Spending $10 Million, Lining Wants To Leverage The US Market By Electronic Commerce.

Lining chief executive Zhang Zhiyong recently revealed that this year

As a leading brand of China's local sporting goods, Lining's performance growth in recent years is not ideal.

At the end of last year, the Lining brand's second quarter 2011 orders, although the retail price of clothing and footwear products rose, but the number of orders fell by 7% and 8%, respectively, and the total value of orders dropped by about 6%.

In January 17th, Lining's official performance forecast report in 2010 showed that Lining's gross profit margin and net profit margin in 2010 were unchanged from 2009.

On the same day, Lining announced that the order meeting of the third quarter and the fourth quarter of 2011 will be held in the first half of this year. However, under the influence of channel reform and retail environment, the order growth rate is expected to be no higher than the first two quarters, and the gross margin level will be slightly reduced by 1 percentage points.

Although Lining's income in the Chinese market has already surpassed Adidas, it is undeniable that Lining's position in the local brand has been very embarrassing.

In the international market, Lining is still unable to face up to Nike and Adidas. In the face of the pursuit of brands such as Anta, Lining has been "restless" on the "big brother".

However, for Lining, the US market has been full of temptations.

In 2008, when Lining set up a R & D center in Portland, Lining opened his first store in the United States in Portland early last year.

It is worth pondering that Portland is the main base of Nike, the international sporting goods giant. Lining began to brazenly spread his tentacles to Nike's "backyard" and openly challenge Nike.

According to Lining's official news, the investment of 10 million US dollars is mainly used to open up the e-commerce market in the United States.

Sporting goods industry independent commentator Ma Gang confirmed the news.

As far as he knows, in addition to working with us brand consulting companies, Lining will also create a new product line to launch the e-commerce market.

Ma Gang said in January 19th that the US AcquityGroupLLC company should be the first to cooperate with Native American brand promotion companies since Lining entered the US market. Compared with past "single fight", the cooperation with local companies can make maximum use of their connections and market experience, so as to reduce the barriers encountered in the process of market expansion.

Although the amount of $10 million investment is not large, but Ma Gang said, this shows that Lining's early investment in the United States has achieved initial success; on the other hand, the United States is the world's largest sporting goods consumer country, the market space is broad, and the development of e-commerce in the United States has become relatively mature. Lining's investment in electronic commerce indicates that e-commerce has risen to the strategic height of Lining's brand development, which should be Lining's "bold attempt" to expand the US market.