Lining Shifted From Channel Expansion To Brand First

In March 17th,

In Hongkong, the 2010 annual press conference was held.

Last year

Total revenue grew by 13% to 9 billion 470 million yuan, and net profit increased by 17.4% to 1 billion 100 million yuan.

As of December 31, 2010, Lining's retail outlets in China amounted to 7915, with a net increase of 666 in the year.

However, the lower threshold and the same channel expansion model have made the price competition of the sporting goods in this emerging market increasingly fierce. The Li Ning Co has to make a strategic adjustment, and the core is Lining's brand construction.

In fact, the consumption potential of China's sports market is far from being fully explored.

According to statistics, at present, the United States

The annual consumption is about US $64 billion, which is US $210 per person, plus 1300 yuan. In China, the annual consumption of sportswear and footwear is 110 billion yuan, and the average per capita is only 80 yuan RMB.

In the environment of consumption driven pformation, the sporting goods industry seems to be benefiting to a certain extent.

However, consumer confidence is still insufficient, and the growth of income level does not bring corresponding purchasing power to the sporting goods market.

In addition, the impact of leisure brands on the sporting goods industry and the lack of major sporting events, the industry believes that the growth rate of the sporting goods industry in 2011 will still be affected to a certain extent.

However, this is only a temporary phenomenon.

With the improvement of China's urban environment, the increase of sports venues and the development of community and youth events, the increase of sports population will be an inevitable trend, and the benefit of sporting goods market will be inevitable.

At the same time, with the rising cost of labor and rents, the traditional mode of operation based on price competition will be tested.

The last strategic adjustment was 10 years ago.

By focusing on the sports apparel and channel construction,

We have seized the opportunity for the rapid development of China's sports apparel market and maintained a compound growth of 30% per year for 10 years.

But today, the market environment is undergoing qualitative change.

At the annual meeting of Li Ning Co, Lining, chairman of the board, made clear: "the domestic market is constantly changing, and the environment which used to be regarded as a business opportunity has become a fierce competition environment.

As the threshold for entry is low, more and more participants have joined the active emerging market. Participants' similar channel based expansion mode has brought everyone into a fierce price competition environment.

In the past, relying on distributors to set up shop to promote growth is not sustainable.

The market at all levels has gradually increased from rapid scale growth to structural growth.

In the past, the inertia of business success, the temptation of rapid growth of low level consumer demand, and the financial expectations and requirements of the capital market have slowed the pace of Li Ning Co's progress.

"Therefore, we have accumulated and developed business in the past, but we haven't constructed a business model that we have always looked forward to that can not be copied and copied by others -- the core competitiveness of an enterprise."

Lining emphasized.

As a Chinese local company, it is not easy for Li Ning Co to create a world-class Chinese sports brand.

Brand building will be the focus of Li Ning Co's business.

The long term development of the future.

It is reported that from 2011, Li Ning Co will fully participate in the competition in the mainstream city consumer market, and continue to pursue the dream of Lining brand becoming a world-class sports brand.