Heng Yuanxiang: Innovating to Make the Wool Textile Industry an Old Brand

At the time when many time-honored companies are struggling, the time-honored Chinese brand "Heng Yuan Xiang" from the wool textile industry has become more and more active. Motivational innovation is the secret to this 80-year-old company's “returning to old age”.

“Premier Wen Jiabao proposed to adjust the industrial structure in the government work report, strengthen the company’s dominant position in independent innovation, vigorously implement the brand strategy, and encourage the development of well-known brands with independent intellectual property rights. This is particularly important for our time-honored companies.” Heng Yuan Xiang Group Chairman Liu Ruiqi said, “Although the time-honored company has a proud gold signboard, it can only explain history, it cannot represent the present, let alone a natural cornucopia. We must invigorate and innovate to integrate into modern commercial civilization.

In recent years, Hengyuanxiang has achieved new development in continuous innovation. Founded in 1927, Heng Yuan Xiang was originally a long-established store selling cashmere lines on Nanjing Road in Shanghai. By the 1980s, Heng Sheng Xiang, once once prosperous, had lost its former glory. Its total assets were only RMB 500,000. After Liu Ruiqi took the post of “Head of the House”, he boldly reformed and registered the name “Heng Yuan Xiang” with the name of the store as a brand name. Then he launched a series of brand remodeling activities to attract national wool processing factories with the brand.

Today, Hengyuanxiang has gathered more than 70 franchised factories and more than 5,000 franchised stores, and its products have expanded from simple handmade yarns to more than 70 categories such as knitting, clothing, and bedding, with annual sales of 3 billion yuan.

To improve the industrial level, we must rely on scientific and technological progress. In recent years, Hengyuanxiang Group has invested a lot of funds to overcome one or another technical difficulties. Not long ago, Heng Yuanxiang's “Research and Development of the World's Fine Wool and Its Products” project passed the acceptance of the Shanghai Economic Commission. The task force has not only overcome the technical difficulties of the processes such as wool combing, spinning, weaving, dyeing, and finishing. Using the world’s most advanced technology, the world’s finest sheep wool yarn has been developed. In order to accurately study the body shape changes of Chinese men, Hengyuanxiang Group has also established the first “Human Body Information Database” in cooperation with Donghua University. This forward-looking research project was evaluated by industry experts as “a sign of China’s garment industry”. Sexual events will lead the revolutionary development of China's garment industry."

"Actually, China's garments are almost the same as foreign models in terms of design, design, processing, and quality, but why can't they sell the products in the international market? Because they don't have their own brands." Liu Ruiqi said, "Two In exactly the same high-end suits, affixed with an Italian brand can be sold for tens of thousands of yuan, and consumers are still rushing, while affixing a domestic brand can only sell for a few thousand dollars, but consumers are few.We cannot fully blame the consumers for respecting Others. Because the brand is the memory that stays in the minds of consumers, and this kind of memory needs the country and the company to operate together."

“I very much agree with Premier Wen Jiabao in his government work report that we must change the mode of trade growth and support the export of products and services that have independent intellectual property rights, independent brands, and high added value,” said Liu Ruiqi. “Although China is a garment manufacturer, And exporting countries, but MADE IN CHINA's image in the international market is still cheap and low-grade. We must commit ourselves to changing this image and starting the Chinese clothing brand in the international market.”