"Lining" Rises In Price By &Nbsp, Or The Situation That Consumers Do Not Buy It.

" Lining It's hanging in the middle. brand The best is not, the most expensive is not, the most affordable, but the price increase is faster than the brand promotion speed N times, the style is technically Nike, Adidas The farther and farther, the closer the price is. " With the trend of price rising to the spread of sporting goods, consumers expressed their dissatisfaction and worries in the face of Li Ning Co's high-profile price increase.

Reporter survey, Lining price increases, most likely encounter consumers embarrassed situation, but at the same time face the risk of market share, the future worrying.

　　 Consumers do not buy it.

At the Lining store in Xidan, Beijing, sales staff told reporters that the down jacket in spring 2011 was about 50 yuan more expensive than in 2010 winter.

The reporter saw that the new short sleeved T-shirt was about 200 yuan, and the price of the new trousers was over 300 yuan. For the 20% increase in rumors, sales staff said, according to his feeling, the current clothing category rose little, about 8%. Footwear increased significantly in the 100 yuan section.

Speaking of the reasons for the rise in prices, the salesperson said that the rise in raw materials was only a small part, especially for clothing, mainly because of the increase in the cost of design and promotion. Pointing to the shelf, he pointed out that the current sports brands are taking the leisure route, and the color and style are becoming richer and richer, and the design cost is increasing. "The spokesperson has become Lin Chiling, and the cost of promotion has been greatly increased, all of which will reflect the cost of clothing."

The reporter put forward: "some people say that now Lining is catching up with the world's first line brand, so the price has to catch up first?" sales staff responded that Nike and other front-line brands of shoes and clothing will also have problems such as opening line, Lining can catch up with the first-line brand in quality.

Consumers are not buying it. A consumer interviewed said: "I saw a Lining sneaker 499 yuan the other day. I think I could buy another clover for 200 yuan, and decided not to buy it."

In the Nike store in Xidan, Beijing, the price of the T-shirt is basically around 200-300 yuan, and the price of T-shirt similar to that of Lining's brand is basically 200 yuan. The reporter interviewed several consumers randomly. They all said that if Lining's price caught up with Nike, he would definitely choose Nike.

The reporter then visited Adidas store. Adidas's sales staff told reporters that he had not received notice of price rise, and he himself did not feel that the price had been raised. About "if Nike and Adidas prices rise, will they buy? Will they choose other brands instead of?" questions, most of the consumers interviewed randomly said that they would reduce their purchases and hesitate when buying, but they would also choose when they had to buy.

Sales staff said that Lining in February this year will be July -9 months of goods ordered, "manufacturers have already confirmed the style when receiving the order, in addition, is also in accordance with the price tag of sample products to produce and price." Therefore, it is unlikely that price fluctuations will occur in the next six months.

　 Performance is worrying

Chinese sporting goods listed companies reported 4 billion 504 million 600 thousand yuan in 2010 and net profit of 15.6%. In the same period, Anta's revenue was 3 billion 453 million 100 thousand yuan, net profit was 27.2%, China's trend revenue was 2 billion 145 million 300 thousand yuan, net profit was 44.1%, XTEP's sales revenue was 2 billion 40 million 200 thousand yuan, and net profit was 21.8%, Lining. Lining ranked first in revenue and net profit margin ranked last.

Insiders explained that the reason for the negative earnings situation was that, in order to cope with the replacement strategy, Lining quickly digested the old stock. In the first two quarters of last year, that is, the accounting period in 2010, he adopted a strategy of "low turnover and high turnover".

However, Li Ning Co has changed its new trademark from the third quarter of last year to a year ago. In the recent Lining product orders meeting, it experienced a sharp decline in orders.

In the third quarter of Li Ning Co 2011 Lining's brand products ordering conference, the order amount decreased by more than 8% by the retail brand price, the wholesale price dropped by about 14%, and the order volume of shoes and service products dropped by about 17%, only the average retail price increased by about 10%.

At the same time, in the Li Ning Co annual report published in March, by the end of 2010, the total amount of losses has reached 201 million 300 thousand yuan.

Over the past decade or so, the growth mode of Lining's brand is the expansion of channels. From the more than 1000 stores six or seven years ago to the more than 7900 stores now, the scale of Li Ning Co has expanded rapidly. However, with the increase of the cost of production and sales in all parts of China, including the increase in the cost of retail channels, Lining will shoulder more heavy luggage.

Lining began to replace the new trademark from the third quarter of last year, and intended to get the brand premium through the promotion of the brand image, thereby pushing up the tag price.

When the international front-line sports brands have been cutting prices to occupy the market, Lining's move against the trend of price rises will probably encounter the situation that consumers do not buy it. The new high price tag will inevitably fail. The declining performance of the company is enough to make Lining "unable to eat".

　　 How to win the market in the future

What will Lining win in the future?

The competition that Lining faces is not only sports brands such as Adidas and Nike, but also brands like H&M, Zara and other non sporting goods monopolized brands.

Zhang Zhiyong, general manager of Li Ning Co, revealed that the price segment of Lining's main brand was between 250 yuan and 390 yuan, accounting for 70% of the total price. And foreign high-end brands represented by Nike and Adidas have been close to the middle end market by means of price reduction and promotion. Lining's brand influence is obviously hard to catch up with.

At the same time, a large number of domestic brands that occupy the market in the two or three tier cities also have enough strength to move from the low end to the middle end, and the future competition of the middle end market is doomed to be fierce.

At the moment, despite the pressure of rising costs and insufficient supply of goods, Nike and Adidas are afraid to raise prices very much. They dare not go up too much. Many agents predict that the price increase of 10% may be the limit.

At this point, Li Ning Co insisted: "as a result of wage and raw material costs, it is estimated that the cost will increase by 20% this year, and the price of products will increase by two digits." Zhang Xiaoyan, director of external affairs and public relations of Li Ning Co Ltd, said: "now that the cost has gone up badly, you have to ask which company price is not going up." Such a public statement is likely to affect market performance.

During the interview, many consumers regarded the high-profile expression at this time as a trend of rising prices. It is worth noting that there is still doubt about whether the so-called raw cotton will continue to rise in price. Tang Yu, a researcher at the mid term Research Institute, said: "since China's accession to the WTO, there are gaps in cotton every year. China will import every year. Cotton is mainly used in the first half of the year, and cotton is mainly used in the second half of the year. After October, new cotton will be on the market in India, and the price of cotton will fall naturally under the market regulation." And cotton supply and demand will not be abnormal, and prices will not fluctuate naturally.