Xinfei Electric is lost and its brand is gradually losing its commercial value
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Recently, Xinfei Electric Appliances, known as one of the "Four Golden Flowers" in my country's refrigerator industry, has encountered its third production suspension crisis in history due to the pressure of its capital chain. Due to the chaotic vortex of brand leasing and the inability of foreign investment to adapt to the local environment, Xinfei Electric Appliances has been squeezed out of the mainstream brand ranks in recent years. Now the brand is gradually losing its commercial value, and whether it can survive in the future has become an unknown. Three suspensions According to a restructuring statement jointly issued by Henan Xinfei Electric Co., Ltd., Henan Xinfei Refrigeration Appliance Co., Ltd. and Henan Xinfei Home Appliance Co., Ltd., which was disclosed by an insider, the statement reads: "Due to the decline in market competition among the three companies and continuous losses for several years, despite the support of foreign shareholders, they are still unable to overcome the market challenges they face. Due to the pressure of the capital chain, the company has no choice but to stop production activities." At present, the three companies have submitted a reorganization application to the Xinxiang Intermediate People's Court of Henan Province on October 30, 2017, and are carrying out reorganization in accordance with the law under the supervision of the People's Court. The statement also mentioned: "Xinfei is ready to obtain legal protection by entering into reorganization, so that the company can enter a relatively safe operating environment and focus on the strategic design of the company's regeneration. Xinfei has launched a working group, which includes management personnel and representatives of Yongan Shanghai Consulting Company. At the same time, the court will appoint a supervisor to supervise the reorganization work. The working group will convert the relevant assets into cash, but it will take time to process." Relevant experts said that Xinfei Electric's decision to proactively stop production and submit a company reorganization application to the court, and to look for new buyers for Xinfei refrigerators, rather than directly adopting the bankruptcy liquidation method, is obviously because the major shareholder is unwilling to let this old brand, which once had good memories in the Chinese home appliance industry, withdraw from the home appliance market and turn the brand resources that could be monetized into a burden. As a traditional home appliance company, Xinfei Electric has been involved in negative rumors of suspension of production and layoffs many times. In 2012, Xinfei stopped production of its refrigerators and demanded a salary increase, which resulted in the layoff of more than 1,000 workers. In May 2013, Xinfei unexpectedly announced that from the 28th of that month, some production lines of Henan Xinfei Electric would be suspended, and some employees of the company were also laid off. In this regard, the reporter called the relevant person in charge of Xinfei Electric, who said that the restructuring of Xinfei Electric was true, but he said that he was not clear about the timetable for the future restructuring and the sale of the brand. The reporter logged into the official online mall of Xinfei and found that many products showed zero inventory and were not for sale. Trademark dispute Regarding Xinfei's fall to such a situation, an industry insider obtained a letter from the Xinfei Electric Board of Directors to all Xinfei employees, which read: "In the past few years, Henan Xinfei Electric Co., Ltd. has been operating in a highly competitive and challenging business environment. Under the fierce price competition pressure in the home appliance industry, it has become increasingly difficult for Xinfei to make profits." In the 1990s, Xinfei refrigerators were once a glorious brand. Its product market sales and brand reputation were second only to Haier, and its market share has long been in the top three. However, now, Xinfei refrigerators have completely become a marginalized brand. Industry insiders believe that the decline of Xinfei is closely related to the company's chaotic brand licensing. In recent years, Xinfei has been caught in the vortex of trademark leasing operations, which has also made the future of the Xinfei brand uncertain. Licensing the well-known brand "Xinfei" that has been operated and maintained for many years to other companies is very likely to induce brand insecurity. At the National Small Appliances Fair held in March this year, three of the exhibitors represented Xinfei Company and claimed that they all held the right to use the Xinfei trademark. Behind this was Xinfei Company's business decision to "marry one woman to multiple partners" for the "Xinfei" brand. It is reported that at that time, the ownership of the Xinfei brand belonged to the Xinxiang Municipal Government of Henan Province, and Xinfei Refrigerator did not have the brand ownership. Except for refrigerators, the right to use the Xinfei brand of other home appliance categories was leased to others to earn brand usage fees. The reporter also received a sales call claiming to "give away" Xinfei water purifiers for free, which made it difficult to distinguish between true and false. In addition, a home appliance analyst said that Xinfei's failure to adapt to the local environment after introducing foreign investment was also one of the main factors that dragged down Xinfei. As early as 1994, Singapore's Hong Leong Group and Xinfei Group established Xinfei Electric. However, Hong Leong Group's main industries are in finance, real estate, hotels and other fields, which did not help Xinfei Electric's business development much, mainly financial investment. However, due to Hong Leong Group's lack of understanding of the Chinese home appliance market and its conservative nature, Xinfei missed the opportunity for diversified development. "Moreover, Hong Leong Group did not retain Xinfei's original senior management team and technical backbone well, which led to the loss of these talents, making Xinfei's business management increasingly imperfect." Where to go from here Now, Singapore's Hong Leong has suddenly chosen to adopt a "shock therapy" for Xinfei Electric, and has even taken the initiative to stop production and even filed a reorganization application with the court in order to protect Xinfei Electric's existing assets and avoid further losses. However, this has publicly exposed that Xinfei Electric's commercial value is shrinking, which will naturally lead the takeover party to publicly use price cuts and other methods to embarrass this 33-year-old refrigerator brand again. It is undeniable that after the second acquisition in 2005, Hong Leong Group controlled 90% of the shares of Xinfei Electric. Whether it is resale or self-operation, Hong Leong Group also hopes that Xinfei Electric can develop well. This can be seen from the fact that Hong Leong Group has repeatedly replaced senior executives and trademarks in the past few years. Judging from the development of Xinfei in the past few years, it is obvious that Hong Leong Group is powerless and has no good way to save Xinfei. Industry insiders analyzed that this means that if there is no strong new shareholder, it will be difficult for Xinfei Electric to revive. In fact, in recent years, there have been reports of Xinfei Electric's sale almost every year. However, industry observer Hong Shibin believes that Xinfei Electric's overall value is not great. In terms of sales channels and brands, Xinfei does not have obvious advantages, and its talents have been lost over the years. But in this case, the acquisition of Xinfei Electric is more likely to use it as a manufacturing base or logistics center. As for the future of Xinfei, at present, Xinfei has no value in the refrigerator market. The best way is bankruptcy. After bankruptcy reorganization, the factory assets still have certain value. If there is a suitable company to acquire it, Xinfei may still survive. But in terms of brand, Xinfei is too marginalized and too weak in the refrigerator market, and its brand value has been lost. According to the market monitoring data of China Market Research Group, in September this year, the retail sales and retail volume of Xinfei refrigerators accounted for 1.83% and 1.04% respectively. In the first nine months, the retail volume and retail sales of the market were 2.83% and 1.7% respectively. The average price of the products was only 2,202 yuan, and the market retail sales share had long been squeezed out of the top ten in the industry. This market share also basically announced that Xinfei had long withdrawn from the national mainstream market competition and could only make a living in the regional and third- and fourth-tier markets. As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity. |
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