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** Financial gossip
Author of Financial Gossip
01, Gansu**Hongxing Erke donated 20 million to get out of the circle again
In the live broadcast room of Hongxing Erke, the scene of the anchor shouting at consumers to consume rationally was staged again. At 23:59 on December 18, Beijing time, 6Level 2**, which has killed more than 100 people so far, and damaged some infrastructure such as water, electricity, transportation, and communications.
While making every effort to search and rescue the trapped people, it is also a top priority to make every effort to treat the injured and properly resettle the affected people, and many enterprises donated money and materials as soon as possible.
On the morning of the 19th, the official Weibo of the domestic brand Hongxing Erke announced that it would donate 20 million yuan of materials to the disaster-stricken areas in Gansu, and the first batch of materials were mainly cold-resistant, warm-guarded, and emergency disaster relief items. In this regard, Hongxing Erke responded, "The disaster situation in Gansu is urgent, and the company moved last night and prepared for one night." We will continue to monitor the progress of disaster relief.
Source: Weibo.
This move can move netizens badly, not only sent Hongxing Erke's donation of 20 million to the first hot search, but also many netizens were emotional and praised Hongxing Erke: "I can see you every time I have a disaster, why don't people love it?."See the truth in adversity, see people's hearts in difficulties, Hongxing Erke, worthy of the light of domestic products". Some netizens also expressed distress for Hongxing Erke's donation: "Hongxing Erke donates less, you do this, the product is so cheap, I'm really afraid that you will go out of business, and you won't be able to buy it in the future!."Some netizens shouted directly under the Hongxing Erke donation blog: "Go to the live broadcast room to place an order tonight!."”
As soon as the news came out, many consumers poured into the official Douyin live broadcast room of Hongxing Erke for "wild consumption", and the Hongxing Erke live broadcast room rushed to the first place on the list of trendy sports shoes and sports outdoor.
In the comment area at the bottom left of the live broadcast room, netizens kept leaving messages: "No need to introduce, go directly to the link", "Support domestic products, conscience domestic products", "Buy without brains, rush", ......The anchor in the live broadcast room thanked netizens many times and persuaded netizens to consume rationally.
Source: Douyin 02
Dominate the hot search list by playing public welfare cardsHongxing Erke has tried and tested
From the "7.20 Zhengzhou Heavy Rain", "Poor" to Hongxing Erke, which even Weibo members are reluctant to open, donated 50 million "silently" and quickly became the focus of the first place, this domestic brand has dominated the hot search list many times by playing public welfare cards.
Hongxing Erke's marketing strategy is actually very simple: focus on the use of social hotspots and public welfare events in marketing to enhance the brand image, by combining with the hot events of public concern, the brand can attract more attention and discussion, so as to enhance brand awareness and reputation.
In addition, Hongxing Erke is also good at taking advantage of various opportunities to launch new products and activities. This includes partnering with popular IPs, launching limited-edition products, hosting online and offline events, and more.
Does this emotional marketing strategy work?Judging from the data, the creation of emotional traffic will indeed bring about a blowout of sales. But the traffic that comes from feelings alone is short-lived. In August, the four major sports brands of Anta, Li Ning, Xtep International and 361 Degrees successively completed the disclosure of their 2023 interim results.
In the first half of this year, Nike China and Adidas China jointly generated a total revenue of 95 billion yuan with the four major sports brands, of which the four major sports brands: Anta Sports, Li Ning, Xtep International, and 361 Degrees achieved revenue of 296 respectively4.5 billion yuan, 140200 million yuan, 652.2 billion yuan, 431.2 billion yuan, a year-on-year increase, both hitting a new high in recent years.
Source: Internet.
Look at Hongxing Erke again. Although the revenue data of Hongxing Erke in the past two years has not been found, in 19 years, Zhengzhou Heavy Rain "silently" donated 50 million and "exploded" Hongxing Erke, and the annual revenue in 2020 is only 284.3 billion yuan, which was 1 12 for Anta and 1 5 for Li Ning that year.
Industry insiders said that companies that continue to use topic marketing and sell products with low gross profit margins are like walking a tightrope at high altitudes. 03
Many times out of the circle,Hongxing Erke is still less than the above
Although it has repeatedly been out of the circle with various donations and charitable deeds, compared with domestic brands such as Li Ning and Anta, Hongxing Erke is still in a disadvantaged position. The main reason for this is the lack of technical barriers in Hongxing Erke. Relevant data shows that in the first half of 2023, Li Ning's research and product development expenditure will be 29.1 billion yuan, a year-on-year increase of 216%, more than 5 times the same period in 2017. Its three core running shoe IPs, "Ultralight", "Chitu" and "Feidian", have brought good results, and the cumulative sales have exceeded 4.3 million pairs. The highest R&D investment in China is Anta, with 87.1 billion yuan topped the list.
Earlier this year, Nike's CFO noted in its earnings report: "Sales of high-performance products are outpacing lifestyle products, young consumers in China are seeking top-of-the-line product innovations, and Generation Z is growing into the most active generation China has ever seen." "Over the past year, Nike has launched a number of innovative running shoes, covering different types of running, off-road, cushioning and more.
Compared with Nike and Adi's R&D expenses, which have been maintained at 5%-10%, Hongxing Erke's R&D expenses once only accounted for 03%, and in 2015, the proportion of attention reached 48%, and in 2016 it fell back to 27%, and even since 2017, Hongxing Erke no longer publicizes this indicator.
At the beginning of last year, Wu Rongzhao, chairman of Hongxing Erke, said that the company's annual investment in research and development expenses was tens of millions of yuan. Judging from the data, Hongxing Erke still has a lot of room to catch up in R&D and innovation.
All in all, feelings can indeed be used as a catalyst for brand competition, but the quality and performance of the product itself are the long-term solution. As a well-known domestic brand, in order to stand out in the fierce market competition, Hongxing Erke must continuously improve its product research and development and innovation capabilities to ensure that the quality and performance of its products meet or even exceed consumer expectations.
At the same time, brand building, channel expansion and service quality cannot be ignored. Only by comprehensively enhancing the strength of the brand can we achieve true sustainable development. It is hoped that Hongxing Erke can continue to work hard, as its advertising slogan says, "to be no.."1", to become a leader in domestic sports brands.