Intellectual Property Management Lets “Hengyuanxiang” Brand Take Off

Mentioning the name of “Hengyuanxiang”, people may immediately think of woollen wool, which is a product brand that is well-known both at home and abroad. However, today's "Hengyuanxiang" is not the same. This reporter’s report tells people that the 160-person company has annual sales of 4 billion yuan and more than 35 million garments. What magical power has this company made such extraordinary development? The remarks made by Liu Ruiqi, the chairman of “Heng Yuan Xiang”, expressed their true feelings: “If you do not seize the management of intellectual property, Heng Yuan Xiang will not be able to go today.” The rapid development of Heng Yuan Xiang also proves once again that in the current era, business operations have started. In the past, production and management moved toward brand management. The core of a company’s competitiveness will depend on whether it has created a brand name and whether it has successfully carried out brand management. We expect more insightful entrepreneurs to realize the value of the brand and accelerate the pace of brand management in order to participate in the international competition.

What is "Hengyuanxiang"? Is a veteran cashmere store? But at the moment, Heng Yuan Xiang does not own a shop. As the largest woolen company in the world, Heng Yuan Xiang does not have a factory. "Hengyuanxiang", a three-word gold signboard, links the company's brand operations with more than 80 franchised factories, more than 5,800 authorized sellers, and 40,000 employees, forming a dynamic “Hengyuanxiang consortium”. . The use of intellectual property rights to integrate all aspects of strength and make companies bigger and stronger is the secret of Hengyuanxiang's success.

Hengyuan Xiang Chairman Liu Ruiqi said that companies with only 160 individuals have annual sales of 4 billion yuan, and the output of garments has exceeded 35 million. "If it is not a strategy for managing intellectual property, Heng Yuanxiang will not be able to go today."

When Liu Ruiqi just took office 19 years ago, Heng Yuan Xiang was only a humble cashmere shop on Nanjing Road. The 60-year history did not leave much of Heng Yuen-shi's accumulation, but was overwhelmed by the stock pressure.

At the beginning of Liu Ruiqi’s operation of Hengyuanxiang, the concept of “brand management” has not been formed yet. In order to clear inventory, Heng Yuanxiang made an advertisement in the newspaper. This success made Liu Ruiqi very touched. The following year, Heng Yuan Xiang officially registered the trademark and became the first merchant to register a trademark for the goods it sold. Since then, its intellectual property operation concept has been continuously clarified.

In fact, Hengyuanxiang does not have any investment relationship with more than 80 franchised factories today, and its products are not underwritten by Heng Yuanxiang. This relationship should be very loose, but Heng Yuanxiang completely hands over manufacturing and sales to its partners. Responsible for the management of intellectual property - overall brand planning, injecting brand value into the product.

On the surface, Hengyuanxiang sells signs to its franchised factories. Each time the factory produces a product marked with the Hengyuanxiang logo, it will need to pay a certain fee, but more effort is not made in the intellectual property management business. Quality management and process control require the constant supervision of Hengyuanxiang; the sales channel throughout the country is built by Hengyuanxiang; high-end technology research and development is also responsible for input from Hengyuanxiang. In fact, brand management is not “virtual”, and managing a brand is not just advertising. Liu Ruiqi said that Heng Yuanxiang’s goal is to inject 40,000 individuals in the joint body into brand awareness, so that every link in the industry chain adds value to the brand.

Heng Yuanxiang's earliest joining factory "aligned" in 1990. At that time, a small factory in Wuxi township in order to welcome the distinguished guests in Shanghai, specially sent "special car" is only a tractor. Today, this plant is still the core partner of Hengyuanxiang, but its assets are nearly 100 million yuan. Similar to the takeoff trajectory of this small factory, while the brand continues to add value, all the companies surrounding the Hengyuanxiang brand also took off.

For the specific production of downstream enterprises, Heng Yuanxiang never interfered with it. Even the design of styles and colors gave the other party a great deal of freedom. This is in accordance with the operation of international intellectual property rules. On the contrary, it is a downstream company that maintains a high level of enthusiasm for Hengyuanxiang company and its brand, and often invites Hengyuanxiang to work out a production plan together to negotiate new product development. This division of labor enables everyone to show their strengths and maximize their overall value.

“The clothing produced in China has been similar in style, processing, and quality to foreign countries, but it is because there is no brand of its own and no price can be sold in the international market.” Liu Ruiqi said, “The brand is the memory that remains in the minds of consumers. This kind of memory requires the country and the enterprise to operate together."

This year has special significance for Hengyuanxiang. After gradually completing the adjustment after the transformation, Heng Yuanxiang made a clear new position for the company: neither "production" nor "sale", but "a strategic management consultancy company with a consumer goods brand." This is the first time Hengyuanxiang has clearly positioned itself as an intellectual property operator, providing the entire “community” with the strategic, capital, and other necessary resources for brand operation. As the only old brand in Beijing Olympic sponsors, Heng Yuan Xiang will also implement a series of measures to make the signboard more polished and brighter, so that the intellectual property business will become more and more mature.