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    "Old" Brand Lining Seeks The Pursuit Of Youth

    2010/9/21 17:21:00 77

    Lining

      

    Bid change

    Lining and CEO Zhang Zhiyong show the new logo.


    Lining has become the symbol of China by virtue of its tremendous influence in the International Gymnastic world and its struggling to run along the upper edge of the Beijing Olympic Stadium at the opening ceremony of the 2008 Summer Olympic Games.

    At the same time, as a sporting goods manufacturer, Lining is also one of China's top brands.

    The founder of the same name has earned more than 550 million dollars in wealth.

    Lining has been racing the "Best Under A Billion" list for the past 3 years (the best business list with an annual income of less than 1 billion dollars), and this has changed since this year, because the company's annual income has exceeded the list limit and reached 1 billion 200 million dollars.


    Age is not the main problem for the company to increase its revenue.

    The fact that Lining's brand is mostly older is also a marketing challenge.

    In a survey conducted in 2008, the company found that the average age of its customers was close to 40 years, according to a survey in 2008.

    The survey shocked the whole company.

    Lining is the chairman rather than the chief executive.

    In this way, the company began to seek repositioning. In June 30th, the new brand slogan "Make the Change" was released, replacing the past "Anything Is Possible" and launching new logo at the same time.


    Chief executive officer

    Chi-Yung Chang

    These initiatives, which involve brand, product supply, enterprise structure and retail store design, are called "a series of revolutions".

    Since the advent of the new logo and slogan, Lining has launched three new product lines: high-end Athletic Pro footwear products, color Brand sports shoes for the tennis, badminton, running and basketball games, and Brand Heritage's multi facet urban light sports series (Urban Sports) clothing.


      

    Investor

    I have always done my duty.

    Lining's shares in Hongkong have risen 7% since they changed their faces.

    Hongkong's main stock index also rose 4.4% in the same period.


    Zhang Zhiyong said that the market needs at least 24 months to clean up the old logo inventory and fully understand the company's new slogan.

    And there is no indication in China that the offensive products from Nike (Nike) (NKE News - people) and the increasingly mature domestic competitors will soon weaken in the market.


    Over the past 10 years, China's sportswear sales have increased by 30% annually.

    However, in 2009, new stores (some of which were more remote) attracted new customers by reducing prices, which led to a decline of 11%.

    As prices have been squeezed, China's real estate and human costs have increased, which has also created pressure on profitability.


    Lining brand's new logo and retail store design has appeared in 40 stores in key cities.

    These include the emphasis on red as a symbol of Chinese culture, while more efforts are being made to attract high-end consumers who can afford to spend 400 yuan (US $60) or more to buy sportswear.

    Lining plans to complete the pformation of 70 stores as soon as possible.


    The new strategy should give Lining more powerful power to deal with the competition between Nike and Adidas (ADDDY.PK news people), and from the China Dongxing, Anta and PEAK, and other growing heavyweight brand teams to show their differences, and these brands are also relying on their own efforts to accelerate the pace of progress.

    Last month, Boston Celtics Kevin Garnett signed a campaign with Anta to become the spokesman of Anta's sports shoes.


    At the same time, the older Lining fans have become the backbone of the brand, and they do not have to worry that they will be abandoned.

    According to Zhang Zhiyong, the company is planning to launch a clothing series with an old logo within two years.

    It will bring back nostalgia to the supporters who are now running instead of running.

    However, if Lining's action against young consumer groups has not been effective, the company will have to face the pressure of weak business.

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