Shoe Enterprise Lining: Moderation In Brand Remolding

January 26th, behind every miracle, is full of irrationality, passion and mystery.

Because people are always eager to see an event that is more than conventional and imaginative as stimulants to stimulate our senses.

However, as a miracle maker, how to become a member of the economic ecosystem in a more ordinary way after the blockbuster is even more important.

Former sports hero

After 90 "Lining"

Driving from the center of Beijing to 30 kilometers in the southeast drive to Zhongguancun Science Park in Tongzhou.

A very modern architectural complex is in front of the eyes: they are simple and fashionable, and the details are revealed with extraordinary qualities. They are magnificent, scattered, and integrated with the lawn grass near and far away.

This is the office park that Li Ning Co spent hundreds of millions of yuan to build.

At the end of 6 in 2010, this quiet and quiet park was very lively. In the three year's grinding sword conference, Li Ning Co launched a new slogan and a new slogan, MakeTheChange.

At the press conference, Li Ning Co arranged to arrange for the host to be a Frenchman, Julian, who speaks fluent Mandarin. Every detail reveals the crux of the brand remolding that the company hopes to convey - cool, fashion, global vision and internationalization.

Obviously, Li Ning Co hopes to close the gap with young consumers through this brand remolding. "Li Ning Co actually pays more attention to young people, especially the 14-26 year old group.

Is their identity with Lining brand strong enough to determine the success of the company's future development? "

Li Ning Co chief operating officer Guo Jianxin said.

After 2008, Li Ning Co, who was good at 42 marketing strategies, became the last winner of the Olympic Games, and gained high speed brand growth.

In the 2010 report of "China's 500 most valuable brands" released by the world brand laboratory, Li Ning Co won the gold medal of China sporting goods with a brand value of 12 billion 734 million yuan.

But at the same time, another data also showed that in 2006 -2007, the actual consumption of Lining brand had a certain deviation compared with the target population, the overall overall size was larger, and the 35-40 year old crowd exceeded 50%.

The aging of the brand has prompted the "knife".

Indeed, younger consumers are more willing to spend money than they are.

The competition for this group of consumers will decide the future trend of sports brand.

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Price war

Let Li Ning Co CEO Zhang Zhiyong more concerned about is another data, "before 2008, the domestic sporting goods industry annual growth of about 30%, but in 2009 only 11%, in 2010 is estimated to be 15%~16%."

This means that while the overall growth of the industry is slowing down, the costs of production, operation and retail terminals are rising. Under this background, Li Ning Co will have no choice but to raise prices for the future in order to cope with the brand remodeling.

The best option to raise prices is in the first tier cities and big cities with strong purchasing power, that is to say, Li Ning Co must go up and face the competition from giants Nike and Adidas.

This is undoubtedly a cruel fact for Li Ning Co.

In the first tier cities in China, Nike and Adidas have strong brand appeal.

The Li Ning Co needs to face the rapid rise of Nike and Adidas in addition to the temporary adjustment of the financial crisis. There is also a rapid rise in the number of other local followers - the same as Li Ning Co's priority on the development of retail businesses in the two or three tier cities, and Anta has more than 6000 retail outlets in China.

It's like a football match, both sides want to attack each other's territory.

After Lining announces the focus on the first tier market, Nike, the first in the mainland market share, is also trying to plug the red flag into the two or three line market with a low price strategy.

In the fiscal2010 as of May 31, 2010, we can see that sales growth in Nike China is stagnant.

Faced with the real pressure of business growth, the industry giant chose a price war.

If Nike can really make the price more competitive, the idea of buying a pair of Nike shoes with a little more money may drive the consumers who are cost-effective and want to buy famous brands to take the lead in the shift.

It is foreseeable that the two or three line market that Nike will gather in its domestic brands will go all the way, and this will be a fierce battle for the domestic brands that have long been in the two or three line cities. It seems that the whole sporting goods market is full of rain and wind.

But at the same time, when Nike is preparing to fight on the battlefield, there is also a crisis.

As a double-edged sword, when a brand starts a price war, the advantage of the brand will gradually be lost, especially in the sporting goods industry, which does not have an absolute advantage in science and technology.

Nike, which changes the market price, looks more like going down the altar itself.

Slowly, some consumers may find that Nike, which is worth showing off before, seems to lose its shine as a result of price cuts.

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Brand name magic weapon

So far, a question has arose.

Observing the industry, what is the biggest difference between the sports apparel enterprises and the industry giants struggling to survive? The answer is brand spirit.

A Taiwanese foundry manufacturer named Yu Yuan industry can produce sports shoes such as Nike, Adidas, Reebok and Puma at the same time.

As long as funds are abundant, any new company can commission Yuyuan Industrial outsourcing company to produce, which is enough to show that the manufacturing cost and production technology gap of sports products are not very large.

Imagine the value chain of the industry as a whole. The value created by OME, brand and distribution retailers is equal to the consumer's willingness to offer. As the value maker in the whole value chain, the brand will raise the consumer's willingness to offer through product design, brand building and consumer communication.

Therefore, the dominant brand is more important to connect the brand with the sportsmanship, which is equivalent to upgrading the product from the use level to the emotional level, which is the most important step in the differentiation of sports brand.

At the same time, the stronger the brand's ability is, the greater the downstream restraint will be.

