Del Hui Fell Over 600 Million Debts

At the end of 2017, Del Hui, a brand that was endorsed by Jay Chou for more than a decade ago, was over 600 million in debt. The company has closed down and the founder has already passed away.

To some extent, the development history of Delhui is a microcosm of the 30-year history of the Jinjiang brand. Delhui is one of the earliest batches of "China Shoes Capital" Jinjiang's hundreds of sports Romwe Coupon Code brands. It has undergone a transformation from a foreign trade shoe and clothing factory to a brand, a painful game in fashion and sports, and a fame for popular celebrity endorsements. However, it has suffered from the pain of high stocks after aggressive expansion, and the great damage after the listing failed.

After years of stifling, Anta, Xtep and other Jinjiang brand became the front runners, online, and Tmall and other online positions performed well, and Del Hui, Xidelong, Jinlake and other brands were smashed. Years of turmoil, this is a history that will not be forgotten. And how was Del Hui washed away from history by the aura?

Grab Jay from the hands of Anta

The Del Hui headquarters building is located in Chenjing Town, Jinjiang, where it is also the birthplace of sports brands such as Anta, Xtep, 361° and Xidelong. However, in the middle of 2018, when Rilakkuma Sports went to Delphi, it had revealed a scene of depression.

In 1987, founder Ding Mingliang transformed the four-year shoe factory into a brand of Del Hui. However, it was not until the end of the 1990s that Anta took the lead in winning the men's table tennis world champion Kong Linghui. The sports goods owners in Jinjiang realized the importance of building their own brands and followed suit.

In 2000, Wang Nan, the women's table tennis world champion, became the Golden Lake spokesperson. Del Hui invited Taiwanese star Wu Qilong and expanded the advertising position from the sports channel to Hunan Satellite TV to establish the image of leisure sports. At about the same time, Xtep also signed a letter to Nicholas Tse as a spokesperson and even became a shareholder a few years later.

Del Hui and Xtep have benefited a lot from the entertainment stars, and they have quickly established awareness among consumers and opened channels. After Wu Qilong, Del Hui, who had more confidence in the product, took a fancy to Hong Kong and Taiwan's new star Jay Chou and became the first company in the mainland to hire him.

Jay Chou has since opened the road of endorsement from 2003 to 2014 for more than ten years, and "Delhui, on my way" has become the collective memory of the 80s. During this period, Delhui achieved rapid growth, and the sales amount reached 600 million yuan in 2004. Driven by Jay Chou, Del Hui had more than 4,000 stores nationwide, with an annual order volume of 3.5 billion yuan.

After 2004, local sports brands such as Li Ning, Anta, Xtep, and 361 Degrees were listed. Del Hui spent eight years in the Hong Kong stock market and the A-share market to seek listing, but always lost some luck. What is even more embarrassing is that the flames of the two listings were eventually cut by Del Hui. In 2007, Anta became the first brand of Jinjiang brand, and in the same year, Delhui launched the listing plan. Ding Mingliang was also preparing to go public in Hong Kong, but encountered the first bump on the road to the listing: "Fuzhou Golden Fortune Company", which did financial registration for Del Hui, was controlled by the police because it was not registered for industrial and commercial registration. Unrecognized Del Hui had no choice but to get involved in the storm and had to rush to Hong Kong to end the IPO process.

In 2011, Del Hui, who had just slowed down from the listing, planned to go public in the second round, and this time he moved to A shares. However, in June of this year, Del Hui suffered another major blow. The founder Ding Mingliang died of illness. As a result, the third brother Ding Ming furnace, who was responsible for the product, took over and the listing step was once again “stopped”.

Later in July 2014, Del Hui was included in the termination review list by the China Securities Regulatory Commission. This ended the two-year listing process and stopped the domestic capital market.

Putting aside the time and money spent, this long-term listing has not only made you feel badly hurt, but also reduced the confidence of the outside world. After 2007, when it was time to expand rapidly, the company did not get the assistance of the capital market to open the store in time, but faced the collective loss of agents. In 2015, Delhui did not escape the collective store craze of clothing brands, and the inventory was high. The Del Hui brand center, which was once ambitious and established early, was dissolved.

Without celebrity endorsements, brand centers, and the inability to make a turnaround in the capital market, Del Hui has been in the shadow of other Jinjiang brands for the last two years. Or, it is Delhui who chose this low-key way of living.

Up to now, its official website, Weibo and other voice channels are still operating normally, but hundreds of yuan up and down, and even have imitation of the big-name traces filled with eyeballs. The Delphi Tmall flagship store has 317,000 fans, while Anta, Xtep and 361 Degree Tmall flagship store fans are as high as 6.92 million, 4.7 million and 3.31 million respectively.

Clothing brand death list

Del Huiyuan is not the only Jinjiang clothing brand company that is deeply involved in the death crisis.

In January 2014, after failing to sprint A-share IPOs twice, the main men's casual fashion Jinjiang company Noci (01353, HK) finally listed in Hong Kong, becoming the first new stock of the board's new year. Surprisingly, however, at the end of July, half a year later, Noci’s share price began to plummet, and the official website Weibo issued a statement saying that Chairman Ding Hui lost contact. The outside world even reported that it had absconded with huge debts.

In fact, in the previous application for the A-share listing to the China Securities Regulatory Commission in 2011, Noci was mainly because of the limited product sales area, the company's brand promotion fee and research and development expenses are lower than the listed companies in the same industry, and the sales model is mainly based on affiliate sales. Etc. "The reason was not approved.

In the three years of suspension of Noch's so far, although there have been some pick-ups, but they have been changed hands a few times, and it has been so stormy, it can be described as fate.

On October 30, 2009, the sports brand that once surpassed Anta, listed on the NASDAQ, was listed on the NASDAQ. The stock price reached US$13.69, making it the first sports consumer brand in China to land in the US capital market. But in three years, the transformation of Xidelong was not successful, and the performance began to decline. On April 16, 2014, Xidelong held a special shareholders meeting to pass the privatization agreement and the company was delisted.

More unfortunately than Bidelhui, in addition to a small number of negative news and wholesale franchise information, Xidelong, a sports brand founded in 1992, has even withdrawn from the historical arena. On May 9, 2017, the Jinjiang Municipal People's Court ruled to terminate the reorganization of Xidelong (China) Co., Ltd., thereby declaring bankruptcy.

In addition, since 2013, Luyou sneakers have fallen into rumors, and the news of brand owners such as Cable, Crocodile Wright, and Red Ruixing has lost their trust and the news of running.

In the face of market changes, they did not respond in time, so they could only be eliminated by the market.