A matter of image
With its strong emphasis on company branding, wool and textile giant Hengyuanxiang has managed to achieve significant growth through the years
Established in 1927, Hengyuanxiang first started out as a humble shop located along what is today known as East Jinling Road, before opening its first factory to produce woolen goods for a variety of brands in 1935.
While the company today is still famous for being the leading producer of textiles and wool products, it has also earned itself a reputation for being one of the most recognized Chinese brands in the global arena, thanks to its unique branding strategy.
Hengyuanxiang has for many years aligned itself with numerous causes, including sports, charity, health and safety, as well as the arts and culture scene. A recent example of how this Chinese brand has been reaching audiences beyond China’s borders can be seen in the Jews in Shanghai stage production that is scheduled to make its North American debut this September at New York University.
Based on the stories of Jewish refugees living in 1940s Shanghai, this bilingual musical is the brainchild of several of China’s top writers.
Xu Jun, general manager of the Shanghai Hengyuanxiang Drama Development Co Ltd, said that more projects are already in the pipeline. snowballed from 100 million yuan to 1.5 billion yuan, and it now accounts for 30 percent of the group’s total sales.
“The development of a company is no different to a person growing up. Each will face many challenges in the process, but there will be a great number of opportunities at the same time as well,” said Chen, who had worked at three multi-national companies before joining Hengyuanxiang in 1998.
With regard to the future, Chen believes that Hengyuanxiang will be able to achieve a double-digit annual growth rate in the next five years, and that the group’s secondary industries will be playing a greater role in its development. He expects as much as 30 percent of the group’s revenue to come from industries besides the wool market. In addition, more than half of Hengyuanxiang’s revenue is expected to come from its secondary businesses after 2030.
The company is also on the lookout for opportunities to cooperate with international partners in other sectors such as food and consumer products.
“Quite a few companies home and abroad have shown their interest in working with us, and through cooperation, Hengyuanxiang is expecting to enter these industries in the future,” Chen said.
Hengyuanxiang General Manager Chen Zhongwei says that good branding is an important factor in a company's longevity.