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    The Negative News Is Wrapped Up In &Nbsp; Lining, A Shoe Maker, Responds To "Closed Shop" Rumors.

    2010/12/28 10:01:00 52

    Lining Distributors

    December 28th hearing: "integration inefficient"

    distributor

    And closing stores is the two concept.

    We need to integrate 500 to 600 inefficient distributors, not to close 500 to 600 stores. This is a misreading.

    Up to now,

    Lining

    The number of 7900 stores has not changed this year. "

    In response to the recent negative rumors about Li Ning Co's "closing stores", Li Ning Co spokesman Zhang Xiaoyan said last night.


    As a famous sport in China

    brand

    Recently, the media concerned about the "declining orders," Lining wants to close the bad performance stores, "the stock price is frustrated, Lining wants to close 500-600 stores" and so on.

    The reasons for these reports seem to be: "the announcement of the Li Ning Co's second quarter decline in orders has triggered a sharp fall of nearly 16% in December 20th, and evaporated 3 billion 500 million Hong Kong dollars a day", resulting in "Li Ning Co closing 500 stores."


    Shop or integration?


    "In fact, there are two serious misunderstandings."

    Last night, Zhang Xiaoyan stressed that the first misreading was "shut shop".

    "The group is carrying out the reform of the distribution system. One of the important measures is to integrate about 500-600 low efficiency distributors. This measure and closing shop are two different concepts."

    He explains that integrating inefficient distributors is to allow more efficient and larger distributors or distributors who want further development to buy low efficiency distributors.

    "At the same time, the group will encourage large dealers to increase the number of direct outlets."


    "As of June 30, 2010, Li Ning Co had 129 distributors and more than 2000 distributors.

    Most distributors are small, and more than 1700 distributors operate only one store.

    The latter, due to the lack of scale effect brought by the number of shops, plus retail management capabilities, procurement capabilities and product lifecycle management are relatively weak, resulting in poor store profitability and operating margin.

    In addition, the increase in labor costs and rent also makes distributors face the pressure of rapid cost increase.

    Therefore, through the development of these years, it is imperative for Li Ning Co to integrate low efficiency distributors to adapt to the market, and it is totally different from closing stores.


    Integration measures have long been disclosed


    Zhang Xiaoyan emphasized that the second Misreading in "rumors about shops" is the so-called "causal analysis of measures to close stores".

    "In most media reports, Li Ning Co launched the" shut shop initiative "after issuing a notice of falling orders in the second quarter and causing a sharp drop in share prices.

    This is not the case. "

    Zhang Xiaoyan said.

    He said that as early as December 17th, the two week before the information disclosure, in the 2011 quarter of the second quarter of the order preparation period, the convening of securities institutions and analysts released the "integration of about 500-600 low efficiency distributors" series of measures.

    "That is to say, it was not in the second quarter that the performance of the order fell, the stock price dropped sharply, and the company launched the reform of the distributor system."


    Competition among domestic sports brands is fierce.


    For the "shut shop" yesterday, some industry insiders said that two media and consumers need to take a rational view: first, as long as the number of stores is stable, the opening and closing of stores are normal during the process, just like the opening of second-hand housing stores in the property market.

    Second, in fact, not only Li Ning Co, Anta, 361 and other domestic sporting goods enterprises are not very good at the end of the year.


    "There is a problem worth pondering over, which is how to see the growth of these enterprises after the Olympics.

    In fact, it is not too slow now, but rather too fast before the Olympics and during the Olympics. Do not use abnormal growth to assess the normal pace of development.

    In view of the above, many analysts from Southwest Securities and China Gold International have affirmed.

    They believe that the sporting goods industry, including Lining, has great potential as a whole.

    {page_break}


     

    At present, high school and low consumption groups are paying more and more attention to health, and spend more time and money on physical exercise, which means they will spend more and choose more on sports goods.


    However, some people in the industry say that the "negative news" of Li Ning Co, which is so concentrated in recent years, reflects more or less the problem of competition in this industry. There is no doubt that it is not Nike, Adidas and other "outsiders".

    But the sporting goods industry must win, and the way to win is the technological content and professionalism of sports products themselves, rather than "the same root is frying" or "the sword is taking the wrong side".

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