Sports Shoes Brand Camp

It is precisely because of the strong domestic strength of Nike and Adidas that no matter what domestic sports brand, it always gives people the impression of "imitation".

Just like Adidas's "no impossible" and Lining's "everything is possible", Nike's SWOOSH feather logo and Lining's "L" Pinyin logo, people often think that the latter is "imitating" the former.

If we say that with the formal establishment of the Guangdong Lining sporting goods company in 1989 as a starting point, the Chinese sports brand has evolved for twenty years, and now it is gradually moving out of the shadow of Nike and Adidas, each of which is brilliant.

On the last day of June 2010, Li Ning Co suddenly announced that the logo and slogan should be reshaped: "L" Pinyin logo became "human" logo, "everything is possible" and has become a more internationalized "Make The Change".

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"Jinjiang Department" sports brand

The two or three line city is king.

In the southern part of Fujian, there is a famous brand city, Jinjiang.

Anta, PEAK, Hongxing Erke, del Hui, 31st degree, XTEP, Jordan, Meck, Hyde dragon and many other name brand names or no name sports signs come from there.

Twenty years of development of Chinese sports brand, they are also the trend makers.

In 1984, Nike, an internationally famous brand, invested in Quanzhou.

Thus, a Quanzhou native of a scooter started a small shoe processing plant with savings accumulated over the years and borrowed money from the east to prepare for the processing of Nike's brand products.

However, the processing plant was built, and Nike's factory moved away.

The Quanzhou people were unconvinced and decided to make their own brand, named PEAK.

That year was 1989.

The Quanzhou is the founder of PEAK, Xu Jingnan.

"In the 90s of the last century and before, most private enterprises in Jinjiang helped people to do OEM OEM.

But in fact, Fujian's advantage in doing OEM was not as strong as that in Guangdong.

After entering the 90s of last century, many shoemaking companies began to change their business strategies and try to make brands.

At that time, PEAK was one of the first enterprises to create brand.

Xu Zhihua said.

He is Xu Jingnan's son and now is the CEO of PEAK.

As Xu Zhihua said, it was a collective change.

In 1993, the company was founded in Jinjiang.

In 1994, the first sign of Anta was put on the doorway of a shoe factory in Jinjiang.

Ding Jiantong also renamed his everything shoe factory as Buick Company, and began to produce its own brand sports shoes.

Later, because of the trademark problem with Buick motor, it was renamed 360 degrees.

And the brand that came out in the same year is Jordan.

They became the earliest "Jinjiang Department".

"Holding together" and "following suit" are a major feature of the Jinjiang sports brand.

If you use Kong Linghui to advertise, I'll use Li Yongbo; if you use Nicholas Tse, I'll use Stefanie Sun.

At the peak of 2004 -2005, there were as many as 40 Jinjiang sports brands advertised on CCTV sports channel.

Similarly, they do not face confrontation with Nike, Adidas and Lining, but are happy to be kings in the two or three tier cities.

At present, important commercial streets across the country are basically separated from the Jinjiang sports brand.

With their push, the store rents up the boat.

In the 90s of last century, the collective pformation of Jinjiang sports brand was undoubtedly successful.

In recent years, they have once again turned magnificently.

In 2007, "Jinjiang Department" Anta sports was successfully launched in Hongkong.

Under the influence of Anta's model, Jinjiang sports brand, such as PEAK, XTEP, Hongxing Erke and Meck, has been listed and become a unique scenic spot in the capital market.

"Every enterprise in our daily life sharpens our heads and wants to become a leader. We should seize the initiative and break through."

Xu Zhihua said no secret.

In fact, in recent years, the Jinjiang sports brand has continuously added high value to the brand by sponsoring international teams and events.

"Now, what we need to do is to find differentiation."

Lining has changed LOGO again. This is the sixth time that Li Ning Co has reshaped its brand.

However, the timing of this LOGO change is quite interesting.

Just a few months ago, Lining and Adidas announced their achievements. After 6 years of chasing and killing, Lining's turnover in mainland China finally surpassed Adidas and became the second largest sport brand after Nike in 2009.

Ten years ago, the haze of Nike and Adidas was not completely dispersed, but the dawn also dawned.

Lining's battle with Nike and Adidas for ten years -

Lining finally surpassed Adidas.

Whether Lining really surpasses Adidas and Nike in real sense is still too early.

Embarrassment of being surpassed

After retiring in 1989, Lining, the gymnast prince, joined the Jianlibao group in Guangdong and founded the "Lining" sporting goods brand.

