Liu Ruiqi: If You Don'T Change Yourself Today, The Possibility Of Tomorrow Will Change

"Today, if we do not change ourselves, the possibility of tomorrow will change."

- Liu Ruiqi

Editor's note: since 1927, Shen Lai boat founded in Shanghai, Heng Yuan Xiang, the world's largest wool manufacturer, Heng Yuan Xiang has gone through more than 80 years of development, which has gone through the downturn of the time-honored brand recession, and is also under the leadership of the current chairman Liu Ruiqi. It has won the remarkable achievements of today's three major industries, including home textiles, knitwear and apparel.

Along the way, Heng Yuan Xiang constantly seeks innovation and changes. While doing well in the development of the enterprise itself, he actively devotes himself to the research and development of clothing, offering advice for the development of the whole industry. Besides, Heng Yuan Xiang also pays attention to the commitment and contribution of social responsibility.

In the mid 90s of last century, the introduction of a national brand in the Chinese market would only cost about 10 million yuan, which is not able to touch the consumption of the general public today. It is not the case in China. In 70s of last century, the cost of importing a brand in the US market was about $10 million, and by 1997, the average cost had risen to 75 million US dollars.

With the rising cost of brand introduction becoming a global trend, so many well-known Chinese time-honored brands were overwhelmed by the flood of the market.

Time honored youth

Since the establishment of any brand, it will no longer be based solely on the will of the operator. Only by actively taking the consumer as the foundation can any brand continue to enhance its brand value.

Liu Ruiqi, chairman of Heng Yuan Xiang (Group) Co., Ltd., when he arrived in Heng Yuan Xiang in 1987, Heng Yuan Xiang had only more than 100 square meters of business space, two yellow croaker cars and a large backlog of stockings.

It can be said that at that time, Heng Yuan Xiang was a poor enterprise with only the time-honored brand.

The success of any famous brand is the result of the quick grasp of market changes, so as to continuously increase market share and expand its territory.

Heng Yuan Xiang can revitalize youth and vitality by injecting the brand gene. On the basis of this, he leverages the marketing concept and mode of modern enterprises and regains vitality and vitality through the experience of market economy law.

The 1+1 is far greater than 2.

In 1991, Heng Yuan Xiang began to turn from old brand operation.

Why did it develop so fast? Liu Ruiqi gave an example: assuming that Heng Yuan Xiang now has 5 similar factories, they need to carry out brand marketing in their market operation.

If each factory inputs 10 million per year, the 5 factory weight will be 50 million.

With these 50 million trademark royalties, 30 million of them are put into advertising.

In the end, 20 million surplus was left. Each factory used 10 million to exchange 30 million advertising value. Obviously, they earned 20 million respectively.

But the former is tangible while the latter is invisible.

However, the intangible value of the brand will be more influential in the later stage.

From "sheep and sheep" to "twelve zodiac" advertisements

In 1991, Liu Ruiqi clutched the old money of Heng Yuan Xiang store to find advertisements in Shanghai TV station. The advertising department of the TV station replied that 100 thousand yuan could not do much advertising.

At that time, TV advertising products were priced in 15 seconds. Under the shortage of funds, Heng Yuan Xiang designed the first 5 seconds ad. The initial slogan was Heng Yuan Xiang, Heng Yuan Xiang wool sweater.

Heng Yuan Xiang, the first time to read it very hard, in order to allow the audience to be able to distinguish clearly, Liu Ruiqi and colleagues in the recording scene personally supervised, announcer accurate and long voice issued these three words.

In the same year, the first Chinese mainland TV drama "Wan Jun" was introduced in Taiwan, with a total of 18 episodes.

There are two minutes per day and two minutes in the middle of two episodes of advertising.

Heng Yuan Xiang 18 thousand yuan to do 9 days of advertising, select the first episode of the end of the TV drama, advertising 1 minutes, second episodes before the beginning of the TV drama, the three time points on the Heng Yuan Xiang advertising.

The effect is obvious, consumers quickly remember this advertisement, and the audience of "Wan Jun" drama is mostly housewives, and is also the target consumer of Heng Yuan Xiang's products. This kind of advertising is targeted.

Later, people remembered the advertisement of "Heng Yuan Xiang Yang Yang Yang" with just five seconds.

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In 2005, Heng Yuan Xiang became a sponsor of the Beijing 2008 Olympic Games. Heng Yuan Xiang used the 5 second prime time to buy the new advertisement of Heng Yuan Xiang, "Heng Yuan Xiang Niu Niu Niu".

Consumers need to build memories of products and related information for a certain period of time. This advertisement has lasted for 10 days from signing the contract, and has trained consumers' recognition and familiarity with Heng Yuan Xiang.

According to the intention of chairman Liu Ruiqi, we are going to launch an advertisement related to one of the twelve zodiac animals every year, and the zodiac of mice, pigs, dogs and Heng Yuan Xiang are very small, so they can not convey the brand idea vividly.

After that, Heng Yuan Xiang invested 10 million in the 5 national TV stations to buy one minute advertising. The result is what you see: the TV screen is almost static, and the 12 zodiac animals come out in turn.

Everyone's reaction is basically the same, because the TV is broken.

Data show that the national media coverage of the ad has been reported 7 million times, excluding those experts' comments.

Many people began to worry that the reputation of Heng Yuan Xiang would not decline.

And Heng Yuan Xiang, the whole enterprise, Heng Yuan Xiang, the whole brand is also good, from its birth, it has not done anything bad.

Mr. Shen Laizhou, founder of Heng Yuan Xiang, advocates the charity of enterprises. Now the chairman of the board of directors of Liu Ruiqi and all the Heng Yuan Xiang people still inherit Mr. Shen's concept of charity.

The unique growth of Heng Yuan Xiang

In November 26, 2010, Liu Ruiqi, chairman of Heng Yuan Xiang group, delivered a brilliant speech at Tsinghua University on the theme of "independent development, Heng Yuan Xiang: brand growth".

In the face of questions from young students, chairman Liu Ruiqi gave his experience and accumulated experience in the development of Heng Yuan Xiang, which perfectly deconstructed Heng Yuan Xiang's alternative brand growth.

Student questions: young people prefer Nike and ADI. When will Heng Yuan Xiang close to the life of young people?

Liu Ruiqi: Heng Yuan Xiang constructs an absolutely differentiated brand thinking and brand culture system.

Heng Yuan Xiang is a brand company in the future. In the future, you will enjoy the products of Heng Yuan Xiang.

But it is not necessarily Heng Yuan Xiang.

Student questions: if all enterprises come to do brand, do not pay attention to the actual, do not make products, will it lead to vicious competition?

Liu Ruiqi: it is very simple. Human needs are divided into three parts: physiological needs, emotional needs and spiritual needs.

Of course, these three parts can not be separated, but there must be a hierarchy.

When you earn less, you need to be full and warm. This is called physical form, also called physical needs.

When your income reaches a certain level, you will spend much more money on your clothes in order to eat well and spend a little money on it. This is emotional need.

Your income will rise again and your economy will grow again.

You have new needs. We call them spiritual needs. They are also called the needs of brand culture.

Eat healthy, wear fashion, taste, because I need a symbol to express my identity, my status, and my taste.

It costs much more than you eat, much more than you wear warm money.

Student questions: how do you see the development of diversification and specialization in the course of development?

Liu Ruiqi: This is a big problem.

First of all, let me see what length I am looking at. This is a year, ten years or one hundred years.

I can't answer you in this way.

But what I want to answer is that no matter what industry you are engaged in, in the future world, it will only leave the first place. If you are not the first and only one, you basically have no room for survival.

This concept also applies to our brand development.