Heng Yuanxiang: A Brand Creates Tens of Years of Rich Business in Eight Years

When U.S. Nike used brand equity to sell Nike products all over the world, China’s Hengyuanxiang also used its brand assets to quickly mobilize social tangible assets, and only 150 people managed its Hengyuanxiang brand, and its Hengyuanxiang brand product sales reached 30. One billion and all over China.

Liu Ruiqi, who has been hailed as "the first person in China's brand management," recently made a surprise move and moved the Hengyuanxiang Consortium into CCTV's "same song" performance scene, and attracted the attention of people in the economic community: "The same song" audience The difference is that this time, the audience gathered thousands of yuan worth of dealers in China's major textile and apparel categories and ten million garment factories. Of course, they also have a common feature. They are also Hengyuanxiang’s distributors. Or join the factory.

Liu Ruiqi, known as "The First Person in China Brand Management"

Heng Yuanxiang launched its brand strategy for 8 years, using brand equity to cultivate more than 70 private enterprises with tens of millions of assets in the Yangtze River Delta, and built more than 2,000 millionaires, over 500 million affluent merchants, and more than 40,000 people across the country. Provide jobs. The creation of this miracle originated from a brand named Heng Yuanxiang. There are only 150 people managing this brand. The charm of this miracle lies in Liu Ruiqi's use of intangible assets to mobilize a large number of tangible assets.

Heng Yuan Xiang is an old and famous enterprise. It was born in 1927, but the year when it was changed from a font name to a real trademark was 1991, and when the real trademark operation of the brand was in 1998, Heng Yuanxiang launched 5 projects in that year: Sweaters, home textiles, hosiery, daily chemicals, and garments have changed the production of only a single handmade yarn. After 8 years, it has been successfully extended to the fields of knitting, home textiles, etc. .

Hengyuanxiang's model is the production of Hengyuanxiang products by its franchise factory. The headquarters in Shanghai concentrates on creating brands, integrates product development and quality control, and forms a model of brand management in Shanghai, production in the Yangtze River Delta, and sales in China. The Hengyuanxiang brand has revived more than 70 difficult wool spinning companies and has become a major taxpayer in the region. The Hengyuanxiang model has inadvertently become China's early pioneer of franchising.

The Hengyuanxiang dealers are also under the influence of this brand, from the original entrepreneur to become a wealth owner.

Among these, the first batch of cashmere company dealer Xie Ming is a model. At the beginning of the establishment of Hengyuanxiang Cashmere Co., Ltd., many dealers just took the idea of ​​investing in Hengyuanxiang cashmere products. Xie Ming was no exception. After three years of operation, its sales volume soared from 6 million in 2001 to 2004. With an annual sales volume of 30 million, the annual sales volume has increased from the previous 8,000 to 40,000 pieces. Xie Ming said that in the four years of joining Hengyuanxiang, he not only completed the accumulation of geometrical series of wealth, but also got two more important things: the first is to learn the profit model, the second is to pay a class Hengyuan Xiang Good friend. Xie Ming said that with these two points, becoming a billionaire is no longer far away.

Hu is known as a millionaire woman married to Hengyuanxiang Home Textiles. In the past few years since joining, under the influence of Heng Yuan Xiang's corporate culture, new ideas have appeared in marketing. Every year, she will hold a large-scale "Hengyuanxiang Home Textile Wool Festival" together with subordinate shopping malls and retailers at the same time. Home textile companies circulate such a sentence: "China's economy looks at Guizhou." In 82 county-level cities in Guizhou, the arrival rate of Hengyuanxiang Home Textiles reached as high as 83% by the end of 2004, ranking first among the provinces in the country. Hu Zheng played an extremely important role in it. At the same time, Hu Shizheng’s worth has also exceeded 10 million.

Such a large dealer team depends on the brand management team of 150 people. Hengyuanxiang is using brands as the link to integrate more than 40,000 sales personnel, including social sales, more than 50,000 manufacturing workers, more than 70 processing plants, more than 5,000 franchised stores, and raw material suppliers and semi-finished products. Suppliers, manufacturers, distributors, and retailers are all included in a value chain, so that they can receive their profits at any point.

The success of "Heng Yuan Xiang's profit model" is of great interest to experts. It not only became the teaching plan of the North University, but also went to the Case Library of the China Europe European Business School. While studying the development of Hengyuanxiang, Sino-European experts even denied that Hengyuanxiang's long-established company stated that it was a new enterprise. Their calculation method was that Hengyuanxiang was established in 1927, but its registered trademark was in 1991, but it was only 14 years. In the history of Hengyuanxiang, the operation mode of Hengyuanxiang is the internationally very popular brand-based business model. By virtue of this model, Heng Yuanxiang started in the cashmere industry in the sunset industry, but eventually expanded to wool knitwear, home textiles, hosiery, daily chemical, clothing and other fields in the brand franchise, raising a round of sun in the evening. Achieve annual growth rate of 30% each year and complete annual sales of 3 billion.

Liu Ruiqi, chairman of Hengyuanxiang Group, said: Brand is an intangible asset. The effective management of the brand can promote and support the sustainable development of a country and an industry. If the intangible assets are smaller than the tangible assets, the value of their own tangible assets will be lost. Only when the intangible assets are greater than the tangible assets can an enterprise obtain benefits and benefits, and the power of intangible assets can be copied without limit.