In 1991, Jianlibao invested 16 million yuan. The Guangdong Lining sporting goods company was formally established and was responsible for the operation of Lining brand sportswear and sports shoes independently.

Li Ning Co has also created the leading brand of sporting goods in China.

Lining, the best Chinese athlete, was also very successful at the beginning of his business.

In 1996, Li Ning Co set a record of 670 million yuan.

However, all good days ended in 2003.

Lining, who has been in the lead for 9 years in China, has been robbed by Nike, which has been intensively cultivated in China for 28 years.

In second years, Adidas also surpassed Lining in second place.

"Their market share in China was very low, but they passed us from 2000 to 2004."

It is embarrassing for Zhang Zhiyong, CEO of Li Ning Co, to be quickly surpassed.

"Our management deeply memorize that experience."

In fact, in 1999, when Lining achieved annual sales of 700 million yuan in China, the annual sales volume of Nike in China was only 300 million yuan, while Adidas only had 100 million yuan.

Although the base is very low, since 1999, the growth rate of Nike and Adidas in China has far exceeded that of Li Ning Co.

This led Lining to redefine the company strategy from the perspective of brand.

In the second half of 2003, Lining launched another round of brand new changes.

Lining, who lingered in the low and middle end of the mass sports market for a long time, decided to shift his focus to the high-end sporting goods market.

Lining's positive confrontation with Nike and Adidas in the high-end market was officially unveiled.

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Killing the high-end market

Zhang Zhiyong disclosed that in 2004, the Li Ning Co set up a secret plan to spend 15 years in the Chinese market to overtake Nike and regain the throne.

The most intense competition of sports brand is two aspects: one is sports marketing, the other is price strategy. Two

In terms of price, Lining's action is quite simple.

In 2004, Lining began to throw away the original 270 yuan, 280 yuan mainstream price segment products, moved to more than 350 yuan price, and Nike and Adidas mainstream price segment only 50 yuan difference.

In sports marketing, from 2003 to 2006, Lining became a sponsor of the Chinese men's basketball team, the Spanish men's basketball team and the Sultan track and field team.

As we all know, basketball court is the world of Nike, while soccer field is Adidas's world.

If the above is only Lining's "exploratory action", then the 2008 Beijing Olympic Games is undoubtedly the first confrontation between the two giants of Lining, Nike and Adidas, and the most intense one.

The three sides feel the strong pressure from all sides.

At that time, the three sides focused their attention on the Olympic sponsorship market.

Adidas and Nike also invested a lot of money in this regard.

It has been estimated that Adidas has paid about 80 million to 100 million dollars in cash and in kind for the official sponsorship of the Olympic Games. Nike has also sponsored a number of Chinese Olympic teams.

After losing the sponsorship power due to insufficient financial resources against Adidas, Li Ning Co sponsors five central banks and successfully intervenes.

The rush to edge ball quickly aroused the dissatisfaction of Adidas, a genuine sponsor.

In order to safeguard their rights and interests, Adidas set up a separate team to counter recessive marketing with the Beijing Olympic Organizing Committee's anti recessive market department.

Subsequently, the Beijing Olympic Organizing Committee issued the "prevention of Olympic Games hidden market advertising behavior proposal", let the clothes with Lining logo disappeared on CCTV host.

However, Adidas counted tens of thousands of dollars, but it still missed the fact that there was another national hero in the Li Ning Co, that is, Lining himself.

On the opening ceremony of the Beijing Olympic Games, Lining, who carries the torch, lit the torch on behalf of the 1 billion 300 million Chinese.

The whole nation is boiling.

Time seems to freeze in the moment of Lining's "flying Apsaras". Before that, the three party's looting of sponsoring resources suddenly became meaningless.

That time was called "the most successful free advertisement in history".

Although the Li Ning Co has repeatedly stressed that it is purely Lining's personal behavior, it has nothing to do with the company, but for Nike and Adidas, it was a heavy blow.

Ke Ruijia, Adidas's head of Olympic marketing, said in an acrid interview that "all the torchbearers have to wear Adidas clothing," but it's not enough to reverse the situation.

A survey by market research company won three shows that 45% of Chinese consumers mistook the Li Ning Co as a sponsor of the Beijing Olympic Games.

The battle is not divided.

In March 18, 2010, the Li Ning Co released its 2009 performance report in Hongkong, showing that its global turnover increased by 25.4% to 8 billion 387 million yuan, of which about 99% of its turnover was in the mainland market.

In the past two weeks, Adidas also released its 2009 global performance report, with a year-on-year turnover of 3.9% to 10 billion 381 million euros.

