Lining'S Dilemma: How Does China'S Manufacturing Brand Become The Mainstream Of The World?

2010 winter, rumors and being

The direct reason for the sharp plunge in its share price is the decline in orders in the second quarter of 2011 and the failure of the extraordinary China to acquire Lining 30% stake.

Lining released the 2011 quarter of fiscal year second quarter product orders data show that the number of orders fell more than 7%, the first time since 2008, the decline in volume.

Earlier, some media pointed out that Lining wanted to close 500 to 600 bad stores.

With the fall of Lining's share price, Morgan, Datong, Goldman Sachs and Jiayin and other domestic and foreign brokerages also unanimously sing it. Jiayin international has cut Lining's target price from HK $21.9 to HK $15.2.

Even in the Deutsche Bank Research Report, Lining's stock rating has dropped from "holding" to "selling", and the target price has been reduced by 39.8% to HK $14.68 from HK $24.4.

Before that, Lining was still the "red man" in the eyes of investment institutions.

As China's first sports Brand Company, Lining is no longer a mere manufacturing enterprise, but a comprehensive brand management group integrating market, R & D, production and sales.

Now, the company owns 6 brands, including Lining (LI-NING), AIGLE, LOTTO, DHS, KASON and Z-DO, and has nearly 8000 stores nationwide.

In 09 years, Li Ning Co realized sales volume of 8 billion 387 million yuan, more than Adidas's sales in mainland China, and also approached Nike's mainland sales.

In June 30, 2010, Lining announced the opening of new brand labels and slogans to remove the "imitation" traces that had been criticized before, and to reshape the brand, and to closely match the brands of Nike, Adidas and other international first-line brands.

Subsequently, Lining's action is to raise prices and adjust channels.

In this regard, some people praise, some people worry, and some people spit.

Regardless of the right and wrong of public opinion, Lining has already set the strategic goal of 2009-2013 years as an international preparatory stage, focusing on strengthening international capabilities.

Lining is just following his own strategic direction, though he has encountered some difficulties.

For more local enterprises, Lining will bring more useful exploration from the slogan of "internationalization" to the pace of substantive internationalization.

In particular, how does a "made in China" brand really become the mainstream of the world?