Lining Fought Against Nike For Four Years To Win The Local Championship 2
image
Nike
like that
The more fundamental change is
Lining
The company is brewing a new price model, from cost pricing mode to retail pricing mode.
Chen Jijun, senior director of Li Ning Co brand strategy business group, said that in the future, the company should first look at what products the market needs, which products are in the same price range, and the motive force that consumers are willing to pay for this price is because the products contain technology, fabric or sports resources, and consider the brand premium factor.
Then, back to the value chain, we allocate the cost to the suppliers and distributors, and consider the extent to which the labor cost and management cost should be controlled.
This price model will be put into use in the fourth quarter of next year.
This is just one of the tasks led by Chen Jijun.
This department was set up 18 months ago, and its core work is
Lining
The matrix management within the company is the biggest change brought by Li Ning Co's brand remodeling to internal management.
In 2004, Nike's joint CEO Parke and Dan Sen also changed Nike to matrix management, which was Nike's sales revenue of more than 8 billion US dollars.
The move has abolished regional management responsibilities and product management responsibilities. Since Nike has introduced 120 thousand products to the market in 4 different cycles each year, local managers usually have many choices - but this also indicates that they are likely to fail.
In the matrix management structure, Nike headquarters decides what products the company should launch, and how to sell the product, but the district manager has the right to make appropriate changes to the headquarters instructions.
This greatly reduces the probability of making mistakes.
The brand strategy business division has re segmented the business unit of Li Ning Co, and the original vertical shoes products, clothing products, sales system and so on are horizontal to cut into sports category.
Chen Jijun, who worked in Nike before, is in charge of the Department. He has 5 categories of directors, including badminton, basketball, running, women's fitness and sports life. Their most important work is to formulate 5 year plan and next year's plan for future development by category, so as to ensure the consistency of the operation process.
For example, in the past, because shoes and clothing were separate systems, sometimes even the same category of shoes and clothing were on the same season.
Chen Jijun said that such a situation would be avoided in the future. "All creative ideas among different sports items should be consistent, which is much more important than creativity itself."
For example, if Li Ning Co plans for the next 10 years of running category is the first brand, then the brand strategy business department's work is to define what NO.1 is first - let consumers think of running brands, and think of Lining for the first time, this is awareness.
Second, the business goal is to occupy the first place in the market share of the product.
Third, what is the ratio of the winner to the competition among the athletes.
Then, set up a layout plan for the next 5-10 years of sports resources, including what players should sign each year; the next step is to locate the brand: what is the concept of the pmission of the category every year, and what number of products are there in the price segment, and so on.
Chen Jijun said, "our department is like a locomotive, making overall planning."
Although it is impossible to implement Nike's matrix management system to abolish regional and product management responsibilities, but for young people,
Lining
For companies, the most important thing is how to allocate limited resources and reduce unnecessary waste.
COO Guo Jianxin has always said that Lining is a small company.
But it is the small company that has many resources to allocate, including sports resources, R & D, supply chain integration, dealer management and supplier integration.
Everything is in line with business. Chen Jijun is the most concerned about Nike.
Chen, for example, knew that he was famous before he signed a $3 million athlete for a year, but he would not do the purchasing power investigation because of him.
Chen made the rules by signing the contract with the athletes, making a budget, probably estimating how long it will take and how many products to sell to recover the investment.
Lining said at an internal conference that Lining's brand sponsored sportsmen did not see sales in stores.
Chen Jijun began to look for reasons, and later discovered that Li Ning Co's sports products and retail outlets are two lines.
"The ultimate goal of signing sports resources is to sell products. If big goods do not have their products, how can they help sales?"
Nike
If you do this, you will be shot. "
As a result, the clothes worn by all Lining sponsors will be sold in retail stores starting in the first quarter of next year.
But Chen's department still faces great challenges.
Although Zhang Zhiyong has invested a lot of energy in it, it is not easy to accept and carry out his strategic plan for those who are CXO.
"Rely on your charm, influence, and profession to convince others."
Chen Jijun said.
In Chen Jijun's computer, there is a PPT specially designed for internal training. The first page is "Who are we". It introduces the tasks and roles of the brand strategy business group in detail.