According to Adidas's earnings report, the Greater China region accounts for 9% of the global turnover.

On the basis of exchange rate factors, in 2009, the turnover in Greater China amounted to 967 million euros.

The media quoted industry analysts as an estimate that the mainland market accounts for about 84% of Adidas's Greater China region's turnover.

According to this calculation, Adidas's sales in the mainland market last year were about 7 billion 300 million yuan, lower than Lining's.

Look at gross profit margins again.

Compared with competitors, Lining's gross profit margin is relatively high and stable, basically maintained at 47%-48%, which is even higher than Adidas's 45.4% in 2009 and Nike's 44.8%.

On the above two sets of data, in 2009, Lining in the Chinese market competition, it can be said that since 2004 for the first time to surpass Adidas.

However, a fact that can not be ignored is that in 2009, Adidas implemented a major organizational change, pforming the original vertical organizational structure into a new framework of cross functional, cross brand (Adidas and Reebok).

The rectifying of the channel led to a decline in Adidas's performance.

According to Adidas CEO Herbert Hainer, because Adidas had a high inventory problem in Greater China in early 2009, the company used "extra means to digest inventory at low profit margins".

That is to say, whether Lining really surpasses the two giants of Adidas and Nike and regain the throne in real sense is still too early to say.

As a result, there was also the scene of June 30th, and the Li Ning Co announced the reshaping of slogans and slogans.

At the same time, Lining adjusted the brand gene, target audience, product positioning, brand connotation and development system.

After the brand is rebuilt, Lining brand will launch a new round of competition with Nike and other international brands in the first tier cities.

Fortune figure

Lining

A man who is always so low-key.

From the "Prince of gymnastics" to "business tycoon", the aura of Lining always shines.

But it does not match that Lining has been so low-key for so many years.

Until the 20 year when the Li Ning Co was founded, it suddenly announced that it would reshape the brand. Lining, who rarely interviewed by the media, talked about the miss of the 1988 Seoul Olympic Games, and how the "make the change", like the slogan of the sixth generation of the Lining brand, has changed her destiny since then.

Smile after Seoul Olympic failure

"If I hadn't been in an environment like this in 1988, maybe I am an official now, or be a head coach. Basically, it's a fate like this."

Lining seldom talked about the inner story of Seoul Olympic Games.

The 1988 Seoul Olympic Games was the last battle of gymnastic Prince Lining.

In the ring race, his feet hung on the rings, and he sat heavily on the ground in the vault.

Lining, who made a mistake, faced people's exclamation with an indifferent smile.

But that is a time when Chinese people can not tolerate and understand the failure of the gymnastic prince.

Lining's smile after failure was immediately misinterpreted as "no care."

"How can I not care?" but for Lining, an athlete, even if he fails, he will concentrate on what he is doing, and will not stop to evaluate what or how he feels inside.

"I just laughed from the beginning. I didn't cry at the bottom, whether it was success or failure."

This may be Lining's character.

When Lining returned to China, he felt that the reaction of the Chinese people was so strong.

"Almost no one will say" no "after returning to the country. There is no comforting word.

From a hero to a sinner, to me, I can't stand it. "

At that time, the feeling of disheartened, Lining spent a month to think about it.

However, Lining's fate has changed completely since then.

"Because for a moment, I was angry and left.

At that time, Li Jingwei invited me to go.

On the way to Lining's business, he had to mention Li Jingwei, founder of Jianlibao group.

"I also admired Li Jingwei very much at that time."

Lining said, "at that time, so many products made in China were looked down upon by others.

Li Jingwei's products really make us feel proud and close to the world level. I admire him very much.

At that time, Lining especially wanted to be a Chinese sports brand. That's the reason why "Lining" brand was born.

"At that time, the idea was very simple and simple, and I didn't know what the result would be.

It's kind of like a gymnast. I think it's a valuable thing, a good goal, and a goal to pursue.

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"I don't think I have a commercial sense."

When he made the first money, Lining admitted that he didn't seem to have much joy.

"Because I never thought of making money, I wanted to do something.

Every day, headaches are all about quality problems, variety problems, supply problems, no liquidity problems, employees' ability problems, and the ability of employees to go away.

It's always a problem, not thinking about making money. There's hardly any time to make money, just want someone to want your goods.

"I don't think I have a commercial sense."

As a businessman, Lining thought he had not been enlightened until now.

But Zhang Zhiyong, who has worked with Lining for 18 years and now serves as chief executive of Li Ning Co, seems to have made a critical change in Lining.

