Hengyuanxiang Brand Challenges Personal Credit Consumer Loss Enlightenment

At the end of 2005, Heng Yuanxiang carried out a series of free trials of sweaters in Wuhan, Changsha, Changchun, and Harbin. As long as consumers sign a return agreement with Hengyuanxiang, they can try on a card worth 380 yuan for free for two days before deciding whether to purchase. Trial activities passed, and the sweaters issued by Hengyuanxiang Company were not optimistic.

Although there is a legal "free trial on sweaters", the vast majority of consumers who tried with woollen sweaters "have turned a deaf ear to the agreement." Hengyuanxiang distributed 300 sweaters in Wuhan, Changsha, Changchun, and Harbin, but after the try-out period ended, consumers returning and purchasing sweaters were only 18% in Wuhan and 26% in Changsha. , 17% in Changchun and 33% in Harbin. A few days ago, Hengyuanxiang, which tried to seduce consumers with their own credit for free, said that attempts to challenge consumers’ personal credit have failed to achieve satisfactory results.

In spite of lack of integrity mechanism, it continues to challenge personal credit consumption

It is reported that in 2002, Heng Yuanxiang once conducted a free try-on event in Harbin City. At that time, less than 10% of the returned and purchased sweaters. Some experts pointed out that the key to the low recovery rate is the lack of a mechanism for integrity.

In view of this, the Hengyuanxiang company launched a free try-out event in 2005 and set up the signing of a “free trial on wool sweater agreement”. The trial agreement will clarify the responsibilities of both parties and set clear time for return. The agreement signed with 1,200 consumers in four places was confirmed by Shanghai Yuanyuan Law Firm and has strict legal restrictions.

Originally thought that an agreement with a legal effect might restrict the enthusiasm of consumers in trying. However, the reporter saw that the trial sites held throughout the country were crowded for three consecutive days. In the Wuhan World Trade Center, there are three to four hundred consumers entering the door every day as the free try-on event takes place on the 5th floor of the mall, and even hundreds of people collectively rush from the first floor to the fifth floor. In Changchun City, on the second day of trials of sweaters, there were spectacular sights of nearly a thousand people lining up from the second floor to the first floor. Due to the inability to maintain a normal order, consumers who are behind are reluctant to leave, so that activities can not be carried out as scheduled.

From the results of the activities, Heng Yuanxiang tried to establish a contractual relationship with consumers through a paper agreement, and the binding power was relatively weak. Under the circumstances that the current domestic personal credit system is imperfect, Hengyuanxiang’s behavior is somewhat advanced, but Hengyuanxiang Company stated that it will continue to challenge personal credit consumption.

In economically developed countries, free trials are no longer a new thing. For the trial of luxury goods, both buyers and sellers rely solely on personal credit. As personal credit goes deep into people's hearts, foreign consumers usually try out products only when they really need to buy.

The construction of credit system needs to be improved and the development of personal credit consumption is gradually becoming a trend

For a long time, the status quo of consumer's personal credit in China has not been very satisfactory. Although the relevant departments of the state have made some positive explorations in the credit system construction, they have paid more attention to the integrity of enterprises and operators than to personal credit. Although credit consumption has quietly entered the lives of millions of households, Hengyuanxiang Company, in the absence of perfect personal credit system in China, is the first to introduce free trial activities to challenge consumers. It is both an exploration and an adventure.

It is reported that the establishment of this activity is also divided in the Hengyuanxiang company. Some dealers worry that in the fierce market competition in the consumer-oriented market, if our “God” is neither bought nor really returned after trying on, will Hengyuanxiang really be more true to the trial-wearer?

When the reporter researched Hengyuanxiang woollen sweaters for a free try-in agreement, he found that the paper agreement only clarified the obligations to be fulfilled by both parties and did not specify the liability for breach of contract by both parties. Relevant legal professionals confirmed that the Hengyuanxiang wool sweater free try-in agreement is, to some extent, unable to serve as an “evidence proof” for the protection of the company’s interests.

Under the conditions of market economy, the most worthwhile and worthwhile personal credit resources that have been favored by merchants are new growth points that are important as the expansion of domestic demand. Heng Yuanxiang took the lead in challenging individual credit consumption, fully demonstrating that whoever can grasp the future Individuals trust in the share of the consumer market, who may become the industry leader. How to establish a good personal credit relationship with consumers, Heng Yuanxiang told his colleagues that this is a compulsory course for businesses to expand their market share in the future.

In the traditional Chinese credit culture, credit is widely spread as a virtue, and people do not regard credit as a commodity. A person who does not trust credit will only be morally condemned, and his economic interests have not been greatly damaged. In this situation, the income from dishonesty is far greater than its cost, resulting in the loss of credit in the entire society.

Relevant experts believe that since the credit awareness and related systems have not been established, especially the lack of disciplinary mechanisms for dishonesty, the current credit crisis in our country is still normal. Heng Yuanxiang's trial of a woolen sweater for free is not a "sacrifice" of several woolen sweaters, but a powerful initiative to exploit personal resources of brand resources to exploit personal credit resources.

Judging from the experience of foreign countries, when the per capita GDP exceeds 3,000 US dollars, the enormous potential for investment in personal credit consumption will be discovered. In addition to the per capita GDP of some cities in the southeast coast of China exceeding or close to US$3,000, most cities do not have this condition. Experts predict that once the potential of personal credit consumption is tapped, it will be a new growth point for corporate profits. All this tempts domestic companies to carry out personal credit consumption to consumers.

The Hengyuanxiang Group, which pioneered the challenge of personal credit, stated that companies are responsible to society. Such responsibilities can be sponsored by money, or they can be useful for the society. Heng Yuanxiang hopes to use the “Try on sweaters for free” campaign to engage consumers in personal credit and explore how to make personal credit consumption stimulate economic development as soon as possible in the market competition with Chinese characteristics. On the credit platform, how to trade in greater freedom.

Experts predict that after 5 years, China’s personal credit awareness will reach 60% to 70% of the general public. Once the personal credit system is complete, credit will become a new currency that can be measured, accumulated, and available for consumption, which will greatly promote the development of China's future market economy.