Cai Yong: Lining'S Misfortune And Confusion

The near future,

The predecessor of the extraordinary China is Hong Kong stock.

The collapse of Lining's share price has been affected by the anti takeover. There are factors that affect the valuation of the investment rating by the major investment institutions. But what are the reasons for this result?

Industry confusion: trying to enter "sports real estate"

Most Chinese enterprises seek big profits instead of seeking profits.

Lining's capital injection is the intention of China to enter real estate. It is only the name of "sports real estate", which is closely related to sports. It is supported by the example of "bird's nest" and the construction of Olympic venues.

Whether sports real estate or not, but trying to enter the real estate industry is an indisputable fact. The high profit of real estate attracts these traditional industries to create financial resources. The famous clothing brand YOUNGOR is a typical "do nothing" and enter the real estate industry.

In 2009, the main business income of YOUNGOR exceeded 10 billion yuan, 6 billion 900 million yuan came from textile and clothing, and 5 billion 200 million yuan came from real estate. When it comes to specific net profits, the net profit of real estate and equity investment business was as high as 2 billion 800 million yuan, while the net profit of textile and garment business was only 440 million yuan, and the net profit of real estate investment was 6.4 times the main industry. On the industrial scale, a more than 20 core real estate and equity investment team formed a huge contrast with thousands of textile industry employees.

On the professional road, Vanke is an example of the industry. It sold its supermarket business in the early days, and specializes in real estate. It has achieved the current Vanke, and has also made Wang Shi, the leader of the enterprise.

If we say who is the real entrepreneur in China, Wang Shi is one of them.

Why is the real estate so attractive? Let's take a look at its obvious investment characteristics: first, the real estate industry has a higher annual growth rate; secondly, the total amount is large enough, and the real estate industry's contribution to GDP is obvious to all.

Third, industrial concentration is high. Vanke has a sales miracle this year, with sales exceeding 100 billion, and has won the world's "boss".

Fourth, the rate of return on investment is high. Finally, the investment cycle, which is equivalent to the traditional textile industry, is often faced with problems such as inventory backlog and unsalable sales. This directly leads to the lack of liquidity in the capital chain of enterprises, and the product from production to logistics to dealers and even to the final sales. It has a long time in itself, but real estate does not exist these problems, relatively speaking, its capital flow cycle is shorter.

Therefore, Lining brand is also hard to resist such temptation.

From the book of excellence to excellence, this book refers to Hedgehog theory. Hedgehog refers to people or enterprises who always focus on what they are best at. They have a simple and clear idea.

The core of hedgehog's concept lies in the following three questions: 1, what aspect can you become the best in the world, and equally important is that you can not become the best in the world.

2, what drives your economic engine.

3, what are you passionate about?

Excellent enterprises are hedgehog type. For a company that wavered in industry choice, it has been a distant dream that they once dreamed of creating "national sports brand".

The declining performance of marketing

Why does Lining want to enter the "sports real estate", in addition to the profitability of real estate investment, behind it there is a more profound marketing pformation, and thus change to lead to decline in performance.

With the increasingly fierce competition in the sporting goods market, the traditional way to rely on new stores to increase their performance has narrowed down. Every open store means a lot of investment. At the same time, with the increase of rents and personnel costs in recent years, the operating cost has increased significantly, and the single shop interest rate is not enough.

Lining management saw this kind of business dilemma, so he tried to change the growth routine pursued by store expansion for many years, integrate some poor performance stores, reconstruct the distribution system, and promote the growth of business by increasing the sales revenue of single stores.

According to figures from the industry, the number of Lining shops may reach 500~600. Although the average retail price of clothing products and shoes has risen by more than 8%, the number of orders has dropped by more than 7% and 8% respectively. The total value of orders in the second quarter of fiscal 2011 has fallen 6% over the same period of the year. The reason for this decline is the result of its reform and distribution system. With the further deepening of the distribution system reform, it is expected that its sales and earnings in 2011 will face downside risks.

In addition, from the perspective of competition, Lining's marketing prospects are not optimistic.

