Hongxing Erke donated 50 million, and netizens backhandedly donated 120 years of Weibo membership

On July 21, sportswear company Hongxing Erke announced on its official Weibo that it was concerned about the disaster area and Hongxing Erke donated 50 million yuan in materials through the Zhengzhou Charity Federation and One Foundation to aid the disaster area in Henan. The first batch of supplies also arrived that afternoon.

On July 22, this news was ranked first on the hot search list by netizens. There is no other reason. Hongxing Erke has gradually faded out of the public eye in recent years, and even left the impression of "on the verge of bankruptcy" in the minds of netizens. This time the aid to Henan was 50 million, how could it not be touching! What's more, there are some companies with "better conditions" for comparison, and the pattern is clear.

1. “I feel like you are about to go bankrupt and yet you donate so much”

After Hongxing Erke posted on Weibo about donating money to aid Henan, netizens quickly caught wind of the news and started to praise it. Master. It was a very sad topic the next day.

What exactly do the comments say?

"Mom, I feel like you are going to go bankrupt yet you donated so much"

"It's so sad, I don't even have a Weibo membership."

"5000 How many pairs of shoes do you want to sell? ”

Netizens’ erotic abilities are indeed very strong! We were moved and found out that Hongxing Erke, who had not even opened a Weibo membership before, had been upgraded to VIP 6 with the enthusiastic help of netizens. The membership expiry date is April 18, 2140.

119 years! He bluntly expressed netizens’ best wishes for Hongxing Erke. Hongxing Erke responded, "We are determined to become a century-old brand, otherwise we will be sorry for the memberships sent by netizens."

On July 23, the topic #红星erke直播间bursting# was on the hot search again. It turned out that netizens rushed in. Check out Hongxing Erke’s live broadcast room shopping.

What’s funny is that the anchor reminded everyone to consume rationally and buy again if they like, but consumers who were “dazzled” by the love and affection shouted: “Consumption must be wild!” “Purchase the most expensive items.” Put it up!" However, the most expensive one only costs about 200 yuan.

There are really too many similar interesting stories, sad and funny at the same time, revealing the down-to-earth intimacy of domestic brands.

2. Is it really going to go bankrupt?

Is Hongxing Erke really about to go bankrupt? Netizens’ concerns have some validity.

According to Hongxing Erke’s 2020 financial report, Hongxing Erke’s revenue was 2.843 billion yuan, but its net profit was -220 million yuan. Compared with the revenue of similar companies, it is less than 1/5 of Li Ning and less than 1 of Anta. It is indeed not optimistic.

Hongxing Erke is the first domestic sports brand to be listed overseas. At that time, the slogan "Hongxing Erke, To Be NO.1" was played repeatedly on TV and it was a household name.

In 2005, the year when Hongxing Erke was successfully listed, it ushered in its highlight moment. The turnover grew from more than 10 million yuan at the beginning to 600 million yuan in 2005, and then to 2.8 billion yuan in 2008.

However, it is reported that Hongxing Erke's shipment forecast for 2008 was too high, which directly caused it to be in a "destocking" process throughout 2009. Data show that the company's sales that year were only 1.999 billion yuan, a year-on-year decrease of 30.8%.

After experiencing the pain of “destocking”, Hongxing Erke began to expand aggressively. Since then, the number of Hongxing Erke stores has increased rapidly. So far, there are more than 7,000 brand stores around the world, with more of them located in second- and third-tier cities.

During this period, the development of Hongxing Erke in the secondary market was pressed on the pause button.

It is understood that starting from February 28, 2011, Hongxing Erke was suspended from trading due to problems such as inflated currency cash and bank deposits totaling 1.15 billion yuan in 2010 financial data, and it has not been open to trading to this day.

At the same time, domestic brands are ushering in a golden age. Anta, Xtep, 361, Peak, etc. have successively been listed on the Hong Kong stock market since then.

In addition, due to the impact of international brands such as Adidas and Nike and domestic casual clothing series such as Li Ning, as well as problems such as unclear brand positioning, lack of new ideas in marketing, and gradual aging of the brand, Hongxing Erke seems to have faded out of the market topic for many years.

So, what has Hongxing Erke, who has faded out of sight, been doing in the past few years?

In 2020, Hongxing Erke released a brand marketing strategy emphasizing the channel sinking method of "strengthening the county level and optimizing the prefecture level", and provided a subsidy of 500 million yuan to support dealers. It seems to be targeting the positioning of lower-tier cities and the direction of channel sinking to re-popularize it. According to its official website, most of the shoes currently on sale are around 100-200 yuan, and the product pricing is relatively low.

However, the model of "high-profile work and low-key publicity" did not bring much momentum to Hongxing Erke. The reality is that in 2021, the pre-sale transaction volume of national fashion sports brands will increase by more than 500 yuan year-on-year, and the top five brands are Anta, Li Ning, Peak, Xtep and 361, without Hongxing Erke.

3. Deeply cultivate the brand, "your luck lies behind"

Wu Rongzhao once said: "Without a brand, you have no right to speak. This feeling is really uncomfortable, which makes me more determined. I am determined to lead the transformation and upgrading of the company and build its own brand.”

It can be said that this donation event is a huge opportunity to build a brand. Under the exposure of strong traffic, we have gradually seen that Hongxing Erke's success in gaining a lot of favor in one fell swoop did not happen overnight.

In March this year, after the Xinjiang cotton incident broke out, Hongxing Erke, which has always been low-key, launched a high-profile large-screen advertisement at the airport high-speed rail station to support Xinjiang cotton. On its red propaganda poster, the slogan "Cotton is soft, China is hard" is printed in large characters.

During this charity act to aid Henan, we also heard a little story. It turned out that the warehouse of Hongxing Erke was flooded in the early days of its business, and the flood washed away the inventory. Because "I have been caught in the rain, so I also want to Hold an umbrella for others.”

In this regard, netizens once again sent the simplest, simple but practical blessings.

In 2021, sincerity and sentiment have not expired and are still moving, which is really gratifying.

But the most important thing for the company is the product and brand itself. Netizens also sincerely hope that Hongxing Erke can seize this opportunity and work harder on appearance, product promotion and brand added value to become a veritable brand. national brand.

After all, love and hate on the Internet can only happen in an instant, and temporary "doting" does not mean anything. One's own excellent strength is the real life-saving talisman of an enterprise.