Hongxing ERKE Industrial Co., Ltd. (ERKE), founded in 2000, was the first large Chinese sportswear company to list overseas. Despite the difficulties it faced caused by poor management and the decline of its brand influence, ERKE donated ¥50 million worth of aid to disaster-hit areas in Henan, China, shortly after severe flooding in the province in July 2021. The donation caused an unprecedented online event in China and ignited the enthusiasm of netizens for buying ERKE products. Millions of netizens rushed to ERKE’s livestreaming studios and expressed their gratitude and support for the company through “wild consumption.” ERKE became representative in consumers’ minds of excellent domestic products that were part of Chinese fashion trends. Why had ERKE’s donation become such a hot topic and triggered a consumption binge in China? On the heels of this situation, how should ERKE use the opportunity to achieve a long-term competitive advantage in the future?
鸿星尔克：由捐赠引发的消费狂潮 ERKE: Consumption Binge Caused by Donations (Simplified Chinese version)
Weina LI, Su Liu, Chenxi Yi
Product #:W28474
Supplier:Ivey
Discipline:Marketing, Strategy
Setting:China, 2021
Subjects:
Industries:
Your Price:$9.71
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Learning Objectives
- 了解企业慈善事业的本质；
- 理解研究发现，并非所有企业都能够以同样的方式成功从他们的捐赠中获益；
- 了解消费者归因和社交媒体上的营销传播是消费者评估企业捐赠的关键因素和过程；
- 阐述社交媒体作为营销传播工具的效果，以及社交媒体营销给企业慈善事业带来的机遇和挑战；
- 反思企业慈善事业与竞争力之间的联系；
- 了解企业利用企业慈善事业作为战略工具创造价值和竞争优势的主要方法。
This case can be used in advanced undergraduate- or graduate-level (MBA) courses in business ethics, digital marketing, or strategic management. After working through the case and assignment questions, students will be able to
- develop an understanding of the essence of corporate philanthropy;
- understand the research finding that not all businesses are equally successful when it comes to deriving benefits from their donations;
- develop an understanding of consumer attributions and marketing communications on social media as key factors and processes through which consumers evaluate corporate giving;
- illustrate the effect of social media as a marketing communication tool, and the opportunities and challenges that social media marketing brings to corporate philanthropy;
- reflect on the link between corporate philanthropy and competitiveness; and
- develop an understanding of the key methods by which companies can use corporate philanthropy as a strategic tool to create value and competitive advantage.