Swept by 9 million netizens, the small county behind Hongxing Erke is the real light of domestic products

Unexpectedly, Hongxing Erke hung on Weibo hot search for many days because of his donation of 50 million yuan.

On July 26, Lei Jun, chairman of Xiaomi Group, posted the Hongxing Erke sneakers he wore. On the same day, in the offline Hongxing Erke store in Zhengzhou, many shoes and clothes on the shelves were snapped up.

Hongxing Erke, which has been established for more than 20 years, recently realized the advertising slogan on the netizens’ distressed list: TO BE NO.1.

According to the data, on July 20, Henan exceptionally heavy rain disaster, Hongxing Erke set up a disaster relief command group on July 21 and decided to donate 50 million yuan of disaster relief materials to aid the disaster area in Henan. For a while, Hongxing Erke has “can’t live” but “wild donations” have attracted much attention, and Hongxing Erke has countless fans.

On July 25, Wu Rongzhao, chairman of Hongxing Erke, posted on Weibo, saying, “In recent years, after active adjustment with the team, certain benefits have been achieved. The transformation process faced is still very difficult, but it is not ‘on the verge of bankruptcy’ as many netizens ridicule. ”

In addition, Wu Rongzhao also said that the flood in Henan made him feel the same way, “In addition to gratitude or gratitude!” In my heart, I feel even more deeply the unity and warmth of the Chinese people. I believe that with such soil, domestic products will inevitably rise, and China will definitely do it! ”

Shell financial reporters noticed that Jinjiang, Fujian, which was born in Hongxing Erke, also gave birth to sports brands such as Anta, Xtep, Peak, 361°, Delhui, Jordan, and Noble Bird. Nowadays, under the hot market of sports national tide consumption, some brands are growing rapidly.

The president came forward to deny the bankruptcy rumors behind the rumors: Hongxing Erke has been flooded, fired, and delisted over the years, and it is difficult to develop the children’s clothing industry

On the afternoon of July 24, the Hongxing Erke Taobao live broadcast room began to broadcast live for a few hours, and 9 million people swept goods, and many products were sold out, and the anchor had to emphasize that inventory was being transferred in various places. In the face of many “wild consumption” netizens, Hongxing Erke’s live broadcast room wrote “rational consumption” three times.

In fact, due to the donation to Henan, Hongxing Erke’s offline physical stores have been full of customers, setting off a “tide of domestic products” in various places.

On July 26, the official public account of the Pingjiang County Bureau of Culture, Tourism, Radio, Television and Sports in Yueyang City, Hunan Province said that from now until July 31, some scenic spots in Pingjiang County will provide preferential measures for tourists wearing “Hongxing Erke” and “Noble Bird” brand products, eating white elephant instant noodles or drinking Huiyuan juice.

As a well-known slogan “TO BE NO.1”, Hongxing Erke once carried the youth of many people.

In 2000, Hongxing Erke Industrial was established and listed on the Singapore Stock Exchange in only 5 years. At that time, Hongxing Erke’s turnover reached 600 million yuan.

The company has also struggled. According to President Wu Rongzhao’s Weibo post on July 25, “In 2003, Hongxing Erke was flooded, half of the equipment and a large number of raw material assets were flooded, and the factory was struggling. In 2008, it suffered another financial crisis. ”

In 2015, a fire destroyed nearly half of Hongxing Erke’s production equipment, causing Hongxing Erke’s cash flow to face a break.

In 2008, Hongxing Erke’s turnover reached 2.8 billion yuan, followed by a decline in revenue in 2009. In addition, Hongxing Erke also fell into internal management chaos, and was finally delisted on the Singapore Exchange after many years of suspension of trading due to financial fraud.

With the rise of domestic brands such as Anta and Li Ning since 2017, gradually seizing market space, Hongxing Erke has gradually lost its voice. At?? In the transaction data of Tmall 618 sports outdoor category in 2021, the pre-sale turnover of Guochao sports brands increased by more than 500% year-on-year, and Anta, Li Ning, Peak, Xtep and 361° occupied the top five brands and store turnover, while Hongxing Erke failed to make the list.

According to the announcement issued by Hongxing Erke on the Singapore Exchange, in 2018, Hongxing Erke suffered a huge loss of 298 million yuan, and in the first half of 2020, Hongxing Erke lost 600,000 yuan, making netizens think that Hongxing Erke “can’t survive”.

Wu Rongzhao responded to rumors on July 25 and said, “The transformation process is still very difficult, but it is not ‘on the verge of bankruptcy’ as many netizens ridicule.” I firmly believe that as long as we keep our original intention, stick to the industry, and create high-quality products for users with our hearts, we will one day be recognized by users. ”

The county-level city behind Hongxing Erke: once known as the “Jinjiang shoe capital”, many domestic brands such as Anta and Xtep were born

Speaking of the development of Hongxing Erke, we also have to mention a place where domestic products are born centrally – Jinjiang, Fujian.

Jinjiang is a county-level city located on the southeast coast of Fujian, located in the middle of the Pearl River Delta, Yangtze River Delta and Taiwan Island triangle region, with a regional GDP of 254.618 billion yuan in 2019.