Compared with the Jinjiang brand, Lining does not have the competitive advantage of the industrial cluster. The cluster brings about the reduction of cost and the optimization of resources.

Compared with ADI, Nike and other international brands, its brand influence is not enough.

It can be said that there were tiger snipers before, and then there were wolves catching up.

In the layout of the channel is also in an awkward position, high-end consumer groups are mainly concentrated in the second tier cities, and many high-end markets in these cities are grabbed by international brands. ADI, Nike, Puma, Reebok and so on are all in the busy commercial area. The same shoe Lining is about 10% to 15% lower than the international brand, so it is obviously competitive in the second tier market.

In the three or four tier market, Jinjiang brand is mostly occupied by the brand, and the high-end consumption power of the three or four line market is insufficient. For the average pair of shoes, only 200 up and down Jinjiang brands are just right.

Where is Lining's road in the future?

In contrast, Haier has also faced Lining's current market predicament. Compared with international appliances, brand competitiveness is insufficient. Compared with other home appliance enterprises in China, the price competitiveness is obviously in a weak position.

Haier chooses the strategy of going global, which is a reference for Lining.

Only when you go out can you stand on the domestic market and compete with international brands. The international view is a brand promotion. Only in this way can you truly become an international sports brand.

The "worshipping foreigners" in Chinese people determines that international brands take the dominant position in China.

The confusion of brand positioning: the direction of brand strategy is not clear.

Lining's previous campaign of "make the change" can be seen vividly.

For awkward Lining, it is indeed necessary to have a "change" to get rid of the pressure of international giants and catch up with domestic brands.

This brand communication campaign has been launched for nearly half a year, and this time the stock price slump has been decided by the brand storm temporarily. It has earned "talking about value" but lost its sales performance.

Temporarily abandon the "make the change" Lining brand reinventing practical level, as Lining executives and Leo Burnett consultant team, the first thing to solve is Lining's brand strategy positioning. What is Lining exactly? What does Lining represent? Can't answer this question, any brand remodeling will end in failure.

Lining was born in 1990, and reform and opening up are going on like a raging fire. The planned economy is being replaced by the market economy, and the reform of the economy is moving forward. As long as enough courage and innovation, all conventional rules can be broken, and all fresh things can be tried.

Lining put forward that "everything is possible" is exactly the voice of an age.

Lining represents a national spirit, shaping the national sports brand.

As brand communication and brand remolding, we must always remember the spirit of brand.

This "make the change" is based on the aging of the brand, evading the appeal of ADI's "Nothing is impossible", and caters to the times being in the "change" voice. But it seems that Lining has forgotten the soul of the brand. Lining represents the national spirit and the first sports goods brand of the Min nationality.

In the specific advertisement, we chose the representative of Lin Dan as the representative of the 90s to cater for the post-90s. Can we pay for it after 90? According to the author's understanding, Lining's core consumer group is not them.

"Post-90s Lining" is the theme of the advertising campaign. What does it mean after 90? The news media uses the negative words such as "self, publicity, treason, and brain damage" to construct the group image of "post-90s".

Any brand advocacy should be a positive value orientation. It may not be defined in the whole brand remodeling team after 90 years, but consumers do not think so.

In advertising communication activities, we should never try to change the existing cognition and ideas of consumers. Many such failures in history have been a lesson in blood. As a proxy for the campaign, Leo Burnett advertising agencies should not really commit such mistakes.

Perhaps the post-90s are the core consumer groups of high-end sports brands, but it seems that the post-90s are obviously better than Lining for international brands.

As a group of 70/80 who grew up together with Lining, it seems that they are more interested in Lining.

It seems that "post-90s Lining" did not cater for the post-90s, which seriously hurt people in the 70/80 era.

The slogan of Change is right, but it does go a little bit towards the specific theme of "post-90s Lining".

The stock price diving is just a representation, and the stock price will fall. The key is that Lining's decision makers should see the practical problems faced by the enterprises and solve them, so the stock index rise is only a matter of time.

If this goes on, Lining's road will only get harder and harder.