In the process of formulating the strategic plan for the next year, he also took some unusual measures to divide the vertical business group into two groups: COO and sales + strategy and products, first communicate with the CXO directors, then communicate with the following people, adjust the strategic plan and communicate with CXO, and finally reach an agreement and hand over to CEO Zhang Zhiyong.
"We must respect their participation," Chen Jijun said. "Sometimes they even need each of them to sign."
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Internationalization test
Lining himself hopes that Nike's brand will be strongly related to a sport category, as Nike does in basketball.
The new strategic direction is badminton.
In April last year, Lining replaced Yonex as the main sponsor of China badminton team. In July, Kaisheng bought one of the three brands of China Badminton equipment market.
Now, badminton rackets, which cost more than 1100 yuan, account for 38% of the total shipment. The best racket is the racket with the Chinese badminton player Lin Dan.
Over the past year, data from Li Ning Co show that Lining has taken 20% of the market for badminton professional channels.
"China badminton team is the world's number one in this project. We have such a strong sports resource team to support it, which is enough to make a higher price."
Lining badminton category director Yang Gang told the "Global Entrepreneur".
Choosing badminton as the main direction of the next stage is another important reason that badminton equipment is more international.
"Its standardization is very strong, which is a very good opportunity for globalization."
Zhang said.
Compared with clothing, this part reduces the cost of trial and error in entering the foreign market, and also makes production and distribution easier.
In July 2008, Lining opened the flagship store in Singapore. The shop is located on the two floor of the IONOrchard shopping center on the most prosperous Orchard Road in Singapore. It is on the elevator to the entrance, and the traffic volume is very large.
The adjacent shops include ECCO, Clarks, Puma, Levis and so on.
The most prominent aspect of the store is the half badminton racket model at the door. In the huge LCD TV, the production process and the use of badminton equipment circulate with subtitles in English.
Badminton rackets, badminton sports shoes and sportswear are mainly sold in stores.
Badminton rackets range from 139 to 489 Singapore dollars, and shoes are between 59 and 99 Singapore dollars.
Lining's six types of racket, such as Flame thunderbolt, Woods whistling, Rocks, and so on, have attracted many customers to stop and buy.
In the 2009-2013 year and 5 year plan, "we are positioning internationalization in the testing stage," Zhang Zhiyong said.
Southeast Asia is an overseas market with a high level of badminton sports. Zhang hopes to use badminton products and Southeast Asia as the first step in the international trial of the Li Ning Co, so as to organize preparations, system preparation and experience accumulation.
In the next five year strategy from 2014 to 2018, internationalization will become an important part of Li Ning Co strategy.
Zhang Zhiyong is also consciously attracting western professional managers to join Li Ning Co to make talent pool for the next step of internationalization.
Earlier this year, Zadorf Paul Arthur (Zadoff PaulArthur), a former well-known sports brand, became the general manager of Lining brand shoes product system.
"This is a bold step forward. Although Lining has many foreign designers, it is the first time to hire Westerners at the general manager level."
Zhang Xiwang's own team has a more open mind and self insight.
Lining's LDC Center (Center for learning and development) will develop 53 courses next year, including two parts of knowledge follow-up and leadership, so that the management ability of the whole team will match with the key business of the company.
That's exactly what it is.
Lining
I want to see the change.
He often talked about his dream to the outside world. It was Lining's past slogan, "anything is possible", which has grown from an ordinary athlete to a world champion. From a small company that started 20 years ago in Guangdong Sanshui, it expanded into a huge commercial empire today.
His ultimate commercial dream is to make Lining a real international brand.
Because international brands are among the top three factors in Chinese consumers' buying preferences.
However, at the same time of brand internationalization, Li Ning Co will still take the local market as the main battlefield.
The former Chinese gymnast now occasionally sits in front of the TV to watch the younger gymnastics competition.
"I think they are great, really proud of them, and nervous for them.
The most difficult movement of our year has now become the basic movement, so it is often seen sweating all over.
Do not say what language to praise their ability, even their eyes can not keep up with their movements. Sometimes they are more nervous than I used to be.
Lining told Global Entrepreneur.
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