On Lining'S Acquisition Of Music Map

In the Li Ning Co's disclosure of the deal, the purpose of the acquisition is to say that the agreement (acquisition chart) helps to improve the group's position in the fast growing fashion market.

Such a message can not help but remind Kappa (kappa), not only because Lotu and Kappa belong to the famous sports brand of Italy, but because Kappa once belonged to an agent brand of Lining, and even more coincidence is that Kappa's success in China is largely due to its accurate positioning in the sports and fashion field.

This had to be questioned whether Lining saw Kappa's success in China's trend and attempted to duplicate another Kappa.

In the rise of the great powers, it is wrong to assert that any single factor has contributed to the rise of a country. The rise of any country is the result of a combination of various factors. Similarly, Kappa's success in China's trend is hard to duplicate.

We know that Kappa has been operating under Lining for many years and has never been successful or even deserted. However, Kappa's success has been achieved only after Kappa's independent operation qualification has been accurately positioned in sports fashion.

The situation at that time was that all the major brands at home and abroad were struggling in the field of professional sports, while the domestic sports and fashion market is still in the blank stage of the blue ocean area. Kappa's position at this time is very timely.

More coincidentally, when China's trend Kappa has achieved initial success in China, but when the domestic agency is about to expire, it happens that Kappa's Italy parent company BasicNet has difficulty in managing its finances and the Chinese trend has bought out Kappa's permanent agent in China.

Lining hoped that it would not be impossible to enter the sports and fashion field through the acquisition of Loto, but at present, the market competition has already been heated up. For those who have lost their first advantage, Lining will also face fierce competition from various brands in this field.

And Lotu has always focused on professional sports such as football and tennis. Whether Lining can make his smooth pformation after the acquisition of Le chart is still a problem.

Even if the pformation is successful, Lining still needs to face the question of whether the contract will expire in 20 years.

If not, in the Chinese market, 20 years of painstaking efforts will not become a bridal dress for others.

In 2007, the sales revenue of Li Ningzi brand new mobile and AI Gao accounted for only 2.4% of the total revenue of the Lining group, so that Lining group had to admit that the performance of these brands was "not ideal" (from the 07 annual report of Lining), because the red double pay and the new move belong to the newly acquired brand or new brand, so it mainly refers to AI Gao brand.

At present, when the existing brand operation is "not ideal", Lining is going to run new brands and further decentralization of his management resources. This makes people think of a peculiar phenomenon in some poverty-stricken areas. Some parents, when the poorer the poorer the children are, the more they have to give birth to their children. They are always opportunistic thoughts that will change their status if they have more children.

It is no wonder that globrand.com, a well-known investment institution, does not care about Lining's acquisition. On the second day after Lining's release of the takeover news, it shares Lining's stock as a "lagging market", on the ground that "the brand of the company is roughly the same as that of the target market, plus the promotion fee and the Lotto related expenses are quite large, so that the company's resources are over dispersed by the expanded product mix".

Of course, we can also think that Lining's acquisition is to beat competitors to consolidate their position as a market leader. However, this killing ten thousand of the enemy and self defeating three thousand is a bit of a loss.

From the point of paction information disclosed by Lining, Lining sports has to pay royalties every year from the percentage of actual sales since January 1, 2009, and has the minimum annual amount, and the minimum payment in 20 years is 934 million yuan.

Although the proportion of annual sales of royalties has not been announced, at least 1 billion of the royalties in 20 years mean that Lining needs to pay 47 million yuan per year. In fact, the total sales revenue of Loto in China in 07 years is only about 40 million.

If we calculate the net interest rate of 10.9% in the 07 years of Li Ning Co, if Lining wants to break even, we need to achieve the annual sales income of Lok in China at least 430 million RMB.

Considering the total sales revenue of Lining's brand new mobile and AI Gao was only 104 million in 2007, the growth rate of globrand.com in China's sports apparel industry is bound to slow down after the Olympic Games. It is not easy for Loto to achieve 430 million sales revenue in China.

With the acquisition, Lining also won 18 stores in Loto, but we know that by the end of 07, kappa already had 1945 retail outlets in China.

In the field of sports apparel known as the terminal, this means that Lining also needs to invest a lot of energy in terminal construction.

In addition, Lok Tu is not the majority in China.