When Liu Ruiqi entered Hengyuanxiang, the first thing he did was deviant. As soon as he took office, he decided to reduce the price and dispose of the inventory goods in the store, which is equivalent to the loss of state-owned assets in disguise in a sense. His behavior was criticized at that time, but it brought liquidity to Heng Yuanxiang. With this fund, the variety and color of goods in the store are enriched. Then, Liu Ruiqi creatively created the business model of "bringing the factory into the store", renting the counters of the store to different manufacturers, so that the manufacturers with the best sales performance can get the best counter position, and the manufacturers with poor sales may be driven out of the store. Driven by the competitive mechanism, the sales of Hengyuanxiang increased by 10 times in two or three years.
In order to own the products of "Hengyuanxiang" brand, at the end of 1989, Liu Ruiqi began to look for factories to cooperate in production. 1 991March1day, Hengyuanxiang brand wool was born. With branded products, Liu Ruiqi began to promote brands. He spent almost all the profits of last year on advertising, so Heng Yuanxiang frequently appeared in the prime time of CCTV. With the increasing investment in maintaining Hengyuanxiang's trademark, Hengyuanxiang began to extend its products from 1997, and began to produce knitted products such as wool, sweaters, wool underwear and wool shirts, as well as suits and bedding.
In 2000, Vientiane Group was acquired by WTO, and Hengyuanxiang, as a founding member of Vientiane Group, was also brought into WTO. Considering that the development focus of WTO is real estate, which is far from Hengyuanxiang's brand development strategy, Liu Ruiqi insisted on spending huge sums of money to acquire Hengyuanxiang brand, and established a joint-stock company on 200 1. Hengyuanxiang people believe that to maintain a trademark, in addition to the import cost in the early stage, it is more important to maintain and upgrade the cost in the later stage. Only in this way can the brand be on the rise. Therefore, even in the case of lack of funds, Hengyuanxiang still invests in brand maintenance with an annual increase of 30%.
In February, 20001,Hengyuanxiang successfully transformed itself through the acquisition of MBO, which opened up a new development space for the company. In June 2002, Hengyuanxiang (Group) Co., Ltd. was established, and the brand strategic goal of "China first, world first-class" was established.
By the end of 2004, Hengyuanxiang had established more than 5,800 sales outlets in China by way of franchise, owned more than 170 franchised factories, and produced more than 375 million products annually. In the same year, they successfully bid for the best wool in the world at a sky-high price of 6 million yuan, thus proving to the world the strength of China wool spinning enterprises. Today, Hengyuanxiang is still exploring. Undoubtedly, the time-honored Hengyuanxiang has become their greatest wealth and will create more wealth.
Create a brand
Liu Ruiqi, born in 1958, has a low education level and often jokes that he didn't graduate from primary school. 1987, Hengyuanxiang was just a one-square-meter wool shop on Nanjing Road. Liu Ruiqi, an apprentice, stepped on a yellow croaker cart and worked as a coolie, taking office as the general manager of Hengyuanxiang. Facing this 78-year-old brand, he took a series of actions: registering Hengyuanxiang and Xiaodong trademarks; Tv stations advertise Hengyuanxiang brand in prime time. /kloc-Today, 0/8 years later, Hengyuanxiang has become a well-known trademark in China.
In the short period of five years from 199 1 to 1996, Hengyuanxiang became a well-known brand because it constantly launched advertisements with extremely simple contents. Hengyuanxiang's annual cost of maintaining the brand, including advertising fees paid directly to the media and activities, is about 60 million yuan. Liu Ruiqi said that they are deeply aware of the role of brands in enterprises. The longer the brand investment lasts, the better the effect. If it is interrupted, all the previous investment will be in vain. Hengyuanxiang has a saying, first, we should do a good job of creating the first, because it is not easy for people to remember the second; The second is persistence, even if your work is not the first, but the time of persistence becomes the first, then you will become great. Because information is very developed, what you do is easy to be imitated, but there is only one thing that cannot be copied, and that is time. The history you have built cannot be copied. The monotonous advertisement of "Yangyang" and the marketing method of "five-second advertisement" broadcast three times in a row are also known as the "Heng Yuan Xiang phenomenon" in the advertising industry. Some consumers don't like it and feel annoyed. Liu Ruiqi thinks this is the influence on consumers' memory. To make consumers remember, we must make use of differences and use different methods.
Brand story
In March 2004, Hengyuanxiang bought 90 kilograms of top-grade superfine wool at a grand wool auction in Australia for 6 million yuan. As a result, the acquisition caused a strong sensation in the wool industry, and many people did not expect it. Not only did the media scramble to report, but companies from major wool producing countries in the world, such as New Zealand, South Africa, Uruguay and Argentina, also called and faxed. In previous auctions, most of the superfine wool was taken away by famous Italian companies and finally flowed into high-end clothing stores in Paris, Milan, new york or Tokyo. This time, Hengyuanxiang Group defeated many wool predators such as Italy, Japan, Australia and South Korea at the auction in Sydney, Australia, and became the owner of this bundle of "golden fleece", setting three firsts: China enterprises successfully participated in the exhibition for the first time; This auction is the finest wool in the world so far, only 1 1.9 micron; By far the most expensive wool in the world.
The ultra-fine wool successfully photographed by Hengyuanxiang is produced by sheep raised by Richard goodrich and Beam in South Wales, Australia, and its diameter is only 1 1.9 micron, which is regarded as the finest wool in the world, only equivalent to 1/5 of the diameter of human hair. According to professionals, as long as the fineness is below 19.5 microns, the fineness of the finest wool successfully developed at present is 15 microns, but the wool purchased by Hengyuanxiang this time. In order to produce the best wool in the world, goodrich Brothers built a luxurious sheepfold, carefully selected the sheep, strictly controlled the room temperature, and fed them with special feed. Before the auction, 90 kilograms of high-quality wool was specially kept in the safe of the National Bank of Australia.
Pistachio originated from the overseas medicine book Haiyao Materia Medica collected by Li Xun in Tang Dynasty. Later, the concept of pistachio was named "Mus