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Wu Fuxiang spent 30% of his profits on publicity, and Nanyang Dick was plagiarized and got 1.4 million yuan in compensation

Leju Finance 2024-05-20 20:11 8.7w Read

Nanyang Dick's product promotion expenses account for 20% - 30% of the company's profits every year.

Wen/Leju Finance Yang Kaiyue

Recently, in the exhibition of the first China Family Expo (Tianjin), Nanyang Dick occupied a very eye-catching booth.

Nanyang Dick sounds like it has a lot to do with "Nanyang", but it is a real local brand in Shaanxi. Now in the "encyclopedia" of Nanyang Dick, Nanyang means "the transit place of the Maritime Silk Road", Dick is "a homophonic word imported from western languages", and the combination of four words means "Chinese and Western blend".

According to the data, Wu Fuxiang, one of the founders of Nanyang Dick, is a native of Wu Village, Chaijia Xitang, Chalu Town. If you want to query this village, the address should be in Ningbo, Zhejiang Province. However, Wu Fuxiang, the current president of Nanyang Dick, chose Xi'an to start his own business.

According to public reports, in 2001, Nanyang Dick was born after renting 5 mu of land in the suburb of Xi'an and building asbestos tile workshops. At the beginning of the business, Nanyang Dick had only a hundred employees. Wu Fuxiang only wanted to make Nanyang Dick a "local brand" and radiate from Xi'an to Shaanxi Province. However, the development speed of Nanyang Dick exceeded expectations. According to the data, Nanyang Dick introduced Australian wood processing technology under the condition of poor factory conditions, and the turnover in the first year of entrepreneurship exceeded 10 million yuan.

After three or four years of development, the sales of Nanyang Dike has steadily increased, the asbestos tile factory has begun to expand, and the number of employees has also increased to 300 or 400. With the advantages of style and quality, Nanyang Dick's market share in Xi'an is expanding.

In 2006, Nanyang Dick began to expand to the surrounding cities of Xi'an, established its own franchise system and started to have its own dealers. Wu Fuxiang also began to look beyond the Great Northwest, and Nanyang Dick began to expand strongly nationwide. Data shows that in 2017, Nanyang Dick opened nearly 100 new stores nationwide, covering Beijing, Shanghai and other megacities.

During the high-speed development period, Nanyang Dick also invited stars to speak for him. In his external publicity release, he disclosed that "in 2015, Nanyang Dick held hands with the Asian male god" Wu Xiubo ", and the" uncle "who was steady, elegant and fashionable just matched Nanyang Dick's brilliance."

In addition, the report also mentioned that Nanyang Dick's product promotion expenses account for 20% - 30% of the company's profits every year, which is rare in the whole industry. But in Wu Fuxiang's opinion, it is worth it. He said: "It is consistent with our product quality, and asking him to speak for us is very helpful to improve the quality of our solid wood furniture and enhance the added value of our products."

According to the current public information, Shaanxi Nanyang Dick Furniture Manufacturing Co., Ltd. (hereinafter referred to as "Nanyang Dick") was founded in 2001 with a registered capital of 60 million yuan. The company is held by natural persons Zhou Xiaoli, Wu Fuxiang, Hao Yan and Chen Qiaoxian, with 34.0909%, 34.0909%, 15.9091% and 15.9091% shares respectively.

It is reported that Zhou Xiaoli is one of the co founders of Nanyang Dick and Wu Fuxiang's entrepreneurial partner. Nanyang Dike has three wholly-owned subsidiaries, namely "Xi'an Litian Home Furnishing Co., Ltd.", "Xi'an Nanyang Dike Integrated Smart Home Co., Ltd." and "Xi'an Nanyang Dike E-commerce Co., Ltd.", which is displayed as "cancellation".

In 2020, Nanyang Dike began to invest in the research and development of packaged products. Three years later, at the 2023 Shenzhen Exhibition, Nanyang Dike officially launched its "See" packaged household products.

As the brand became bigger, Nanyang Dick also suffered from the trouble of being "copied". In 2018, it was reported that the Intermediate People's Court of Jinan City, Shandong Province ruled that 10 products of Shandong Juxing Furniture Co., Ltd. infringed the appearance patent of Nanyang Dick's original design products, and demanded to stop production and sales immediately and compensate the plaintiff Nanyang Dick for 1.4 million yuan of economic losses.

Important: This article only represents the author's personal view, and does not represent Leju's financial position. The copyright of this article belongs to Leju Finance. Without permission, no unit or individual may use the content of this article on any public communication platform; When reprinted or quoted with permission, please indicate the source. Please send an email to ljcj@leju.com Or click Contact customer service

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