Thanks to the geographical advantage, in the 80s of last century, Jinjiang, which was still a small county town, began to develop the shoe industry, also known as the “Jinjiang Shoe Capital”. In the early days, it was basically to undertake the OEM processing of foreign brands, and then foreign trade did it for a long time, and more and more enterprises realized the importance of independent brands, and many domestic brands were born.

Anta, Xtep, Peak, Hongxing Erke, 361°, Delhui, Jordan, Noble Bird, Xidelong and other brands were born here. It can be said that the rise of Jinjiang in recent decades is also the epitome of China’s transformation and opening up from Chinese manufacturing to Chinese creation.

In addition to sports brands, Jinjiang has also given birth to a number of industrial economies such as Qi brand, Jinba menswear, Hengan Group, Panpan Food and so on.

In 2005, Hongxing Erke was listed in Singapore; In 2007 and 2008, ANTA and Xtep were listed in Hong Kong; 2009 361°, Peak is also listed in Hong Kong. During this period, the Jinjiang footwear and apparel industry reached unprecedented prosperity

In March 2021, the Hurun Global Rich List was released, including 13 entrepreneurs from Jinjiang. Among them, Anta as the “wealth factory” of Jinjiang, Ding Shizhong, Ding Shijia, Ding Yali, Wang Wenmo 4 executives were on the list.

According to information released by local media in Jinjiang in July 2019, local companies have continued to enter the field of high-end products in the same industry through the acquisition of international brands in recent years, and “97 enterprises such as Xtep and Seven Wolf have also set up business offices abroad”.

In addition to ANTA, Xtep, another brand of Jinjiang Origin, has also made great strides in the international market in recent years. Previously, it has acquired brands such as Myle and Saint-Conny, Gasway, Palatine and other brands, and continuously launched Chinese style sportswear. Data shows that Xtep’s revenue in 2020 was 8.1 billion yuan.

Then there is the sports brand 361°, which only started in 2003. In addition to children’s clothing, 361° has also established sales outlets in the United States, Brazil, Europe and other places. The data shows that 361°’s annual revenue since 2016 has exceeded 5 billion yuan.

On the other hand, the development path of Hongxing Erke and Peak is not smooth, and both companies have been delisted. Shell financial reporters noted that Peak has also repeatedly reported that it will IPO in A-shares, and there is no new progress.

Behind the national tide: Anta’s revenue is 35.5 billion Li Ning’s stock has risen 9 times since 2019

It is worth mentioning that in recent years, under the trend of sports domestic products, brands such as Anta have taken the lead in taking the lead.

This domestic brand, which was founded in 1991, will also have products sold in limited quantities in the United States over the years, such as the ANTA KT3-Rocco opened limited sales in the United States, and its Nice Kicks shoe store in San Francisco also lined up with thousands of people on the street.

At present, Anta has found the younger generation of stars Wang Yibo and Guan Xiaotong to endorse, as well as skier Gu Ailing and American professional basketball player Thompson. FILA, a subsidiary of ANTA, has become a representative of high-end sports brands over the years.

In the 2019 China Top 500 list, Anta ranked 351st. According to the data, ANTA’s total revenue in 2020 was 35.5 billion yuan, of which 15.7 billion yuan came from brand ANTA, 17.45 billion yuan from FILA, and 2.3 billion yuan from other brands.

In addition, ANTA’s gross margin is also rising. According to ANTA’s 2020 annual report, the company’s overall gross profit margin rose to 58.2%. Among them, the gross profit margin of brand Anta was 44.7%, and the gross profit margin of FILA was 69.3%. Anta said that the increase in gross profit margin distributed by ANTA is due to the increase in retail business contribution due to the direct consumer model.

Caption: ANTA’s 2020 Annual Report

When Jinjiang sports brands bloomed separately, Li Ning undoubtedly became the industry leader in the national tide. Taking Paris Fashion Week, issuing cross-border joint products and trendy design sense make Li Ning’s national trend image at the forefront. Data show that in 2020, Li Ning’s revenue was 14.456 billion yuan, of which footwear revenue was 6.338 billion yuan and clothing revenue was 7.365 billion yuan.

According to Li-Ning’s official website, as of June 30, 2020, the number of Li-Ning sales outlets in China (excluding Li-Ning YOUNG) totaled 5,973, and it continued to develop business in Southeast Asia, India, Central Asia, Japan, South Korea, North America and Europe.

From January 2019 to July 23, 2021, Li Ning’s rise in Hong Kong stocks reached 915.38%. According to the closing price on July 23, Li Ning’s total market value is HK$209.2 billion.

In recent years, the rise of domestic products has significantly enhanced consumers’ attention, sense of identity and trust in domestic brands, which is also the inevitable result of the improvement of our cultural self-confidence. According to statistics, in 2020, under the same goods, the proportion of consumers who tend to buy domestic products is as high as 84.2%.

On the other hand, these domestic brands have also been using their own strength to shoulder social responsibility, doing a good job in industry and paying attention to charity have become the code of conduct for many enterprises. On the road from Made in China to Created in China, there are more and more outstanding enterprises that are moving towards the global competition stage.

Proofreading by Liu Baoqing