted for 3 years, and in 2015, a fire destroyed nearly half of Hongxing Erke's production equipment..."
In the past 2020, ANTA's revenue was 35.51 billion, Li Ning's revenue was 14.457 billion, Xtep's revenue was 8.172 billion, and even 361 ° had a revenue of 5.127 billion, and Hongxing Erke's revenue was the first to last in China's local operating brand industry, only 2.843 billion, almost the same as the results in 2008, compared with the "bottoming rebound" of Li Ning and other friends, to a certain extent, the "rebound force" of Hongxing Erke was about equal to 0.
Under the premise that Nike won 26%, Adi achieved 17%, ANTA occupied more than 15%, and Li Ning won about 7% of the domestic market share, Hongxing Erke's market share was only a pitiful 1%.
In the first half of 2021, ANTA, Li Ning, Xtep and 361 degrees have disclosed the first half of the financial report, the data point of view, revenue and net profit are growing, which is not yet out of the loss of the dilemma of Hongxing Erke, is equivalent to a disguised increase in market pressure.
That is to say, although Hongxing Erke is still a first-line brand in China in terms of brand value, from the perspective of comprehensive strength, Hongxing Erke can only rank in the second and third lines.
Although Hongxing Erke, who has not been completely defeated, has survived, but has already been thrown out of a whole position by Li Ning and Anta, etc., and is currently facing the crisis of being abandoned by consumers again, what did Hongxing Erke do wrong?
Lack of original design capabilities
Although Hongxing Erke sells cheaply, the price is very grounded, but many people buy once and do not want to consume again, an important reason is that the brand can not erase the cottage label, basically, which style fire imitates whom, this desire and the "king of plagiarism" Peacebird to try to compare the mentality, now emphasize the personality of young people, who will love?
Shoe style, color elements are highly borrowed, even the promotional posters have been accused of plagiarism, want to get rid of the cottage hat, I am afraid that Hongxing Erke still has a long original style exploration and market education road to go.
"High is not high, low is not enough"
The high-end market has Adinek in front, the low-end market has domestic friends anta, Li Ning and other strong chasing and blocking, leaving hongxing erke space is very limited, partial, brand power, product strength and even marketing investment are far comparable to the first-line big brands, at this time, Hongxing Erke wants to seize the cake of the stock market, the difficulty is astronomical.
In addition, there is also bad news, these first-line big names in order to eat more full, but also have already been pointed at the three-four-five-six-line sinking market, launched a variety of people-friendly cheap styles, just imagine, the five-line small town youth, will choose Nike that everyone knows or will choose although they also know, but the Hongxing Erke that is not loud?
It is true that Hongxing Erke wants to return to the front line, and there are many difficulties, but after twenty years of commercial ups and downs, Hongxing Erke has still not fallen, and it has also actively donated money and materials to the society, which also confirms that this is a conscientious enterprise with tenacious vitality and a strong sense of social responsibility.
Not every company has to be the first in the industry!
Resources:
Xinyuan synthesizes the Oriental Wealth Network, Internet those things, Sina Technology, Yijian Finance and other related reports, and some of the source network