Li Ningdie Returns To Earth

Two months ago, China's former gymnast Lining challenged the gravity of the earth and lit the Olympic torch with flying Apsaras above the "bird's nest" in Beijing.

But the fact shows that Hong Kong listed companies Li Ning Co., which has a market value of $1 billion 800 million, is much less likely to rise.

Since August 11th, the first trading day since the opening ceremony of the Olympic Games, the stock has fallen by 26%, which is half more than the beginning of the year, and the market value of the stock market has evaporated by 1/3 over the same period.

Before the Olympics, the fundamentals of Li Ning Co looked good: the net profit of the company increased by 68% in the first half of June compared with the same period last year.

The survey also showed that after Li Ning Co unveiled the Olympic opening ceremony, the brand awareness of the company increased significantly in China.

But after the Olympics, the prospect of the company seems quite disturbing.

The chief financial officer of Li Ning Co resigned last month. It is said that the product inventory of distributors is also piling up.

Moreover, investors are increasingly doubting whether Li Ning Co can turn positive publicity into strong growth or expansion of overseas businesses.

This also reflects a common problem in China's growing consumer goods companies, which have not fully exploited the potential of product profitability in the past.

Although China's economic growth is remarkable, it is hard to recall a worldwide brand of Chinese consumer goods, perhaps only by Haier group, a household appliance manufacturer.

The possible way to solve this problem is to introduce necessary marketing knowledge or cooperate with a leading international company, just like the juice maker China Huiyuan Juice Group Limited wants to join Coca-Cola (Coca-Cola).

Meanwhile, Western brands such as Nike (Nike) and Adidas (Adidas) are also stepping up their efforts to enter China.

Even if Lining can get the price advantage, the bold marketing skills of foreign enterprises may help narrow the gap.