“Home service first stock” Guangdong Hongxing Industrial Co.Ltd(001209) ( Guangdong Hongxing Industrial Co.Ltd(001209) . SZ) is transforming to the whole category route.
On May 23, at the performance presentation of Guangdong Hongxing Industrial Co.Ltd(001209) , Guo Wuwen, chairman of Guangdong Hongxing Industrial Co.Ltd(001209) said in an interview with interface news that he would continue to promote the full category operation of “Fenton” brand this year. At the same time, he said that the company planned to establish a live broadcast base, expand the self broadcast team and cultivate new performance growth points. In addition, Guangdong Hongxing Industrial Co.Ltd(001209) also wants to test cross-border e-commerce with zero overseas revenue last year. The company said that it is developing cross-border e-commerce business through its own independent team.
Guangdong Hongxing Industrial Co.Ltd(001209) landed in the capital market last year, and its main products include home clothes, underwear and other products. Last year, the company’s home service revenue accounted for about 76% and underwear revenue accounted for about 22% Guangdong Hongxing Industrial Co.Ltd(001209) plans to gradually extend the category to categories related to home life, such as outdoor, light sports, sunscreen and other functional items.
Guangdong Hongxing Industrial Co.Ltd(001209) business originated offline, but as a garment enterprise, its Wuxi Online Offline Communication Information Technology Co.Ltd(300959) business is moving forward in two tracks.
According to last year’s annual report, Guangdong Hongxing Industrial Co.Ltd(001209) online consignment and direct sales totaled 867 million yuan, accounting for 67.5% of the revenue. ” Wuxi Online Offline Communication Information Technology Co.Ltd(300959) 73, this ratio is valuable in the traditional garment industry.” Guo Wuwen thinks.
Guangdong Hongxing Industrial Co.Ltd(001209) online revenue proportion
Guangdong Hongxing Industrial Co.Ltd(001209) will continue to consolidate the existing online market share through the mode of live e-commerce.
On April 29 this year, Guangdong Hongxing Industrial Co.Ltd(001209) launched the Guanghe live broadcasting base in Baiyun District, Guangzhou, and announced its full entry into e-commerce business. This is regarded as the foundation for the second take-off of the brand. Guo Wuwen said that the live broadcasting base will be used as the early-stage incubator of live broadcasting business and empower the company’s all channel and all system live broadcasting.
In the field of e-commerce development, it is naturally impossible to avoid the impact of online popular marketing brand. How to face challenges is also one of the focuses of the organization at the performance exchange meeting.
“This capital marketing oriented online sales model is not necessarily suitable for the garment industry,” Guangdong Hongxing Industrial Co.Ltd(001209) Dong secretary Liu Genxiang told interface news that China has a large population base, a large amount of short-term capital promotion and large-scale marketing bombing, which can indeed achieve certain results in a short time. But this approach has advantages and disadvantages.
Liu Genxiang said that the clothing industry has brand attributes, its barriers are not high, and there are differences in style, price and consumption level. The effect of marketing style play is not sustainable, and this advantage comes and goes quickly. “The stickiness of customers, the growth of traffic, and the improvement of performance and revenue are all crucial. Guangdong Hongxing Industrial Co.Ltd(001209) could have tried this method on some new brands, but the marginal income is declining and the conversion rate is not high.”
Liu Genxiang also said that the company has accumulated step by step from scratch. Listed companies need to consider benign operation, profit data, shareholder return and other aspects. “If we do this, we will lose our advantages.”
Not only is the online channel heavier, but Guangdong Hongxing Industrial Co.Ltd(001209) also spared no effort to invest offline. Faced with the cold current of the epidemic, many garment enterprises are shrinking, Guangdong Hongxing Industrial Co.Ltd(001209) but expanding against the market.
By the end of 2021, Guangdong Hongxing Industrial Co.Ltd(001209) had 25 offline Direct stores, with 19 newly opened and 1 closed last year. It can be seen that most stores were added last year. Liu Genxiang said that the company’s base is small, so it’s still time to add.
Guo Wuwen stressed to the interface news, “we will continue to open stores this year, not just by our own enthusiasm.”
He explained that on the one hand, because the company’s Fenton full category plan is in progress, there is enough display support, which will bring more joint and several sales.
On the other hand, affected by the epidemic, many enterprises are retreating, from the site rent to the market space, “I think people with resources should be ‘greedy’ at this time. Now we all use the way of defense. When the market is good, our position layout has been completed”.
Guo Wuwen did not disclose the specific plan for the number of stores to be opened this year, but he said that with the promotion of the whole category of Fenton, the opening of Direct stores and the promotion of new projects such as favo home Direct stores, if Wuxi Online Offline Communication Information Technology Co.Ltd(300959) reaches 6:4 in the future, it will be an ideal proportion.
In addition, Guangdong Hongxing Industrial Co.Ltd(001209) recently announced that the company also plans to invest 500 million yuan to build the digital creative design Industrial Park ( Guangdong Hongxing Industrial Co.Ltd(001209) digital entrepreneurship design headquarters base) project in Guangdong, Hong Kong and Macao Dawan District, which is located in the design capital of Guangzhou in Baiyun District Guangdong Hongxing Industrial Co.Ltd(001209) wholly owned subsidiary just won a land in Baiyun District of Guangzhou at the price of 228 million yuan.
Guo Wuwen also revealed that the second phase of the industrialization project of Jiangxi Rui Jinxiandai Information Industry Co.Ltd(300830) industrial park with an annual output of 9 million sets of household clothes will be launched this year. At the same time, plan and promote the construction of the company’s logistics center project in combination with the requirements of improving the intelligent level of the company’s logistics center.
