Shoe Enterprises Lining Expands Overseas Market And Speeds Up Internationalization

Recently, the Li Ning Co, the largest sports brand in China, published its annual report in 2009. Its sales increased by 25.4% over the same period last year, reaching 8 billion 387 million yuan. Adidas's sales in the Greater China region in 2009 amounted to about 7 billion yuan. As a result, Lining for the first time in 5 years in the domestic sales surpass Adidas, the upward trend is fierce.

It is gratifying to surpass Adidas. However, a careful analysis of the relevant data shows that Lining's domestic sales account for 99% of the company's total sales, while Adidas accounts for only about 7.5% of the total revenue in China. Through this comparison, it is not difficult to see that there is still a big gap between Lining and international brands.

Marketing by Olympic Games

Beginning in 1993, Lining, as a famous sports brand in China, increased sales revenue by more than 100% a year, and reached its peak in 1996, reaching 670 million yuan. However, high growth stopped abruptly in 1997. Over the next few years, with the entry of multinational companies and the rise of Fujian sports brand manufacturers, Li Ning Co's sales revenue has been hovering around 700 million yuan, and the market share has gradually declined. In 2003, Nike's share in the Chinese market surpassed Lining. In 2004, Lining was surpassed by Adidas and fell to third in the Chinese market. At the same time, Anta, PEAK and other domestic brands are pressing.

After listing in Hongkong in 2004, the pace of development of Li Ning Co accelerated, and the total turnover reached 4 billion 349 million yuan in 2007. Subsequently, Lining seized the golden opportunity of the Beijing Olympic Games and fought a turning point in marketing. Although before the Olympic Games, Adidas squeezed out Lining, who raised the price of 1 billion yuan at the price of 1 billion 300 million yuan, and became an Olympic sponsor. However, Lining's excellent performance at the lighting ceremony made the company turn the corner. According to the survey, up to 37% of the people mistaken Lining as a sponsor of the Beijing Olympic Games. Only 22% of the real sponsors Adidas knows. As a result, Lining's turnover in 2008 reached 6 billion 690 million yuan, a sharp increase of 50%. In 2009, Li Ning Co continued the good momentum of Olympic marketing. Its sales volume reached 8 billion 387 million yuan, which was second only to Nike in China.

Since the first franchised store opened in the west of Beijing city in 1990, Li Ning Co has more than 7000 stores nationwide. It can be said that Lining is the boss of the Chinese sports brand.

　　 Overseas strategy is conservative.

Although the Chinese market is a must for international brands, it is highly incompatible with the status of the domestic sports brand leader. Lining currently has about 99% of the turnover in the domestic market, and overseas markets account for only 1% of Lining's total sales. This embarrassing data shows Lining's weakness in the international market.

As early as 1999, Lining put forward an international development strategy. In those days, the group participated in the ISPO sporting goods fair to prepare for the European market. In June 2000, Lining beat Adidas to win the equipment sponsorship of the French gymnastic team. Later, he extended his own franchisee in 9 European countries, including Spain, Greece and France. By 2004, Lining products had been sold in 23 countries and regions, but its overseas market has been developing slowly.

In 2004, with the opportunity of Hongkong listing, Li Ning Co adjusted the development target of the company: from 2004 to 2008, focusing on the domestic market, striving to break through from inside and outside the market; in 2009 and 2013 as the preparatory stage of internationalization, focusing on strengthening international capabilities; 2014 2014 is the stage of full internationalization, and Li Ning Co is expected to become the top 5 Sports Brand Company in the world, and the international market share will account for more than 20% of the total sales.

It seems that following this development plan, Li Ning Co's overseas sales in 2009 are basically not improving and are still in preparation stage. In 2008, the Lining R & D center was established and attracted many American strength designers. In February 2010, Lining opened the first store in the United States in Portland, and was evaluated by the media as Nike's "stronghold". However, for large overseas markets, these actions are not even a spark.

Analysts believe that the internationalization strategy of Li Ning Co is too conservative. If we wait for the full internationalization of 2014, especially the brand effect brought about by the 2008 Beijing Olympic Games can not be effectively transformed into market efficiency, then Lining may miss the market opportunity.

Insiders said that the domestic sports brand Anta and PEAK had acted in the international market. Anta appeared at the Winter Olympics in Vancouver. PEAK focused on NBA marketing, all of which were exploring the international market and even walking in front of Lining. Against this background, Lining's internationalization strategy has come to the time of adjustment.