Therefore, it is not difficult to explain why Nike, Adidas and other industry giants spend huge sums of money to shoot various advertisements, publicize their brand slogans, sign sports stars, sponsor sports events, and study new technologies. Their purpose is to enhance the performance of athletes, and expect the products to be associated with the excellent performance of athletes, so that products are no longer just a physical object, but with marketing means to link a series of inspiring sports spirits.

The early success of Li Ning Co is the best evidence in this respect.

Li Ning Co's products quickly became the largest local sports brand in China through the brilliant sports achievements and excellent marketing methods of founder Lining.

But the rapid development of early days has covered many problems within Li Ning Co. When the image of the company begins to blur, the decline of its performance is inevitable.

Although the strategy was adjusted in time, many problems were improved, but the aggressive foreign brands obviously ran the brand more than Lining. At this time, Lining was more a product company than a Brand Company.

These are also the fundamental reasons why Li Ning Co repeatedly suffered market shocks at that time, unable to break the ceiling of 1 billion yuan sales.

It is not a small project to change the situation immediately. The brand strategy is the most important thing that needs updating at present.

During that period, Li Ning Co was called "the two venture", which means starting from scratch.

Now it seems that the brand pformation that began in 2000 is very timely for the whole company. This is also the first time that Li Ning Co has integrated the marketing resources from price to channel for the first time, from the product to the propaganda, to rebuild the brand.

During the period, Li Ning Co extracted the famous "everything is possible". In order to cooperate with the change, Lining brand also shifted its focus to the high-end sporting goods market, throwing away the original 270 yuan, 280 yuan mainstream price segment products, up to more than 350 yuan price, and the mainstream price segment of Nike and Adidas was only 50 yuan difference.

But these are only temporary.

What kind of spark will happen in 2010 when Lining's "high price" collides with Nike's upcoming "low price"? Everything remains to be seen.

After the first brand integration, CEO Zhang Zhiyong, the fourteenth employee in Li Ning Co history, invested almost all of his resources in the construction of the channel, intensified the reform, promoted the store strategy, opened a new store, unified the visual identity image, and continued to do a full 3 years. Li Ning Co's sales began to increase steadily.

However, to this day, an unavoidable fact is that although Lining first jumped over the Adidas in 2009 to become a bull in the Chinese market, but from the current reality, the brand of the local sports brand represented by Lining is weaker than Nike and Adidas in terms of experience, ability or competition for the most critical resources of the industry.

Of course, this can not blame Li Ning Co, how can we let a company with assets of eight billion yuan to grab the basketball and football marketing resources of Kobe and Ronaldinho with a company of over $10 billion?

Zhang Zhiyong knows that today's Li Ning Co wants to focus on upgrading its brand. We must avoid the weakness of resources through effective strategies, for example, the introduction of badminton and YOGA as the focus of women's fitness in China.

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In Chinese business circles, there are different stories about changing the company's name and changing its name, but the company that is taking this step will face the same challenge: reshaping its brand connotation.

In itself, it is only a face project, but whether it is an international path that Lenovo has tried, DELL's diversification strategy, or more consumers pursued by Unicom, is essentially a kind of internal power engineering.

Similarly, in the face of this quietly changing market, the Li Ning Co is clearly ready, as for the actual effect, and also to the market to test.

Lining's "Lining"

In the process of shaping Lining's brand, a fact that can not be ignored is Lining's role in the Li Ning Co.

From the development process of Li Ning Co, we can see that there are many noble people around Lining. From the initial Li Jingwei and Liu Jipeng to Chen Yihong and Zhang Zhiyong later, they are just like lucky ones sent to Lining.

In fact, the fast growing companies always have their own luck. This is also closely related to Lining's honesty and dedication and his strong desire to revitalize China's sports. At the same time, this is why he is lucky to be lucky.

Over the past twenty years, there have been too many star enterprises around us.

They created and magnified the demand of the market with a kind of taboo courage, and accomplished a period of passionate entrepreneurial myth. But at the same time, in almost all the market fierce battles, we can witness such a scene: the tragic and disorderly competition often produces a young leader unexpectedly, but soon, one after another, "violence against violence" makes the enterprise collapse overnight.

There are internal causes of the system, external causes of the environment, and deeper humanistic factors. Enterprises often have accidents due to some defects of their professional character.

Looking back at those companies that have gone through the ebb and flow of sand, their blood is flowing more or less with the genes of decision makers. These things are gathered together to form a unique corporate culture of the company.

The same is true of Li Ning Co.

From the day of the birth of Lining brand, it has been closely related to Lining's ideal and national character of sports.

This deeply buried emotion in Lining has rarely been plated into written corporate goals for a long time, and is rarely mentioned in the company's summary report.

But it is like a sharp, tireless beast, lurking in the company's character.

In the past twenty years, when crucial decisions are made, it will jump out, play a decisive role, and ultimately dominate the development of Li Ning Co, forming a more complex company character.

In Lining's brand image survey, people's impression of Li Ning Co still has the color of "nationality", "affinity" and "honor".

Chen Yihong once said to Lining, "he is not good at business, but he is very useful."

From July 1999, Lining formally handed the position of the general manager to Chen Yihong. Until today, he has never returned to the specific management position of the company.

Like Wang Shi, who is also a GUI businessman, Li Ning Co is also one of the companies whose founder is absent and the corporate governance structure is the most perfect.

More importantly, Lining not only knows how to delegate power wisely, but also knows how to take power at a critical moment.

This is also one of the reasons why Li Ning Co can continue to get away from the crisis.