"After 1997, Lining went to Beijing University to read history department, which changed him very much.

Later, he also read the EMBA of Peking University Guanghua College, and many entrepreneurs together, this time for his intelligence structure is the biggest enlightenment, is also the most critical factor.

As a result, from 1999, the new and old Li Ning Co alternated, and Lining faded away from management.

For a long time, Lining has rarely asked about company affairs, even the major decisions such as mergers and acquisitions.

Zhang Zhiyong is the actual decision-maker of Li Ning Co.

Zhang Zhiyong and Lining usually hold meetings for about two months or half a year.

"I bring our executives to interact with him. He will say his goals, say his ideals, say what he wants to do, and all his propositions are related to sports. He never talks to you about how much money he earns this year and how much he earns next year.

This is his understanding of money, too.

What role does Lining play in the company? "I am just a procedural role."

Lining said.

But his role in this process is very important to Zhang Zhiyong.

"His greatest contribution to the company lies in his understanding of sports. He is an athlete. He has a deep understanding of sports, and what our management really needs to do is pform his perception into process and express it in commercial language."

Live a relaxed life outside the spotlight.

As a matter of fact, Lining has been out of management for more long-term considerations. He wants to modernize his company.

"My reputation is too great."

In Lining's view, his special athletic career and athletic achievements will affect many specific businesses, operations and management, including the development of the company.

Therefore, if I participate too much, it may not be bad, but 90% of the practices may be broken.

I think a Brand Company should have its own genes, independent character and independent value connotation, so that our employees, investors and consumers will focus on it, not because of Lining myself, so flash is always useless for me and can not solve the problem.

So the head of the halo "gymnastic Prince" chose to hide away from the spotlight.

Of course, the lighting of the sacred flame for 1 billion 300 million Chinese people in the Beijing Olympic Games is a "national assignment", which is an exception.

"I started playing flash when I was a teenager, so I'm still relaxed.

My way of life is to live a relaxed life. I do not live by acting. "

After the opening ceremony of the Beijing Olympic Games, Lining's life in Hongkong also aroused great interest among the Hong Kong media, and became the new darling of the paparazzi. But the topic was limited to the eight diagrams of luxury houses and famous cars.

If Lining has any personal interests, he will be a babysitter for retired athletes.

Zhang Zhiyong revealed that Lining had a Chinese athlete education fund to help Chinese athletes retire and extend their career.

"What happens when a large number of non champion athletes retire? Lining uses the money to send them abroad to train coaches, even help them manage their personal wealth, so that they do not spend money in a random way, which usually takes him a lot of time."

Extended reading

Nike's next stop - the two or three line city?

Recently, Nike said that in the next 5 years, the annual revenue of its emerging markets, including the Greater China region, will grow at around 10%.

Although no strategic details have been revealed, the industry has predicted that the two or three tier cities will be the focus of Nike's next stage of development.

If that is the case, it means that Nike will invade the domestic sports brand, especially the Jinjiang sports brand.

Is this feasible? At present, the price of Nike sneakers is often 500 yuan, while the price of your sports shoes is 1000 yuan. If you want to eat in the two or three tier cities, then Nike will have to cut prices.

UBS Securities has made a hypothetical analysis in a report recently: the domestic first tier city market has become saturated, the future market is mainly concentrated in two or three line cities, and Nike, Adidas and other international first-line brands have to maintain a relatively high growth rate and strong market competitiveness, so we must adjust the existing product price combinations.

The "perfect price" of footwear products in the two or three tier cities is between 170 yuan and 250 yuan.

Obviously, the current prices of Nike and Adidas are not suitable for the consumption level of the two or three tier cities.

To enter, adjustment is necessary.

UBS further analyzed that under the premise of guaranteeing the profit of these brands and suppliers, Nike could make the lowest price 300 yuan, even though it was 50 yuan higher than the perfect price, but for consumers, "buy 50 yuan more than you can buy a pair of Nike", they will think "value for money".

However, Li Ning Co CEO Zhang Zhiyong believes that there are two indicators in the final judgment of business, one is the share of the mind, that is, the brand value, and the other is the market share.

The value of any brand will be converted in its market share.

"If you make 200 yuan of products, you can gain market share and make 300 yuan or get market share, but that will also reduce your share of the brain.

Because these two are not equal relations. "

That is to say, if an international brand like Nike wants to make a 300 yuan product to capture the two or three line market, the most important thing for it is whether its other competitor, such as Lining, will take advantage of it and get the market share of its high price product.

This is the most paradoxical point for Nike.